Under the influence: The truth behind influencer marketing

To gain a foothold in social media nowadays means structuring campaigns around influencers. But if you think influencer marketing is a new age thing, think again. It has been around for decades. The only difference is that it was done exclusively by celebrities vs. ordinary people with an Instagram page. Think Michael Jordan and Nike, Brooke Shields and Calvin Klein, Michael Jackson and Pepsi.

Being the former head of public relations and communications for a luxury hotel group managing a diverse region spanning from the Middle East, India to Europe and the Americas, I received hundreds of requests every week. Some were downright comical, and some were arrogant and full of a weird, and unjustified, sense of entitlement. And then there were the ones who were humble and came armed with data and a portfolio of their past collaborations complete with KPIs.

Some of my best friends are successfully doing this as a full-time job. They work very hard and take their job very seriously. I have had many conversations with them about their industry, and they are just as outraged as I am about some of those “fake it until you make it” types. But most of all, we are angry at the brands who forge partnerships and pay the big bucks without doing their due diligence.

So, how vital are influencers’ endorsements, how do you shape structured partnerships with them, and most importantly how do you spot the fakes?

What’s behind the numbers

People trust recommendations from family and friends. Word of mouth holds enormous power. Influencers to their engaged following are more akin to family and friends than they are to advertisers.

They’re experts in understanding their audience and know just how to light the elusive aspiration spark that initiates the purchasing process. So how do you put a dollar sign on this? Sadly, so far, no one has found the magic formula, which is why partnering with high-quality influencers is crucial.

Look at the engagement vs followers ratio. If the comments sound robotic, they probably are. Sometimes, smaller micro-influencers may have fewer followers, but their audience is much more loyal, engaged and targeted.

Are their followers skyrocketing daily? Some websites allow you to monitor the increase of one’s followers. If someone’s account jumped by 10,000 followers in one day without a significant life event, you could be certain something is not right here. If there are no active followers on the channel, how much influence do they really hold?

The right fit for the brand

Even if someone has 3 million followers, but all their posts are comedy sketches or pranks, they may not be suitable if you’re trying to sell a luxury product to a more mature audience with purchasing power. So look hard at reach, engagements, impressions, content topics and audience demographic.

Getting the management buy-in

For marketeers, the most challenging part sometimes is convincing senior leadership to invest in influencer marketing. Especially if they came of age in the era of traditional media – we’re talking about radio and television ads, billboards. So, the mere notion of compensating seemingly ordinary people with no affiliation to a reputable media outlet to “like” your product can present a conundrum, which is why you must go into that discussion ready with data.

Compile strategic insights before confirming if an influencer is relevant for you. Any respectable content creator should be able to present statistics of past campaigns results, audience demographic and engagement rates. Verify the figures and then use this information to make your case.

Fair compensation?

There are various ways to work with influencers. Depending on the nature of the campaign and product, engagement rates, some would work based on bartering product for coverage. For example, if the client is an hotel or destination offering a fully paid luxury holiday, many would consider a simple exchange of services. However, if the campaign is part of an extensive activation for a global brand that requires bespoke content creation and specific deliverables, most would charge. But how much is right? Once again, there’s no one answer. Some studies estimate that, on average, Instagram influencers charge $150 – $200 per 10,000 followers.

Consumers today are all about content

Generally speaking, ensure you choose the right influencer for the right campaign. So ask yourself, is what you’re trying to push something that would interest their audience? Do they have authority in that sphere?

Don’t choose a beauty influencer to promote your restaurant. Through social media, consumers get to follow specific influencers for particular purposes. For example, they follow a travel blogger for travel inspiration, a fitness trainer if they wish to get fit, and a chef for recipes, so make sure you are choosing the right person for the right topic.

Through social media, consumers get to follow specific influencers for particular purposes.

Influencer marketing can help your brand stand out and reach consumers directly and quickly. You also get to benefit from having organic content that has the potential to drive your engagement made for you.

However, you should think beyond the report they have to compile at the end of the campaign and ensure you are putting your brand and budget in the right hands. The point is to invest time to research appropriately before making decisions. You are your brand’s guardian, and you have a duty to ensure the partnerships you ink are genuinely beneficial to your brand.

You can also seek help; the right PR agency can help you find, filter and associate with influencers that can exponentially increase your ROI. I always tell my clients, sometimes it is not about which influencers to work with; it’s more important to know whom you shouldn’t work with.

Ruwaida Abela, Managing Partner – Head of PR and Communications at JRN Consultancy