What is Influencer Marketing?
Consider this: Would you purchase something if it came recommended by a friend, mentor, colleague or celebrity? Most consumers are more likely to purchase a product or service if it’s recommended by someone they know or trust (in the industry, we call that person an “influencer”). Many brands are now scrambling to leverage influencer marketing and endorsements to interest consumers and earn trust.
What is an influencer?
Influencers are simply individuals who are able to influence the purchasing patterns and habits of their friends and followers. Influencers often have a large social media presence and following, though some may have a small (but dedicated) following. Instagram is by far the most popular platform for influencer marketing, with 99.3% of influencers using it to execute marketing campaigns.
These highly-effective individuals are separated into two categories: Micro-influencers and macro-influencers. Micro-influencers have smaller followings (usually less than 10,000 followers), but a higher engagement and “like” rate. Macro-influencers—such as celebrities and other public figures—have higher following but lower engagement rates. Micro-influencers are often cheaper to hire than macro-influencers, but macro-influencers can reach a much wider audience.
Why engage in influencer marketing?
Influencer marketing is:
- Relatively cheap: Influencers often charge less than traditional advertising, with 84% of micro-influencers charging $250 USD for sponsored posts on Instagram (and 97% charging no more than $500 USD)
- Effective: Influencer marketing can generate up to eleven times the ROI of traditional advertising and help you reach a more targeted audience, and a majority (94%) of marketers agree that the practice is “highly effective”
- Growing in reach: The influencer industry is expected to grow from $2 Billion USD in 2017 to $10 Billion USD by 2020.
How does influencer marketing work?
Nowadays, influencer marketing campaigns involve outreach directly to influencers with an offer of a free product for review and/or monetary compensation in exchange for a sponsored post. Many influencers take their role seriously, don’t accept every offer that comes their way and desire payment for their time, talent and trust equity. If you’re unsure of how much an influencer’s post is really “worth,” you can use the YouTube Money Calculator or Instagram Money Calculator to estimate a realistic value.
Influencer marketing campaigns require a significant amount of research in discovering niche influencers and time in reaching out or pitching a partnership. Sponsored posts themselves may require work on behalf of both a brand and an influencer to maintain authenticity, integrity and relevant product information. Most guidelines require that influencers disclose when a product or service is offered free of cost or as a sponsorship agreement.
Interested in trying out influencer marketing for your next campaign? Contact Skyfall Blue today to see how our marketing team can increase your brand’s engagement.