Businesses and marketers should create contracts with influencers based on actual performance metrics. This way they will have a better understanding of how influencer marketing is helping them in achieving their objectives.
The amount of money spent on influencer marketing has increased dramatically in recent years. According to Statista’s “Global Influencer Marketing Value 2016-2021” report, the global influencer marketing market value has more than doubled since 2019, and has reached USD13.8 billion in 2021. Marketers can no longer approach this channel as a pure awareness campaign tied to paying flat fees to celebrity endorsers with so much money being invested.
Without a doubt, influencer marketing aids in brand awareness. But, like other well-established channels like partner and affiliate marketing, it’s also a very effective component of performance marketing initiatives. As brands attempt to better integrate influencer marketing into their media mix and tie it to revenue-focused metrics and larger marketing KPIs, they should consider including it into their partnership and performance channels. This will result in a number of advantages, including the following:
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Linking influencer activity to real-world outcomes
Many organizations have shied away from demonstrating the effectiveness of influencer marketing because they believe there is no mechanism for effectively measuring outcomes. Established performance channel methods and approaches, however, can be simply adapted to the influencer channel.
Getting the right measurement in place is the first step in keeping influencer marketing accountable for business impact. This entails being able to link each influencer’s activities and purchases. Giving each influencer their own tracking codes and URLs for their programs is one of the simplest ways to do this. Linking activity to results becomes quite simple once these factors are in place.
Developing relationships with niche influencers
When organizations link their influencer marketing efforts to performance metrics, they can expand their programs in ways that weren’t previously possible. Brands are more likely to deal with micro-influencers that have more brand-relevant and niche audiences when payments are tied to results. These social media influencers can have a significant impact on brands. Brands can forge deeper relationships with influencers by allowing niche celebrities to be compensated for their true impact. This will benefit both sides greatly.
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Using better data to optimize campaigns
Bringing influencer marketing into the performance sphere not just enables better influencer payment models, it also gives companies and their partners the information they need to improve their efforts for better results.
Creating a data feedback loop with influencers can be extremely beneficial in this area. Influencers are incentivized to change their activities on an ongoing basis for better results when they can see exactly how certain posts and activities produce results, and businesses can boost their efforts by offering better assets and collateral based on performance data. Brands can identify the influencers who are actually committed to making the collaboration work by providing these data feedback loops and the ability to optimize efforts.
Efficiently managing programs
Aside from the obvious advantages, linking influencer marketing to performance programs opens up a whole new world of management efficiencies. Marketers can achieve streamlined operations when it comes to cross-channel tracking, reporting and measuring by deploying tools and analytics systems can link influencer findings into established performance programs.
The depth and alignment of the influencer-brand dynamic can be seen in the results of a performance-driven, well-run influencer collaboration, not just in the campaign results. Higher performance compensation leads to stronger relationships with influencers, and the true brand love that emerges as a result truly translates to the influencer’s efforts on behalf of a brand.
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