“Someone else saying how good your brand is, is better than you saying how good your brand is”
In 2017 there was $570 million spent on influencer Marketing. 82% of consumers said they were very likely to follow the recommendation of an influencer they follow, and 67% said they had no negative reaction to sponsored influencer content whatsoever. Furthermore, 37% of consumers felt that, if influencer content was authentic and high-quality, it negated the fact that it was sponsored. (Source) So what's it all about?
In Lord Coconut’s stylish Mitchell House boutique, surrounded by an eclectic collection of jewellery and objet’s d’art, City Precinct members gained an insight into the world of Influencer Marketing. Whilst devouring the South East Asian flavours of Rice Paper Sister, our recently appointed Vice President, Dan Pinne of Melbourne Vegan Tours and Organik Digital asked special guest panellists Ash Bagga and Anucia de Boer the questions you always wanted to know but were too afraid to ask. What is Influencer Marketing? How do I get started? How much does it cost and how do I know if it’s worth it?
Influencer Marketing is a form of social media marketing involving endorsements and product placements from influencers, people and organisations who possess a purported expert level of knowledge and/or social influence in their respective fields.
You don’t need to be a celebrity to be an influencer. There are different tiers of influencers, and celebrities form just one of them.
Mega-Influencers (Celebrities): 1million + followers
Macro-influencers: 500,000-1 million followers
Micro-influencers: 10,000-50,000 followers
Nano-influencers: 1,000-10,000 followers
Look beyond the likes. Level of engagement is more important than number of followers. Like any business relationship, finding the right match is key and Micro-influencers are often a good match for small businesses as they have strong engagement levels (4-6% - this is great!) with followings built on trust and relatability.
Explore and find your match. Get scrolling! Make a list of people and brands you align with. Make sure that you are exploring the platform that your audience are most engaged with (ie. This could be Facebook, not Instragram).
TIP: Look at your own followers - you might be surprised to discover that there is already an influencer who likes what you do.
Make a move. Get in touch with the influencer that you would like to work with. Ash and Anucia recommend that e-mail is the best platform for this. Be kind, do not be demanding and be patient - Influencers are human beings and small businesses too! Make sure you have done your research before you approach an influencer. Authenticity and brand alignment is the first thing that Ash looks at when being approached for a collaboration.
TIP: No mass emails!
Set a goal. To be able to measure the impact of Influencer Marketing, you need to set a goal. What do you hope to achieve in this relationship? Increase in followers? Increased in engagement rates? Increase in sales? Brand awareness? Physical foot traffic? Set a realistic goal and way to measure this (ie. You might provide a discount code or special offer to followers of your influencer). Remember to be clear about the type of content that you want the influencer to produce (How many posts? Type of post? Videos?)
Find out more about what to include in your influencer agreements, here.
And how much does it cost? This is determined on a case by case negotiation. Think about what you can offer to make the relationship mutually benefit. How can you add value to their audience? Many influencers accept gifting where there is no budget.
While brands are increasing their budgets for Influencer Marketing - 84% of micro-influencers charge $250 or less for sponsored Instagram posts, and 97% charge no more than $500. (Source)