The influencer marketing industry market is booming, and you’re considering getting involved with your business.
However, just because the industry is booming does that mean it’s the right fit for your company? On most accounts yes, influencer marketing is a powerful marketing tool that can greatly aid in growing your business. Influencers can help your business to gain new customers and increase brand loyalty.
So today, I’m going to assume you’ve already made up your mind about choosing influencer marketing as the right digital marketing strategy for you. We’re going to take a deep dive into the costs of influencer marketing and how to set up, manage, and maintain your relationship with the creator.
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What is Influencer Marketing?
Influencer marketing is clearly a marketing buzzword, but what exactly does it mean?
It involves a brand collaborating with an online influencer, usually but not exclusively on social media, to market one of its products or services. It’s a great way for a brand to get in front of a large, trusting audience that the credible influencer has already cultivated.
Influencers can be anyone. What differentiates them from regular people is that they have a following in a certain industry on the web and social media. Influencers don’t have to have absurdly large social media followings, however, they do have to have the ability to persuade their audience to take action.
An example of an influencer can be anyone from a popular travel photographer on Instagram, to a respected marketing executive on LinkedIn.
The Costs of Influencer Marketing
The cost of influencer marketing is dependent upon what platform you decide to use and what type of influencer you choose.
Let’s look at a breakdown of the most popular social media for this type of marketing. We can see that Instagram is the most popular with 68% of marketers running ad campaigns on it, followed by TikTok (45%), Facebook (43%) YouTube (36%), and finally LinkedIn (16%) and Twitter (15%).
The cost of a post on the three biggest platforms are roughly as follows:
- Nano-Influencer: $10 – 100
- Micro-Influencer: $100 – 500
- Mid-Influencer: $500 – $5000
- Macro-Influencer: $5 – $10000
- Mega-Influencer: $10000
- Nano-Influencer: $5 – 25
- Micro-Influencer: $25 – 125
- Mid-Influencer: $125 – $1250
- Macro-Influencer: $1250 – $2500
- Mega-Influencer: $2500+
- Nano-Influencer: $25 – 250
- Micro-Influencer: $250 – 1250
- Mid-Influencer: $1250 – $12500
- Macro-Influencer: $12500 – $25000
- Mega-Influencer: $25000+
In a recent conversation we had with Rishabh Jain CEO of Fermat Commerce, he pointed out that “oftentimes, creators are building their audience and creating content full-time so they need to be compensated as such. Simply offering free products is not going to cut it these days.” He also kindly recommended some interesting tools to help you find the perfect influencer for your business.
The Brand/Creator Relationship
The most important thing in this type of marketing is naturally the relationship you and the influencer have. They are going to be representing your business and therefore it is vital that you have a collaborative, open, and positive relationship.
The most important step is getting the right influencer. If you choose the correct influencer for your business then the relationship should be much smoother. After that, ensuring that you have transparent communication and both parties understand the deliverables is the best way to maintain a great brand/creator relationship!
On Episode 29 of Optily Radio, Cody Wittick, Co-Founder and Co-CEO of Kynship, spoke directly about how important this relationship is. He suggested that you start with an affiliate program then move on to a pay-per-post model.
Influencer marketing is an effective way to stand out from the crowd when you are up against a lot of competition. It can help you increase your brand awareness, establish an emotional connection with your audience, and ultimately increase sales.
With 77% of businesses indicating that they have a dedicated influencer marketing budget in 2022, you should strongly consider it too.
If you need deeper insight into digital marketing or you simply want to see your ROAS skyrocket, check out Optily – A revolution in digital ad spend management. We can supercharge your eCommerce advertising across the entire online advertising world to achieve ROAS levels that you never thought were possible
As always, thanks for reading!🚀