Whether the term “influencer marketing” is one you are unfamiliar with or if you have heard it time and time again, its impact on digital marketing, and marketing as a whole, is undeniable. However, the idea behind influencer marketing is not a new one. In fact, companies have been using high-profile individuals and celebrities to build their brand awareness and influence consumer spending for years through traditional advertising like TV and print ads. In our ever-increasingly digital world, there is a shift in advertising from partnering with movie stars and sports icons to more relatable, everyday faces who have built a following on platforms like personal blogs or social media channels like Instagram and TikTok. This shift presents a new opportunity for companies and brands to get their products and services in front of consumers in an authentic and effective way. So what do you need to know when it comes to Influencer Marketing? White Label Studio recently had the opportunity to speak on the topic of Influencer Marketing at ADAC Digital Day 2022 where we spoke to designers, brands, talent management agencies, and public relations firms about the Influencer Marketing Dating Game. Here are a few of the key points that we shared:
- What is Influencer Marketing?
One of the most basic questions that must be asked is “Who is an influencer?” and “How do they impact purchase decisions?” Due to the rise of technology and the increased time spent at home during the pandemic, social media has unquestionably become an integral part of our lives. This has resulted in an increase in consumers looking to their favorite influencers when it comes to the buying process. The term “influencer” refers to someone who shares their knowledge and opinion with an audience of consumers with whom they have built trust. A few interesting statistics about consumer spending habits in relation to influencer marketing include:
- 7 out of 10 teenagers say they trust influencers more than traditional celebrities
- Almost 90% of women use social media for purchasing advice
- 60% of consumers would consider buying a product in-store based on seeing an Influencer’s social media or blog post – this is compared to 3% in regards to a celebrity.
These statistics are just a few data points that confirm that influencer marketing plays a crucial role in brand awareness and consumer purchase decisions. So what does that mean for brands?
- Partnering with the Right Influencers
One of the most important aspects of creating a successful influencer collaboration is selecting an influencer or set of influencers who fit your brand. As a brand, you want to ask a few key questions when it comes to deciding whether an influencer is a good fit:
- Do they align with your brand’s niche? For example, if you are a flooring company, it might not be a wise decision to partner with a food blogger. However, an influencer in the home space who is looking to redo the flooring in her home would be a great fit!
- What is the influencer’s reach? When it comes to influencer marketing, you want to look at the number of followers or subscribers that a person has. If you are looking at an Instagram partnership, you will want to see how many Instagram followers the influencer you are considering has. There are a few main categories in influencer marketing:
- Micro-Influencers typically have less than 10,000 followers
- Mid-tier Influencers have around 10,000-100,000 followers
- Macro-influencers have over 100,000 followers
The number of followers is just one factor to consider. You will also want to look at how many of those followers are actively engaging with the influencer’s content which brings us to the next point:
- What are the engagement rates? Sometimes an influencer can have a high number of followers but only a small percentage of those followers are actively engaged. On the contrary, an influencer with a smaller number of followers may have a highly engaged following. In both cases, a brand has to weigh the cost of the partnership with the number of followers and the engagement of those followers.
- Getting the Best ROI with Influencer Partnerships
A big factor to consider with influencer marketing is the return on investment and your brand’s budget. Influencer fees range from a couple of thousand dollars to over a million dollars. Influencer pricing varies based on the number of followers and engagement, as well as deliverables they are being asked to produce. A blog post featuring a brand’s product that lives on indefinitely and links back to a company’s website will typically cost more than an Instagram story that mentions a brand or product but disappears after 24 hours. Deciding which assets will help a brand accomplish its desired goals helps determine the value of each deliverable. It is also important to consider digital assets like photography and room scenes which can be purchased for use in a brand’s print materials like magazines or digital use on a website or ad.
Dans le Lakehouse Collaboration with Carpet One Floor & Home
Overall, influencer marketing can be extremely beneficial and effective for brands as they raise brand awareness, drive traffic to their website, access high-quality product images, and increase sales. However, navigating influencer outreach, contract negotiations, deliverable packages, handling invoicing and payments, and analytics can be overwhelming and time-consuming, especially if you are unfamiliar with this area of digital marketing. That is where White Label Studio comes in. We maintain relationships with both brands and influencers to pitch, coordinate, execute, and report on influencer campaigns. We have worked with several companies including Carpet One Floor & Home, Flooring America, Flooring Canada, Mohawk Home, Novalis, ProCore, DuraDecor, NovaFloor, Hearthwood, Raintree, Twenty & Oak, Horizon Stone, and others to name a few. Contact us today to learn more about influencer marketing and how we can help you and your brand!