Word of mouth is a powerful tool. So what if a marketer can use word of mouth to capture a huge audience? Welcome to influencer marketing. But what are some of the most common influencer marketing FAQ?
One of the most common influencer marketing FAQs is “What exactly is influencer marketing?” A previous post describes it as when “brands connect with consumers by placing products in the hands of entertainers, athletes, industry leaders, and other influential members of society.”
Though celebrities are a good target, influencer marketing can also include industry experts. Essentially, marketers aim to connect brands with influencers who have a large reach. In turn, the influencers connect their audiences to the brands.
But despite how promising influencer marketing may be, it’s a new venture, and your boss might (rightfully) be incredulous.
Here are seven influencer marketing FAQs your boss probably wants to know:
Influencer Marketing FAQ #1. What does influencer marketing offer that traditional advertising doesn’t?
Many people want ads to feel, well, not so ads-y. And that’s where influencer marketing comes in. Not only does this type of marketing allow you to amplify your brand or company, but it comes off like a friend recommending something rather than them trying to sell you something. In fact, a Nielsen study found 92 percent of people trust recommendations — even from people they don’t know — more than brands.
A growing population is frankly sick of ads. Ad blocking software is installed on some six million devices around the world, reports the New York Times. In 2016, the use of ad blockers increased by 30 percent worldwide.
Most online ads are seen as intrusive or disruptive by Millennials who know how to avoid them. With ad blockers readily available, Juniper research anticipates digital publishers will lose $27 billion by 2020. So, it’s good to get ahead of the curve.
Influencer Marketing FAQ #2. How effective is influencer marketing?
There is always risk involved with taking on a new venture. Your boss isn’t going to want to leap in unless he or she knows that influencer marketing is in some way effective.
The 2017 State of the Creator Economy Study (SOCE) found that the majority of marketers gave influencer marketing at 7.56 effectiveness rating (out of 10), up from 7.27 in 2014. Meanwhile, more traditional forms of advertising were rated as much less effective.
Influencer Marketing FAQ #3. What influencers should we approach?
Though it may be appealing to go after people with large audiences, a large audience means nothing if they are not your sought-after demographic.
Search relevant hashtags on Instagram and Twitter and you might find your ideal influencer. Another option is to use an influencer marketplace, which makes it easy to search for and connect with relevant, effective and budget-friendly influencers.
Essentially, you should be focusing on quality over quantity. Reach out to influencer(s) who consistently churn out quality content, are dependable, and have an active audience. Collaborating should be anything but a headache.
Influencer Marketing FAQ #4. How can we measure success?
In addition to effectiveness, there are several concrete methods that can be used to determine how successful a campaign is.
Success is best measured by tracking activity (volume of outreach to influencers), engagement (two-way interactions with target influencers), awareness (volume of brand mentions or other relevant topics from your influencer community), perception (quality of brand coverage from your influencer community), and action (site traffic generated by your influencer community).
Influencer Marketing FAQ #5. How do we compensate influencers?
Money is not the only form of compensation that influencers can receive for their work. Again, the type of compensation can depend on the influencer you are working with, and your budget. Other types of compensation include discounts, commissions on sales, or free products/services! Most influencers prefer to get compensated with money because they can’t all survive off of A&W gift cards or a lifetime supply of whitestrips, but again, all influencers are different.
Interestingly enough, the SOCE found that there is a significant gap between the perceived price brands expect to pay and the price influencers expect to earn. Knowing what influencers expect to earn and adjusting your prices accordingly can save your brand a considerable amount.
For example, marketers often assign costs that are up to 13 times the actual amount influencers charge. A marketer might expect to pay $345 for a sponsored blog post, while the typical influencer only charges $238.
Influencer Marketing FAQ #6. How are influencers limited?
There are laws in place to protect consumers and prevent deceptive behavior. In the US and Canada, influencers must disclose when their posts are promoted or sponsored.
Influencers are to abide by the Federal Trade Commission FTC 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising,” and Canada’s Competition Act. In 2016, 60 percent of influencers claimed to be aware of and to understand these regulations, according to the SOCE, while just 11 percent of marketers claim to understand the rules.
The FTC is known to crack down when influencers don’t disclose. For example, Warner Brothers got themselves into hot water with the FTC for supposedly failing to disclose paid reviews for Middle Earth: Shadow of Mordor.
It’s important to note that “compensation” falls under a large umbrella. Influencers reveal when they are paid in cash, free products, services, or coupons to promote a product or brand. Although the SOCE found that 30 percent of influencers claimed to have been asked not to disclose their partnerships with a brand, to skip disclosure is a violation of the rules and can lead to big problems
Influencer Marketing FAQ #7. How do we find an influencer?
The process of identifying the “it” people to promote your company or brand can seem overwhelming. Fortunately, there are several avenues to take when compiling the ideal influencer catalogue.
One of the easiest options is to use an influencer marketplace, such as IZEA. Access a variety of quality influencers excited to work with your brand on Influencer Marketplaces.
Using a marketplace not only takes the hassle out of finding an influencer. It also streamlines the payment and negotiation process and allows you to track the results, so that you can see if your campaign is working or not.