According to a collabstr report, ‘The world of influencer marketing is growing faster than ever before. In 2021 we saw the market size of influencer marketing grow 42% year-over-year, from $9.7 billion in 2020 to $13.8 billion in 2021. It’s projected that influencer marketing will grow to a $15 billion market by the end of 2022.’ This staggering number evidently shows the popularity of having influencers as part of a marketing strategy and also that it really does work.
In terms of content that is working for driving the growth of influencer marketing is:
- Short-form video content
During the lockdown, short-form videos became popular when TikTok launched and completely took over every other social media platform. Soon after the rise of TikTok users became evident, other social media channels such as YouTube, Facebook, and Snapchat began to create similar features for short-form video content. This has led content creators and influencers in every sector to partner up with different brands and expand their content.
Just to give you further analysis on the 2022 report for Influencer Marketing which will help when creating or editing your current strategy, below is a report of the most popular platforms for brands doing influencer marketing. Collabstr reported that in ‘2021, 48% of influencer marketing budgets were spent on Instagram. TikTok was a close second as it captured 46% of influencer marketing spend from advertisers’ and ‘YouTube came in third by capturing 6% of influencer marketing spend.’
There was a block in creativity when covid-19 hit and therefore this adds to another reason why brands turned to social media influencers to create a hype around their product/service. Since the world has opened back up (mostly), organisations continue to research and diversify their strategic partnerships.
TOOLS TO HELP YOU VET INFLUENCERS
Agencies with a high reputation and a large database of influencers are an ideal way to go about starting this form of marketing. ITP Live for example has worked with multiple brands, influencers, publishers, PR, and more to understand the market and create the best final product for each person. By sharing your vision with an agency, we provide the ideal, suitable plan ensuring the correct vetting has been done, and everything fits with the brand values. Working with an agency also helps you to negotiate contracts and ensures reliability from the talent when coordinating with campaigns, timings, shoots, and social media schedules.
TOOLS TO HELP YOU MEASURE PERFORMANCE
Traditional marketing such as magazines/print and television are not accurate or some may say non-existent when wanting to analyse data compared to digital, online media. Social media offers you the chance the track the performance of a campaign, and how well the campaign is doing, which many brands fail to take advantage of. By comparing data over weeks or months of analysing, you can begin to rely on engagement metrics to see for example, how many likes, comments, shares, and followers you received from a certain influencer marketing campaign compared to a previous campaign. This will allow you to create the certain changes that you need to and by working with an agency, we can devise a full report with facts and figures to measure the performance. Affiliate links are a good tool for understanding whether someone has clicked on an advertisement and purchased a product or service. Using promo codes is also another way of measuring the success of a campaign and combined, all can track the journey of the customer to create a summary of accurate performance data.
TOOLS FOR UNDERSTANDING YOUR ROI
The whole point of why you are doing this and why Influencer Marketing is even an option for you to use as a strategy is to see a positive return on investment. Your ROI is important as the evidence above has shown influencer marketing to grow significantly into a billion-dollar industry. It offers you the chance to measure profits, and understand the returns in an influencer’s campaign, it also estimates the cost per engagement (CPE) which is generated from clicks, and begins to establish key performance indicators (KPIs).
A simple tool or formula to help you with calculating your ROI is:
ROI = (Profit – Investment)/Investment x 100
Example:
- Investment = $2000
- Number of influencers = 2
- Social media channel = Facebook
- Value generated after 1 month = $5000
Formula:
ROI = (5000-2000)/2000 x 100
ROI = 3000/2000 x 100
ROI = 1.5 x 100
ROI = 150%
Use the small steps to help you with your journey towards better influencer marketing campaigns. If you would like any more information on influencer marketing then contact our team today who can help you come up with the perfect plan for your brand.