One of the biggest challenges that brands face when taking an influencer marketing approach is assigning a monetary value to their campaign. On average, every dollar invested in influencer marketing generates $6.50 in value. Determined to capitalize on the success of influencer marketing, many brands make the mistake of funneling money into influencer marketing without first determining what their marketing campaign is really worth.
Even though influencer marketing has been a mainstream strategy for a few short years, companies have already learned how to better structure payments – mostly through trial and error. In the early days of influencer marketing, brands were mostly concerned with the number of followers a person had. The greater the number, the more valuable that person was.
These days, brands look at a number of different factors when deciding how much an influencer is worth.
Marketers look at things like:
• Engagement rates
• Type of content produced
• The primary platform the influencer operates on
• Whether the influencer’s following aligns with the brand’s target market
Each of these factors helps brands figure out how much their campaign is worth.
Influencer Marketing Is a Case-by-Case Basis
It’s not unheard of for brands to pay influencers based on a set formula. On Instagram, it’s common for influencers to receive $100 for every 10,000 subscribers they have. The problem with this payment model is that it doesn’t take into account how much actual reach the influencer has when they publish content. If a company is spending thousands of dollars per post on an influencer with a large following but minimal actual reach, they probably won’t get the return on investment they’re looking for.
Ideally, companies should be connecting with influencers who best represent their brand image rather than hire social media personalities based on how many followers they have. An easy way to find influencers who match your brand is to work with a talent agency or platform that specializes in connecting marketers with influencers.
Influential is one of these popular platforms. Unlike other services, Influential uses AI technology powered by IBM’s Watson to determine which influencer is right for any specific company. By analyzing criteria like demographics, tone, engagement rate, and more, Influential is more likely to pair brands with influencers who can create authentic, on-brand content that attracts more followers.