Influencer Marketing: What Is It and Why Your Business Needs It
At its most basic, influencer marketing is a type of social media marketing that depends on product endorsements and mentions from influencers—people who have a significant social following and are recognized as experts in their industry.
Influencer marketing combines traditional and new marketing techniques. It incorporates the concept of celebrity endorsement into a modern, content-driven marketing campaign. Influencer marketing is distinguished by the fact that the campaign’s outcomes are collaborations between businesses and influencers.
Influencer marketing can help your company improve its reach and market position. Users can discover more about your business, your narrative, and the products or services you provide by following you on social media. One of the most obvious benefits of social media marketing is the role influencers play in increasing brand awareness.
Why Instagram Influencer Marketing Works
Influencer marketing allows brands to communicate with their target demographic in a more real way than traditional advertising.
Rather than selling directly to customers, businesses are forming partnerships with influencers who can market on their behalf. Because they share many elements of their lives with their followers, Instagram influencers have a strong and devoted relationship with them. This makes us feel as if we know them personally, so when one of our favorite influencers endorses something, we listen as if it were a friend.
For example, if you follow a travel blogger for their beautiful photos and amazing destinations, and they post about a hotel that gave them the most luxurious and comforting service after a long haul flight, you’re more inclined to remember the brand and book a room for your next holiday because you like and trust them. That makes sense, right?
72% of Instagram users said they have made fashion, beauty or style-related purchases after seeing something on the app, proving its power in the digital marketing landscape of 2020. By @Nicola_HHQ
Determine The Right Budget
There is no standard rate card in this industry, therefore prices vary widely.
Rates should be based on an influencer’s number of followers and engagement rate, but other criteria such as star power, talent, or access to a specific audience can also influence a rate.
Covering any shoot-related costs (such as renting a studio, hiring a hairstylist, and so on) will also be a consideration.
Most pricing begins with one of these basic formulas and gradually increases.
- Engagement rate per post + extras for type of post + other extra factors = total rate.
- The industry standard is $100 per 10,000 followers + extras for type of post + additional factors = total rate.
Naturally, your brand objectives will play a role in determining which influencer will provide the greatest value.
A photo and caption are usually included in a normal sponsored Instagram post. In certain cases, the image includes the product. In some cases, such as when promoting a service, the caption is more important.
Using the formulas above, a photo post should cost about $2,000 for accounts with less than 100,000 followers. You should expect to pay between $5,000 and $10,000 for macro-influencers.
An Instagram story is a picture or video that appears for 24 hours and then disappears.
Costs may vary depending on the quality of the production, which might range from impromptu smartphone footage to polished uploaded content.
You might use the following calculation to figure out how much Instagram stories cost:
Price per Instagram Story = $0.06 x most recent average view.
In most cases, a brand takeover entails hosting the influencer’s material on your company’s feed for a set period of time. A takeover agreement may include a requirement that the influencer promotes the product a set number of times on their account–in posts and/or Stories.
One of the most prevalent ways to generate money on Instagram is through affiliate marketing. It’s the practice of paying an influencer who promotes your product for a commission on every sale that they make.
As of 2022, affiliate marketing partnerships provide 5-30 percent commission to Instagram influencers, with larger influencers starting at 8-12 percent.
Leveraging Instagram Influencer Marketing with Micro- and Nano-Influencers
Small businesses and micro-influencer marketing are a pair made in heaven.
You might think that you need additional revenue or a flood of customers to stay competitive as a small business in the market.
While this is true to some degree, brand trust is now the driving force behind small business success. In short, any organization (large or small) that wants to succeed in the hyper-competitive business ecosystem must develop consumer trust.
This is where micro-influencer marketing comes into play.
In fact, 30% of shoppers are more inclined to purchase a product recommended by a non-celebrity blogger.
This happens because people simply want to see a straightforward and honest review from someone they can trust. The “micro” or “nano” element is important because these influencers do not aim to reach global audiences. Instead, they build a tiny army of loyal fans and strengthen their brand by generating high-quality content.
3 Tips to Make Micro-Influencer Marketing Work for Your Small Business
1. Aim for Long-Term Influencer Partnerships
The first thing you should remember while starting your influencer marketing journey is to make your partnerships mutually beneficial. An influencer is similar to a small business that requires consistent revenue.
You can launch a brand ambassadorship program where influencers regularly provide paid content for you. By supplying them with a stable revenue stream, you may demand exclusivity and discounted rates.
To sweeten the bargain, even more, you can turn your influencers into affiliates and pay them a recurring fee on the purchases they produce. This is sure to keep people interested in your brand for a long time
2. Hire Sales-Oriented, Local Influencers
Because you have a limited marketing budget, choose influencers who can guarantee a return on investment.
When choosing influencers, don’t be influenced by vanity metrics like follower count. Despite having millions of followers, mega-influencers and celebrities have low engagement rates.
Partnering with micro-and nano-influencers makes sense for small businesses because they not only provide higher engagement but are also more sales-oriented. They have more “try-and-buy” dialogues and use direct product recommendations to boost sales and referral traffic.
3. Track Your Influencers’ Performance Rigorously
According to a survey by Influencer Marketing Hub, 35% of marketers will not measure the effectiveness of their influencer marketing in 2020. While large corporations may be able to get away with ignoring performance evaluations, small businesses might make a costly mistake.
You most likely have a limited budget for influencer marketing as a small firm. And because of that, you may not be approved for future campaigns if you do not justify your marketing expense to management.
Furthermore, you will be unable to make data-driven judgments based on information such as:
- Which influencer is performing the best?
- What are the most effective influencer marketing tactics?
- What areas of influencer marketing need to be improved?
All of your campaigns must be measured and tracked. Set KPIs (Key Performance Indicators) to make your campaigns more data-driven and improve your decisions.
Find the Right Influencers
If you’re looking for micro-influencers for your brand on Instagram, there are a few factors to keep in mind.
You might start by looking at some hashtags. Look for hashtags that are relevant to your niche and brand image. Micro-influencers can be found by searching for a hashtag they used in their postings.
If your business is in the fitness industry, for example, look for hashtags like #fitnesscoach or #fitnesstrainer to locate people with 10,000 to 50,000 followers.
You can start following influencers that match your criteria for collaborating on influencer marketing campaigns.
After that, you can look through their followers’ lists. There’s a good chance they’re currently following other popular Instagram accounts in your niche.
Another resource for finding micro-influencers is third-party Instagram tools. Manually searching for hashtags and reviewing your follower list is time-consuming. Many Instagram tools have various features, filters, and choices that you can use to find an influencer in your niche to help you achieve your business objectives.
How to Track the Success of Your Instagram Influencer Marketing Strategy
It’s no easy job to keep track of your influencer marketing campaigns. Everything boils down to analyzing the success rate of the influencer marketing campaign, whether it’s discovering appropriate social media influencers, executing the campaigns on the right platforms, or obtaining data for the campaign.
Influencer marketing is more fluid and tougher to quantify in numbers than traditional marketing, which had easy-to-measure results after a campaign launch.
Here are three ways to assess the performance of your influencer campaign.
1. Track engagement.
Engagement includes things such as likes, comments, shares, retweets, and reactions. These are publicly available and can be a fantastic way to start evaluating potential influencers because they indicate how engaged their followers are with their postings.
Add up the number of likes, shares, comments, and so on to evaluate how many people are engaging with the content. You can also calculate the engagement rate by dividing the number of comments, likes, and shares by the number of impressions.
2. Monitor traffic before, during, and after the campaign
Before you launch the campaign, take a look at your website and social media traffic. Then, as the campaign progresses, take daily or weekly notes, noting the spikes and drops in the amount of traffic.
Finally, after the campaign is done, keep track of your traffic and compare your notes to see how effective the campaign was at attracting people to your site. Evaluate your social media following and engagement rates, then compare.
3. Create promo codes
You’ve probably seen social media influencers give promotional codes for discounts on items or services. This is an excellent technique to attract new customers and measure sales because you’ll be able to see how many individuals used the code at checkout when purchasing your product.
Examples of Successful Instagram Influencer Marketing Campaigns
1. Lunch Box
Many homegrown brands have sprung up as a result of the lockdown. Lunch Box is one such upcoming food brand. The new brand provides homestyle meal packages that can be delivered right to your door. During the lockdown, Lunch Box gained a lot of followers and is now collaborating with influencers from all walks of life to advertise its services.
2. Daniel Wellington
Daniel Wellington’s success can be attributed in large part to influencer marketing. The premium watch brand used social media to break into the market and is collaborating with influencers to further increase their reach.
Because of its successful influencer marketing approach, the company was all over Instagram and produced massive sales. The brand successfully attracted the audience by giving free watches to influencers and allocating unique discount codes to these influencers.
3. Mia by Tanishq
Tanishq’s new age jewelry brand Mia is mainly catering to millennials. The brand specializes in lightweight jewelry that can be worn on a daily basis.
Mia has been collaborating with influencers for a long time. Influencer collaborations happen generally for special occasions such as Women’s Day, Mother’s Day, Friendship Day, and so on. Here’s an example of a Mia campaign in which an influencer has taken on a style challenge.
A specialist in influencer marketing! That’s what you’re now, and huge congratulations on knowing almost everything there is to know about influencer marketing campaigns and how to run them effectively on Instagram. We’re almost there; explore further about influencer marketing and what you can get out of it, we’ve divided it up into sections to make it easier for you. The following phase would be to learn about Influencer Marketing Trends .
Influencers are here to stay, but the world of influencer marketing has transformed dramatically in a short period of time, and in five years, it may look and operate very differently. This guide will assist you in developing your approach, but like with any marketing strategy, you must be willing to adapt.
The important features and tactics discussed in this blog might assist you in successfully executing your first Instagram influencer marketing campaign. As you can see, there is a lot to this process, but it will all be worth it in the end.