Is influencer marketing worth it?
Influencer marketing brings 11 times higher ROI than digital media. Compared to AdWords, it can increase your revenue up to 9 USD per 1 USD you spend. But, some might not agree with those statistics. In 2019, Arii, an Instagram influencer, could not sell even 36 t-shirts to her 2 million followers!
Forbes argues that this marketing approach still works. Let’s reminisce about the buzzing event, Fyre Festival that featured Kendall Jenner, Hailey Bieber, and Bella Hadid. The event was awful, but it proves how real influencers can powerfully promote the brand. You just need to do it the right way.
What is influencer marketing?
In a general term, influencer marketing is one of the promotional marketing strategies in social media. Specifically, the advertising counts on influencers, individuals that are categorized as experts in the niche, to share their products. This approach works because those influencers have built their tribe and their followers trust them.
When a brand asks the influencers to work with them, they will recommend it to their following and it can be the social proof to the brand. You can say that your products have been endorsed by that influential person, so your potential customers will be eager to check that out.
Types of influencers
Influencers are divided into some categories based on the number of followers and media or field they work on.
Micro-influencers have about 10 thousand followers or even less. Looking at the number, it seems that the campaign will not be effective because they do not have a huge reach.
The reality is the opposite. The power of micro-influencers is on their engagement with the followers. A study has shown that 82 percent of consumers follow their recommendation, and they have 22,2 times higher in buying conversations.
If influencers have more than 100 thousand followers, they are included in this category. They are widely known, but not as popular as celebrities. The strength point of macro-influencers is that they can improve your brand awareness because they can target a large audience.
- Mainstream celebrities
Mainstream celebrities are the “traditional” way in influencer marketing. It includes athletes, movie stars, models, and other popular public figures. Their influence is valid and has been used for marketing since years ago. Due to the reason, they are mostly associated with big brands.
Blogging has not died. Many bloggers are still weighty to promote your product. They can win the SEO on search engines and reach people from their website. For example, Dan Flying Solo, a travel blogger, is getting more powerful as he features with National Geographic and Travel Channel. He shares amazing photos around the world and useful tips.
Vloggers are similar to bloggers, but they publish their stories with a video. They use streaming platforms such as YouTube or TikTok their content about anything like daily lives, beauty, and gaming. The example of vloggers is James Charles who has 19 million subscribers on YouTube performing his talent on makeup.
How to build an influencer marketing strategy
- Do research
Like any marketing strategy, you have to start with research and deep audience analysis. Decide the network you want to focus on and consider your industry.
This is crucial because audience demographics can vary on how audiences use marketing channels. For instance, Facebook is a huge success to market to Baby Boomers to Millenials, but Generation Zers only open it once a week.
And, certain industries have different network loved by the community. For example, YouTube is the perfect platform if you are in the gaming industry. YouTube freely lets over 50 percent of gamers share their favorite games and gaming scenes.
- Set a budget
During the research, do not forget to set your budget since it determines what types of influencers you can afford. If you have a small business, micro-influencers can be your preference. You also need to review their niche because they may be strict and only accept certain products.
If you have more budget, you can ask macro-influencers to work with you. This makes your brand look exclusive because they are popular and looked up to by many people.
Setting the budget also helps you count the ROI you will get. For example, you decide to hire Kendall Jenner with her 115 million followers. Her payout is about 250,000 USD, which seems a lot. But, imagine if you promote a 100 USD product and sell it to at least half of her followers, you can receive more than 5 billion USD! That is a huge amount of money.
- Pick a message and goal
The majority of influencers will be ready to serve if you have a specific message and goal to achieve. What kind of value do you want them to deliver? Which group of people do you want to reach?
It is because they also need to think about how they will arrange the sponsorship or endorsement and how they write the caption. Even though they have their uniqueness and creativity, you do not want them to publish irrelevant content, right? Hence, plan out your marketing goals before reaching the influencers out.
- Find the influencers and contact them
After gathering the data, find your perfect influencers. Think about whether they perform similar things to your product. If you own a culinary business, aim people who are foodies and often post about that.
Make sure you examine their engagement. Take a look at the number of their followers and likes, if it is on Instagram. Do they make sense? Or, the “influencers” only buy followers? Moreover, analyze their partnerships on whether they have worked with your competitor or promote similar products.
Micro-influencers are usually available on the same platform. The advanced ones often put business inquiries in their bio.
- Track the campaign
Last but not least, review the campaign. You can ask them to send you a screenshot of their post insights, so you can see the numbers on reach, impressions, likes, and other details. Influencers are always there. The more important thing is that you set an effective influencer marketing strategy first.