The effectiveness of Influencer Marketing for growing a business is clear. Over the past five years, influencer marketing has grown from an ancillary marketing tactic to a 9.7 billion dollar industry in 2020.
Large companies across the globe are spending big bucks to collaborate with social media influencers, nearly doubling the amount of digital creators they activate per campaign.
But what exactly is influencer marketing? And what is the process you should implement to take advantage of this strategy? This is your complete guide to influencer marketing.
Influencer marketing has evolved considerably since the early days of the strategy. Previously, influencer marketing typically meant big companies spending big bucks on acquiring an A-list celebrity influencer. Endorsements and mentions by these celebrities had a price tag as large as their follower count. The eye-watering price of these deals meant that for smaller businesses, the strategy just wasn’t viable.
Since those years, larger companies have begun to recognise the impact smaller influencers have on follower buying decisions. Enter: Micro and Macros Influencers. A micro influencer is an influencer with up to 100,000 followers, Macro influencers have up to one million.
Micro influencers in particular are characterised by having smaller, more engaged, highly loyal followings that are drawn in by the authentic nature of the influencer. A micro influencer’s recommendations are viewed as more genuine than that of a mega influencer (those with over 1 million followers). This is because it has become common knowledge that A-Listers and Mega influencers are sent products daily to push on their audience; diminishing the reliability and authenticity of mega influencer recommendations.
Micro and smaller Macro influencers have the added benefit of holding a highly engaged audience in a particular niche – meaning they are the perfect tool for targeting a particular market. A micro/macro influencer’s audience are highly engaged and value the brands and products discussed by their influencers. This is due to the honest and sincere nature of the relationship a micro/macro influencer typically has with their audience. By utilising these influencers to discuss your products, you have access to the power of that relationship.
The engagement rates for micro or macro influencers are markedly higher than those of a mega influencer, and come without the high price tag a mega influencer charges. An engagement rate of an influencer is one of the most, if not THE most important metric when choosing an influencer to work with. An extension of engagement rate is cost per engagement (CPE). Which is the sum of the total likes and comments, divided by cost. But when working with influencers on Collaber, your cost is only the cost of the products you supply to your chosen influencers! So your CPE is always going to be favourably low.
From the above table, you can see that as follower count increases, engagement rate decreases. This means that for the greatest impact when reaching your target audience, Nano, Micro and Medium (Macro) influencers are the perfect option.
Larger companies have caught on to this fact too: over the past four years, the ratio of micro influencer utilisation in campaigns has increase from 3 micro influencers for every 1 mega influencer, to 10 micro influencers for every 1 mega influencer.
This increase in micro influencer utilisation is down to the sheer power of word-of-mouth marketing that comes from micro influencers. A trusted entity discussing a new brand they have found/like/are happy to work with is much more powerful than the brand itself pushing the brand’s benefits on the end user, or a celebrity influencer who has been paid huge sums of money to pose with a product. Influencer marketing is more of a pull campaign, in which your customers come to you, after seeing your brand or product discussed and tagged on the page of an influencer they trust and respect.
The typical process for influencer marketing was to approach an influencer within the target market, and pay them to create content that promotes the product or brand. A price would be negotiated, then the content would be created and approved by the business prior to posting.
Collaber completely revolutionises that process by allowing you to swap your products for that all important exposure on your chosen influencer’s platform without paying the influencer, with the mutually beneficial element of allowing the influencer to further grow their audience through a giveaway featuring your product. Thus creating a win/win!
Having a clear objective for your campaign is an essential element to a successful influencer marketing strategy. Your objective will not only help you in selecting your influencers, but guide the type of content, messaging and campaign style that an influencer uses when working with your brand. Do you want to build brand awareness? Increase sales? Do you want to create a specific brand identity or image? Or do you purely want to engage with your target market? These are questions to keep in mind when creating your influencer marketing strategy.
An increase in awareness is the main focus of most influencer campaigns, with an increase in sales being the objective following closely behind.
A 2020 benchmark report showed that average earned media value per $1 spend is $5.78. Although this is an impressive ROI, Collaber is proof that you don’t have to shell out the money to drive conversions and sales through influencer marketing. Collaber connects you to Micro and Macro Influencers with high engagement rates, to swap your products for feature giveaways on their platforms.
The most powerful strategy in Influencer Marketing is to engage with an influencer to host a giveaway featuring your product. The influencer discusses the benefits of your product (as a normal paid partnership post would), with an added dimension. A relationship between your target market and your product is created through a commitment to enter to win your product This positions your product as a thing of immense value as a prize (as it should be!). What’s more, a giveaway generates excitement and anticipation surrounding your product, compounded by a personal recommendation by your host influencer.
Additionally, a typical giveaway requires the follower to opt-in to the giveaway by satisfying a set of instructions (usually being a comment on the giveaway post, and ensuring they are following both your business and the influencer). This creates buy-in and a commitment to your brand, making the entrants more likely to engage and try your product following on from the closing of the giveaway.
What is important to remember is that your giveaway must be relevant to both your product and to your chosen influencer’s audience. If you’re a food or beauty brand, don’t engage with an influencer to give away an iPhone. Let your target market engage with your actual products that are relevant to their interest to fully capitalise on the power of influencer giveaways.
Ready to get started in Influencer Giveaways? Sign up today under one of our plans and start selecting the influencers that are ready to skyrocket your business growth.