On influencers and KPI’s…

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We have written several pieces on the power of influencer marketing and the need to have it as part of your marketing mix, if you are looking to sell a product to consumers these days.  Our position on the topic has only strengthened over time, and we once again encourage all readers to really consider the potential and to get into the game.

Don’t get caught up in semantics, and most certainly don’t be stubborn about being anti-pay to play engagements with micro influencers. Some brands we speak with feel they are a vanity play and don’t drive real results.  We would argue the exact opposite, as the data points to these types of engagements being real KPI winners.  You have to be smart about who you engage with, what the goal is and the metrics for success should be outlined up front of course. This is true for any marketing tactic though.

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As other digital advertising becomes more competitive and intrusive it is very important to find new ways to penetrate and create awareness for your products or services.  Influencers (especially the good ones) provide an entree to captive audiences who trust their marketing messages and endorsements.  You must seek out the right partners and capitalize on these opportunities.

TapInfluence put out this compelling report, that highlights some telling statistics and is worth a download. Here are some that they collected and posted on their website:

Influencer marketing content delivers 11X higher ROI than traditional forms of digital marketing. (TapInfluence study with Nielsen Catalina Solutions, 2016)
Twitter users report a 5.2X increase in purchase intent when exposed to promotional content from influencers. (Twitter and Annalect, 2016)
74% of people turn to social networks for guidance on purchase decisions. (Ogilvy Cannes, 2014)
40% of people say they’ve purchased an item online after seeing it used by an influencer on Instagram, Twitter, Vine, or YouTube (Twitter and Annalect, 2016)
49% of people say they rely on recommendations from influencers when making purchase decisions. (Twitter and Annalect, 2016)
73% of Millennials see it as their responsibility to guide friends, peers, and family toward smart purchase decisions. (Fleishman-Hillard PR & Hearst Magazine)
71% of marketers believe that ongoing ambassadorships are the most effective form of influencer marketing. (TapInfluence & Altimeter, June 2016,)

These stats jump off the page and should make it pretty clear that this is a frontier that needs to be in the mix. Influencer collaborations drive real business results and cannot be ignored. In the end of the day they are just people with a POV and a captive audience that seems to care about what they have to say, and takes direction when they give advice. Perhaps I just influenced you to get started?  Case in point…

 

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Win of The Week: Leveraging influencers via smart “pay to play” tactics…

Sircle-Influencer Pay To Play

Influencer marketing represents an excellent opportunity to get a brand in front of new eyeballs and to leverage underpriced attention. It is important to have an open mind to the potential that these collaborations can bring and to think about it more strategically than just “paying someone to post something.”

In January we advised one of our clients to rethink their influencer engagement strategy altogether.  In 2016, they deployed a hardline approach when it came to “pay to play” engagements. They would not do them and would only gift products where they had much less control AND limited their potential target list, by immediately canceling out anyone who asked for a fee.

This year they were hellbent on driving more traffic and wanted us to “get more creative” with ideas to help do so. They suggested buying email lists, affiliate deals (where they would pay commissions for converted traffic sent from other domains) and even programmatic marketing, that is very expensive and unproven for their model. It was time to change their POV once and for all.

Rather than denying all paid scenarios from the jump, we recommended they take a different posture. Dropping the term “influencer” from the conversation, we said “if we told you that Jane Doe had taken time to harvest a community of followers, one that actually listens to and cares about what she has to say, and that they are mostly your exact target demo, would you consider paying her for an opportunity to speak with them for a few minutes?” Of course they would, and this is no different.

They begrudgingly agreed to give us $500 to test out our theory “and prove that this wasn’t a complete waste of time.” We went to a couple of influencers who we knew had a highly engaged audience, understood the need to “give value” to their partners (especially an Agency like Sircle Media, who can bring them multiple brands and not just one) and who would work with us from a marketing angle. We also negotiated the price down to $400 ($200 each) and kept the $100 spread to help us boost some of the great content on Facebook down the line.

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We asked that they both post on January 23rd and had them do it on Instagram with a #linkinbio CTA that encourages users to take action and click that link. As a result, revenue on 1/23/17 was $1837.55 on a $400 all in spend (4.5X1 ROAS).  In addition to that, it doubled their referred traffic (one of their main goals coming into the new year) and delivered new ammunition for our retargeting efforts, which have already proven to be our best revenue driving audience on Facebook. We then took that $100 (in negotiated savings) and applied it to those efforts to drive new revenue further down stream.

It is important to not draw a line in the sand when it comes to engaging influencers. Sure, some have more value than others and of course there are some who wont deliver the goods. This is true with any type of marketing of course and cannot be your reason for not participating. I always say “you cant stop dating just because you had a bad relationship in the past and/or just fear the outcome if it does go south. You need to continue to date, to find the right one for you.”

Influencers represent an excellent value play and need to be in your social media strategy conversation if you have a consumer product. Added bonus is that if they take great photos, they also contribute positively to the look and feel of your outgoing content strategy. Bottom line, it just pays to play!

 

 

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