Influencer marketing has seen a huge rise in the percentage of companies’ advertising budgets, especially in the wake of COVID-19 as consumers spent more time isolated and turned to their social media platforms for social interaction and inspiration. In fact, 49% of consumers reported that they depend on influencer recommendations. That is a powerful statistic and one that brands have taken notice of. 71% of marketers plan to increase their influencer budgets in the next 12 months with the majority preferring to work with micro-influencers. As a digital marketing agency that specializes in influencer marketing and whose team has over a decade of experience working with influencers, we wanted to share how influencer marketing is transforming advertising budgets and what you as a brand need to know.
What is Influencer Marketing?
Influencer marketing is simply partnering with an influencer, someone who has built trust and influence with a following, to promote your products or services. There are several ways to go about brand partnerships with influencers from product for placement to paid partnerships, commission-based partnerships, and brand ambassadorship programs. We cover these different structures and more in our blog, Everything You Need to Know About Influencer Marketing.
DuraDecor Influencer Collaboration with Brooke Larsen of startathomedecor.com/
How is Influencer Marketing Transforming Advertising Budgets?
Worth just $1.7 billion in 2016, the influencer marketing industry is set to reach $13.8 billion by 2022. Why is the industry growing so rapidly? The numbers speak for themselves. 82% of consumers say they trust social networks to guide their purchasing decisions, and influencer marketing campaigns earn $5.78 for every dollar spent. That kind of ROI (return on investment) is definitely worth pursuing for many brands. Social media marketing has also surpassed print marketing and 70% of teens say that they trust influencers more than traditional celebrities. Because of this, advertising dollars are shifting from traditional mediums to influencer marketing as brands evolve with their customers.
What is the Value of Influencer Marketing to Brands?
Influencer marketing has value in several aspects from trackable links which show brands how many consumers view a website or purchase a product to assets like blog content and high-resolution photography. With trackable links, brands can give influencers a unique link to a product or webpage which the influencer then shares with their followers. The brand is then able to view analytics which shows how many people clicked on the link as well as the actions they took on the website. In addition to driving traffic and increasing sales, influencer marketing also provides valuable assets to brands in the form of content. Photography and videography from influencers can be used by brands on social media and other platforms like websites, blog posts, and more. Content in the form of social posts and blog posts are also great ways for brands to increase exposure and awareness. Novalis, one of our influencer marketing clients, has seen firsthand the value that influencer content brings. Their brands, ProCore, DuraDecor, and NovaFloor have increased their influencer budgets year-over-year to get more assets like reels, hi resolution photography, and seasonal images which they can then use on their brands’ social profiles. This has increased awareness for their products and helped elevate their brands’ presences on their respective social profiles, which is a win-win.
ProCore Influencer Collaboration with Lauren Shaver of https://www.blesserhouse.com/
How Should Brands Adjust Their Marketing Budgets for Influencer Marketing?
When deciding how to adjust your marketing budget to allocate funds for influencer marketing, it is important to start by outlining your goals and objectives. Be sure to understand your unique product or service and the audience you want to reach. It is also important to keep in mind that influencer pricing has evolved as influencers see the value they offer to brands. Most, if not all, macro influencers (>100,000) will not work on product for placement or commission-only fee structures. They require payment for promoting your brand or product and charge a premium for the exposure to their large following. Micro influencers often have lower rates for assets like photos and videos as well as exposure on their social channels. Brands can also negotiate packages based on their budget that the influencer is more likely to agree to. Overall, it is important for brands to have realistic expectations of influencer partnerships, and understanding current influencer rates helps manage expectations.
Working with an Agency for Influencer Partnerships
Along those lines, it is worth considering working with an agency for influencer marketing. The benefits of using an agency that specializes in influencer marketing include insight into current influencer pricing, strong relationships with influencers, analytics and data to help match the brand’s goals and objectives with the right influencer collaboration, top-notch reporting, and metrics to show ROI, and much more! Working with an agency that has experience in influencer marketing gives you valuable insight and cost-savings through efficient and effective processes.
Now that you know more about influencer marketing and the benefits, do you plan to adjust your marketing budget to incorporate influencer marketing? If you want a complete influencer strategy that helps you better understand how influencer marketing can help you accomplish your goals, White Label Studio can help! We specialize in influencer marketing strategies as well as influencer outreach, legal documents, campaign objectives, and deliverables, negotiating, reporting and analytics, and more! We would love to talk with you more about taking your brand to the next level with influencer marketing. Reach out to us today at hello@whitelabelstudio.com
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