Influencing marketing benefits
Influencing marketing has been around for a very long time, but it has only become popular in recent years and it has seen some incredible successes but also a few big failures.
So Should you continue to invest into influencing marketing?
It’s certainly not dead, but it can be tricky. Many marketers still think of it as the “fastest-growing online customer-acquisition method”. Brands seem to be searching for new ways to involve influencers on all kinds of campaigns. The influencer marketing industry is booming because brands and agencies are still heavily invested in this strategy.
Is it truly effective and do you get a decent ROI? The answer to both is still “yes.”
Data shows that influencer marketing is still providing brands with a strong return on investment. Influencer marketing can generate around €6.5 for every euro a company invests. Approximately 70% of companies earn €2 or more for every euro, and 13% of companies earn €20 or more.
While 18% of businesses didn’t receive any return on investment at all. When you factor this into how much a campaign can cost, things can get a little too much
There are other factors impacting the future of influencer marketing, too.
First, the FTC introduced regulations to improve transparency towards consumers in 2017. This helps consumers understand which posts are promotional, even if they are coming from an influencer.
These regulations are necessary, but additional ones may cause some brands to avoid influencer marketing due to the risk of malpractice. Also, influencer marketing campaigns are starting to get more expensive.
Mid-range influencers with 50,000 – 500,000 followers can charge anywhere from a couple of hundred euros up to a couple of thousand for a post. Influencers with a following in the millions can charge up to over 100 thousand euros for posts. With such a large investment in a single post, businesses that invest in this strategy are naturally expecting a huge ROI.
But one big problem that they face is how hard it is to accurately measure the ROI from their influencer marketing campaigns.
The biggest challenge of influencer marketing is determining the ROI of campaigns, according to those who hire influencers. How can you improve something if you don’t measure it? How can you know if it’s working or not?
Another issue influencer marketing might face soon is that consumers are evolving, too. Millennials are now trusting influencers less than they were in previous years. Remember the Fyre Festival influencer marketing gaffe that even got a Netflix special? Some of the world’s biggest influencers including Kendall Jenner, Emily Ratajkowski, Bella Hadid, and many others promoted the event. It was an absolute disaster and the organizers of the festival will have to face legal consequences.
As a result of this failure, 94% of marketers stated they were “not likely” or “very unlikely” to seek out big-name influencers for future projects.All of these factors play into the unstable future of influencer marketing.
For now, it can still perform as a viable part of your marketing strategy if you are willing to make that sort of investment. This industry is still booming, and it’s still profitable in many cases. But it may not be around for much longer. It’s becoming increasingly expensive, there’s no guarantee of results, it’s difficult to track the ROI of campaigns, and users are beginning to trust influencers less.
So it’s probably a good idea to have other strategies up your sleeve.