The state of influencer marketing
As more money is flowing into influencer marketing, there’s much confusion in the space with questions like: How do social stars get paid? And how can a brand measure the return on investment?
Both are the major trends in the influencer marketing space today, according to various data sources.
The key takeaways
- The number of followers is still the gold standard for a social star’s “influence,” but those with a smaller following sometimes charge more.
- Instagram is the No.1 influencer marketing platform. And social stars are moving from Snapchat and Twitter to Instagram.
- On Instagram, social stars specializing in travel typically get paid the most, while those in business get paid the least.
- A big brand concern is the lack of control, but most social stars don’t want to be told what to do by a company.
- Measurement is the biggest challenge for marketers when using influencer marketing.
The key numbers
- $570 million: Globally, marketers spent on influencer marketing on Instagram last year, says eMarketer.
- 78 percent: Most of the 170 marketers surveyed by influencer company Linqia said that determining the return on investment is the biggest challenge of influencer marketing.
- $5,000-$10,000: The price range per post for influencers with 500,000 to 1 million followers across social platforms, according to influencer tech firm Hypr.
- 89 percent: Most of the 208 U.S. marketers surveyed by influencer agency Chute find influencers on Instagram, followed by Facebook (70 percent) and Twitter (70 percent).
- 70 percent: The majority of the 400 influencers surveyed by influencer agency Collective Bias said that they are putting Snapchat and Twitter on pause to focus elsewhere.
- $1,405: The average rate of sponsored Instagram post by influencers with over 1 million followers on Instagram, according to a 2017 survey of 2,885 influencers by marketing company Influence.
The agency view
When it comes to influencer marketing, one big challenge facing marketers is measurement. Marketers are often looking at the wrong metrics, according to Holly Pavlika, svp of marketing and content for Collective Bias. For instance, reach is not equal to engagement.
“And marketers are scattered when it comes to what they’re measuring,” said Pavlika. “Key performance indicators are all over the place from CPM to impressions to total media value to sales [increase.]
Jody Farrar, vp of sales and marketing for Chute, thinks that while measurement and tracking is improving, it can still be challenging for many marketers to pinpoint return on investment when using influencer marketing. “This makes it increasingly challenging to answer questions like, how much should I pay the influencers I work with?” she said.
Influencer marketing continues to grow and social stars are putting more focus on Instagram as a platform specifically, according to agency executives. For brands that are investing in influencer marketing, they have to change their mindset — many marketers want to use social stars to drive sales at scale but influencer marketing is not designed for that, according to Brian Babineau, evp of social and content systems for Arnold Worldwide.
“Influencer marketing is not evolving as quickly as it should because many brands don’t understand the role it plays in their marketing mix,” said Babineau. “Influencer marketing is a different production model, but many treat it as a media channel. The future of influencer marketing has to be built upon the notion of content creation.”
‘We’re not in advertising mode’: Anheuser-Busch CMO Marcel Marcondes on staying relevant
Last month, Anheuser-Busch announced that it would use its production lines to produce hand sanitizer to help consumers amid the coronavirus pandemic. But that’s only one way the world’s largest beer company is changing the way it operates during this crisis. As the situation has evolved, the company has developed initiatives aimed at helping consumers […]
It took a global pandemic, but Facebook Live is back in favor
With people at various levels of lockdown, Facebook Live has gone from being a back-up way to being at events to being one of the only ways during the pandemic.
‘Be helpful’: How marketers are adapting their messaging to a fraught environment
Using that tactic -- fostering a sense of community with some version of “we’re in this together” and making explicit how big businesses are trying to help -- is common in the new advertising.
SponsoredRegulations are prompting publishers to develop new strategies around user log-ins
In a post-GDPR and post-cookie world, more publishers are making concerted efforts to explain the value of their content to users and increase the volume of consumer authentication.
‘Right thing to do at the right time’: The definitive oral history of Hyundai’s assurance program
Here’s the story of how the Hyundai Assurance came to be and how it was revived in recent weeks.
Member ExclusiveFinance is the new creative: Balance-sheet crunch leads ad and media businesses to seek new liquidity avenues
This is the second of a weekly column about the big changes and challenges facing media and marketing leaders. Be sure to join Digiday+, our membership program, to get access to this column and all Digiday articles, research and more. First came the shock. Then came the bills. Eager to maintain positive free cash flow […]