Have you resolved your complaints regarding influencer marketing, but are you still unsure about the benefits it might provide for your company? In this blog article, we’ll go over eight reasons why you should invest in influencer marketing right now.
What are the benefits of investing in influencer marketing?
Influencer marketing as a channel is growing year after year, and it has shown to be a very effective way for businesses to expand their reach to certain audiences. Here are eight valid reasons to invest in influencer marketing:
1. It provides results in real-time.
You’ll be able to measure conversions in real-time if your marketing goals are to get people to download your app or buy anything from your e-commerce site. Because the consumer behavior decision-making process for these types of items is relatively quick, fast-moving consumer goods, such as shampoo or a beverage, have the highest potential of generating rapid conversions.
2. It helps to raise brand recognition.
Another advantage of influencer marketing is that it allows you to target a certain audience, which helps to raise brand recognition. Your brand recognition will grow because of influencers, who are specialists at making personal recommendations about a product or service to their followers.
3. It may provide you with passionate brand ambassadors.
Brand ambassadors go hand-in-hand with increased brand recognition, which is an essential advantage of long-term influencer marketing activity. If a product is recommended by a favorite blogger, that person will be motivated to tell their friends and family about it.
4. Your customer will be more valuable to you.
Customers produced through influencer marketing have a greater CLV (Customer Lifetime Value) than customers generated by other media, according to our findings. Customers acquired through influencer marketing are more likely to remain with your brand and purchase your products over time, suggesting that they will be more valuable to your company in the long term.
5. You’ll be able to access new markets more quickly.
Influencer marketing has proven its ability to rapidly and successfully establish your brand in a new area, such as overseas. One notable example is Daniel Wellington, a Swedish watch manufacturer that has been highly successful in acquiring global recognition owing to its influencer marketing strategy. It would be difficult to reach out to so many nations in such a short amount of time without the usage of social media by influencers.
6. Your marketing will be adapted to the specific needs of the customer.
Advertisements tend to be a distracting distraction whether watching TV or reading the newspaper. When reading a blog, viewing a YouTube video, or browsing through an Instagram feed, the value of influencer marketing is the active decision the customer makes. Because the content posted by the influencers they’ve chosen to follow piques their interest, your marketing will likely be seen as more relevant to them.
7. A long-term plan yields better outcomes.
You will notice a rise in revenue and market share if you invest in long-term influencer marketing. If increasing conversions or brand recognition is one of your aims, the two frequently go hand-in-hand as a long-term impact.
8. Better results from other media investments
Because influencer marketing typically boosts brand recognition, better results on other media investments made concurrently with an influencer campaign are not unusual. Your social media marketing might result in improved sales, lower Google Ads costs, and increased traffic to your website from other sources. A win-win situation — and yet another fantastic influencer marketing advantage!
Is it profitable to spend on influencer marketing?
Influencer marketing, when done correctly, may yield a very high return on investment (ROI). The goal is to maintain a constant presence among your target audience through an always-on approach, as well as to work with the channel over time — establishing trust and credibility takes time, and this is essential for long-term success with the channel. Of fact, it’s possible to observe a high ROI after just one cooperation, or even just one day, but this impact usually lasts long – as soon as your rival offers a lower price or a better product, the next choice is only a click away. To make influencer marketing effective, you’ll need to be patient and optimize your results as you learn what works and what doesn’t for your company.
Influencer marketing may be highly effective, but it can also be a very expensive channel. You risk losing a lot of money if you deal with the incorrect influencers who don’t reach your target audience, or if you have the wrong plan in place. As a result, it’s critical to ensure that you have the appropriate people and partners in place from the start, whether in-house or through an influencer marketing agency, to ensure that your investment pays off.
What should my influencer marketing budget be?
When it comes to how much you should invest in influencer marketing, there is no one-size-fits-all approach, as there is with other marketing platforms. Your budget is determined by a number of things, including the goals you want to achieve with influencer marketing and your total marketing budget. If you have ambitious ambitions, such as entering a new geographic market or reaching a whole new target audience, you’ll need to put in a significant amount of money to compete in the digital world. Today’s influencer marketing environment is busy, and if you want to get your audience’s attention, you’ll need to figure out how to stand out from the crowd.
When deciding how much to spend on influencer marketing, it’s frequently helpful to look at your entire marketing budget as well as research where your target audience may be located. You should invest the majority of your money to reach out to potential consumers where they are most likely to connect with your business – for example, on social media, where they are most likely to follow influencers.
To give you a rough estimate, we recommend allocating at least 10% of your marketing budget to influencer marketing – this doesn’t mean you can’t spend more, but it does mean you shouldn’t accept for less. If you want to compete with the fastest-growing companies on the digital landscape, you must approach influencer marketing like any other marketing channel and allocate a significant part of your budget to it.