A few days ago, we asked, “Is influencer marketing the next golden ticket?” The question sparked around 1,700 shares on Social Media Today alone…which speaks volumes to the number of people who are interested in using this marketing strategy.
The idea is old. But the execution is relatively new. It’s exciting. And it’s delivering some outstanding results for the companies that are using it well. But what can you expect from influencer marketing? The marketing pros at Tomoson recently conducted an Influencer Marketing Study that discovered, “Businesses are making $6.50 for every $1 spent on influencer marketing.”
The Top 4 Reasons To Use Influencer Marketing
Let’s recap some of the study’s discoveries about influence marketing…
#1 At least 70% of companies using influence marketing are earning $2 or more per $1 spent. Doubling your investment? I don’t know any business that wouldn’t be happy turning one advertising dollar into two revenue dollars. The top 13% of surveyed companies are earning $20 per dollar spent on influencer marketing. Of course, there are still those who are breaking even or losing money on influencer marketing. But for the majority, this strategy is working.
#2 51% of businesses find they get better customers via influencer marketing. To extrapolate on that finding, we all know that obtaining a new customer is much more expensive than retaining a current customer. It would make sense that a higher quality customer would be preferred, as they’re more likely to stay with your brand and become a repeat customer.
#3 It’s the fastest-growing online customer-acquisition channel, leading the way at 22%. Organic search is the second fastest-growing channel for customer-acquisition (17%).
#4 It ties email as the most cost-effective channel. That’s right. Influencer marketing delivers more bang for your buck than organic search, paid search, and display advertising.
Getting Started With Influencer Marketing
How do you actually get started? Who do you reach out to, and how do you negotiate? Lauren Jung, writing for Small Business Trends, shares a few tips:
First, research your influencers. Who is their audience? How big is their reach? Do they do sponsorships? If so, are they getting engagement? Are sponsors coming back for repeat campaigns?
Pick who you want, and then pitch your campaign. Be clear on terms and expectations.
“There are no rules when it comes to blogger rates,” writes Jung. Negotiating is more than fine. It’s expected. Depending on your budget, you may decide to go all-in with just one influencer, or spread your funds amongst multiple influencers.
Know that this is a relationship business. Maintain a good relationship with your influencer, even if you don’t see the ROI you hoped for in your first campaign. You never know how their circumstances – or yours – could change!
Do You Have An Influencer Marketing Strategy?
If so, what’s working? What’s not? If you haven’t used influencer marketing, what’s the biggest concern you have about trying it out?