How Influencer Marketing Can Offset Rising Social Media Ad Costs

The rising costs of social media ads in key sectors like beauty, fashion, alcohol, and household goods have left many marketers searching for cost-effective alternatives to reach consumers online. Across most of the 25 most-tracked categories, media spend on monthly cost-per-click rose from $6,804 in the first quarter of 2024 to $7,338 in Q2, according to eMarketer. These increases—coupled with rising demand for limited ad placements on popular platforms—have led more brands than ever to invest in influencer marketing. 

This blog shares the many benefits of influencer marketing and how your investment can maximize your ROI to preserve—not deplete—your budget.

Why influencer marketing is a smart alternative

Brands looking to offset the increased costs of advertising on social media can benefit from organic engagement and built-in trust earned from audiences through influencer marketing. The strategy—which focuses on collaborations with content creators who share the brand’s target audiences—has many key advantages. Here are a few to consider:

Lower costs and higher engagement

Content creators with smaller followings—such as nano- and micro-influencers—tend to have high engagement rates due to the relationships nurtured over time. These smaller influencers also tend to charge less for their posts, making the strategy both cost-efficient and effective.

Niche targeting for better ROI

Influencer marketing can introduce your brand to a wider audience—and the right ones. By selecting content creators who align with your brand’s values, goals, and niche, you’ll extend your team’s capabilities. In addition, using personalized content that aligns with your target consumers can help ensure that messaging is well-matched, leading to a better ROI.

Authenticity and trust

According to our 2024 Trust in Influencer Marketing report, social media users under 45 cite influencer posts as their No. 1 way of getting them to try a new product. Additionally, among all age groups, 51% of all respondents say they’ve purchased after seeing the product used by an influencer. 

Consumers have become weary of traditional ads that disrupt their feeds with slick sales lingo and carefully curated branded imagery. Influencer-generated content tends to be more persuasive due to the authenticity of how a product or service is used in the creator’s daily life. Additionally, some influencers are experts in their niche, giving more weight to their recommendations.

Long-term partnerships for consistent engagement

Brands that build ongoing relationships with influencers tend to drive sustained engagement as consumers’ trust increases. Long-term partnerships on campaigns help foster loyalty, as influencers’ followers are regularly exposed to social proof in the form of positive brand promotion.

Industry-specific benefits

Brands in key sectors where social media advertising costs have increased may see specific benefits from investing in influencer marketing. Here are some examples of how creators have partnered with brands in the beauty, alcohol, fashion, and home industries to boost awareness, build engagement, and drive revenue.

Beauty sector

When Australian beauty brand Bondi Sands wanted to raise awareness about eye cream and SPF 50 moisturizer, the skin care company turned to influencer marketing. 

Partnering with hand-picked beauty and skincare influencers around the globe, the large-scale campaigns were able to reach new audiences with content that felt authentic and natural. By showcasing the products’ benefits and affordability, as well as vegan and cruelty-free ingredients, these nano and micro-influencers generated high video views, large engagement, and plenty of content for repurposing. 

Alcohol industry

To build brand loyalty and awareness without high ad costs, Chilean wine brand Casillero del Diablo launched an influencer marketing campaign on Instagram. Curated content from ambassadors focused on select wines available at regional supermarkets. The four-phase campaign leaned into elevated yet relatable experiences, including celebrations with friends and family, and was punctuated with a special collaboration with Manchester United.

Fashion and home decor

The visual appeal and trendsetting nature of influencer marketing make it ideal for fashion and home decor brands. When Bloomingdale’s sought to promote its prom collection, the luxury department store chain launched a TikTok campaign featuring high school-age shoppers dress shopping. The videos were reminiscent of scenes from classic coming-of-age Rom-Coms, striking the right chord with the young prom-goers.

Tips for implementing an effective influencer strategy

Ready to get started with influencer marketing campaigns to promote your brand? Consider these tips to implement an effective strategy. 

Include nano- and micro-influencers for ROI

The high follower count of celebrities and mega influencers doesn’t necessarily translate to engagement. Maximize your ROI by choosing content creators with smaller but highly engaged audiences who have demonstrated interest in your industry’s products and services.

Use data to track success

How will you measure the success of your influencer marketing campaigns? Use key performance indicators to measure engagement through likes, comments, shares, click-through rates, website traffic, brand mentions, conversion rates, and sentiment analysis. 

With the right toolbox, your team can monitor sentiment, collect and measure content, track links, and use the power of artificial intelligence to streamline the information you collect and turn the data into valuable insights. 

Build long-term collaborations for better impact

Think of your content creators as an extension of your marketing team through which you can increase brand visibility and widen reach. Through these long-term partnerships, your collaborating influencer can build trust, loyalty, and advocacy for the brand among your target audiences. This competitive advantage can provide the brand with a unique positioning that it might not otherwise earn, which can drive sales without the added costs of social media advertising.

As your team lays out its 2024-2025 marketing strategy, budget for influencer marketing. The sustainable and cost-effective tool can help remediate the rising costs of social media advertising and done well, can position your brand for exponential growth. Need some help getting started? Reach out to our Managed Services team for help with strategy, content creation, execution, and analytics.