Ever Since the beginning of influencer marketing about a decade ago, the industry has only seen rapid growth. From only $1.7Bn in 2016, it has now reached about $14Bn in worth. Statistics that indicate that more brands are investing a portion of their budget on it. However, even with the high conversion rate, there are still some brands that are hesitant to spend any money on influencer-generated content. But why? The short answer is some marketers have not realized the great value of this industry so they are not willing to pay the influencers. In this article, we will break down the reasons behind these misunderstandings and solve them for you.
Mistake #1: The Influencers Benefit From Working With Our Brand.
As the first and most common claim by marketers, it is true to some extent. Working with certain brands can definitely be of some advantage for influencers. Especially in the case of micro influencers, in which appearing in the campaign of a big name in the industry can bring them many credits. But what you should keep in mind is that these creators are usually working full time in this business. Having more exposure is not always their only concern. At the end of the day, this is their job and they should be earning from it.
It can work the other way around as well. Many brands can gain from partnering with influencers that are a reputable figure on social media, as their followers trust them with their advice. This means that both parties can benefit from the campaign.
Mistake #2: We Gift The Influencers Our Products.
Normally, with every partnership comes a detailed contract. But unfortunately, some marketers still overlook the value of signing a legal agreement and expect the influencers to promote the products they have sent as gifts. Here are some problems with this approach:
First of all, this is a legal business partnership. meaning there has to be a contract that specifies all the deliverables and terms. In most countries, influencer marketing regulations have been predefined and are protected by law. In order for this sort of work to be legal, it has to be stated as an ad. This often includes a payment to the creator.
Secondly, if there are no papers signed, there is no guarantee that the influencer will post about your product. Even if they do, their content might not match with your brand’s message and you will have no control over whether it matches with your terms or not.
Lastly, in some cases the influencer accepts the campaign simply because they want the partnership to be made. They don’t want to lose the chance to work with you. That doesn’t necessarily mean that they are okay with getting paid with products or they feel comfortable with these terms. Undervaluing the influencer’s work is not the best approach if you want the relationship to be meaningful and last. Oftentimes, the content created and the association is worth much more than the price of the product itself.
Mistake #3: Why Does A Single Picture Cost So Much?
Sure, it may seem like they have only taken a minute to take a picture and upload. But there is a lot more to influencer marketing than just that. If you are working with the right influencer, they are probably offering you a lot more than you think. Firstly, behind every piece of content there is lots of planning, briefing, preparing and shooting. Not to mention how much time and skill it requires to professionally edit a 15s video that might look very easy to create.
Apart from the efforts made in the creating process, these people usually know their followers better than you, as they were able to keep the trust and attention of thousands of people. To put it simply, they know the way to the heart of their audience. This adds to the value of their content, way above a simple ad post on social media. Most of the time they have great knowledge of the channel they are using as well. Meaning whether it is Instagram, Facebook, or any other platform that they are using, they know their way around better than the marketers, so they are able to create content that is more engaging under certain conditions.
Another great advantage of paid influencer partnership is the knowledge they have of the industry and products. Not only they are using the product as real consumers, but they have great insight on competitor brands and can give you their feedback on your products and strategies.
Mistake #4: What If They Post About A Rival Brand?
That is a very valid concern, and is exactly why you should have an official agreement with payments included. Of course for some pages like product review blogs, you can’t expect them to stick to a single brand. This is the way their channel works and is what their audience is expecting.
In other cases though, it is a common practice that most influencers won’t post for a competitor brand. At least until the campaign is over. However, if you want to make sure they are faithful to your brand for a certain period of time, payments need to be made. You must have a very clear line for explaining this in the contract as well. If you are not willing to pay influencers, it will not make sense for them to reject a paid campaign because they want to stay loyal to your products.
All in all, influencer marketing is far beyond an online advertising campaign. Unlike regular digital ads, influencer’s content carries a meaning that helps the audience to connect and engage with them. This type of content is worth a lot more than traditional type and marketers should rethink their budget distribution when it comes to influencer marketing campaigns.
About Influencer House
Influencer House is a tech savvy influencer marketing agency that uses AI and machine learning to create campaigns with highest possible ROI. Our reputation of working with many big brands from different industries indicates our power to bring creative storytelling and innovative technology together in the most efficient way.
Interested in creating an influencer marketing campaign but not sure where to start? Make sure to visit our website influencerhouse.co.th or email us at firstname.lastname@example.org.