Business intern predicts the global influencer marketing industry will be worth $ 15 billion by next year, and with good reason.1 Effective influencer campaigns can generate up to $ 18 in media value earned per dollar spent.2 Numbers like these have prompted Forbes to call influencer marketing âthe biggest breakout star of 2020â.3
To harness influencer marketing effectively, brands need to understand what it entails and the pitfalls to avoid. Here’s a look at the influencer landscape and the key elements of influencer campaigns.
Influencers deliver great content, large audiences
Influencer marketing has specific advantages. Vivien GarnÃ¨s, co-founder and co-CEO of influencer marketing agency Upfluence (Lyon, France), explains that working with influencers allows companies to make their brand known to new audiences. Rather than building an audience from scratch, businesses can borrow an already established audience from an influencer.
âInfluencers are expert content creators whose broad reach on social media will increase brand visibility and product awareness,â says GarnÃ¨s. âInfluencers can also help brands achieve their sales goals through affiliate campaigns or promo codes. Building long-term partnerships with top performing designers will help brands maximize their return on investment. “
Features to look for (and avoid!) In influencers
While influencer marketing’s ROI makes it an attractive strategy, GarnÃ¨s warns that not all influencers can deliver on their promises. Sorting out the good influencers from the bad involves digging into the influencer data.
âA key factor to consider is bogus subscribers,â says GarnÃ¨s. âWorking with influencers who have a high percentage of fake followers will reduce your ROI. Social media platforms do a lot to tackle fake followers, but brands can also turn to influencer platforms that show the percentage of actual audiences engaged for each influencer.
Fake followers are one of the reasons a large audience isn’t necessarily ideal. Internal data from Upfluence shows that Instagram fitness influencers with less than 15,000 followers receive seven times more engagement than influencers with one million followers.4 Plus, not all influencers will fit all brands. GarnÃ¨s says the right influencer is one whose audience, niche, values, and content topics are already aligned with those of the company.
Find and secure influencers
There are several free and paid tools available online for finding influencers. Upfluence’s influencer database, for example, contains over four million influencer profiles, with engagement stats, audience demographics, and each influencer location. Influencer marketing companies can also organize a list of qualified influencers.
After identifying a suitable influencer, the next step is to make contact. GarnÃ¨s says this process involves emailing the influencer a campaign briefing detailing the campaign’s metrics and expectations, along with an offer of compensation. There are a number of ways to pay an influencer, including a plan, revenue share, or free product. Once an offer has been made and accepted, the last step is to sign a contract.
Elements of an influencer contract
Author’s Note / Legal Disclaimer: The author is not a lawyer. The source is not a lawyer. The information in this article is general in nature and is provided for informational purposes only. This is not legal advice and should not be construed or relied on as legal advice.
GarnÃ¨s says that a typical influencer contract contains some key elements: the start and end date of the campaign, the number of posts, the format of the content, the social media channels the influencer will use, and a timeline for publication. Additionally, he says the contract should include a reminder of FTC guidelines that all sponsored content should be marked as paid ads. GarnÃ¨s says other important details of the contract include when and how the content will be approved, who owns the content, whether the brand will reuse the content in future campaigns, and how the brand will measure the success of the campaign.
âBrands must indicate whether they do not want influencers to work with competitors or other brands during the campaign,â explains GarnÃ¨s. “[The contract should also] specify the amount, method and terms of payment, as well as any information the influencer must submit before [receiving] Payment.”
The costs of hiring an influencer vary from influencer to influencer. Factors that determine the cost of working with an influencer include volume of content, influencer audience size, and average influencer engagement metrics.
GarnÃ¨s says that the final element of an influence contract, aside from the date and the signatures, is an execution and cancellation clause. This clause will explain how and for what reasons the contract can be terminated, as well as what happens if the campaign does not perform well.
The meteoric rise of influencer marketing
Influencer marketing has grown in popularity to be one of the best online advertising strategies for brands across industries. This strategy works because it leverages a pre-existing audience, cultivates trust, and feels authentic. Brands that can foster authentic and productive working relationships with influencers should see a strong ROI.
- “Influencer Marketing: Social Media Influencer Market Statistics and Research for 2021.” Business Insider / Insider Intelligence. Published online January 6, 2021. Accessed here.
- âThe State of Influencer Marketing 2021: Benchmark Report. Â»Site of the Influence Marketing Hub. Published online February 14, 2021. Accessed here.
- Drenik G. âInfluencer Marketing was the biggest star of 2020; Why will brands that capitalize on this trend win in 2021. ” Forbes. Published online February 9, 2021. Accessed here.
- “Industry Report: Fitness and Nutrition”. Upfluence website. Published online February 5, 2021. Accessed here.