Gone are the days when marketing only meant fighting over space for promotions on television and radio or displaying advertisements on hoardings. The high cost of traditional advertising has seen a significant need for businesses to find new ways to attract more traffic. The marketing journey has evolved into numerous effective and efficient ways brought about by digital technology’s birth. With the internet and social media, a new form of marketing known as influencer marketing has risen. Below we dig deeper into the fastest growing marketing strategy that is influencer marketing.
What is influencer marketing?
Influencer marketing is a fast-growing marketing strategy that has been highly adopted by various creative organizations and entrepreneurs. The method requires you to partner with someone with influence who has a large following. The entrepreneur intends to use the large following to bring in new customers and ultimately increase business. In the past, companies shied off influencer marketing because they considered it to be expensive. After all, it required paying the influencer a flat fee to promote and post about your products on social media. However, the market has made some significant changes with performance based marketing.
What is performance-based influencer marketing?
As more and more brands seek to use influencer marketing to reach their desired audience, it has been challenging to link the influencer’s activity towards increased sales and brand growth. Without precise knowledge of their contribution deciding on fair compensation for a post without knowing how it performs was difficult.
This brought about the rise of performance based marketing. Here is a step-by-step guide on how you can form a partnership and deal with a performance-based influencer.
How does performance based influencer marketing work
Performance-based influencer marketing means that an influencer gets paid when there is a favorable reaction from their followers. The advertiser only pays when the influencer meets the desired action. Below are some of the performance metrics which depend on the purpose of the activation.
Metric to measure performance; Platform for Analysis
- Clickthrough rate; Landing page on the website
- Traffic to a site; Google Analytics
- Sales generated; Google Analytics
- Downloads of a resource; Google Analytics
- Newsletter Sign-Ups; CRM
Types of a performance-based influencer partnership
- Affiliate marketing– This is the first type of performance based marketing. An influencer gets a unique link or code to use with their content to drive the audience towards the target action. The business can track the generated activity using the specific codes and pay the influencer according to their results.
- Paid campaign– An influencer gets paid a flat fee upfront. The influencer can use engagement rates from previous campaigns to show that they can yield results.
The advantages of performance-based influencer marketing
The influencer does the work of coming up with quality content at a much cheaper rate than the traditional marketing methods. It’s also a great way to capture consumers’ attention as most have an aversion to advertising, which they skip or swipe past quickly. But with various lifestyle posts from the influencer, they slow down. Additionally, influencers have a strong loyalty from followers who trust their insights and are more likely to consider their recommendations. Performance based marketing lowers the risk of wasting your money on using untested influencer marketing. You can be sure that you pay your influencer for their work without under or overvaluing their work.
Disadvantages of performance-based influencer marketing
Likes and comments are not always equal to conversion; some users will like how the followers look and will only like their posts for that but will be more reluctant to try out recommendations. Consumers get fatigued easily by consumers, and their engagement rates may dwindle over time.
A performance-based influencer is a more precise type of marketing that means you only pay your influencer when they bring about successful conversion. It ensures that your money is working well by measuring the success of the marketing tool. Depending on what you want to achieve, your app will provide a unique tracking link that will give accurate results of the campaign method’s effectiveness.