I’ve been reading about this a lot recently because influencer marketing is increasingly at the forefront to reach a large number of consumers in an authentic looking way. Although it seems that it’s hard to calculate how much ROI is attributed to it.
A survey conducted by Rakuten Marketing, only 38% of marketers say they are unable to tell whether influencer activity actually drives sales, while 86% are unsure how influencers calculate their fees. This leaves a lot of room for fraud and goes against the core of digital marketing, which is usually about numbers, data, and tracking.
With that being said brands tend to look at the impact of their influencer marketing through, the brand reach, site traffic, and brand awareness, before the summary of sales.
In Lillian Betty’s words “It would be a mistake for any business to commoditise any partnership or campaign that has an influencer at the heart of it as it’s more than just shifting product. It’s about brand identity, keeping the right sort of company and ensuring your brand is being shown in its best light with the best partner,” which is 100% correct.
With influencer marketing becoming what it is today, brands have spent more than £700m on Instagram influencers across last year, which is expected to double in 2019, due to increasing of spending on influencer marketing, and the increase in prices as the influencer becomes more established.
Breaking it down marketers are willing to pay more than £67,000 per video (Youtube), £75,000 per Facebook post, and £53,000 per Snapchat post, which is honestly incredible.
Exploring The Other Side
Iceland for many years was known to use celebrities in their ads, but switched to real people just last year, tapping into micro-influencers to change the public perception.
Choosing influencers that are like the average person walking down the street will more likely listen to them and become influenced as the public know celebrities are being paid, so it’s harder to buy into it.
Iceland partnered up with the Channel Mum vlogging site and according to a blind survey conducted by them, Iceland’s approval rating increased from 10% to a whopping 80% just from the viewer created content for Iceland on their channel.
Having an integrated strategy that enables you to hit a variety of customers with a consistent message anchored by the authenticity of micro-influencers is a win-win situation. Linking this back to Iceland and Channel Mum, they can work with 50 different influencers, where some are single, different ethnicities, different ages, all from different walks of life with their own audiences, all coming together for one big collective gain.
With all of this being said influencer marketing should not be the only part of your digital marketing strategy. It’s never good to put all your eggs into one basket.