Influencer Marketing: What is it, and Why is it Important?

Influencer marketing is a marketing technique in which brands are able to better convey their marketing message to their target audience in a more personal manner. This is accomplished through the partnership and use of influencers, who are people with a substantial social media presence and ability to promote the brands and the brands products to consumers. By utilizing influencer marketing, companies are able to increase their brand awareness with an exposure boost that is quick and powerful targeted at a large audience of people who have similar characteristics to the companies target market. 

Between 2019 and 2022, the percentage of total marketers utilizing influencer marketing has steadily increased from 55.4% to a predicted 72.4%. This 17% growth in influencer marketing by companies is due to the fact that over 50% of consumers prefer to discover and engage with brands via word of mouth and social media. Additionally, 90% of consumers have been found to engage weekly via social media platforms such as Instagram, Youtube, TikTok, and Snapchat with influencers.

This video Forbes video explains why brands are choosing to work with influencers

Video from Forbes Youtube

Developing the Best Influencer Program

After a company has set its goals and budget for an influencer campaign they are able to select both the right influencer(s) and campaign for them.

Selecting the Right Influencer(s)

As each company is different in its brand’s values, voice, mission, vision, etc., the right influencer for each company also differs. Factors for a company to consider when choosing an influencer are as follows…

  • The type of influencer best per the goals based on the size of their audience (see image below)

Photo from Cinebody

  • The influencers Like Follower Ratio (LFR): this ratio can help companies wean out influencers who may buy followers, and can be determined by calculating the average number of likes from the influencer’s last four weeks of posts. That number is then divided by the number of followers the influencer currently has As a generally accepted standard, an LFR of 1%-3% is good, but a LFR of 10%-12% is exceptional and the most desired
  • An influencers online presence: as the influencer will represent the company, it is important that an online audit of the influencer is performed to ensure they uphold a positive image online and are able to be trusted by both the company and by consumers

Selecting the Right Influencer Campaign

There are several types of influencer campaigns that companies can utilize to boost brand awareness and reach their desired goals from Influencer Marketing efforts. This section will explore several campaign options companies can utilize to best reach their goals.

  1. Sponsored Post(s): the influencer creates a post of set of posts for the company based on the set guidelines
  2. Product Reviews: the influencer provides an honest positive review of the product/company in exchange for free product to spread brand awareness and/or educate consumers on the product
  3. Giveaways: the influencer is sent a product/product line from the company with instructions to host a giveaway for their followers with the given product(s)
  4. Brand Ambassador: the influencer creates and provides the company with multiple posts which promote the product/company over a longer time period in which a deeper connection is established and there is more potential for brand/product exposure
  5. Social Media Takeover: an influencer takes over the companies social media and directs followers to the companies page to view which in turn increases brand awareness
  6. Affiliate Marketing: the influencer and company have a systematic partnership in which the influencer is rewarded on a commission basis as a result of their content and influence in selling the companies product
Implementing an Influencer Marketing Campaign

After a company selects the right influencer(s) and campaign(s) for them, it is essential before the start of the campaign, both the company and influencer understand and are in agreement of the terms and goals of the campaign. This can be accomplished through the use of a contract. Several influencer marketing contracts templates such as this one from eforms, can be found online through reputable sites. However due to the legal nature of contracts, it is highly recommended that a company creates/reviews their influencer marketing contract with their legal team to avoid possible issues in the partnership.

How to Track and Measure the Success of Influencer Marketing

52% of marketers have revealed they find calculating the Return on Investment (ROI) for the company due to their influencer marketing efforts to be a major challenge. It is however especially important for companies to continually track and measure the success of their influencer marketing efforts to best calculate their ROI from influencer marketing. 

Below you will find a few ways companies have found success to combat the challenge of measuring their ROI to gauge the success of their influencer program. It is important for companies to have set measurable objectives established when developing the influencer program and to ensure it is clearly understood for both the company and the influencer at the time of the agreement what the priorities and main goals of the campaign are. 

  • 1.) Sales: To measure the sales an influencer was responsible for, having each influencer market a unique coupon code, landing page, affiliate link, etc. that they market to consumers allows to better and more efficiently identify who the sales stemmed from
  • 2.) Engagement Rate: By calculating this rate, companies are able to measure the percentage of the influencer’s audience who interacted with their sponsored post

Photo from Fourstarzz Media

  • 3.) Click-Through Rate (CTR): By calculating this rate, companies are able to measure the percentage of their target audience that took the desired action 

Photo from Fourstarzz Media

  • 4.) Cost Per Click (CRC): The calculation of this metric reveals the cost incurred for the company for every click they received on the link provided in the influencer’s post. A lower number reveals a lower cost per click which allows companies to increase their profitability

Photo from Fourstarzz Media

  • 5.) Awareness: By tracking the reach, impressions, and audience growth of the company during the time of the influencer campaign, companies are able to better measure the impact on awareness of influencer marketing 
  • 6.) Traffic: Companies are able to measure the growth in amount of traffic on their website from an influencer campaign by through analyzing the number of clicks on the website link and the click-through rate

Photo from Fourstarzz Media

Published by briannab

Marketing student at Coastal Carolina University

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