The influencer marketing has reached $16.4 billion, making it all the more important for brands to use its potential for their benefit. This growth is correlated with the latest popularity of short videos on platforms such as Tiktok, Snapchat, and YouTube. This all happened due to the global pandemic, which increased the use of social media.
Role of influencer marketing
4.63 billion People are on social media right now, where online influencers have accumulated a large audience. Where brands come and partner with them for endorsements and product placements, providing them exposure and new leads. As the audience trusts their influencer with their product choices and buys the products on their recommendation.
Influencers are industry professionals or experts whose opinions are cherished and trusted by their audience. However, the number of influencers is constantly increasing, and most have managed to build their business empires working with agencies. They know how to build a relation with brands that will benefit them. The content they create makes them an audience due to the value they provide, which also encourages brands to collaborate with them. Influencers are not only celebrities but YouTubers, TikTok, and other platforms from which Instagram influencers are top-rated.
Even though Instagram was not very popular in 2022, several brands chose it as their favourite platform for their influencer marketing campaigns. 79% of marketers still consider Instagram an essential part of their campaigns. This is the reason Instagram was still providing leads in 2022. It’s already been used to find something by 83% of the audience.
What are the advantages of working with micro vs macro influencers?
Micro-influencers have insignificant follower base of about 2K to 10K, but their audience trusts them. Their audience views them as credible sources that share their thoughts and opinions on brands and services based on their hobby. Another benefit of micro-influencers is that they have a highly targeted audience; brands should reach them if they are looking for a niche audience. Micro-influencers have a higher engagement rate in comparison to macro-influencer. Increased engagement means high conversion rates. And they are way more cost-effective but come with limited reach.
Macro Influencers have a colossal audience and follower base, making them an ideal candidates to collaborate with. And brands could reach their marketing goal through one big influencer. The big micro-influencers can get 22 times more audience as compared to micro-influencers.
They are handled mainly by agencies which makes them more professional to work with. And also makes the brand exclusive to that particular influencer. And brand association with influencers give brands an excellent or credible image. Macro Influencers are way less risky than micro-influencers because small influencers might have fake followers to get more brand deals.
Also Read: Why Is Digital Marketing Important For Business Growth?
Importance of Influencer marketing in advertising strategy
Nowadays, consumers need hammering from all sides for a conversion. That means the influencer content, enhanced by performance marketing, combines the best of both worlds to form an unbeatable marketing strategy. The influencers are content-producing machines. The ads create relationships with the audience on a deeper level and connect with the customer, which as a result, boosts the advertising performance along with the conversion rate.
How does Advertising strategy work?
Business start-ups create a strategically thought ad campaign using traditional and digital marketing channels, which aligns their marketing strategies to their business objectives. In addition, the advertising strategy assists in defining each individual’s role in a team to achieve the company’s goals.
An effective marketing strategy has to go through the following steps:
- First, assess who your competition is.
- Conduct market research for price and create a buyer’s persona.
- Start creating advertising content.
- Select marketing channels.
- Follow influencer marketing.
- Create organic traffic by connecting with advertising professionals.
How do you measure the ROI of an influencer marketing campaign?
It’s easy to do; it’s simply the overall sales growth achieved through this campaign while subtracting the costs of the marketing effort and dividing it by the price of marketing which calculates the return on investment / ROI.
How do you track the performance of your influencer marketing campaign?
Influencer marketing has come up as the fastest-growing type of advertising. According to the Influencer Marketing hub, the influencer market was $1.7 in 2016 and reached $16.4 billion. The things you need to keep track of in order to calculate the performance of your influencer market campaign.
ROI: The ROI is a primary metric to keep track of when calculating the performance of an influencer marketing campaign.
CPA: CPA (Cost per Action) affiliate networks connect advertisers with affiliate marketers who promote their products or services. Advertisers pay affiliates a commission for each successful sale or lead generated through their marketing efforts. Affiliates can earn money by promoting products or services via websites, social media, email marketing, and other channels. CPA networks act as intermediaries between advertisers and affiliates, providing tracking and reporting capabilities for both parties.
Brand awareness: is also created through this campaign among the influencers and the customers. It can be only measured through metrics that are compared before and after the campaign via Google Trends. The website visitors’ increase or decrease can be measured by a Google Analytics tool. Along with the new user’s campaign brought to the website.
Reach and engagement: Not all the people who view your campaign purchases your product at that point, but they might purchase it at some point in life. Due to this, you should keep track of the engagement each influencer post got and its reach.
IER: Influencer Engagement Rate measure the ratio between the number of engagement and the follower of that particular influencer. High IER means that your message was very engaging for that group of people, and you should find more influencers of that kind.
Sales: It is critical to measure the sales that which new campaign brought. There is a KPI to view the ROI and keep track of incremental revenue from the new customers that arrived after the campaign went live.
This article is written to make you understand the benefits influencer marketing has on the marketing strategy and how you can use influencer marketing for your good.