"Influencing" your brand
For years, marketing and advertising, in print or television media, was the primary means of driving customers to a brand. Whether it was a mascot, a catchy tune, or a visually stimulating depiction of a product, that is how companies, including large, franchised brands of varying consumer products, brought customers in the door. However, as with anything, change is ever present, and that is no different with promoting consumer goods.
Today, one distinct change for promotion is the use of “influencers,” or individuals that create content on social media platforms such as YouTube, TikTok or Instagram. Such influencer’s build a following based, to a great degree, on consumers’ perceived expertise of the influencer with respect to the particular area of interest being promoted, whether that be fashion, travel, cuisine, beauty or fitness – all areas in which the franchise model has thrived over the years. Delving into this specific form of marketing and advertising, whether by a franchisor or franchisee, could, given the incredible reach of social media, be a benefit, but it should be approached with eyes wide open, and with consideration of the potential negative impacts that could occur.
It is inarguable that utilizing the popularity of an influencer, and their skill at reaching a dedicated following, could have certain positive impacts for a brand, whether utilization is by the franchisor or franchisee. Promotion by an influencer could bring visibility of a brand to a larger audience, with the obvious potential of bringing in new customers, including those from a demographic that may not previously have had significant exposure to the brand. This could be particularly beneficial for a local brand, or franchise location, looking to raise awareness in a specific market.
Collaborating with a local influencer on tailored marketing and promotion to regional preferences could assist a brand to remain relevant in local markets while maintaining the larger brand identity. Additionally, if an influencer is considered a trust-worthy source of information and shares a positive experience, that influencer’s promotion of a brand could be viewed as more “authentic” and personal, certainly when compared to more traditional marketing and advertising. Lastly, working with an influencer could be a cost-effective means of advertising, when compared to other, more traditional methods. The return on investment, if managed correctly, could be meaningful to the franchisor or franchisee, including, but not limited to, a boost in online presence, particularly through social media, and increased engagement and interactions. Given an influencer’s ability to directly embed links in their social media posts, the impact, depending on the brand being promoted, could be rather immediate.
However, as with all positives, there are potential negatives. When considering the engagement of an influencer to promote a brand, there are issues to consider, with certain being applicable to the franchise model, and particularly franchisees. Many franchises operate under strict brand guidelines. As such, it may be challenging to ensure that an influencer is always operating between the lines and, specifically, is not veering or deviating from messaging that could cause brand inconsistency with respect to the entirety of the franchised brand. Also, before considering any engagement with an influencer, it is important to understand, and investigate, the influencer’s online presence and any past situations that the influencer may have been involved in that negatively impacted their reputation, even if only for a short period of time.
Data never dies and if there is something in the influencer’s past, it is important to understand that even if the influencer currently has a significant following, that negative past could still have an impact on the future promotion of a brand. Additionally, there is the potential that, even with the best intentions, the engagement of an influencer may have uneven benefits across a brand, with larger franchisees in urban areas profiting at the expense of smaller rural locations. Further, although the return on investment if managed correctly could be meaningful, it must be managed, which can be time-consuming. Determining if promotion codes or affiliate links, for instance, have increased foot traffic takes away from other business-related activities, the cost of which could directly cut into the benefits received from utilization of an influencer. Lastly, and specifically with respect to franchises, there is also the possibility of compliance issues and legal risks, including following FTC guidelines concerning, for example, the disclosure of sponsorships.
Influencers are omnipresent in nearly every social media platform. As such, the utilization of an influencer in order to reach their “masses” to promote a product is a legitimate consideration for businesses, and particularly franchisors and franchisees. As noted above, the benefits could be substantial, but that only comes after considering the potential pitfalls of such collaboration.
Reach out to attorney John Polinko or a member of McDonald Hopkins' franchising, licensing, and distribution team if you have questions regarding influencer marketing as a franchisor or franchisee.
