2016 will be remembered as the year in which Influencer Marketing went mainstream.
According to a survey published by Linqia, including responses from 170 marketers across a variety of industries, 86% of marketers used this channel to expand brand reach in three significant ways:
In 2016, most marketers spent between $25,000 and $50,000 per influencer marketing program.
With 48% of respondents planning to increase the budget in 2017, taking the average spend per program between $50,000 and $100,000, it’s clear that influencer marketing works well enough to justify increasing investment.
- Cost per acquisition (CPA): influencers are compensated based on the number of sales or subscription sign-ups they drive.
- Cost per click (CPC): brands pay for consumers who have taken an action after being inspired by influencer content (typically clicking through to visit a brand’s landing page).
- Cost per engagement (CPE): influencers are compensated based on the number of engagements their content draws (likes, shares, retweets).
- Free product or experiences: brands offer product or travel compensation in lieu of monetary payment, which can range from an all-expenses-paid trip to being among the first consumers to use a new product.
- Pay per post or video - individual influencers are paid a flat rate for creating and publishing a piece of content, whether that be a tweet, photo, video or blog post.
CPE is advantageous to influencers with smaller audiences, since engagement rates tend to be inversely proportional to the number of followers, as shown in the figure.
ROI - DOES IT WORK?
Is it possible to measure the sales effectiveness of an influencer strategy?
78% of respondents indicated Measuring ROI of Influencer Marketing as the top challenge for 2017
The Influencer Marketing Automation solution Tapinfluence partnered with Nielsen Catalina Solutions to conduct the first ever study to connect influencer marketing to sales.
The results were clear: Influencer Marketing proved to be an ROI machine.
CHOOSING THE RIGHT INFLUENCER
Naturally, the core of the influencer strategy is choosing the right influencer. Influencers come in three primary types, all of whom have something to offer.
The price you pay for an influencer post depends on many variables. Obviously, the number of followers plays a big role; but also the platform hosting the campaign shifts the rates, as well as the field of specialization of the influencers.
A BROAD OVERVIEW OF INFLUENCER TYPES
When choosing an influencer to reach your target audience, it’s helpful to not narrow down your options too quickly. Get an overview of all the types of figures playing a role in your target’s life, then base your decision on your target’s affinities and the influencer marketing rate cards in this post to maximize the result of your efforts.
FIND NICHES’ SPECIFICITIES
Let’s have a look at this month’s trending chefs for two different niches living in one, big segment: Home-Chefs. Who would be the ideal influencers for home-chef Millennials versus Generation Xers?
GET AN HANDS-ON EXPERIENCE
Subscribe to get 5 analyses for free and read our four steps to point your influencer marketing in the right direction.