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Life has changed drastically since the coronavirus forced social media stars to radically adjust how they do business and promote companies. When you consider that 50% of Black consumers trust Black celebrities, athletes & influencers for brand advice getting a co-sign for your business can mean big money. The market had been rapidly expanding as influencers proliferated, filling every conceivable niche and sub-niche interest, with brands set to spend $15 billion on influencers by 2022, just how valuable are they to a business's bottom line?
The Breakdown You Need To Know: CultureBanx reported that businesses are in search of ways to leverage the influence of the $1.3 trillion dollars of Black spending power, because of the cultural and financial collateral this community holds. With authenticity being key Black influencers ability to impact others purchase decisions suggests a sustainable industry, that marketing firm Mediakix expects to be worth $5 billion to $10 billion this year. When you mix strong Black influencers with Black-owned businesses the impact can be tremendous.
Influencers can have a lasting impact on African-American small business owners, who are younger and include more women than the general small business population, according to a report from Guidant Financial and the Lending Club. These companies need to harness the power of influencers from their communities. Especially because the study found 22% of African-American small business owners are millennials, and perhaps more willing to engage with influencers.
Epicenter of Influence: There are influencers who have pledged to help small businesses that are suffering due to the COVID-19 outbreak through the #Donate 1 Post campaign. They have agreed to donate one or more posts, valued at $3,000+ per post to promote small businesses to their followers. “If anyone can understand the struggle of minority owned small businesses, it’s the minority influencers that are and have small businesses themselves,” said Martin Ekechukwu, founder of the #Donate1post campaign.
Mega influencers are stepping up to help small businesses during these difficult times, like Yvonne Orji, actress on the hit HBO show Insecure. She commands a profound nearly 700,000 followers on Instagram, a platform that 43% of black adults use and is donating one post. “With much of our world turning to social media, it seemed like an effective, yet simple, strategy to support these businesses driving eyes and potential consumer dollars to their pages or websites, through a single post,” Orji said. Tapping into her influence is an easy way for small businesses to get in front of her aspiring followers.
Business, Culture & Influence: A study by Morning Consult revealed that Black consumers are more likely to heed brand advice from Black celebrities and influencers, than the public as a whole. Primarily because they sit at the epicenter of culture and knowledge existing in the margins of business. This makes these influencers more than a tool of brand commerce, they are a necessary salve for businesses in trying times like a pandemic.
A deeper dive into the Morning Consult study reveals that Black adults are more than twice as likely as all adults to seek out minority-owned businesses on a weekly basis (22% vs. 10%) and 48% of black consumers said they would be more likely to shop at a black-owned business, compared to 18% of all adults.
Next Wave of Influence: The celebrity rub has proven to increase sales for decades and influencers are vital intermediaries that help to connect companies with consumers on social media in a highly resonant, authentic way that can deliver immediate returns. It’s not just the Black community leaning on influencers during these difficult times, 80% of Americans seek recommendations before making a purchase.
