Many companies have started spending parts of their marketing budget on influencer marketing. But do they know the return on their investment?
When a brand wants to advertise on TV2 trough a tv-commercial in primetime it’s with the expectation, that 200.000 danish viewers will see their ad. It’s very simple and easy to register your return on investment in this case.
When a brand wants to use influencer marketing for their next campaign the goal is the same like a tv-commercial. They want the most out of their money spent. The distinction is that the target group is often different and the price is way lower.
Return on investment
But can you get an insight in your return on investment? First of all it is more difficult to measure. The collaboration with an influencer bureau must be build around trust. But you can’t only rely on trust, when you are using your campaign funds on influencers. You need to set some demands for your influencer bureau as campaign guidens, insights and reports. So if you choose an agency that offers these services you will get an answer on your ROI.
Now you can measure the value of your influencer marketing campaign.
Don’t just choose an influencer marketing bureau that only provides influencers. Choose an agency that also offers campaign guidens. A professional agency will ask you for the goal with the campaign, which target group you want to engage and what geographic area you want to target. Then they will find influencers that fits that profile so the ROI is at its maximum. They don’t just look at the number of followers — they look at relevant followers. E.g. if you want to target well-educated 25-30 year olds in Copenhagen, then it’s better to use an influencer with 50k relevant followers instead of an influencer with 500k followers mainly from Eastern Europe. Your price for your influencer will be lower and the credibility higher.
It sounds simple, but it’s a common mistake in the business.
Transparency in influencer marketing
Another rising demand in influencer marketing is the demand for transparency and simplicity. Clients are tired of hidden prices and complex price rates. They want to know how much to pay and what they will get out of it. Just like buying an advert in a magazine. You know the price and you know how many readers the magazine has. That’s why you should always work with agencies that have their prices listed on their website. E.g if you spent 10.000,-DKK you will get an achievable reach of 50k+ relevant followers or readers. You will get 3 posts from 3 different influencers with approximately 18k followers each or 3 posts from 1 influencer with 50k+ followers. Then you will be informed of the influencer(s) engagement numbers and you will get an estimate of how many people will see your product or service. When the campaign is over and you get your report you will be able to see exactly how many profiles the posts have reached.
When the prices are listed on the website you will also know, that you are paying the same as everybody else.
So choose wisely for your next influencer marketing campaign and go for an agency that offers guidance, insights and reports. Demand simplicity and transparency.