A whopping 68%, or 5.44 billion people worldwide, have access to the internet. Out of this, 5.07 billion people have access to social media channels. The rise of social media has changed the way advertisements are done, and there’s no better example of this than influencer marketing.

But what is influencer marketing? What does it do for your business? And how should you utilize it to gain an edge over the competition? Fret not, for all these questions will be answered in our blog today. From the definition to the types of influencers, techniques to follow, and more, here’s everything you need to know to get up to speed on influencer marketing.   

What is influencer marketing?

As the name suggests, influencer marketing or social influencer marketing involves promoting products and services through personalities with a significant reach on different social media channels. Brands often contact “influencers” to promote their product based on a deal. A deal contains the terms of product promotion coupled with the nature, tone, and message type as well. Every influencer, based on their scale and reach, is provided incentives in the form of money, offers, or product samples.

Influencer marketing is an umbrella term that includes finding an influencer and promoting your products or services on social media. TikTok and Instagram are among the biggest social media channels favored by influencers. Close to 72% of marketers have used Instagram for their influencer campaigns, and 66% of brands use TikTok for influencer marketing. 

Why should you choose influencer marketing?

Now that you have the answer to “What is influencer marketing?” Let’s understand why you should consider using influencer marketing as part of your business’s growth strategy:

1. It helps boost your brand awareness

Love it or hate it, influencers can boost your brand’s presence in people’s minds way faster than any of your paid or organic marketing methods. That’s because influencer marketing is, at its core, a form of timeless word-of-mouth marketing style. At the end of the day, you’re contacting an influencer to spread the word about your product. 

And it works! Because 69% of consumers on the internet trust influencers and make purchases. Having a reliable influencer to promote your brand will not only be cost-effective but also boost your brand’s awareness in the eyes of new customers. Since they’ve been referred through the influencer, they already have enough faith in your product to warrant a trial.

2. It boosts conversions

Influencer marketing is a powerful tool if used correctly. Not only does it boost your brand’s awareness but also conversions. Since most people coming through an influencer are already of the opinion that they wish to try your product, it is quite safe to consider them converted to a great extent.

This approach saves your brand the added effort of finding leads, choosing a demographic, targeting a location with a specific message, and a lot more. All it needs is a simple deal with a fee or an offer that you’re willing to provide as compensation for the influencer’s services.

3. Precise targeting

Another benefit of having an influencer for your brand is the fact that they can target a cohort a lot easier than you. That’s because they engage with a vast community of people and have already established why they’re reliable among their fanbase. What you need to do is simply share the marketing material that you want the influencer to promote.

The influencer will then promote your product among their fanbase, and it’ll automatically reach the desired audience. However, planning the details is a crucial step that you’re responsible for. The more detailed your requirements are, the better the results will be.    

Types of influencers

Businesses and influencer marketing go hand in hand these days. However, the common belief around this marketing technique is that the biggest influencers get the biggest offers from the biggest brands. While this is true to a certain extent, it isn’t entirely true, as smaller businesses that are in a transitional phase can also avail themselves of an influencer’s services. How? Well, they simply choose an influencer from a tier that best fits their requirements.

Let’s take a look at the different types/tiers of influencers that operate across different social media channels. Bear in mind that the structure here is universal and applies to most influencers irrespective of their platform of choice:

1. Celebrity/Tier 1 influencers

It shouldn’t come as a surprise that tier 1 influencers are some of the biggest names in the social media industry. From movie stars to content creators with over a million followers, these people constitute a group that brands die for. Think Christiano Ronaldo, Will Smith, Lionel Messi, and others. More often than not, you’ll find celebrities from different disciplines who have made it bigger than regular people.

Partnering up with a mega influencer can give your brand a boost like no other. After all, these are celebrities that everyone knows and loves. However, the downside is that these celebrity influencers charge a heavy fee per post. If you’re a small business with a limited budget, then having celebrity influencers isn’t only ill-advised but quite far from the realm of possibility as well. Mega influencers can charge upwards of $10,000 for a single post.

2. Macro/Tier 2 influencers

They aren’t the biggest fish in the sea, but they surely aren’t the smallest either. Tier 2 influencers have a celebrity-like status that gives them a lot of perks. An influencer with a follow count between 100,000 and 1 million is considered a macro influencer. Such influencers aren’t popular people by default, as they’re content creators through and through.

Macro influencers represent a niche that defines an entire community. Whether it is competitive e-sports, writing, storytelling, artistry, or any other discipline, such influencers can be considered the thought leaders of a particular discipline/niche. Macro influencers charge somewhere between $5,000 to $10,000 for a single post.

3. Mirco/Tier 3 influencers

With a follower count ranging between 10,000 to 100,000 followers, this is perhaps the sweetest spot for startups and medium-scale businesses. Tier 3 influencers are in the midst of their journey on social media. They’re in a position to take risks and sail smoothly. They might not be the biggest in the industry but they surely understand and communicate a lot more with their fanbase and can provide your brand with insights.

The average price per post of a micro-influencer ranges between $100-$500, ideal for quick campaigns and easy conversions. The conversion game can be a little challenging for them as they’re growing as well; however, you surely will get some good returns upon connecting with a micro-influencer.

4. Nano/Tier 4 influencers

Think of the nano influencers as the smallest fish in the sea. They’re the rookies, full of passion and energy. They will hop onto an opportunity and bank on it with great effort. Tier 4 influencers are easily accessible and provide great value for money. Brands from all scales often approach such influencers as they fit their budget and provide the most accurate insights into their campaigns.

Your average nano influencer charges somewhere between $10 to $100 per post, which is beyond economical. The catch here is that the influencers themselves must be highly creative and appealing, as the nano influencer pool is the biggest. Successfully conducting influencer marketing can be a little tricky here so the brands will have to choose a name that is growing steadily and churning out quality content that drives value.                                                                                                                   

How to build your influencer marketing strategy

Building an influencer marketing strategy from scratch might feel daunting, but it is easier than you think. You only need to consider a few nuances associated with this marketing method.

The first step towards building a sound influencer marketing strategy is finding influencers for your brand. Thorough market research can easily locate the influencer of your choice. This will enable you to understand the kind of audience you’re looking for. Parameters such as location, region, time zone, age group, and gender are crucial for narrowing down your audience. Once identified, the next step would be to find an influencer who best suits your needs.

Here are a few more points you can use to identify your preferred influencer:

1. Check if the influencer in question has already created the type of content that fits your brand identity.
2. Also, check for spam comments and accounts, as a lot of profiles can be misleading, resulting in poor choice of influencers.
3. Check whether the influencer has worked with a similar brand before or not.
4. Set up a budget for the influencer marketing campaign and highlight the pain points you want to be covered through your budget. It’ll help you set up your requirements better, resulting in efficient spending on the things you want.   

Tips on working with influencers

Partnering up with an influencer is a nuanced process with multiple steps. Establishing a partnership with an influencer is a great thing; however, there are a few responsibilities that you shouldn’t shy away from. After all, a successful partnership is the result of a reasonable business and a talented influencer. Here’s what you need to know before sending your list of requirements to an influencer:

1. Always define clear goals and KPIs. This will help the influencer understand what your business is really looking for. Make sure to mention the kind of KPIs you wish to be tracked while and after the campaign. 
2. You must establish professional boundaries as well. Most influencers communicate in a casual manner with their audiences. While it is great for their relationship, ensure that it is strictly professional with your business. Setting clear boundaries reduces the risk of failure and holds the influencer accountable for the deliverables they’ve promised you.
3. A large follower count doesn’t always mean a constant engagement rate. There are a lot of influencers that possess high subscriber/follower counts but don’t have good engagement numbers. This can be a little misleading for both parties as the deliverables might get compromised. Hence, it is imperative for you to thoroughly check the influencer’s engagement rate before sending a list of requirements.
4. Do not restrict the influencer’s freedom in content creation. You’ve approached them to help spread the word about your brand, so it is better to utilize that chance efficiently. Let them come up with ideas, and be open to suggestions that come your way. Straight-up rejecting changes will set a bad example in the influencer’s mind about your brand.  

Conclusion

Influencer marketing is a vast realm with a plethora of opportunities. However, it is your responsibility to choose the right influencers and treat them well while preserving their creativity. The age of nano and micro-influencers is in full swing. While it doesn’t mean that you shouldn’t cater to the big names in the industry, you should, however, not shy away from contacting the smaller fish in the sea. You may never know who might boost your brand among the crowd.