Influencer marketing is still evolving. Although it is not new conceptually, social media has forever shifted the landscape, with influencers becoming more important than traditional editors. The question businesses struggle with is how effective is influencer marketing, what’s the right budget allocation, what are the metrics, and how do you close the ROI loop?
Linqia surveyed 170 CPG companies, retailers, media players, and agencies for their The State of Influencer Marketing survey. Although Linqia has an obvious interest in the survey as an influencer platform, the report provides some interesting data points around costs and tactic effectiveness.
- Influencer marketing works! 94% of those who use influencers as a marketing tactic believe it to be effective.
- Or, at least they think so—78% identified that ROI would be a top challenge in 2017.
- Here’s why it works, when it works. Influencer marketing’s top benefits according to respondents are creation of authentic content (87%), driving engagement (77%), driving traffic to websites or landing pages (56%).
- So, what’s the cost of influence? In 2016, the range was between $25,000-$50,000 per program.
- Spending will ramp. Respondents estimate those figures will double in 2017 to $50,000-$100,000 per program.
- Most play by the rules. 88% said they ensure their influencers disclose sponsored content to comply with FTC guidelines. Only 12% admitted to not complying with regulations.
- Facebook and Instagram rule. 87% cited these two platforms as the most important for influencer initiatives.
- Blogs are still important. 48% of respondents say blogs are important.
- Wrangling the influencers. 64% use a managed or turnkey service provider, 25% execute their programs manually, 11% use a self-service SaaS platform.
- Who owns it? The budget line item for 42% lives in advertising/marketing, but for 31% it lives in PR/Communications.
Download the full report from Linqia.
This article was written by Kelly Kovack, co-founder of Odin fragrance, Partner at Brand Growth Management, and Founder of BeautyMatter.com. Kelly is based in New York but we are delighted to write Kelly will be a keynote speaker at this year’s Beauty Symposium, held in central London on the 7th March 2017. You can purchase your tickets here: goo.gl/GK1Zhy