How to Build an Influencer Marketing Strategy | Digital Marketing Institute (2024)

FAQs

How do you write an influencer strategy? ›

Tracking key performance indicators, also known as KPIs, allows influencers to gain an in-depth understanding of who they're influencing, how they're influencing them and how to reach more people and promote their brand on social media.

An influencer marketing strategy leverages digital creators who strongly influence specific industries or target audiences to make purchase decisions. With a successful strategy, you can partner with these individuals to promote your brand, products, and services through curated messaging.

Engagement campaigns

Using the total cost of your campaign, you divide by the total number of engagements, which will give you your Cost Per Engagement (CPE).

To set up a successful influencer marketing campaign, you need to do three things: identify your target audience, set your budget and establish Key Performance Indicators (KPIs). KPIs to consider include: Audience reach. Impressions.

According to data from eMarketer, there has been a steady and significant predicted growth in the percentage of marketers that use influencer marketing. 55.4% of marketers leveraged influencer marketing in 2019. That number is predicted to grow to 72.5% in 2022, for a total increase of 17.1%.

Return on Investment (ROI) is the basic metric to keep track of while running influencer marketing campaigns. ROI can be defined simply as the revenue or profit generated from an influencer campaign divided by the cost.

What is an example of influencer marketing? ›

Tom's of Maine

The company wanted to increase brand awareness among health-conscious buyers by encouraging people to try their products and talk about them on social media. Tom's focused on micro-influencers, who then encouraged their followers to publish their own posts.

Step 1: Determine budget, audience, & goals

Like most advertising initiatives, the first step to creating an influencer marketing campaign is determining the budget and establishing the target audience.

Cost per engagement versus cost per click

As a result, the CPE will almost always be equal to or lower than the CPC because all clicks count as engagements, but all engagements do not count as clicks. For example, advertisers release an ad in the form of a video on Facebook.

Definition: Cost-Per-Lead, or CPL, is a digital marketing pricing model whereby the advertiser pays a pre-established price for each lead generated. In ecommerce, CPL is often utilized by businesses who sell subscription services or high-value products.

Influencer marketing is a golden opportunity to liven up your social media posts. You can repost the influencer's content or encourage their followers to create user-generated content, as 24% of brands do. You can also use blogger's images for other marketing channels, such as targeted advertising.

Create Relationships With Influencers

Interact with your potential influencers by liking posts and hanging out in the comments. Support them by cross-promoting their user-generated content on your social media channels. Once you've established some rapport with them, begin the conversation around a paid collaboration.

You have to be in the business of creating content to attract brand partnerships for your Instagram, blog, YouTube, or whatever your platform is. One of the major reasons why brands hire influencers is to produce fresh, original content. Brands want to know you're able to create new content for them.

The influencer marketing industry in 2022 will see a huge rise in the demand for micro influencers. Micro influencers' share in the total industry increased drastically last year due to brands favouring them owing to their higher engagement rates & affordability.

Brands Spend More Than $100 per Influencer-Generated content. On average, brands spend around $174 for each piece of content that an influencer generates. With influencer marketing expenditure projected to rise in the coming years, you can also expect this average spending price to grow.

How do you measure sales from influencer marketing? ›

To determine an influencer's engagement rate, add all of the engagements (likes + comments etc.) across all the influencer's posts on a particular profile, divide by the total number of followers, then multiply by 100. Using this formula, you'll be able to view the total overall engagements for an influencer's profile.

If you want to take this a step further, you can calculate potential impressions for each influencer-produced post. To do this, multiply the number of social shares that the post earned by the average number of followers per user on social media. The average number of followers for each network are: Facebook: 338.

Measure your campaign performance

The analysis will give you insight into various performance metrics like engagement rate, likes, comments, shares, campaign reach, etc. This will help you understand whether your campaign is giving you the desired results.

SEO KPIs are quantifiable values used to measure the effectiveness of a marketing team's SEO efforts and performance. Keeping an eye on your most important search metrics provides you with deeper insight into your search engine ranking and visibility, and conversions that can be attributed to organic performance.

Head back to the influencer's account and check their engagement rate. You can do this by dividing the number of engagements by their number of followers. If the engagement rate seems way too high or way too low, they might have a significant number of bots following them. Learn more about reasonable engagement rates.

There are many KPIs that serve a purpose for different elements of your strategy, but when it comes to influencer marketing, the five essential ones to focus on are conversion rates, reach and awareness, referral traffic, audience growth and engagement.

Micro-influencers are the most commonly found type of social media influencer and have followings between 10,000 and 100,000 people. Micro-influencers typically focus on a specific niche, industry, or culture, and are regarded as subject matter experts.

C – list – micro-influencers, who declared themselves to be of good quality and a very high level of communication with their audience. According to the best marketing research, cooperation with this category of bloggers results in the most effective feedback.

What type of influencers make the most money? ›

According to Vox, a micro-influencer, defined as someone with 10,000 to 50,000 followers, can earn anywhere between $40,000 and $100,000 per year. Influencers with millions of followers, on the other hand, can earn tens of thousands of dollars per post.

Many brands use influencer marketing to reach their target audience. Big brands like Motorola, Adidas, Pepsi, and Dunkin' Donuts all use influencer marketing.

The first step to a successful social media marketing plan is to establish what you want to achieve. With any good marketing plan, you need to assess your current situation and establish your goals. Make sure your goals are specific, measurable, achievable, realistic and timely.

What's a good influencer conversion rate? For influencer marketing campaigns of all lengths, a commonly agreed-upon good conversion rate is 3% and above, but that really depends on a few factors such as industry, your website layout and how marketing campaigns normally convert, and the average sales cycle.

Use links that can track the influencer's performance and impact on its audience. For example, using UTM links, unique coupon codes, affiliate links, personalized landing pages, etc. This way, the results are tangible and you can compare them to your KPIs and see how well the influencer is doing for your campaign.

Google Ads is an auction-based advertising system that allows you to bid for ad placements on Google properties or publisher partner websites within the Display Network. You can bid on a cost-per-click (CPC) or cost-per-thousand impression (CPM) basis.

CPC offers a greater return on investment than CPM. Because you only pay for clicks, you're only spending money on consumers. Under the CPM campaigns, the ad views without engagement result in less revenue. CPC is less useful for delivering the marketing insights you need to analyze your ads' effectiveness.

How much does CPE cost? ›

These courses range in price from about $19.95 up to $125, depending on the course sponsor or school and course or package you select. Consider that most states require you to take at least 40 hours of continuing education each year. Your total annual cost for continuing education could range from $800 up to $5,000.

CPA is a step further from CPC because you only pay when someone takes your desired action. If a person sees and clicks your ad, but doesn't convert, you don't pay.

CPC (cost per click) and CPM (cost per thousand impressions) are two common pricing models for digital marketing. CPC is the amount you pay for each click on your ad, while CPM is the amount you pay for each thousand impressions of your ad.

Cost per install or CPI is a pricing model used in mobile user acquisition campaigns in which app advertisers pay each time a user installs their app from their ad. CPI is a very common pricing model, and is specific for mobile apps only.

As of Oct 21, 2022, the average annual pay for a Work From Home Influencer Marketing Strategist in the United States is $60,836 a year. Just in case you need a simple salary calculator, that works out to be approximately $29.25 an hour. This is the equivalent of $1,169/week or $5,069/month.

Tom's of Maine

The company wanted to increase brand awareness among health-conscious buyers by encouraging people to try their products and talk about them on social media. Tom's focused on micro-influencers, who then encouraged their followers to publish their own posts.

Influencer marketing allows big brands to attract more customers and enables small businesses to scale up by getting them more visibility, which provides higher ROI than other marketing channels.

How much do you pay an Influencer Manager, right? Typically most Influencer Managers are compensated 10-20% of brand deals depending on the deal size and how it was sourced.

How much do influencers pay their managers? ›

A reasonable percentage of earnings. Managers take a cut of their talent's earnings, usually between 5-20% depending on services rendered. This flat rate includes a portion of: Adsense revenue, affiliate link commissions, brand campaigns, product collaborations, and merch revenue.

How much does an Influencer Manager make in California? As of Oct 25, 2022, the average annual pay for an Influencer Manager in California is $39,417 a year. Just in case you need a simple salary calculator, that works out to be approximately $18.95 an hour. This is the equivalent of $758/week or $3,284/month.

Brands positively influence customers' purchase decisions by associating with influencers and their niche audiences. They inspire the influencer's followers to take action, which can result in: Driving website traffic. Increasing leads for a specific product.

One of the best ways to approach influencers on Instagram for a collaboration is to discuss what you like about their content, why you think they'd be a good fit to work with your brand, and what your brand can offer them. Do this in just a few sentences, though.

Disclosure is very important to the FTC. So as you make your agreements with influencers, have disclosure guidelines. Influencers must also identify sponsored posts.

The top social media channels for influencer marketing are: Instagram, Youtube and Tiktok, with Instagram being the most popular one among these channels. Youtube and Youtubers are gaining more and more popularity and are projected to surpass Instagram in terms of influencer marketing budget in the next few years.

Many brands use influencer marketing to reach their target audience. Big brands like Motorola, Adidas, Pepsi, and Dunkin' Donuts all use influencer marketing.