Biggest Issues Facing Influencer Marketing
Over the past several years, influencer marketing has become one of the most effective forms of advertising. It’s effective because it’s more sincere and personal. Plus, people who follow influencers on platforms like Instagram, Facebook, and Twitter are more likely to engage with the content of people they like or trust. As a result, influencer marketing has higher returns on investment than traditional forms of advertising that are less personal and unique. However, there are several issues that marketing agencies and advertisers are experiencing that make it difficult.
Finding the right influencer
For effective campaigns, brands must find the right influencer that fits their messaging and reach their target audience. Finding the right influencer can be difficult based on several factors, and marketers need tools that allow them to find and hire the right person for different campaigns. Searching for influencers can be a long process. Because of this, brands often struggle and generate less-than-effective campaigns because of the poor choice of influencers.
Many influencer platforms have become competitive marketplaces where brands compete for the perfect influencer. However, these platforms have advantages, like that marketers can easily scout influencers in one place.
However, platforms have significant disadvantages because brands compete with each other, increasing campaign costs. There are alternative channels of influencer acquisition with more favorable terms. These channels help negotiate prices without competing with brands bidding for the same influencer.
Alternative channels include brand ambassador agencies or the traditional manual search for influencers. Moreover, advertisers can avoid the higher fees that the platform charges and save more money.
The cost of influencer marketing has risen sharply due to its popularity and effectiveness. More prominent influencers with followers in access of 100,00 followers can garner ten’s of thousands of dollars per post. That’s why many advertisers are turning to smaller influencers to save money. But, more importantly, advertisers are finding that lower-level influencers often have higher engagement rates with more dedicated followers willing to listen to their advice.
- Mega influencers (1M+ followers)
- Macro influencers (100K – 1M followers)
- Mid-tier influencers (50K – 100K followers)
- Micro infuncers (10K – 50K followers)
- Namo influencers (1K – 10K followers)
- Novice influencers (500 – 1K followers)
Because the number of followers is one of the essential characteristics for measuring the value of an influencer, some are resorting to fraudulent means to increase their followers. Recent industry studies report that up to 20% of influencers with more than 50K followers have a high percentage of fake followers.
To avoid these issues, advertisers should also review other metrics besides the number of followers when evaluating influencers, like growth rate, audience gender and age distribution, engagement rate, and average social post value.
- Growth Rate
- Audience Interests
- Audience Gender Distribution
- Audience Age Distribution
- Engagement Rate
- Average Social Post Value
One of the most important metrics is engagement rate because it directly affects a campaign’s return on investment. Engagement rates indicate the number of viewers interacting with the content by viewing, clicking, liking, and sharing what they see. Therefore, it makes more sense for agencies to use more influencers with higher engagement rates with fewer followers than fewer influencers with lower engagement rates with more followers. The bottom line is how many people engage with the content that is part of your target audience.
Quality of Followers
Audiences understand that prominent influencers sponsor and promote products because they’re getting paid to endorse them. However, even though more prominent influencer endorsements are still influential, they are not nearly as effective as influencers with smaller, more engaged, loyal followers. Micro and nano influencer followers are much more likely to engage with content and follow the advice of their influencer than a more significant mega influencer.
Even though influencer marketing has issues, it’s still one of the most effective forms of advertising both small and large brands can use to promote their products and services. However, to ensure higher engagement and better returns on investment, brands must look for influencers that engage at higher rates.