Influencer marketing has become an extremely effective tool for drawing new customers to brands through cross promotion with recognizable figures. But how do you create an influencer marketing campaign with the highest potential ROI? Read on to learn more about how the digital marketing gurus at Zest create impact for our clients through influencer marketing.
The use of influencer marketing—which employs brand or product promotion from celebrities, bloggers and product enthusiasts as a supplement to your company’s digital advertising strategy—has grown rapidly in recent years. Research shows that this pseudo-organic marketing tactic reports higher session duration, impressions and conversions than typical digital media buys. With the surplus of advertisements cluttering social feeds, consumers are often more likely to trust “recommendations” from everyday people with whom they have connection.
So, how can you take this concept and employ it in a way that ensures success for your business? It starts with who you select to be your brand’s influencer.
Antiquated methodologies tell us that in advertising, bigger is always better: big banners, big endorsements, and spots on big channels during big programs. Along this line of thought, it would be natural to assume that a bigshot celebrity is just the person you need promoting your brand, services, and products. After all, they’re big—a household name that everyone knows and loves—right? Strangely enough, a bigger name doesn’t always ensure a high-quality campaign.
“But,” you might ask, “don’t big celebrities have more reach?” Perhaps, but it is not always the targeted reach your business needs. A new study performed by Markerly shows that there may be a sweet spot in the celebrity-size and consumer-reach ratio. After studying 800,000 Instagram users—with the majority of users having 1,000 followers or more—users who had between 10 and 100 thousand followers engaged more with their followers, and as such received more likes and comments per post than the mega-Instagram users. This means that three Instagram users with 25,000 followers apiece will be more likely to turn their followers into your customers than one celebrity endorser with one million followers. Not only will these micro-influencers have a higher impact on your reach, but they will cost you significantly less than a single celebrity endorsement.
Why is this? Well, there are a few theories. Instagram users within that sweet spot of followers are more likely to interact with their audiences on a personal level, leaving their followers more committed to keeping up with their posts, and in turn liking, commenting and considering the promotions within those influencers’ posts. In a society that is becoming more and more voyeuristic, consumers appreciate getting a glimpse into the lives of “everyday people,” and hearing their opinions on products, brands and services. Because these Instagram users haven’t reached the status of “mega-celebrity,” consumers are more likely to believe that their endorsement is a genuine one.
Think of mega-celebrity endorsements as quantity over quality, and micro-influencer endorsements as the opposite. Celebrities catch the eye of more users, but those users (with some exception) are not as likely to be invested in the endorsement. As such, your influencer campaign may gain exposure, but the ROI could plummet. So, if your company decides to use influencer marketing to increase sales, just remember that bigger isn’t always better.
If you have questions about influencer marketing, or about implementing the right digital marketing strategy for your business, please feel free to reach out; we’d love to chat with you.