By Stelyana Hristozova, 07.02.2020
Influencer marketing, as part of digital marketing, has evolved impressively in recent years. Consequently, more and more companies start developing such a strategy, and notice the positive effect it has on their organization.
Therefore, budgets for IM are growing, and firms are more likely to invest money and effort to keep up with the competition.
Practices and rules, effective for traditional advertising, are irrelevant within this field. It is still a moderately new form of marketing, and marketers have not mastered its principles 100% yet.
Companies come upon some challenges, which can significantly harm the success of an influencer campaign.
Firslty, finding the right influencer is a complicated decision. Choosing the wrong ambassador for your brand might result in total failure. For instance, loss of money, time, and most importantly, harming the reputation of your brand.
Furthermore, an influencer must fit in your brand and correspond to the values you share. Finding the right one in your niche among millions of influencers is a common problem. Their audience must match your target group. Even though an influencer has a wide range, it is completely pointless, if your ideal customer does not belong to it.
Moreover, influencer metrics are also worth considering. A marketer cannot judge an influencer’s performance just by the followers’ count, for example.
Depending on the campaign objective, various data insights must be examined. For example, consider audience demographics, reach efficiency and engagement rate. Simply put, these metrics combined together speak for influencers’ performance.
On the other hand, a recent trend and major concern for the whole industry are fake influencers with fake followers.
Moreover, just for a few dollars, everyone can increase the number of their profile followers, as well as likes and comments. Such influencer fraud has the power to destroy even the best campaign.
Secondly, marketers place pricing an influencer as one of the trickiest influencer marketing challenges.
Several factors affect the price of an influencer. For that reason, it is one of the most common influencer marketing challenges.
In fact, 86% of the participants in the research admit of not being aware of how influencers’ prices are calculated.
A content creator must receive a sum corresponding to the value they attribute to the company. Consequently, performance is a crucial point in price determination.
However, sometimes marketers even struggle with the evaluation of performance, which makes determining the price according to it hardly possible.
When setting the price, your campaign’s objective is crucial, consequently are the metrics as well. Moreover, exclusivity can impact pricing. For that reason, an influencer, who speaks out only for your brand, may require higher payment in comparison to one who works with your competitors as well.
Every type of marketing has to be evaluated and estimated as being successful or unprofitable. Because of that, it is important to determine the return of investment of a campaign.
The ROI is a ratio representing the actual value your company receives as a result of any effort invested.
Having in mind that IM is a new way of advertising, relying on traditional methods for calculating ROI cannot give stable results. Indeed, time and practice are needed, to completely comprehend and master this approach.
Anyway, different campaign goals require considering multiple KPIs, meaning that the foundation for ROI calculations is not stable.