To know what peer-to-peer (P2P) advertising and marketing is, let’s begin with an instance.
Lately, I used to be on the lookout for a brand new face moisturizer. In fact, I may’ve trusted the quite a few influencers I comply with on Instagram, all with robust opinions relating to the “finest, handiest” choices obtainable.
However I wasn’t satisfied these influencers had my finest curiosity in-mind. Sure, most influencers’ (and micro-influencers) are profitable as a result of they promote invaluable merchandise. However they’re getting fee off these posts, too.
So I dealt with my drawback the old school approach — I texted my associates and requested what merchandise they use.
This is not to say influencer advertising and marketing is ineffective. Fairly the alternative: When performed proper, influencer advertising and marketing is a implausible alternative to develop your model’s attain and enhance gross sales.
However relying in your staff’s price range, influencer advertising and marketing might be limiting. Plus, influencer advertising and marketing inhibits your model from reaching these shoppers who nonetheless belief their friends above all else.
Enter: P2P advertising and marketing.
What’s P2P advertising and marketing?
Peer-to-peer advertising and marketing (in any other case referred to as P2P advertising and marketing), is when shoppers advocate services or products to their friends. An efficient part of word-of-mouth advertising and marketing, P2P advertising and marketing makes use of evaluations and private suggestions from prospects to enchantment to new audiences.
Given 93% of consumers trust friends and family over all different influences (together with evaluate websites, blogs, and social media platforms), it is sensible why P2P advertising and marketing works.
And P2P advertising and marketing, a type of word-of-mouth advertising and marketing, is not new. Folks have been giving private opinions about their favourite — and least favourite — manufacturers, merchandise, and providers lengthy earlier than social media.
Some older types of P2P advertising and marketing embody Yelp, evaluations on private enterprise’ web sites, and good old school conversations between your shoppers and their family and friends.
Nevertheless, there are some new instruments that assist companies leverage P2P advertising and marketing on a broader scale. Amazing Brands, as an illustration, helps companies generate buyer evaluations and referrals, assure occasion attendance, and even enhance in-store foot visitors.
The instrument in the end depends on the premise of P2P advertising and marketing, which is that there is nothing extra highly effective than peer suggestions.
Different instruments, like Higher Logic, work to determine a way of neighborhood amongst current shoppers, and enhance model loyalty — a essential part of P2P advertising and marketing. (Since shoppers will not refer services or products in the direction of which they do not really feel loyal.)
Nevertheless, in case you’re studying about P2P advertising and marketing for the primary time, you could be questioning — why spend money on P2P advertising and marketing, as an alternative of extra conventional types of influencer advertising and marketing?
And what is the distinction, anyway?
What is the distinction between P2P advertising and marketing and influencer advertising and marketing?
Over the previous couple years, influencer advertising and marketing has been one of the standard and efficient alternatives for manufacturers to succeed in new audiences by leveraging these influencers’ built-in communities.
Nevertheless, as talked about above, shoppers nonetheless belief their very own friends greater than anybody else. And influencers can typically really feel like celebrities to most of the people — in reality, typically, they are precise celebrities, like George Clooney with Nespresso. This removes a degree of authenticity you could be striving for as a model.
Moreover, many small and medium-sized companies cannot afford the standard influencer price. Superstar or macro-influencers cost between $3,000 and $500,000 for a single post — and whereas micro-influencers are undoubtedly cheaper, they’ll additionally cost upwards of $500 per post.
In the end, P2P is a type of advertising and marketing that may really feel more and more reliable and genuine by actual, real evaluations from friends who don’t have any incentive to advertise companies they do not care about.
To additional discover the distinction between P2P advertising and marketing and influencer advertising and marketing, let’s contemplate an instance.
Jessica Alba’s enterprise, The Trustworthy Firm, has a referral program in which they credit existing customers $20 for every invited pal who makes a purchase order.
That is an instance of P2P advertising and marketing.
Influencer advertising and marketing, then again, refers back to the influencers on Instagram (in addition to different social platforms) who tag posts with #honestambassador, signifying the put up is sponsored by The Trustworthy Firm.
These are each equally invaluable advertising and marketing choices, however they obtain completely different targets. The P2P advertising and marketing initiative (on this case, the referral program), goals to faucet into The Trustworthy Firm’s current shoppers to succeed in new prospects.
The P2P program is probably going extra slender in attain, however has the potential to transform extra rapidly than influencer advertising and marketing, because it’s leveraging the facility of an current relationship between prospects and their associates or household.
The influencer advertising and marketing program, alternatively, is supposed to unfold model consciousness about Trustworthy Firm to a wider viewers.
P2P advertising and marketing can take many alternative varieties relying in your model and enterprise targets — together with making a referral program, encouraging evaluations in your website in alternate for a small low cost or prize, or organizing occasions meant to extend model consciousness to the bigger neighborhood.
In the end, P2P advertising and marketing comes right down to rising the motivation to your shoppers to share your services or products with family and friends, which is undoubtedly probably the greatest long-term methods for fulfillment.