There has been much buzz about a particular Marketing Strategy called Influencer Marketing. Results from this action plan have been commendable in positively impacting a Brand, especially in Singapore where 92% of us own a least one smart device.
With astounding ROI, brands are accelerating their efforts to collaborate with Influencers of different scales. It is a profitable win-win game plan for brands and influencers. However, depending on your brand’s needs, it is essential to understand the cost required.
According to Brandhero, Instagram influencers may earn from $75 per post to above $3 000. This is accounting for the nano influencers all the way to the celebrity-in-their-own-right influencers.
While in logic, we understand how the cost spectrum works, it will be foolish to disregard the potential of nano and micro-influencers. These are the group of people that are able to generate a high engagement rate because of personal branding leverage. It is important to understand that they approach their target audience with the intention to nurture their base, and therefore, they are perfect for your Brand to grow with.
That does not necessarily imply that the higher-tiered influencers are not a good investment choice. There is a reason why they have achieved their current standing, and if Brands would like to utilize the association, they will need to pay a premium. Fair and square.
There are certain indicators that Brands can have a sense of what their investment amount is. First, Engagement. Engagement is defined in the social realm, by the number of likes and comments; all of which a 3rd party can have access too. A healthy lifestyle engagement rate should toggle above 3%.
It is just as important to find out the Reach figure. Here, it refers to the number of unique eyeballs the content as well, reached. This information may only be extracted from the influencer themselves. Instagram redesigns its algorithm quite frequently and it is, therefore, crucial to understand from your Influencer or Account Manager the current climate the content is performing at. This will assist in deciding what sort of strategic pivots you should make to optimize your campaign returns.
Other than numbers, it is helpful to understand the environment in which your selected influencer is thriving. Niche markets generally command a high monetary exchange purely because their following consist of a really targeted group. Likely, these influencers have to put in additional effort to keep up with their personal branding. One eg would be Solvil et Titus watch collaboration with Dragon Z. The brand enlisted Cosplayers to align their tactical marketing campaign with the creative direction of the watch. The product itself has narrowed its potential buyers, and enlisting Lifestyle Influencers is the equivalent of dumping your budget into the sea. While Cosplayers are pricy, they leverage their highly curated following. This essentially means the product is shorter in the queue for translation to actual sales.
Content types are a fundamental basis of why Influencer Marketing works. Influencers function on creating posts that resonate. There is a clear intention and purpose for why it exists on their public profile. It is the process of creative curation that is time-consuming and a Brand pays for that. Logically speaking, a Brand pays for the man hours, materials, and effort from start to finish. Similar to how a Boss pays for an employee’s salary monthly.
Last but certainly not least, Influencer Demand. The basis is simple; it means there is a strong affinity between the influencer and the audiences he is attracting. Brands pay more for that connection because you want to be included in the current talk of the town. It is capitalizing on popularity and optimizing it to your benefit.