Influencer marketing is booming. Marketers are investing more and more in influencer marketing with a Linqia study showing that 39% of marketers plan to increase their influencer marketing budget in 2018.
With the lack of trust that consumers now have for brands, influencers seem like a great way to increase revenue. A survey conducted by Collective Bias showed that 70% of millennials are influenced by the recommendations of their peers in buying decisions.
While all this does indicate that influencer marketing is prospering, it’s hard to ignore the doubts that many are having and those that think the industry is a bubble waiting to burst. From regulations to attributions and measuring results, there are certainly some issues the industry need to tackle.
- 92% of marketers say Instagram is still the most important platform for influencer marketing.
- It is estimated that Instagram may have 95 million bot accounts.
- Fake followers mean it can be difficult to tell if an account has built a genuine following.
How to spot fake influencers:
- This free tool from Hype Auditor estimates the number of fake followers an Instagram account has.
- Spark Toro has also created a great free tool for checking the number of fake followers a Twitter account has.
- Check out our guide to spotting fake influencers on Instagram.
The same Linqia study mentioned above found that 76% of marketers say that the biggest influencer marketing challenge for 2018 would be determining their campaign ROI.
With fake influencers and the potential for fraud, brands need to think about the metrics they use to measure their ROI or they could end up haemorrhaging money on unsuccessful marketing campaigns.
When thinking about how to measure the success of your influencer marketing you need to establish what your goals are first. Think about whether you’re aiming for visibility, engagement, or revenue.
Visibility and engagement can often be measured easily as all social media platforms have their own native analytics that can show you these numbers. Revenue can be a bit more difficult but with things like promo codes, affiliate links and Google Analytics goals you can start to build a more accurate picture of how much revenue your campaigns are generating.
Finding the right influencer for your brand
Just because an account has a large following or high engagement, doesn’t mean they are the right account for your brand. If their following doesn’t match your target audience, no matter how much the influencer promotes your product you will see poor results from a campaign with them.
Some audiences are even beginning to grow tired of influencers who have too much-promoted content, social media creators are creating the same content formats again and again which grows boring for audiences and causes influencers to lose their influence.
Finding the right influencer takes time an research and if your brand picks the wrong person you could end up with an unsuccessful campaign. Your ‘perfect match’ should be someone who already uses or finds genuine value in your products and services and can give an authentic promotion to their followers. However, finding these people takes time, effort, and due diligence.
Perri Robinson, Head of Marketing for Meltwater UK & Ireland explains:
“One way of keeping tabs of thought leaders gaining momentum or identifying influential advocates is through social listening. Simply pop in an industry related keyword/ your/ your competitor’s brand name and use a social listening tool to analyse and make sense of conversations using metrics such as “top posters”, “trending themes” or “sentiment”. Such metrics provide rich insights for brand management – one of them being relevant influencers to collaborate with.”
The cost of influencer marketing is rising
Even with the above issues, brands are spending more on influencers than ever and are still the most popular choice for brand endorsements.
On average, according to research by Rakuten Marketing and Morar Consulting, posts from celebrities with at least 1 million followers cost on average £65,000 each. Posts from celebs in some industries are even higher, with premium fashion brands, paying celebrity influencers more than £160,000 per post.
These rising costs might not be such a big deal for larger brands, but a small to medium size business is going to struggle to keep up with the rising costs for influencer marketing. If they can’t accurately measure ROI on a campaign they will find it hard to justify adding any more money to their influencer marketing budget.
Want to learn more about influencer marketing? Check out our definitive guide
Post published on Tuesday October 16, 2018