Over the past few years, we have noticed that there’s been a substantial shift in consumer attitudes towards traditional marketing – more and more consumers are now consciously and subconsciously switching off to brand advertising.
Social networks have evolved to give birth to a revolutionary form of marketing called influencer marketing.
The term “influencer marketing” increased by 325% in Google searches over 2017, making this the faster-growing online acquisition method. The trend shows no sign of stopping, with an estimated two-thirds of marketing departments looking to increase their budget for influencer marketing, making it a $2billion industry worldwide.
This is probably one of the key statistic that you would like to take note for influencer marketing – for each dollar spent on influencer marketing, marketers see an average of $7.65 in earned media value returned.
A study by McKinsey revealed “marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising.” That is how powerful influencer marketing is. Also, consumers now expect brands to talk with them rather than at them. Instead of “selling”, brands are expected to entertain and inform.
By engaging the right influencers who can help spark organic conversations and topics around your brand, you are bound to find your brand awareness growing more rapidly. Besides the obvious benefits of influencer marketing, here is what we think is one of the most important reasons why you should invest in influencers now:
Prices are rising fast.
An arbitrage exists when something is selling for cheaper than it is actually worth, and it is common in advertising. For example, when Facebook first launched its ad network, early adopters were able to reap impressive ROIs because not many were competing for the ad-space. As Facebook became more popular, so did the cost for this limited ad-space.
Influencer marketing is currently an arbitrage. There are a lot of influencers, but few brands are running influencer campaigns. Therefore, when supply is more than demand, cost of engaging an influencer is below its real value. However, as more brands start to engage influencers, price will eventually go up, closing the arbitrage.
For example, an Instagram post used to be going at $20-$50 for an influencer with about 10k followers. The market rate is now at about $100-$500 for each post, while influencers with 50k – 100k followers can command more than $1,000 per Instagram post.
Get started on influencer marketing now before it’s too late! Contact us now using the form below for more information.