IMS NYC 2022: Why Future-Forward Campaigns Need a 360 Degree Process
Check out our speaker session from the first ever Influencer Marketing Show in New York City.
What is influencer marketing? It’s on track to become a $15 billion industry by 2022, but it’s an approach that many brands and marketers still find elusive, and have yet to consider. Here we break down the basics of how and why it works.
Have you ever been swayed in a purchasing decision because an influencer you follow used the product? Would you even realize it if you had? Growing research into influencer marketing has revealed that for many people the answers are “yes,” and “probably not.”
That’s exactly what makes influencer marketing work and how it has become such an alluring and powerful tool – it has the potential to shift the tendencies of a consumer base, and it can do it without readily apparent advertisements. Many individuals who see a well-designed piece of influencer marketing won’t even be aware that they have been advertised to. So, what exactly is influencer marketing, and how can influencers and businesses alike utilize these marketing tactics?
In the most basic terms, an influencer marketing campaign is a partnership between a brand and an influencer to promote a product or service on social networks such as towards Instagram users. This relationship can range from subtle tactics, like the casual use of a new product or the seemingly off-hand mention of a brand in, for example, an Instagram post, to more aggressive brand ambassadorships such as giveaways or ecommerce discount codes and special offers that deploy multiple sponsored posts (or for example Instagram stories) dedicated to promoting a brand. Depending on the brand and the reach of the influencer, either end of that spectrum may prove to be more cost effective. The purpose of the brand will also dictate which type of influencer to seek out. Picking the right influencer (looking at relevance and authenticity for instance, not just number of followers) can have a big impact on important metrics such as the engagement rate with the brand. You will also find that you may need to outreach to different influencers for each social media channel. Some content creators are strong on TikTok, whereas other have a large following and subscribers on different social networks, such as Instagram influencers.
For niche brands that appeal to a relatively small or well-defined consumer base it will be most effective for marketers to identify the best influencers that post content on social media platforms involving the purpose of the brand. As an example, a luxury cooking knife brand looking to reach potential customers would naturally seek to partner with a culinary influencer. The impact is two-fold; the potential influencer will be able to bring up the brand organically in their posts, and it is much more likely that their followers already fall into the brand’s consumer base and target audience – which leads to higher engagement. Alongside larger macro-influencers, often these brands can effectively utilize influencers with between 10,000 and 100,000 followers, or so-called micro-influencers.
For brands that appeal to a large swathe of demographics, such as clothing or cosmetic brands, a more overt approach is usually more effective. These brands are not only tasked with drawing in a much more diverse group, but also typically face much more competition while doing it. For a truly effective influencer marketing campaign within these sectors, the ideal follower count – and the cost of the campaign – goes up considerably. Which begs the question; how much should a brand expect to pay for influencer marketing?
The truth is that there isn’t a catch-all guide for influencer compensation, but negotiations typically begin around $100 per 10,000 followers. And it isn’t just the money – most influencer contracts include other benefits like free products, travel to create more attractive posts, and much more. All told, a brand should expect to invest in excess of one million dollars of their marketing budget for a single post from a mega-successful influencer with 100,000,000 or more followers. The cost can be daunting, but the return on investment is undeniable. A study by Civic Science found that 11% of millennials bought a product in the last 6 months explicitly because an influencer recommended it on their social media posts, and that’s not even considering how many in the target market were influenced without realizing it. Influencer marketing reach even expands to word-of-mouth and testimonials from people to their friends and family.
Along with social media marketing, more than 66% of brands use influencer marketing strategies, and that isn’t going to change. The growth of new audiences on social media will only increase the effectiveness of influencer marketing, and the competition will only grow steeper as more brands enter the arena. Brands and influencers have the opportunity for mutually beneficial relationships on a scale that has never been seen before, and there has never been a better time to utilize influencer marketing.
Find out how Takumi can work with your company on social as part of its digital marketing and content marketing strategy or with you as an influencer and find the right options for you – contact Takumi today for more info.
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