This is how 80% Brands are Yielding Positive ROI with Influencer Marketing
20 Sep 2017
The craze we know as influencer marketing took off instantly as the digital marketing world exploded earlier this year with brands willingly paying big bucks to get their products promoted.
It clearly is a broad shift from the regular focus on strategic marketing campaigns that aim at the target audience. This is a new kind of personal branding where a leader, in your specific market, who already has an audience can bring their attention towards your brand and products. Now more brands are willing to pay influential people like a-list celebrities and leaders to associate themselves with their products and services. Even small businesses understand that a little bit of money spent on a social media influencer, with a few thousand followers in the market, can go a long way.
In return for the money that brands are spending on influencers, they are getting targeted exposure to the right kind of consumers who are more likely to be interested. These influencers can be found on all major social media networks like Facebook, Instagram, Twitter and Snapchat. The interesting part is that most of your favorite influencers are already promoting brands and these influencers are a new generation of modern day stars who know how to collaborate with brands.
Another good thing about influencer marketing, which makes it all the more effective, is that the constant threat of ad blockers, for business who are pay big money for running ads, is instantly annihilated.
Understanding Influencer Marketing
Influencer marketing is a new form of marketing that is gaining popularity fast. It places specific focus on influential people who have power over potential buyers. It includes creating marketing activities around influencers who frame content as testimonial advertising.
This form of marketing is contributing to a higher level of engagement with consumers. Influencers are the ones we spend time watching, following them on social media and keeping our eyes on them. This is one of the reasons why more brands are seeing the value of paying these influencers to represent their products. Brands make sure what they pay for has an impact on the consumers.
The interesting thing is that this trend is not limited to mainstream or popular markets but influencers are centered in almost all kinds of markets. Some of the best influencers today are teenagers who have big followings on social networks like Instagram and Snapchat. They are now negotiating with big brands and smartly integrating campaigns with their unique stories.
Benefits of using Influencer Marketing
More and more brands believe that influencer marketing is helping create deeper and more authentic relationships with influencers, driving more ROI and getting consumers to purchase the recommended products. Some of the many benefits influencer marketing offers includes:
- Higher audience reach
- Better ROI and traffic
- Higher engagement and sales
- Better connection with audience
Unlike the paid ads which brands run on Google or various social networks, this kind of marketing has a more organic feel to it and tends to be less invasive. Influencer marketing is helping brands feel more connected to their target audience which is enabling them to connect to the younger community as well. Millennials, in this regard, are no longer just the target audience for many brands. Most influencers are millennials which is why they are able to help market brands more effectively with their generation, mostly because of the influence they have over their followers.
But the grass isn’t always greener.
Influencer marketing has its own set of pitfalls.
With more brands demanding influencers to promote their products, influencer marketing has already become a bit tricky to navigate. As influencers become savvy about their power and value, their cost rises exceptionally, leading this marketing venture to fail for many brands. Many businesses and companies are finding it exceptionally difficult to connect with influencers relevant to their market.
Some of the most common challenges of influencer marketing includes the inability to find and gather sufficient data to track metrics and generate reports to access the activity. To top it off, brands have to relinquish their control over marketing and hand their trust over to the influencer who needs the liberty and flexibility to promote the products in a style that suits them best. Brands aren’t the only ones who face challenges though. Many influencers also complain regarding the inadequate pay, restricted deadlines and inadequate freedom they are offered to express their creativity.
Money is a whole different story.
There are brands that invest tons of money and claim to be getting amazing results while there are others who complain about not have budgets big enough to engage influencers. Of course, now this also depends on the influencer too. The bigger the name, the more money it will cost you. You just cannot expect to engage Kim Kardashian with a few hundred dollars.
Sometimes astounding success comes with astounding amounts. But not always.
On average brands are expected to spend $20,000 to $25,000 and higher to bring an agency in which is why those who have allocated a lower budget than this to marketing should just consider getting this done in-house. But despite the budget, many brands are failing at influencer marketing because they:
- Fail to engage the right influencer for their products
- Are unable make their marketing goals and intentions clear
- Do not communicate successfully and fail to deliver their pitch
- Don’t intend on working on a long term relationship
- Are unorganized and fail to track essential marketing data
Time to start influencing…
Inadequate pay and no creative control is mostly the biggest hurdle for influencers. However, brands need to understand that they can gain more by making influencer marketing mutually beneficial. Offering better pay and free gifts is one way to keep the influencer happy.
After all, you get what you pay for.
Although still in its infancy, influencer marketing is predicted to grow into one of the most leading forms of online marketing in the coming years. It certainly has gained hype fast by helping influence audience for all sorts of businesses the world over. Make no mistake, with an organized strategy and mutual understanding, brands have much to gain and nothing to lose.