The value of a social media influencer is always in question especially concerning what the right price of investment on an influencer and what is the ROI is.
The issue is too many influencers and not enough guidelines to determine what is the worth on reach, engagement, and brand awareness.
CMO.com quotes CEO and co-founder of the influencer management platform, Scrunch who says about the value of social media influencers for brands, “The barrier to creating a name for yourself is pretty low these days. Set up an account, generate some great content, get a mass number of followers, and all of a sudden you have landed yourself in this position of what is called an influencer. What emerged out of that is the fact that there are now millions of them across every category you can think of. As a result, the brands are confused – they don’t know who to work with, how to vet an influencer, and understand whether it is going to be a success or not. That is the real risk. You have to invest up front in these content creators, with having no idea of how to measure it or whether it is going to drive a result for the business.”
So how can a brand gage the right investment when undertaking an influencing marketing campaign.
To start with here are the pros and cons of paying and not paying an influencer.
Think about crucial KPI’s that show your ROI – engagement, reach, brand awareness and sales. There are several measures you can take to lead to these KPI’s like any other marketing technique but how do you put a price tag on a follower number and what that can get you.
Here are a few rate cards that measure up what to pay for a post based on follower numbers:
These rate cards are a guide to get starting points for negotiations and what to expect when you receive rate cards from social media influencers.
A rate card is a document containing prices and descriptions for various ‘placements.’ It is something that outlines, particularly for the case of a social media influencer, what services they can provide a brand, from social media posts to blogs posts, email marketing or website banner placements or even reviews. The rate card gives the marketer and brand the scope to which they can work, with a social media influencer.
Combined with the rate cards above and rate cards that social media influencers provide this gives room for negotiation and outlining what you want as a brand from a social media influencer.
The worth of a social media influencer is in their engagement, and that is the real value that is an indicator of whether an influencer is worth engaging in a campaign.
This graph is a basic guideline of what engagement rates should look like based on follower number. These should be taken in the context of the region and niche and how people would react in that sphere to content.
Like the graphs shared above, these are a guideline to determining the worth of a social media influencer.
This is realistically aligning KPI’s with ROI in an influencer marketing campaign. Taking engagement rates into account with the ‘worth of an influencer,’ a brand can ask for statistics when engaging social media influencers. This is where the brand has the power to determine the worth of a social media influencer to their brand.
Rate cards do alter based on industry and niche and service. A more niche and targeted social media influencer would obviously charge more but in return be worth the price for a business in that industry.
Check out the video version here.
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