Influencer marketing is a tried-and-true strategy for helping businesses reach new audiences, raise brand awareness, and develop trust.
When done correctly, an influencer marketing campaign can be one of the most effective ways to build your brand.
If you own a business and know your target demographic, you may use influencer marketing to promote your brand and products, regardless of size. Emerging influencers frequently offer affordable pricing in exchange for pushing your message to new brands on a tight budget.
What is influencer marketing?
The process of brands collaborating with influencers to promote a company, product, service, or message to their target audience is known as influencer marketing.
These are frequently sponsored partnerships in which the influencer creates digital content in collaboration with the brand. Sometimes compensation is given in-kind, such as free products, cash, or discounts on expensive products.
Influencers are internet artists and celebrities who have developed reputations or large audiences around their personal brands. Influencers produce material for a variety of platforms, including:
As of 2022, Instagram was still the leading medium for influencer marketing efforts, and it is anticipated to remain so through 2025.
Influencer marketing is becoming a popular and efficient strategy for firms to reach out to potential customers in an authentic way via endorsements from well-known public figures. As a result, it's not surprising that the influencer marketing sector grew by more than $15 billion between 2017 and 2022.
Benefits of Influencer Marketing
According to one study,87% of participants claimed they choose a product recommended by an influencer when shopping. Influencer campaigns can assist brands in meeting business objectives such as raising revenue, improving brand awareness, and building audiences.
Here are a few more ways that influencer marketing may assist brands.
Increase your reach
Another clear advantage of influencer marketing is the opportunity for enhanced reach by reaching out to a larger audience. While the number of social media users on various platforms continues to expand, TikTok has seen explosive development. The app is predicted to be used by over 955 billion people by 2025.
Despite this possibility, algorithm updates, ad weariness, and privacy concerns all contribute to are duced return on investment (ROI) on some types of advertising. Influencer marketing enables marketers to reach out to audiences via producers who already have organic reach.
Increase your social engagement
Because social platforms display content that your network interacts with, more social engagement frequently leads to increased business recognition.
Furthermore, if your business is perceived to be well communicative, leveraging the audience's language, you will frequently gain more brand champions through influencer marketing.
Choose your alliances and channels wisely if engagement is one of your aims. According to one study, engagement rates fluctuate between platforms and influencer audience sizes. Micro-influencers, in particular, have better engagement rates than their mega-influencer counterparts.
Increase your earned media value
The possibility for higher earned media value (EMV) is the final significant advantage of influencer marketing. The ROI gained by third-party responses to marketing operations is referred to as EMV.
A higher EMV typically indicates more social mentions and more significant social connections (which can lead to more sales). You have a better chance of raising your EMV when you incorporate an influencer in your marketing operations. According to one analysis, firms earn $6.50 for every $1 invested on influencer marketing.
6 steps to a successful influencer marketing strategy
Finding a social media influencer and reaching an agreement on a collaboration can be a time-consuming and tough endeavour. Follow this procedure for the best results:
1. Do your research
There is a lot to be learned from other brands' influencer marketing strategies. Learn what works for them, gain inspiration from the many sorts of material they provide, and examine which forms of content receive the most engagement.
Use a platform like Hootsuite to view metrics on your Instagram account and compare it to others.
It's also a good idea to look into other brands that aren't competitors but may have a similar clientele. Assume you own a watch company like Shore Projects. Keep an eye on the backpack and accessories company Herschel Supply Co.
While the two companies sell distinct items, their consumer bases are comparable. You may monitor which influencer marketing are effective for the brand and get ideas for your own.
2. Make a detailed brief
Your campaign will be more successful if you allow the influencer creative license to create material that their target audience would enjoy.
Rather of providing the precise image, caption, and hashtag list you want them to use, it's preferable to allow them—the experts of their own audience—to build an original and engaging campaign for you.
However, it is equally critical that your brand is still properly portrayed. Provide an outline of your expectations, a primer on your brand, or even a mood board to inspire the campaign to the influencer.
3. Select relevant influencers
Once you've determined what you want to accomplish, the following step is to identify key influencers. Making the wrong decision can be costly, so it's worth taking the extra time to do it right.
Every market has its own set of influencers. You'll probably find a few solid selections in fashion, leisure, travel, or fitness. Doing an Instagram hashtag search to locate the top hashtags in your market and looking for posts with high engagement is one of the key ways to identify influencers that fit.
Typof Collab's is an excellent place to begin your influencer marketing journey. You can search for influencers who are open to collaborating with brands by industry and other criteria.
The audience of the influencer must be engaged. Genuinely favourable remarks are a more valuable indicator of a large social following than mere likes.
4. Discover ways to reach out
The most common mistake that many brands make at this stage is not knowing how to reach out to the influencer or, if they do, not positioning their brand effectively in their pitch.
You must work with their agents, most likely their agent and manager, to correctly build up an influencer marketing arrangement with a macro-influencer:
- Agents: It is the role of an agent to find work for their clients and to negotiate contracts.
- Managers: A manager's primary responsibility is to provide career guidance to their clients, which means they can make or break a possible agreement with an influencer. Consider managers to be the CEOs of their clients' businesses: any possible relationship with the influencer you're pursuing will require their approval.
If you don't know who to contact, there are celebrity contact info databases where you can find contact information for influencers' agents, managers, and publicists.
For minor influencers
One advantage of targeting micro-influencers is that you can contact them personally rather than through their representatives. In fact, one of the reasons why certain brands prefer to deal with micro-influencers is because of this direct access.
Of course, because micro-influencers aren't as well-known as macro-influencers, the difficulty isn't always determining who to approach, but rather locating suitable micro-influencers in the first place.
5. Determine a structure for collaboration
Once you've identified the influencers you want to collaborate with, reach out to them and agree on a collaboration arrangement. You should normally negotiate the following six points:
- Time limit. Make the deadline clear and emphasize how important it is that they meet it.
- Output. Make it clear what you expect from them. For example, you may create two pieces of content, one to be published on the influencer's account with a mention of your business and one to be used at your discretion.
- Utilization of content. Inform them of the content usage rights you require.
- Payment. Almost all of the most powerful influencers will charge a price for their services. They may occasionally be willing to haggle or accept a complimentary product/service/experience as part of that charge. When negotiating a price, bear in mind that you're paying for a variety of services, including content development, usage rights, and access to their audience.
- Hashtag that has been sponsored. Regulations governing sponsored material vary by country and are constantly evolving. Use #spon or #ad to be on the safe side.
- The campaign's goal. Make it clear what you hope to achieve with the influencer campaign. It might be as simple as growing your account's followers or driving clicks from their Instagram bio to your website to boost sales.
6. Increase the content's value
Repurposing sponsored Instagram content for other channels can help you get most out of it. Here are three strategies for increasing the value of influencer content:
- Make it available on a product page. This not only improves the appearance of product pages, but it also provides social proof and may lead to real customers submitting their content as well.
- Create a Facebook ad out of it. Mix it up with influencer content and test the outcomes. "By using influencer content, we are now able to refresh our ad units on a regular basis," Shore Projects co-founder Neil Waller adds. "In addition, using influencer content increased our conversion rate by19%."
- Share it on social media. User-generated content is frequently more relatable, engaging, and easily shared. It also cuts down on the time it takes to create original material for your Instagram account.
Payment structures for influencer campaigns
Let's take a look at the most prevalent payment schemes and considerations for social media influencer endorsements.
Content licensing and rights
An influencer marketing campaign typically begins with the influencer posting about a business or product on their own social media account. Because your brand or product is mentioned in the post, you may believe you own the rights to it. However, it is the creator of the content who owns it.
If an influencer promoted your brand on their account, you may have to pay a licensing fee to utilize their content on your own social media account. It may be possible to negotiate partnership in which your brand owns or has limitless use of the content.
Pay for each post
The most common payment method is known as "pay per post." You pay the influencer a certain amount of money for a set number of posts in these partnerships. The price of these deals might vary depending on a few criteria, the most important of which being the size of the influencer's audience.
The cost per post can also vary based on the type of post created by the influencer. A travel blogger with over 100,000 followers, for example, charges $1,000 every "static"(no video, no slideshow) Instagram post, but only $200 for an Instagram Story post.
If you're unsure if you can afford a standard pay-per-post arrangement, a temporary position can be a good alternative. However, you get what you pay for—because Instagram Stories only last 24 hours, your campaign will have less visibility with your influencer's followers.
Link in bio (optional)
The influencer includes a link to your brand's website in their social media bio, which is pinned to the top of their account page or on their profile and can bring direct traffic to your site. Using Shopify's Link pop, you can create your own custom link page to display in your social bio.
Pricing can be difficult to anticipate, but because a link in an influencer's bio improves the visibility of your campaign even more, most influencers charge up to 40% extra for that add-on.
Another alternative is to pay the influencer a commission, which is typically paid per sale, per lead, or per engagement. So, rather than paying a fixed charge for access to their whole audience, you only pay if their endorsement directly leads to a sale, a new referral, or engagement whatever metric you've chosen to evaluate success.
Although the commission structure ensures that you are only paying for outcomes, most influencers choose not to be paid on a commission basis.
Improving your social media marketing with influencer marketing
There is no doubt that influencer marketing may help your company. It can help you locate new clients and influence purchasing decisions to increase sales for your company. Influencers can also help you establish your brand's image and make your products appealing to a specific market.
With this book in hand, you'll be well on your way to increasing your social media follower count, gaining traction for your brand, and expanding your online business.