The Basics of Influencer Marketing and How It Can Increase Sales
Influencer marketing has become a household name in the world of online promotion. You’ve likely heard it buzzing around for some time, mentioned in passing on the news or in your favourite podcast. However, only a few have thoroughly acquainted themselves with the intricacies of influencer marketing. Many people encounter the term and find themselves puzzled, questioning, “What exactly does influencer marketing mean?”
Influencer marketing is like a smoothie made from classic and modern marketing ingredients. Consider this strategy a fusion of traditional celebrity endorsements and contemporary content-centric campaigns. The twist is that the campaigns are not solo performances but duets sung by brands and influencers.
However, collaborating with digital creators and influencers can be challenging for brands. But don’t worry; we provide a strategic guide to assist you in making heads or tails of it all.
Keep scrolling for our advice on building a successful influencer marketing plan, pitfalls to steer clear of, and more.
What is Influencer Marketing?
Influencer marketing puts a unique twist on social media outreach. In this approach, endorsements and product mentions come directly from influencers. These individuals have established a reputation because of their expertise or significant influence.
Utilising relevant influencers to promote your brand has emerged as an impactful strategy. The efficacy of this strategy largely stems from the profound trust influencers have cultivated with their followers. Their endorsements of your brand serve as compelling social validation, influencing potential customers’ perceptions and purchasing decision-making.
Types of Influencers
The influencer outreach scene has evolved, distinctly segmenting into five key categories:
- Mega influencers
- Macro influencers
- Micro-influencers
- Nano influencers
- Employee influencers
While it may initially seem that the only distinction among these groups is their follower count, it’s more intricate than that. When partnering with influencers, the differences lie in the subtleties.
To begin with, starting your influencer selection process requires a deep understanding of the significance of each influencer. Consider audience reach, diversity, cost, and engagement factors. With this knowledge, you can find content creators who match your brand’s goals and mission.
Let’s delve more into the different types of influencers available:
How Much Does Influencer Marketing Cost?
In 2021, the average cost for an Instagram post was $1170; for a story, it was $906. That may seem expensive, but don’t worry; these figures are just averages to guide you in budgeting for your influencer campaigns.
Now, how do influencers decide their rates? Well, their follower count and engagement levels primarily determine it. Still, things like unique skills or a specialised audience can also influence the price tag.
Most influencers have a rate card – like a menu at a restaurant – listing the costs for different types of content they can create. You can use these rates as your starting point when planning your campaign.
Influencers have a deep understanding of their audience and their reach. Therefore, they can set fair prices for their promotional services. As a result, this could eliminate the need for negotiation over costs.
According to industry standards, here’s a rough guide on what you can expect to pay, depending on the influencer’s reach:
As a rule of thumb, the industry standard is $100 per 10,000 followers. You can estimate an influencer’s rate by multiplying their follower count by this rate. However, don’t forget to add extra costs like shooting expenses or exclusivity fees.
Or, you can calculate an influencer’s base rate by taking 4% of their follower count. Then, add the cost for the number of influencer posts and any additional factors. As a result, that should give you a ballpark figure for what you’ll need to budget.
Why Use Influencer Advertising?
Have you ever wondered why social influencer marketing has become so popular? The answer lies in its sheer impact on reaching a target audience.
Social media have influenced a significant portion of young people across the globe. When they see a product on the social feed of someone they follow, it prompts them to buy it. That’s the powerful influence of this marketing strategy.
Furthermore, influence advertising is no mere fleeting trend. The industry impressively hit $16.4 billion in 2022 and is on track to ascend to $21.1 billion in 2023. What’s more, it’s not just hype; it’s a marketing approach that consistently delivers tangible results.
The Benefits of Influencer Marketing
To truly understand the appeal of influencer marketing, let’s delve into its benefits:
1. Amplified Brand Visibility
Influencer marketing can dramatically escalate your brand’s visibility. Thanks to the large audience influencers command, partnering directly exposes your brand to a broader demographic.
2. Trust-Building among Customers
Influencers actively foster deep, trust-based relationships with their followers. Hence, when they vouch for a product or service, their followers are more inclined to trust the endorsement.
3. Boosted Engagement Rates
Content shared by influencers usually garners high engagement levels. This can lead to an uptick in your brand’s social media interactions, including likes, comments, and shares.
4. Enhanced Brand Credibility
An influencer’s endorsement can add valuable credibility to your brand. This is something that traditional advertising techniques often struggle to achieve.
5. Increase Brand Awareness
Collaborating with an influencer can elevate your brand’s awareness. This could lead to an influx of new customers and increased sales.
6. Authentic Promotion
Influencer marketing is, indeed, a unique form of promotion. Notably, it appears more genuine to the audience. Additionally, influencers can integrate your product into their content.
This seamless integration makes it feel less like a traditional advertisement. Instead, it creates an atmosphere that feels more organic and relatable to the audience.
Remember, the cornerstone of successful influencer marketing lies in identifying the right influencers. These are the individuals who resonate with your brand values and have earned the trust of their audience.
Influencer Marketing challenges
Influencer marketing, while impactful, presents its own set of hurdles. Like in any relationship, success depends on seeking and finding the perfect match.
Engaging with an influencer not aligned with your brand can harm your campaigns. Also, their involvement in controversy may damage your reputation. Essentially, the influencers you partner with become reflections of your business principles.
The Consequences of Poor Influencer Selection
Furthermore, selecting an influencer from an unrelated field could complicate your product or service marketing. For instance, a fitness expert promoting a luxury chocolate brand may not resonate well.
The Importance of Research in Influencer Partnership
Therefore, conducting thorough research before collaborating with an influencer is crucial. Could you look into their history, scrutinise their lifestyle, and confirm it’s harmonious with your brand philosophy?
Building Long-term Relationships with Potential Influencers
Having a team member for understanding potential influencers beyond their online persona is beneficial. Notably, it’s crucial to have influencers who represent your brand, uphold your values and genuinely connect with your audience.
How Influencer Marketing Works
Imagine you’re an influencer whose brand wants to partner with you. Well, there are generally two ways this can happen:
1. The “Pay-Per-Post” Model
The brand hands you a nice little paycheck just for featuring their product or service in your post. People often actively refer to this arrangement as a brand deal. Even influencers without millions of followers can charge tens of thousands for a sponsored post. For celebrities, the rate per sponsored post can soar into the hundreds of thousands or more.
2. The “Affiliate Marketing” Model
In this scenario, you share a product or service with your followers and include a unique link or promo code. Every time one of your fans clicks on this link or uses your code to make a purchase, you get a small share of the profit. In short, it’s like being a virtual salesperson, earning commission on every sale you help make.
That’s a typical representation of an influencer marketing agreement. Influencers can make money through a flat rate per sponsored post or by earning a commission on sales. Both methods allow them to do what they love – connecting with followers and sharing their favourite things.
What are the Best Platforms for Social Media Influencer Marketing?
Let’s dissect the top platforms marketers use for influencer marketing. These are also the platforms where influencers significantly increase ROI for businesses.
1. Instagram
Instagram influencer marketing is like the leading actor on the influencer outreach stage. A survey on social media trends revealed that 72% of marketers collaborate with influencers. Notably, this collaboration happens primarily on these platforms.
Also, 30% of marketers claim they see the most significant ROI on Instagram. If further proof is necessary, 32% confidently assert that it’s the most accessible platform for forming influencer partnerships.
2. YouTube
YouTube is a solid player, too, with 58% of marketers collaborating with creators here. Regarding ROI, it’s not quite the MVP like Instagram, but it is still a strong contender, with 20% of marketers reporting high returns. A similar percentage of marketers find YouTube user-friendly for influencer collaborations, with 18% planning to increase its use.
3. TikTok
TikTok is the new kid on the block, but it’s making its presence felt across all corners of the globe. About 61% of marketers are already teaming up with influencers on this platform. However, only 14% think that it offers the highest ROI. The same percentage finds TikTok the most accessible platform to work with influencers.
4. LinkedIn
Often overlooked, LinkedIn is the dark horse in the influencer marketing race. It holds significant potential, particularly for B2B businesses. LinkedIn’s professional environment offers industry leaders and influencers a unique space to share valuable insights. This makes it an effective platform for thought leadership campaigns.
5. Facebook
Lastly, we still have Facebook, a powerhouse in the social media world. Facebook is still in the game, with 57% of marketers using it for influencer collaborations. And it’s neck and neck with YouTube regarding ROI, as 20% of marketers report high returns from their efforts on this platform. Plus, 18% find it the most user-friendly when working with influencers.
Each platform has unique strengths; the best depends on your specific goals and target audience.
What Makes a Successful Influencer Marketing Campaign?
The success of your campaign will come down to its authenticity. Consider it as establishing connections with influencers who already resonate with your brand’s ethos.
These influencers champion sustainability, whip up culinary delights, promote body positivity, and lead healthy lifestyles. The key is identifying if your brand meshes well with their image.
Influencer marketing involves spamming posts endorsing your products and actively forging genuine connections with these creators. You want these content creators to be more than just promoters; you want them to be true believers in your brand. So, before kick-starting your next influencer marketing venture, ask yourself: does our brand genuinely resonate with this influencer? The more natural the alliance, the more impactful your campaign will be.
Steps to Start an Influencer Marketing Campaign
To make the most of your influencer marketing strategy, think of it as embarking on an exciting journey. Here are some crucial steps you should consider:
1. Set Clear Goals
The first step in any effective marketing campaign is defining clear goals.
You could start by setting goals such as:
- Defining what you want to achieve from your marketing
- Identify how you will measure the success of your campaigns
- Set your key performance indicators
Having well-defined goals is like having a compass that guides you towards your desired destination.
2. Know Your Audience
Next, you must grasp a deep understanding of your target audience:
- Who is your target audience for your outreach efforts?
- What goals and needs does your target audience have?
- What challenges do your target audience face that you can assist with?
- Which social media platforms do they spend time on?
Understanding your audience helps you tailor your journey to meet their needs and expectations.
3. Plan Your Budget
Just like planning a trip, assessing the budgetary constraints for your marketing is imperative. Establishing a budget will help you decide how much you can invest in collaborating with influencers.
4. Choose the Right Influencers
This is similar to choosing your travel companions. Take your time to find influencers who align with your brand values and have the right followers. Are you looking for a social media sensation or someone with a substantial following in a specific industry?
5. Monitor and Adjust Your Strategy
Finally, keep an eye on the road ahead and monitor and adjust your strategy. You must constantly track your campaign’s performance and be ready to tweak your plan if necessary. In particular, you must ensure you are reaching your goals. Always ask yourself, do I need to make changes to boost the effectiveness of my campaign?
Remember, the key to a successful influencer marketing campaign is authenticity. A genuine connection between the influencer, their audience, and your brand is crucial.
Guidelines for Working with Social Media Influencers
If you’re thinking about teaming up with social media influencers to expand your reach, here are some friendly pointers to keep in mind:
1. Choose the right influencer
Think of this as finding a brand ambassador. You want someone who resonates with your brand’s ethos and can uphold its image. In short, it’s not just about their popularity but their fit with what your brand represents.
2. Quality over quantity
Don’t get starstruck by the number of followers an influencer has; it’s more about the quality of their engagement. An influencer with a smaller, engaged audience can often outperform one with millions of followers but low interaction.
3. Get it in writing
Like any business deal, it’s wise to have a formal agreement outlining everyone’s roles and responsibilities. This helps ensure clarity down the line.
4. Offer more than money
Payment is part of the deal, but try to offer value beyond the paycheck. But consider, can you add value and help them grow their brand and expand their reach? Do you think this collaboration will benefit both parties?
5. Do your homework
Finding the right influencer is akin to hiring a new team member. Take the time to evaluate their content and previous partnerships to ensure they’re the right fit for your brand.
Remember, the right influencer can elevate your brand and solidify your presence in your industry. In short, it’s all about finding that perfect match and cultivating a mutually beneficial partnership.
The Bottom Line
Influencer marketing has proven an effective digital strategy for businesses looking to increase their visibility and sales. With its potential to reach a vast audience and build trust, it’s a strategy that companies should consider. All sizes of companies should think about integrating it into their marketing mix.
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