Influencer marketing is on the rise. We see them everywhere. We are scrolling down our Instagram feed during the morning commute, we might see a great pair of shoes or maybe even a delicious 3 layered lasagne that tempts us to give up our resolute resolve to remain on a low carb diet.
Compared to traditional advertising, where brands used to push content onto the audience, a properly executed Influencer marketing campaign targets existing audience who already follow influencers because of the content these influencers are sharing! It is a ‘pull’ not a ‘push’.
For example, I love great food. So I followed @decadentfoods on Instagram and adore their colorful feed. Should ‘decadentfoods’ do a sponsored post for a new bakery in the neighborhood, I would definitely be interested.(In hindsight I might have underestimated my resolve when I drooled at the posts from ‘decadentfoods‘)
If you find Influencer marketing to be ‘fluff’ or maybe just plain chaotic I do not blame you. There are too many things going on at the same time. Too many factors to consider when planning an influencer campaign. Regardless if belong to the big brands who have the resources to contract it to agencies or In-house marketers trying to venture out on your own, here are 5 interesting snippets on influencer marketing that will help start you out on your journey
1.Influencer Marketing will only increase thanks to the rise of the Ad Blockers
47% of online consumers are already using ad blockers. Ad blocking is a type of software/hardware that can remove or alter advertising content from a web page, website or even a mobile app. This impacts publishers across all industries.
What does this mean for advertisers? As ad blockers become more popular, the industry will be forced to reevaluate as publishers seek new means of monetization. One of the most effective means to reach consumers is to publish quality content through the channels they trust and follow i.e. Influencers!
With the rise of ad blockers, it should be no surprise if brands begin emphasizing more on influencer marketing to reach their target audience. As with any industry trends, the early adaptors will enjoy greater benefits as compared to the laggards fight for survival.
2. High Earned Media Value
Influencer marketing not only allows brands to reach their audiences, marketers receive on average $6.85 in earned media value for every $1 spent on influencer marketing. From Consumer Packed Goods to Tourism, properly executed influencer marketing has been delivering attractive returns for early adopters.
As compared to traditional media, influencer marketing also has the opportunity to go viral. It ultimately boils down to the content, choice of influencer and execution. While content and execution lie with the skilled folks of your marketing department, how will you choose the right influencer?
3.Not all Influencers are the same
At its infancy, most brands jumped to celebrities and macro influencers to promote their branding but soon realized that at times, a more targeted approach brought around greater engagement. In general, as the number of followers increases, engagement rates will drop. As such, Marketers will need to selectively engage with the type of influencer they require for their campaign.
Followers of micro-influencers are generally more aligned in terms of their passions, niche and are often belong to a similar demographic. They are more engaged with micro-influencers as compared to celebrities. Even though micro-influencers might have a smaller number of followers, reaching these specific and engaged audience is better than reaching a larger number of potentially less relevant followers.
4.Average Sponsored Instagram Post Rates -By Followers Count
Once you have decided on the type of campaign and influencer you would want to engage, the next step is to confirm the cost. With costs spanning from $50 per post to $100,000 per post, what is the market rate? More importantly is this cost worth it?
There are people in the industry who believe that a greater number of followers will demand a greater price. While this general trend holds true, it is not the number of followers but the demographics of those followers that is important. It is hard to place value on an influencer based on the number of followers alone or the cost of the service.
If I were promoting a Vietnamese Fish Sauce in Singapore, would I engage Beyoncé? Not only is $1million per post out of my budget, her account has too many followers and I am unable to target my audience accurately. I would instead go with DanielFoodDiary who has close to 50% Singaporean audience and the rest being in the region.
Rates by followers are a good gauge but brands need to use proper analytics to choose the right influencers. The right choices will inevitably deliver greater returns.
5.Average Rate per Instagram Sponsored Post -By Influencer Vertical
Prices for influencer marketing are not only affected by the number of followers but also by the industry they are in. Try finding an influencer for debt securities and you will understand why the industry matters. So yes, Adam Smith’s invisible hand strikes again with its demand and supply to set the general prices based on industries.
Given the visual content nature of Instagram, it is no wonder that the top industries are Travel, Entertainment, and Lifestyle. I personally thought Fashion and Photography would be higher up but I guess it is not surprising that Health & Fitness is ranked 4th. With increasing attention given to healthier lifestyle options, it was only a matter of time brands took to Instagram to reach a greater number of people. (After all the only thing that can combat the image of a 3 layer lasagne is one of a picture-perfect set of abs that make you feel guilty about thinking of those layers of cheese)
The landscape of influencer marketing is constantly changing. The data you see above might even become irrelevant come Thanksgiving! There are many factors to take into account when planning an influencer marketing campaign and as always there are bound to be some epic fails like the Fayre Festival to make us laugh and question the validity of influencer marketing.
The only way to avoid that is to better understand the industry, audiences and make informed decisions. There are different types of influencers from different types of industries with followers from varying demographics.
Quality content supported by analytics-backed decisions and an artful execution will help brands make the most of influencer marketing and survive in this dynamic landscape.