It’s 2019 and influencer marketing is a solid marketing avenue to try, as social media influencers have become a powerful way to sell products. While this modern and often expensive marketing method can bring good results for your brand, it is hard to measure the real return on investment, and this is something that marketers have been struggling with ever since this became a thing.
Brands who are looking to grow fast often choose to give influencer marketing a shot. Influencer marketing increases reach and popularity as it speaks to potential customers in an authentic way. And even when we live in 2019, a highly digital age with many ways to measure ROI, it is hard to measure ROI for influencer marketing. So you can imagine why even when it’s beneficial for the brand, marketers are skeptical about investing in it.
A survey shows that roughly 40% of marketers have no idea how to track sales directly coming from influencer marketing. This uncertainty makes room for scams. For instance, an influencer marketing agency enticed 4 companies into work with fake Instagram profiles which were full of stock photos and whom had bought each follower for around $0.006 (added up, this makes a huge difference). This means that these 4 brands poured their money in paying and sending free products to people who were not real. What!
So watch out! Before getting into influencer marketing, be sure to understand how to measure ROI. Usually, marketers first focus on making reach, traffic and brand awareness; and then on sales. Making influencer marketing the forefront of your strategy equals to focusing on brand identity. To put all your eggs in that basket would be like covering your eyes, as it is an unreliable and has the least amount of ways to be measured. It’s high risk, but that doesn’t mean that it isn’t high reward.
Brands have invested billions on social media influencers, and this amount is expected to be doubled by the end of this year. This price hike means that marketers are inclined to spend over $100,000 per video post made by a Youtuber, and $130,000 for a Facebook post published by a celebrity. Influencers are in such a huge demand that some companies are willing to spend $90,000 for a Snapchat video made by an influencer (and Snapchat is not even that popular anymore! Sorry!).
As influencer marketing becomes more accepted and used, brands will be open to spend more and more on it. While influencers get paid higher and higher numbers for their posts, they become an important component in marketing strategies. Just don’t make them the only part of the strategym as there isn’t a ‘right’ formula to measure their ROI.