84% of marketers consider that acquiring the real ROI of their influencer marketing campaigns will be critical for their future.
Influencer Marketing is expected to become a 10 billion dollar industry by 2020, having grown more than 25% since 2018. It’s no secret that influencer marketing came to revolutionize the way brands gain exposure and build reputation but, as always, marketing trends rarely stay unchanged for long.
While influencer marketing keeps on growing, advertisers are forced to find new ways to measure success. Shares, likes, comments, video views, brand mentions are, among others, the current way to measure influencer marketing campaigns. But there is still a big gap when considering the real return of investment made in advertising.
Although these soft metrics don’t lack importance in branding campaigns, many marketers consider that they have little correlation with actual sales. Creating brand engagement is only one step of the sales funnel that must be concluded to reach conversion and customer retention.
A study launched by Influencer Intelligence showed that, although influencer marketing campaigns had improved consumer engagement and brand awareness, 40% of marketers weren’t sure if their influencer strategies had increased revenue generation and admitted that hard metrics were necessary but difficult to measure. The study also stated that brands are aware that the future of influencer marketing will revolve around better data and metrics and, in the near future, ROI will be the biggest question facing the influencer industry.
This is the reason why brands are currently turning their focus towards performance marketing strategies when it comes to influencer campaigns. Operating their strategies on a channel with a built-in focus on ROI guarantees marketers that their investments are directly linked to value generation. As an added bonus, fraud detection and `fake followers’, which have become one of the industry’s greatest concerns, will become one less challenge to overcome.
Influencer marketing on a performance basis allows brands and influencers to have a clear view of how their campaigns are performing and in which ways their campaigns’ objectives are being met.
So how does Influencer marketing on a Performance basis actually work?
It will take little extra effort for brands that are already working closely with influencers to execute successful influencer campaigns on a performance basis. After having joined the platform that the brand uses to track performance, influencers need to add an specific link to their content. This way, brands can easily track the campaigns’ effectiveness and influencers can receive credit for each desired action made through their link, whether it is a purchase, app download, a code used etc.
Platforms like INFLUENSI are already working with this model, where advertisers only need to activate their campaigns on the INFLUENSI panel to reach the most powerful content creators in the chosen category. Advertisers will be able to see their results in real time, approve the influencers’ posts and control the expenditure and revenue of their campaigns. On their end, influencers will receive their payments instantly in their account for each conversion made through their profile.
If you are ready to work on your influencer campaigns on a performance basis, contact INFLUENSI for more information.