Influencer advertising may seem like a new trend that began just a few years back. But in reality, it dates back much further than that. The concept of influential personalities affecting people’s opinions and decisions has been around for decades. Even before social media and online advertising.
Now we have online platforms and people are consuming more content through digital channels. And influencer marketing has evolved into the powerful marketing strategy we’re familiar with today.
In this post, we will attempt to dissect influencer marketing thoroughly to help you understand it better. You’ll get a better idea of how influencers affect marketing efforts and how much they typically charge.
You’ll also learn about the various influencer marketing tactics including sponsored posts, reviews, content co-creation, repurposed influencer content, and more.
Different Types of Influencer Advertising
To give you a better idea of influencer marketing, let’s discuss the most common types that you might come across.
Sponsored Posts – This involves brands striking an agreement with the influencer so that they get a brand mention in return. On social media, the influencer would post a picture of the product, sometimes along with products from other brands to make it look more natural.
They would either just mention the brand or give a short description and review of the product. You can also have sponsored blog posts, sponsored YouTube videos, and sponsored live streams from influencers.
Repurposed Influencer UGC Ads – Some brands also repurpose the content created by influencers about their brand and turn them into ads. This delivers significant impact because they can target a highly relevant audience using advertising tools. Plus, the influencer-generated content creates trust in the brand.
Reviews – This involves an influencer giving an honest review of the brand’s product. This could be in any format, but blog posts and YouTube videos are the most popular.
Content Co-Creation – This is when a brand and an influencer get together to co-create content. It could be anything from a brand interviewing the influencer or featuring them in one of their ads.
Social Media Takeover – Social media takeovers involve influencers taking over a brand’s social media account for a set period of time. The influencer will create content on the brand’s behalf and attract their own audience to the brand’s social media profile.
Events – Sometimes, brands may invite influencers to events that they want to amplify. In some campaigns, brands may even create a whole event just for influencers. Both tactics give the brand some exposure.
These are just a few of the most common types of influencer advertising that you might come across. Of course, there are other types of campaigns you can customize according to your brand’s objectives.
The Impact of Influencers
The idea that influencers can influence people’s opinions and decisions isn’t just an opinion. According to a study by CPC Strategy, almost 70% of consumers are most likely to learn about new products, services, and events from accounts they follow on Facebook. And 44.2% also say that they would trust a paid influencer recommendation if they already trust the influencer.
Although 31.7% say that they never trust a paid recommendation, 22.9% say that it has the same weight on them. Even when they don’t already know the influencer, 30.5% of consumers say that they would trust the recommendation of someone who actually uses the product. And 28.4% would trust the recommendation if the influencer is a subject matter expert.
These numbers suggest that when executed through a trustworthy and relevant influencer, influencer marketing can significantly impact people’s opinions and decisions. So it’s no surprise that 94% of marketers in a Relatable study consider influencer marketing to be an effective form of marketing.
In addition, 62% of marketers in the study also say that the most valuable benefit of partnering with influencers is the unique relationship they have with their audience. So they have the ability to connect your brand with their audience in an authentic manner.
How Much Does It Cost?
According to Bloglovin’, 36% of marketers were spending less than $5000 per influencer marketing campaign in 2017. 24% were spending between $5000 and $10,000 while 16% were spending $10,000 to $25,000.
Since brands have been increasing their marketing spend over the years, it’s likely that these numbers have slightly increased for 2019.
As far as cost is concerned, influencer marketing is one of the most flexible and budget-friendly forms of marketing. You can run a campaign regardless of your budget size; you just have to plan it accordingly.
The cost of influencer marketing depends on several factors including the type of campaign you’re running, the channels you’re using, and the influencers you’re working with.
Video content and blog posts tend to cost more than a typical social media post. Similarly, YouTube influencer rates are much higher than influencer rates on Instagram. And influencers with massive influence will charge you more than a micro-influencer.
For one sponsored blog post, you could expect to spend $175 to $250 if the blogger has 10,000 to 50,000 monthly impressions. Bloggers with 50,000+ monthly impressions even charge upwards of $1,000 per blog post, with some charging $5,000 and above.
An Instagram sponsored post by a micro-influencer could cost anywhere between $75 and $1,000 per post depending on the size of their following. Those who have a following between 2000 and 10,000 would charge you around $75 to $250. But large influencers with 500,000+ followers may charge upwards of $3,000 per Instagram post.
On YouTube, influencers with 50,000 to 100,000 subscribers charge somewhere around $500 to $1,000 for one sponsored video. And the cost of one sponsored video by influencers with more than 500,000 subscribers would start from $3,000 and may even go above $5,000 depending on their level of influence.
How to Choose the Right Influencer
As mentioned earlier, the right influencer matters when you execute an influencer marketing campaign. Otherwise, you could end up losing the trust of your target audience or even being unable to reach them in the first place.
Don’t get fooled by following size. An influencer with massive following may not necessarily be able to engage your target audience.
Determine whether the influencer creates content relevant to your niche so they can appeal to your target audience.
Calculate their engagement rate to see just how well they can engage their followers.
Go through their content to check whether they have the right tone and values to match your brand. And make sure they produce high-quality content – high-quality images and videos, compelling messages, etc.
Create an ideal influencer persona based on your campaign goals. Ask yourself what an ideal influencer looks like to you, and compare those characteristics against the potential influencers you are vetting.
These are some of the essential aspects of influencer advertising that you should learn about before you can get started. But even if you use all of this information to develop a campaign, there’s no guarantee that you’ll see the desired results.
So don’t forget to regularly measure the impact of your campaign to understand what’s working and what isn’t. This will help you make adjustments for even better results.
Brian Mechem is CRO and Co-Founder of GRIN, the #1 software solution for direct-to-consumer brands who run influencer marketing programs. GRIN's software powers some of the best influencer programs in the world, providing insights on ROI and adding efficiency to the influencer marketing process.