Influencer marketing is currently the main method of brand marketing. The underlying logic is to cooperate with social media influencers to carry out "word-of-mouth communication" to promote brand information to their fans to achieve marketing purposes. It is a marketing strategy that uses Internet celebrities to convey brand messages to the market. It is a brand-new publicity channel that helps brands and reach mass traffic more directly and quickly.
The Influcencer Marketing Trend
According to the statistics of influencermarketinghub, the global influencer marketing market expected to Grow to be Worth $16.4 Billion in 2022.
According to a mediakix survey report, 80% of marketers believe that influencer marketing is effective, 71% of businesses say the quality of customers and traffic from influencer marketing is better than other sources, and 89% of businesses say their influencers Marketing ROI is comparable or better than other marketing channels.
According to emarketer, the consumption of influencer marketing in the United States will increase by 33.6% in 2021, the largest increase since 2019, to $3.69 billion, and by 2022 and 2023. The indicators will continue to grow steadily to US$4.14 billion and US$4.62 billion. In 2021, 67.9% of companies in the United States are conducting influencer marketing, and this number is expected to increase to 72.5% in 2022.
In fact, 82%of Americans seek recommendations from friends and family when considering a purchase, according to Nielsen. These data prove that for the modern consumer, the word-of-mouth marketing is undisputed.
The Challenges of Influcencer Marketing
1. The quatity is big，however the qualitiy is bad
Due to the huge number of social media creators choosing a suitable partner is the first difficulty. The same influencer has accounts on multiple channels such as Instagram, Facebook, Twitter, etc., and the influence varies from platform to platform. At the same time, it is not uncommon for celebrity data to be fraudulent, the ability to carry goods cannot be estimated, and the Internet celebrity cooperation quotations are uneven.
How to quickly remove the homogenization of Internet celebrities and obtain the real touch data of celebrities? If this basic problem is not solved, it will limit the range and cost of KOLs choices of enterprises.
2. The Metrics of influcencer marketing are measured hardly
When measuring the performance of influencer marketing, we often focus on the surface numbers directly captured from social media platforms such as the number of posts, the number of retweets, and the number of comments. These basic data are a little thin when evaluating the effect of influencer marketing, and it is difficult to analyze the conversion effect in depth.
3.The conversion rate is hard to be tracked, especially for some high value products
Conversion is one of the core purposes of influencer marketing. There are various factors that affect customer conversion, and the path of customer conversion is very complicated. Especially for some high-value products, such as Portal Power Station, the conversion cycle will be very long. How to accurately track the effect of influencer marketing for a long period of time is a very big challenge
How to Maximize influencer marketing ROI?
1. Research the fan base of the influencer
This step is very necessary, you need to better understand the needs of your target audience. Most importantly, you need to involve influencers in this step.
You will need to gather information on the following questions:
● The general feeling of your target audience about the promotional content you want to produce;
● What your competitors are doing with their content marketing？
● What motives do your influencers have to help you spread your content？
● How your target audience perceives you？
● What can your brand do to align it with the topics your target audience cares about？
2.Establish scientific measurement Metrics and Set up reasonable incentive policies
At present, most of the incentive policies for influencers are to pay a fixed fee or give away products, and then add commissions after sales conversion. This kind of incentive is more reasonable for FMCG, because the customer's decision is simple, but it is not reasonable for high-value products. For those products, influencer mostly brings more clicks, registrations to your site, but not direct purchase. Therefore, we also need to reward influencers for their impressions, clicks,registrations,page visits, adding to shopping carts, and payments and so on.
3.Track the conversion rate of influencer with Attribuly by 3 steps
Tracking tools are essential for evaluating influencer marketing.Most influencer tools use "lack click" to evaluate influencer's conversion and that masks the true value of your influencer marketing as we mentioned before.
How to evaluate performance at a full customer journey level? By using Attribuly, you can do it in 3 simple steps
Step1:generate influencer dedicate link with Attribuly UTM builder
In attribuly, we indentify influencer by "UTM_medium=influencer". You may use shorter links, so the link can be placed on social media.
Step2: track conversions
Go to "attribution-influencer", it's central place for all influencer marketing analysis.
You may want to analyze the clicks and orders generated by each influencer. Several attribution methods are available:
Linear: As long as the influencer contributes to the customer conversion path, the weight will be calculated
Last click: 100% credit to last interact influencer.
Step3: Analyze every conversion detail to determine data accuracy
Click on the conversion data, you can pop-up to see the single customer conversion path to justify the data.
4. Adjust the budget based on the contribution index of influencers
While you can accurately and deeply track various indicators of influencer marketing, you can adjust your marketing budget according to the situation, and even adjust your marketing strategy.
For example, you may want influencers to warm up and expose the brand in the early stage of product launch, so you need to focus on incentivizing web page visits brought by influencers. When the product is released, you may prefer the influencers to bring more registered users to your shopify store. When the product is promoted on a large scale, you may need to focus on evaluating the sales conversion. Therefore, you can have different drastic policies on influencers at different stages of promotion based on data.
Summarized
Influencer marketing is a great option if you want to boost your shopify store sales in the face of fierce competition. How to maximize the ROI of influencer marketing? This article above can help you.
Let's go practice.