3 Things Marketers Need To Know About The Influencer Economy

3 Things Marketers Need To Know About The Influencer Economy
Influencer Economy

So, you’ve found the right set of influencers who match your brand ethos – but are each of these people actually helping your influencer marketing campaign and getting you the desired result?

Recent statistics showed 84% of marketers consider influencer campaigns effective, and that for every $1 spent on influencer marketing there is a $7.65 return. But influencer marketing campaign doesn’t just end with finding and engaging the right set of influencers.

Brands wanting to embed influencers into their wider marketing strategy often worry about getting the desired results.

Here are some of the most frequently asked questions about influencer marketing – and our answers.

1. How can I track ROI for an Influencer marketing campaign?

Brands like New Balance have already incorporated e-commerce elements into their influencer campaigns, while Nike will soon sell shoes on Instagram. Other brands will probably also soon have the option to incorporate ‘Show Now’ offers on their own and on influencers’ feeds. We are expecting Instagram to offer more sophisticated e-commerce options and tracking methods in the near future.

Compared to a billboard or other traditional advertising methods, influencer marketing metrics are so much easier to track, as real time stats show you how many people are engaging with an influencer’s posts.

However, focusing solely on sales won’t offer the bigger picture, as larger influencer opportunities run deeper than CPE or CPC. Influencer marketing isn’t purely about sales – it’s more powerful as a word-of-mouth channel. CPC and CPE, reach and engagement are readily available and, together with the generated sales from shoppable posts, they offer a tangible understanding of the campaign ROI.

Ultimately, it’s about seeing the long-term effect. For example, watch brand Daniel Wellington chose to exclusively focus all marketing efforts on influencers. It helped them to become Europe’s fastest growing company between 2013 and 2015, with a 4700% growth and earnings bigger than $120 million in the first five years.  FMCG companies, such as O&G Cereals, also realised influencers make their products more fun and relatable.

2. How can I hit the right target market?

It’s true that the economics of content marketing are changing due to ad-block software and the greater control consumers have over what they see. As Instagram isn’t releasing in-depth demographic information yet, brands want to be assured that the followers and reach of influencers are relevant.

This happens naturally, as influencers are authentic and automatically aggregate a community of actively engaged people who align with them. Influencers only feature products they genuinely feel passionate about, making Instagram the only marketing channel that is 100% customer-focused. This is especially true because Instagram’s algorithm prioritises content that users are more likely to engage with.

However, a rigid target market is no longer key to the success of a marketing campaign. For example, Real Estate Entrepreneur and TV personality Fredrik Eklund showed how to create hype around a product regardless of the audience. Promoting a new luxury apartment building in New York, he asked influencers to come to a house viewing instead of inviting prospective buyers or paying hundreds of thousands of dollars on static ads. The influencers posted the event to their highly engaged followers – a collective 6.6 million.

His marketing paid off big time, as the Madison Square Park apartment building quickly became the most followed apartment building in New York. It’s a prime example of digital word-of-mouth hype using influencer marketing.

3. How can I really make the most out of an influencer marketing campaign?

Create campaigns, such as the one for the apartment, offering huge potential that exceeds traditional marketing. As peer recommendations become increasingly important, more opportunities for diversity are opening in the advertising space, creating tailor-made content for niche audiences.

Success in this rapidly-developing marketing channel is all about finding a good strategy, while not being afraid to experiment and think outside the box.

Helping to create effective and creative strategies, Vamp uses technology to successfully implement and track campaigns with influencers.

The savviest brands are no longer just simply promoting their products – they are actively incorporating influencer channels as part of their on-going marketing strategy.