The word "influencer" is thrown around a lot these days, and it’s easy to see why. It’s clear that if you have an audience or a brand following on social media you can help others and make money in the process. But there are also many risks associated with influencer marketing, from poorly targeted audiences to the emergence of bots.
In this blog post we will explore why influencers are so attractive to brands and consumers alike, how they can make money through various methods including affiliate marketing, product endorsements, sponsored posts, adverts- and more importantly- what they need to be aware of when engaging in influencer marketing activities.
Why are Brands Dealing with Influencers?
The biggest reason brands want to work with influencers is for the exposure. It’s a great way to reach large online groups and those audiences tend to be more receptive, we call it earned media- rather than the intrusive advertising we are used to seeing on TV, billboards etc. You can choose who you want to work with, so you have control over your message and it comes across as part of a conversation or recommendation.
It also has a high ROI (Return on Investment). A report found that influencer marketing generates 3x more engagement than any other form of digital marketing and also has 6x higher conversion rates than paid advertising.
Here are some other reasons why brands choose to work with influencers:
- Brands want a connection with their target market. This way, they can create an interactive relationship with consumers on a personal level.
- They want to engage people in conversation so they can form opinions and share those opinions across their social media accounts to their target market.
- They are less aware of the competition, so they can use influencers as a defence mechanism against the fickle nature of consumers. The target audience will see an opinion from a known source rather than from random blogs they have never heard of.
What's the difference between Influencer and Brand?
A brand has a target market, or it is one itself. Influencers often don’t. They have their own following or niche audience.
A brand is more likely to promote in-house advertising campaigns, but influencers are more inclined to work with brands who have a product or service they can promote in return for payment.
How Much Should One Pay For Influencer Marketing?
The most important factor when determining the amount you should pay an influencer is how many followers they have and whether they will truly be interested in working with your brand. The second most important thing to consider is how long the engagement will last. As we said before, there is a high ROI in the return on investment from influencer marketing, but it could also be possible that you end up paying for a post that didn’t have as much lasting impact as you had hoped.
In general, influencers' followers often make up more than six times the value of their own followers in terms of cost per like/share/click. So in order to stand out and receive more engagement with your post, it’s best to aim high with your budget at first and see what kind of potential you have to land good influencers.