The Importance of Digital Marketing: Top 10 Reasons You Need It

At one point online marketing was just a new and different way to market. It opened up a new form of media on which to peddle goods and services. But within just the past few years, the importance of digital marketing has become something else.

It’s become an integral part of what a business is to its customers.

It’s no longer enough to have a website or run some un-focused AdWords campaign. Don’t have integrated digital marketing strategies working for your business? Time is working against you because of it.

As the Internet becomes entwined with everything we do, the importance of digital marketing is becoming crystal clear.

Let’s take a look at why your business needs digital marketing to grow and thrive.

1. Reaches People Where They Spend Their Time & Money

In 2018, the average Internet user has at least 7 social media accounts. That’s up from 3 just 5 years ago.

97% of US adults under 65 are on social media at least once a month. The vast majority are on it every day. Social media is strongly preferred as a means of customer care.

Although as many as 89% of customer messages are ignored by businesses.

22% of the world population is on Facebook. 62% of people in the US are there. 76% of Facebook users and 51% of Instagram users are on it every day.

importance of digital marketing

30% of people on social media mention a specific brand when referring to milestones in their lives. Gen X is slightly more likely to interact with a brand on social media than millennials.

The trend right now is the average person spends over 2 hours a day on social media. Teenagers average 9 hours.

Social media is integrated into everything they do from school, to work, to entertainment, to hanging out with friends.

Social Media is where people are. But do people buy things there?

One of the top 10 reasons people say they’re on social media is to buy products advertised to them. They spend around 37% of their social media time interacting with branded content.

57% of Millennials say that social media has made the ads they see more relevant to them. 48% of people say they made their last online purchase as the direct result of a Facebook ad.social media ROI

But only 45% of marketers think their social media efforts are paying off. There are definitely some winners and losers on social media. Just having a profile and sharing some content once in a while isn’t enough. You need a social media marketing strategy.

When you understand how to maximize your ROI in social media advertising, you win big.

Social media marketing and advertising are only a piece of digital marketing. But it’s a very important one. Throughout this article, we’ll look at many kinds of online marketing methods. This will show the importance of digital marketing to your business.

2. Levels the Playing Field for Small Business

You’ve seen it happen before. A huge company like Walmart comes to town and wipes out 100’s of local specialty shops. Starbucks rolls in and mom and pop coffee and bagel shops close down.

We’ve seen the online equivalent of this with Amazon. It’s hard to compete with the name recognition or the millions that they put into marketing and reputation management.

That’s where the importance of digital marketing shines as a beacon of hope for small businesses. It’s the same for brick & mortar, ecommerce, and personal brands alike. Digital marketing actually allows smaller businesses the ability to hold a top ranking position, like a client we helped outrank Amazon and Lowe’s using our AdWords services.AdWords

Digital marketing allows small businesses to compete with a much smaller advertising budget. When managed effectively, it gives them laser-focused control over where and how they spend their money. When you have this kind of control and the data to support decisions, you make smarter ones.

Continue to explore the benefits and importance of digital marketing. Just how it levels the playing field becomes increasingly clear.

3. More Targeted

When you run a magazine ad, for example, you definitely do some targeting. You know if your target audience reads that publication. You have some control over placement and size. You control the message within certain publisher guidelines.

That ad may reach 1 million plus readers.

But what percent of this million is actually your target? A particular fashion magazine might have a demographic 59% female ages 35-55. They may have some college education. And you know they’re interested in the type of fashion depicted in the magazine. But that’s a huge demographic.

One of the gifts that digital marketing has given us is the ability to dissect huge demographics. Whittle them down into very targeted groups to get super-focused on a specific kind of person.

Who’s that person? It’s the person most likely purchase what you sell.

When you do targeting at this level, you create an ad that’s highly relevant to your target market. Because it’s so relevant, it connects on a level that more general advertising can’t. This connection gives it the ability to influence decisions. You do it without annoying traditional advertising techniques. You’re not showing the same ad thousands of times over a month’s period. Or interrupting someone’s program over and over.

So, what kind of targeting is possible with digital marketing? You’ll probably be surprised.

Let’s look at search advertising as an example. That includes AdWords. In this form of digital marketing, you target people doing searches in Google. Search results now account for about 64% of website traffic across the Internet.

For businesses who’ve put strong focus on SEO (search engine optimization) as much as 80% of traffic arrives from search results.

Search advertising, aka PPC (pay per click) allows you to position yourself near the top of searches. That’s even if that’s not where your website would organically appear.

With search advertising, you can target people with a very specific:

  • Challenge
  • Goal
  • Profession
  • Education level
  • Buying behavior
  • And more

Do this by bidding on search queries that represent these specific targets. Build ads and landing pages around them to convert that traffic.

Social media advertising similarly allows you to narrow your target audience Use the data they’ve collected about their users. Tell Facebook, for example, to only show your ad to people with a very specific recent behavior, interest, location or other identifier.

Facebook insights

You don’t spend thousands on one ad. And you can run ads indefinitely. So you can easily modify that ad to connect with different groups of people. You don’t have this level of control over who sees your ad with any other form of marketing.

4. Can Be Hyper-Personalized

We’ve only just begun to discuss the importance of digital marketing in regards to targeting. With email marketing, yet another important part of digital marketing, you can target almost down to the individual level.

We call this “segmentation“.

In some cases, you actually can get to the individual level. Marketers call this “personalization“.

72% of consumers prefer that businesses use email to communicate with them. This gives people a sense of control that makes them more comfortable signing up for your emails and buying from you. If they don’t like what you send them, they can just unsubscribe.

But when you send them content that is highly relevant, they stay on your list and continue to buy again and again. You can see where in the importance of digital marketing lies in a repeat lifetime customer.

There are basic programs that will allow you to add a person’s name or certain information automatically to an email. But we’re talking about a much more advanced approach that’s proven its ability to get results for our clients, like the improvements in the chart below. That’s email segmentation, automation, and personalization.

email personalization benefits

With segmentation, you’re collecting data about each email subscriber. You use this data to sub-divide your list based upon certain traits or behaviors identified through analytics. Once, divided, send each segment content that is most relevant to that segment.

If it isn’t relevant, you don’t send it to them. And if you can make small changes to a piece of content make to it more relevant to a different segment, you do it to reach more people.

Automation allows you to send that content at the optimal time to obtain the desired result. It takes the repetitiveness out of the process.

You learn what this optimal time is through your data collection process. This time may be immediately. It may be a certain time of day. It may be sending a certain message before another one.

Finally, you have personalization. You recognize a person on an individual level. You are able to recommend the best products to them because you know their purchase history. You recognize that they just visited your website and abandoned their cart. You refer to them by name. They feel that you respect their individuality.

personal email digital marketing

While these are 3 different things, when they work together they get results.

The Power of Segmentation, Automation & Personalization

According to MailChimp’s extensive data, subscribers are 14% more likely to open emails that are segmented. They’re 101% more likely to click a call to action in the email. Segmentation reduces bounce rates by 5%. That’s a lot in email marketing. It reduces unsubscription rate by around 10%.

But what about sales and revenues? Segmentation sounds like a lot of work. Does it have an ROI to justify it?

Aberdeen Research Firm found that conversion rates increase by 10% with segmentation. But not only are conversion rates higher. People receiving segmented emails spend more. Marketers saw a 760% increase in revenues thanks to segmentation.

Businesses who use automation to send these emails at the optimal time on average increase their conversion rates by 50%. Automated emails are 70% more likely to get opened and have 50% higher click-through rates.

A study found that businesses who use automation are 133% more likely to send out highly relevant content. In a typical email campaign, 75% of revenues are drawn from the segmented portion of the campaign. The rest comes from general emails.

It’s this relevance that gets these kinds of results and further proves the importance of digital marketing to a business. 81% of people who get an email that’s personalized based on past purchases buy again.

But segmentation and automation aren’t something that just any small business can do on their own. These do take an investment in advanced tools that take a lot of the monotonous, repetitive and time-consuming work out of the process.

These programs are essential for running effective segmentation. But they’re often cost-prohibitive for a small business. This is yet one more benefit of working with a digital marketing company. It can carry the costs while allowing you to benefit from these state-of-the-art technologies.

Increasingly, businesses that succeed are using segmentation, automation, and personalization to do so.

5. More Advanced Analytics

What do you really know about how a TV ad performed? You can determine best times for the ad to air and best frequency if you do some testing. You might create a focus group to drill down on the data. But generally, you only know its reach according to the agency and whether it increased buzz, sales, or met a similar marketing goal.

Now, let’s look at the importance of digital marketing in comparison.

With digital marketing you know the following about your ads and users:

  • Whether they actually saw it. With TV ads, you don’t even know that much. They could have been in the kitchen or had the TV on mute.
  • If they interacted with it
  • If they liked it
  • If they lingered on it
  • If they shared it with a friend
  • If it prompted another action
  • If it led to a sale down the road (this is important when deciding how to best spend money)

You also learn much more about the people interacting with that ad:

  • Who’s most interested in your ads
  • What are they like
  • What makes them more likely to take an action
  • Who is easiest to convert
  • Who spends more
  • What do they do online
  • What terms do they use to find you online
  • Which websites do they visit that lead them to yours

All of this is pretty easy to track with free analytics software like Google Analytics. Or you can gain even more insight with paid tools. Use what you learn to cut costs where you aren’t seeing a return on investment. Increase spend and efforts where you get the best results.

Continue to streamline your campaigns to optimize your results.

You may still decide to shell out some money for traditional marketing. Many businesses like to have a mix in their marketing plan. In that case, the importance of digital marketing is how much you learn about who your customers are that carries over to other marketing methods.

6. Easy to Scale & Adapt

As with any marketing, there’s initial investment required to get traffic flowing. But the importance of digital marketing to small businesses becomes very clear when you see how easy it is to scale and adapt as your business grows.

For example, with social media campaigns, display ads and search ads you can choose a daily budget. You know exactly how much that campaign will cost you.

Facebook budget

Now you begin to see amazing results. You don’t have to go in and renegotiate an ad spot to keep the ad running. Your ad continues uninterrupted. As you continue to convert that traffic, you just increase your daily spend and revenues with it.

If you got a massive order in from a customer and need to scale back to avoid getting backlogged, it’s just as easy to do that.

If something isn’t working in your marketing, you don’t have to wait for the ad contract to run out. You don’t have to start from scratch.

You’ve got the power. Just make that small change and re-launch the ad.

The importance of digital marketing lies in the fact that you can get instant results. Analyze data and make changes fast to reduce wasted ad spend and lost revenues.

This leads us to just how cost-effective digital marketing is for a small business.

7. Best ROI

Email marketing has the highest ROI of any marketing method…period. It can get a whopping 3800% return. That’s $38 in revenue for every $1 you spend. About 20% of companies are seeing an ROI of $70 to $1 spent.

email segmentation

Email marketing is a conversion machine. But you do need a way to build your email list with quality subscribers. Then deliver highly relevant content to a subscriber’s inbox.

This is most often accomplished through a combination of social media marketing and content marketing. But these marketing methods have an impressive ROI of their own.

Content marketing can generate 3X the leads for about 62% less than traditional marketing. Of course, when we say “lead” we’re not just talking about website traffic. These are people who are very likely to buy your product and become loyal customers as you nurture that relationship.

Social media’s ROI can be indirect at times. But a Forbes study found that companies using social media outsell 78% of businesses who don’t use social media. IBM found that a lead that comes in through social media is 7X more likely to become a paying customer. More likely to convert also means you’re spending less money trying to convert people who will never become paying customers.

As a small business, cost-effectiveness is your ultimate priority. You have to be able to stretch those dollars as you grow your business. Every dollar you spend matters. You need to know it’s going to provide you an ROI.

That’s the importance of digital marketing to small business.

8. Aligns with How People Today Shop

88% of people consider online reviews an important part of the buying decision.

online reviews

23% of people visit your business after reading a good review.

importance of digital marketing

The average American spends over 24 hours a week online. For millennials and gen Z, 10 hours a day is the norm. This includes Internet time at work and school.

47% of millennials and Gen X don’t watch traditional TV. And 22 million people had canceled their cable by the end of last year. Magazine and newspaper sales continue to decline at a rate of about 16% a year.

But on the other side of this, over 1 trillion online searches are performed each year. Google holds the monster share with 3.5 billion of these queries. 8 billion videos are watched on Facebook each day, most of them from businesses.

From restaurants to doctors to bookkeeping software to commodities, the modern sales process starts online.

Whether it’s something a friend shared on social media, the result of a search query, or an email newsletter that they received in their inbox, it all starts here. The more integrated your business is with the customer’s online experience, the most easily you grow your business.

You need an online presence to be relevant to the vast majority of customers. The importance of digital marketing is that it gives you that presence.

How to Be Relevant Online

To be relevant online today you need to:

  • Have a user-friendly website.
  • Invest in SEO so that you appear in search results from some keywords
  • Have at least one active social media profile where you engage with customers
  • Some paid advertising like AdWords, Instagram or Promoted Tweets. It’s impossible to get found online without some paid media.
  • Reputation management. Know what people are saying about you. Solicit more reviews. When asked to review, most people write a positive review. When not asked, only unhappy people tend to write reviews.
  • Integrated touch points. All of the places that you’re online should work together. Engage your target customers both online and in your physical shop if you’re a brick and mortar business.

9. How People Prefer that Businesses Reach Them

People are tired of traditional advertising. They learned that they have a choice. 20% of 16 to 34 year olds use an ad blocker online. Overwhelmingly, people flee websites that pop up annoying invites and ads when they first land on the page.

They’re choosing to consume media that doesn’t force them to sit through commercials.

It seems cliche. But people want respect. They want someone to provide them with information that helps them make informed decisions. They want to buy from brands that value what they value. They want you to be part of their conversations.

The importance of digital marketing is that it allows you to market to people in ways that show you respect them and value them as human beings.

10. Integrates Marketing with Mobile Technology

According to research by IBM, mobile transactions are increasing at the lightning fast speed of 35% year over year. But it’s not just the actual buying and selling happening on mobile.

digital marketing importance

People are increasingly using their mobile phones as a kind of augmented reality layered over a business. They’re looking at reviews and product information while in your store. They may be ordering online or communicating with customer care en route.

A selfie they take in your store becomes a promotional opportunity for you. They may write a review for you before they even leave your office.

Integrate the mobile experience with the physical experience. As you do, the better your business will take advantage of these opportunities.

Send an alert to let someone to let them know something they were interested in is on sale as they walk down that aisle. Use physical store behavior as tracked by their phone (with permission, of course).

With it, send more relevant offers. Invite someone to visit the store when geo-location shows that they’re in the area.

The Importance of Digital Marketing for Your Business

It’s clear. Businesses in the modern economy need digital marketing to compete. Online is where the customers are. It’s where they prefer that you reach them. Online is where the modern buying process begins.

You get the importance of digital marketing. But that doesn’t make it easy to implement strategies that get you the ROI you’re looking for.

8 Benefits and Importance of Digital Marketing

In the last one decade or so the world has shown a paradigm shift from analog to digital. More and more people are consuming all kinds of information online hence making digital marketing the best way to reach out to your targeted customers. We ask why Digital Marketing is so important.  The importance of digital marketing works not only in favor of marketers, it provides something innovative to the consumers too. Let us have a look and understand the importance of digital marketing.

  1. Opens up growth options for small businesses

Importance of digital marketing for business lies in the option to select your method of marketing as per your budget and reach a wider audience at a lesser cost. Even a decade back getting your product marketed especially for a small business was a task in itself. Most of the expensive models were just out of their reach and they had to resort to small level methods where the guarantee of success was close to negligible.

The digital modes of marketing are customizable and hence much cheaper. If you are trying to make a foray into an already established market you can still make your presence felt by targeting a small base of customers.

  1. The conversion rate is Higher

The businesses that are using online as the preferred mode of marketing are able to measure the conversion rate through real-time using a simple method. That is identifying the percentage of viewers who get converted into leads and then subscribers and in the end finally purchasing the service or product. SEO, Social media marketing and Email marketing are methods which have a high conversion rate as they are able to generate a quick and effective communication channel with the consumer.

 

Surprisingly all the traffic that you may get on your website may not be fruitful hence digital marketing lets you reach out to only those who have the need for your kind of service hence offering better lead conversions.

  1. Customer support has become a priority

For any business to survive the one thing that they really need to work upon is establishing a reputation which is impeccable. In the past few years, it has become evident that customers will always prefer a company which does not have any scandals associated with it. Importance of Digital marketing today lies in offering you multiple ways to establish a personal rapport with your customer base. Be it email marketing or social media you can always offer the customer solutions to their problems and make them relate to your product by even providing live chat access. Your website and social media page can easily be converted into a place where the consumer can ask queries, give suggestions and hence take the association with you on a positive level.

An example of how customer grievance was addressed using social media

 

  1. Get connected to the Mobile Customers

After Google mobile first update nearly almost all the websites these days are made in a manner that they are easily viewable on the mobile as well. This is because that almost all customers have access to a smartphone and most of them even look for products on the same. In many instances, customers have changed their purchase plan and picked up a product from a different brand just because they were convinced that the new product has a much better functionality.

  1.  Increase the trust for your Brand

The presence of your brand and service on multiple platforms gives the option to customers to rate your services as per their level of experience. A positive and favorable review left by a satisfied customer causes the new ones to immediately convert. These days contacting the social media page of a brand for issue resolution and other matters is a common thing to do. This, in turn, leads to the building up of strong image of the brand in the minds of the new consumers hence leading to more conversions.

  1. Better ROI for your Investment

While earlier budget allocations were done individually to handle each kind of marketing medium the situation becomes more progressive now. Being digital you have access to packages at different levels of costing hence ensuring that you can pick up one which suits your budget best. Even a small level of investment done in a mode of email marketing has the potential to deliver results in terms of customer’s engagement. Using web analytics helps the business owners know whether your website is providing optimal ROI. While the website may not be generating revenue for you directly you can always track conversion rate of inquiries made through email and telephone calls to sales.

  1.  Digital marketing is Cost Effective

A small business needs to save up on its resources before it finally goes into the green zone and starts making profits. Digital marketing gives you the scope to reach out to many customers at the same time and that too within your budget. You can plan your marketing strategy such that you only use modes which lie in your budget. If there is a desire not to extend the budget then you can always target niche audiences who you know would definitely like and appreciate the concept of your offering.

  1.  Potential to earn higher revenues

Since the amount of money invested is less and the ROI more the scope to make money is much higher. As per a study conducted by IPSOS Hong Kong in accordance with Google has shown that compared to traditional methods, digital marketing is known to generate 2.8 times more revenue. This coupled with the fact that the conversion rates here are much high ensure that you are minting money as soon as you enter the fray. For organizations which are formulating their strategies keeping money in mind, this also means a faster movement towards the growth path they want to be on.

 

The future of digital marketing seems very bright at the moment. However, while brands were earlier competing with each other’s marketing strategy now the focus has shifted to a fight against the entire internet. This is the time when brands will have to use different modes and ways to actually delve and make an impact on the customers. Surviving in such cut-throat competition is only possible if you can devise and implement a marketing strategy which portrays your uniqueness and gives the customers a reason to opt for you.

How to Grow Your Business With Influencer Marketing

Marketing can drive even the most hardened entrepreneur up the wall. Branding, speaking your audience’s language, platforms and figuring out which marketing strategies are most effective for your target market can be a real challenge.

If you’re feeling overwhelmed, it’s time to experiment with fresh ideas, such as influencer marketing, that can boost your marketing ROI and bottom line.

What Is Influencer Marketing?

Influencer marketing involves using key brand advocates to drive your message to the larger market in an organic way. It pinpoints people with large social followings who have sway over your target audience, then focuses marketing endeavors featuring those key influencers.

Rather than marketing directly to a large group of consumers, you instead pay influencers to get out the word for you.

For example, a testimonial from an individual influencer such as a journalist, academic, or YouTube personality plays the part of the buyer and talks or writes in length about the product’s features and benefits. Key leaders can also come from third parties, such as retailers and manufacturers.

Take Damon and Jo – while the young couple were traveling the world, they filmed a YouTube travel show ‘for the social media generation’: Shut Up and Go. Their show became popular, not through ads or traditional marketing, but because their scrappy, on-a-budget travels and repartee appealed to an audience who found them on YouTube.

Once they built that audience, brands like Toyota, Greyhound, and MTV partnered with them, paying them to ‘organically’ promote their goods and services.

And it pays off: Here are several statistics associated with this strategy:

  • 70% of teenage YouTube subscribers trust influencer opinions over traditional celebrities.
  • On average, businesses generate $6.50 for every $1 invested in influencer marketing.
  • 81% of marketers who have used influencer marketing judged it to be effective.
  • 51% of marketers believe they get better customers from influencer marketing.
  • 59% of marketers increased their influencer marketing budgets last year.

The Growth of Brand Influencer Partnerships

Let’s face it: people trust what other people (as opposed to corporations or advertising) have to say. This is why influencer marketing has become such a powerful and effective marketing strategy.

Though you can’t immediately befriend thousands or millions of people, you can “befriend” one influencer. When you align your brand with an influencer, you are positioning your product or service for display to his or her already-established large network of individuals who trust what that influencer has to say.

As outbound marketing continues to fall off and inbound marketing grows in popularity, influencer marketing has become one of the most effective techniques for attracting customers.

Consumers of today are not the same as consumers of the past. They don’t listen to everything they hear on television or the radio. They don’t read billboards and take the information to heart. And they don’t trust large companies (at least, not until they take the time to get to know them and the company has earned their trust). They do, however, listen to what other people have to say.

Influencer marketing can make up a large portion of an inbound marketing campaign. And here is how: they are staffed with the responsibility of generating and distributing content about your brand.

When influencers recommend your brand to their following, they become an extension of your company’s marketing department.

Why Brands Rely on Influencer Marketing

Even though influencer marketing is a relatively new strategy, it continues to be a viable solution for marketers who are willing to think outside the box on building trust with their target market.

1. The Power Is Real

There aren’t many things that drive sales more effectively than good ol’ word-of-mouth marketing: 92% percent of consumers say that they trust word-of-mouth recommendations more than any other type of advertising.

And when it comes to the Millennial generation, 40% say that their favorite YouTube personality “understands them better than their friends.”

This is part of an overall shift in how we prioritize word-of-mouth information over paid television, magazine and newspaper ads and it’s hard to ignore the power of these unofficial brand ambassadors. Influencer marketing provides an opportunity for companies to leverage the power of social proof, all the while relying on those who already have a large following.

Power of influencers

2. It’s a Social Thing

According to the Pew Research Center, in 2018:

  • 68% of online Americans used Facebook
  • 29% of online Americans used Pinterest
  • 35% of online Americans used Instagram
  • 25% of online Americans used LinkedIn
  • 24% of online Americans used Twitter

Nowadays, a website is no longer enough; companies want you to interact with them via their social channels.

Consumers expect brands to bring the conversation to them, so influencers hold more power than ever before. By partnering with the right influencers, brands can create conversations that relate to their target audience.

Influencer marketing can make up a large portion of an inbound marketing campaign because they’re staffed with the responsibility of generating and distributing content about your brand. When influencers recommend your brand to their following, they become an extension of your company’s marketing department.

And speaking of inbound marketing, did you know influencers have a huge SEO benefit for you?

How to Work With Brand Advocates and Influencers

If you’re ready to take the step of working with an influencer.

1. Identify the Perfect Influencer for You

Now that you have a clear idea of why brands are relying on influencer marketing, it’s time to take the next step. This means identifying the perfect influencer.

Malcolm Gladwell once said: “The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts.”

He identified three types of influencers:

  • Connectors
  • Mavens
  • Salesmen

These are the people responsible for the creation, communication and connection of all messages.

Mavens look to consume and share what they find with others acquiring insights on trends. Salesmen are persuaders who possess incredible charisma. But Connectors build a network filled with a wide range of people and therefore possess a byproduct of exceptional reach. They are masters of word-of-mouth communication.

Influencers combine all three characteristics, but think about what your company needs. If you have a tech-forward product, or sell avante-garde fashion, you’ll probably want to find an influencer that’s a maven. Salesmen might be good if you’re selling an online course and need someone who’s going to convince their following in a forward, not subtle, way. Connectors are great for products that make your life easier or fulfill an existing needs — products directed at making parents’ lives easier are often shared on these networks.

1. Social Media Reach

An influencer is only an influencer if they can actually influence others. Makes sense, right?

Simply put, the larger the reach, the larger the number of people who will see your product or service. An Instagram user with 1,500 followers may be able to generate some results, but an IG user with 150,000 followers can really push your message to your audience.

Sticking with Instagram, you may find that a person with 15,000 followers receives an average of 500 likes on each update. Conversely, a person with 30,000 followers may only receive an average of 100 likes per update.

While the person with more followers will put your brand in front of more people, the update may not receive as much engagement. This is a balancing act with a trial and error component.

Depending on your budget, and the level of engagement per follower you want, you may want to look into a micro-influencer, or an influencer with a smaller (usually up to 10K) audience in a specific niche. Again, a macro-influencer may promote you to millions, but how many are really listening? Are they really willing to engage the way someone specifically in your niche would?

How much do micro-influencers charge?

Sponsored blog posts

  • 96% charge $1000 or less per post
  • 87% charge $500 or less per post

Facebook posts

  • 96% charge $500 or less
  • 90% charge $250 or less

Branded tweets

  • 96% charge $200 or less
  • 90% charge $150 or less

2. Influencer Audience Segment

One of the primary mistakes among influencer marketers is chasing after personalities with a large following and nothing else. As noted above, a large reach is a good place to start. But again, it’s not the only point to consider.

You must make sure that the person’s audience matches your brand. For example, a swimsuit model with 100,000 followers could be the perfect target if you are selling women’s apparel. But would this person be able to do anything for your software business? Probably not. This influencer’s audience is not interested in software.

3. A Natural Approach to Marketing

There are two sides to influencer marketing: brands and influencers.

On one side, companies are willing to pay influencers to push their product or service to their audience.

Conversely, influencers are willing to push the product or service as long as they get paid a tidy sum for a small amount of work.

But here is the catch: some influencers take this one step too far. It seems that every update they make is some type of product plug. Over time, their audience takes notice and the effectiveness begins to wear off because, as with traditional marketing:

Align yourself with people who take a “natural approach” to influencer marketing. They are willing to partner with some brands, but are selective about who they partner with.

Brand + Influencer: Make It Mutually Beneficial

Just like any relationship, influencer marketing should be a two-way street. If your brand is the only party that benefits, you won’t be long for this strategy. You will eventually find that nobody wants to partner with you.

According to a study by Group High, 44.44% of influencers feel that brands/marketers aren’t providing them with fair compensation.

influencer marketing compensation

If a person is willing to share positive and natural reviews about your brand, they should be rewarded accordingly. Here are some of the many ways to compensate your influencers:

Cold hard cash. According to the same Group High study, 69.74% of influencers prefer monetary compensation for their posts.

influencer marketing blog ads affiliate marketing free products

Among influencers charging brands for sponsored content, most of them (42.07%) charge between $200 and $500, 37.28% charge less than $200, and the remaining 20% charge more than $500 per post.

influencer payment for sponsored content chart

Based on this information, paying your influencers should be your first choice. The only caveat with this is that the person may not be truly invested in your brand and therefore doesn’t put their heart into the project. This can be a downside to using this strategy, but if your company can swing it, the data confirms that this is one of  your best options.

But what if you’re a small company or startup don’t have the capital to compensate an influencer with money?

Free product or discount. Why not offer somebody a free product or discount in exchange for a shout out? This doesn’t have to be the only arrangement, but it is a good way to build a relationship. Over time, you may phase this out and opt for another form of payment.

Commission. This is a win-win, as both parties have skin in the game. You pay the person to share your brand with their audience and any sale they generate will result in a commission paid to the influencer. As long as you are fair with the commission structure, this is one of the best arrangements.

Creative Freedom.  Crowdtap ran a survey of 59 influencers, asking them what persuaded them to work with brands more than once:

  • 77% said that creative freedom is important to them
  • 49% said that they loved working with clients who understood their interests, and sent relevant opportunities
  • 47% said that they loved working with brands whose message aligned with their own values

With a mutually beneficial arrangement, your influencer marketing campaign will thrive.

Set a Budget, Track Your ROI

Last but not least, it’s important to set a budget.

Keep in mind that a poll by influencer marketplace Tomoson shows that for every dollar spent on influencer marketing, businesses are generating $6.50 in revenue.

Maybe you have a particular dollar amount in mind. Or maybe you are measuring this based on the time it takes to connect with influencers. It’s easy to go overboard with influencer marketing, as every opportunity will appeal to you in some way, so it is your job to stick to your budget and only spend money when it makes sense to do so.

To do this, you’ll need to track your ROI. Not only does this show you what is and is not working, but it also puts you in position to tweak your strategy and increase your budget in the future.

How to Become a Social Media Marketing Influencer

So now that you’ve read all about using influencers in your brand’s marketing campaign, maybe you want to dip your toe into being an influencer. Or maybe you’re already an influencer, and want to build reach and engagement? Well we’ve got that information, too! Check out these articles to learn the art of becoming a social media marketing influencer.

f you agree with the 81% of marketers who believe that influencer marketing is effective, then there is no point in waiting any longer. You now know what this strategy can do for you in terms of brand awareness and ROI. You also know how to get started, so what are you waiting for?

 

INSTAGRAM INFLUENCER MARKETING IS A 1 BILLION DOLLAR INDUSTRY

Instagram Influencer Marketing Is A 1 Billion Dollar Industry

How Big Is Instagram Influencer Marketing? [INFOGRAPHIC]

UPDATE May 5, 2017 — Much has changed on Instagram is the last 10 months. Instagram has introduced new features like Instagram Stories (which closely mimics Snapchat’s core function and has carved deeply into Snapchat’s growth numbers), Live, and Galleries. These new features have drawn users faster than ever before, and Instagram’s platform has continued to grow quickly. In an effort to keep this article as accurate and helpful as possible, we’ve updated it with the most up-to-date information and statistics. We’ve preserved the original text of this article and have added clearly-marked updates below select passages.

Since 2011, Instagram has been one of the fastest growing social media platforms. In the past six months alone, it’s added over 100 million users and growth shows no signs of slowing. With over 600 million global users (80% of whom come from outside of the U.S. and over 400 millionof whom check Instagram every day), Instagram is one of the most far-reaching and highly engaged social media networks in existence today. It’s also become one of the largest pieces of the nascent influencer marketing industry.

UPDATE: April 2017 propelled Instagram past 700 million monthly active users and saw a reported daily active user base of 200 million users for Instagram Stories alone.

Instagram Influencer Marketing Could Reach $ 2 Billion By 2019

Instagram Influencer Marketing Infographic Industry Market Size

Instagram Influencer Marketing Growth

The decline of traditional TV and the growth of social media have given rise to influencer marketing, now one of the fastest growing categories in advertising and projected to be a $5-10 billion market by 2020. Instagram is one of the most quickly developing segments of the growing influencer marketing market. But lack of transparency and reported metrics with regards to advertiser spend mean that there’s no official tally on the size of the Instagram influencer market. So to estimate the size of that market, we created a projection based on our research.

From micro-influencers making $50 per post to Instagram superstars like Ariana Grande that command half a million dollars per post, the Instagram influencer market runs the gamut in terms of following, audience, and engagement; but it has even the biggest brands buying in. Target, H&M, Adidas, Samsung, American Express, Toyota, Fairmont, Microsoft, and many more brands are finding ways to partner with Instagram influencers to reach audiences.

To estimate how much money advertisers spend on influencer marketing on Instagram, we tracked the number of sponsored Instagram posts over a year. At present, we estimate the advertiser spend with influencers on Instagram at over $1 billion per year, with indications of significant annual growth.

Our Instagram Influencer Marketing Methodology 

In order to get an idea of how many sponsored posts are on Instagram, we tracked common sponsored hashtags, including #ad, #sponsored, #spon, and #sp. In the past year, there was an increase of 4.8 million uses of these hashtags over years prior.

The hashtags weren’t associated with sponsored posts in every instance, though.

In looking at a sample size of 500 recent posts, we found that 42% of these posts were associated with accounts were fewer than 1,000 followers. It’s unlikely that users managing these accounts are actually being paid for these posts or, if they are being paid, that there would be a significant effect on the size of the Instagram influencer market as a whole.

That leaves about 58% of the sponsored posts from accounts with more than 1,000 followers. Of the 4,792,033 posts recorded over 12 months, that amounts to 2,788,963 sponsored posts.

We then found the average follower size for accounts posting sponsored content was 32,000. Given an average $10 cost per thousand impressions (CPM), we ended up at an estimated $320 per post and an estimated total monthly spend of approximately $90 million. This would put the overall total annual spend at over $1 billion.

With the current annual growth, the market could reach a $130M/month spend by March 2018 and up to a $200M/month spend by March 2019 (nearly $2.4B spent on influencer marketing on Instagram alone).

What’s Does The Future Look Like For Instagram Influencer Marketing?

One thing is eminently clear: the Instagram influencer market is immense. There’s a billion dollar influencer marketing industry that exists within just one of the world’s most popular social media networks. Instagram giving rise to a billion dollar a year industry shows the explosive growth of the influencer marketing industry taking place on social media apps, networks, and platforms. As long as Instagram remains a discoverable place for influencers to effectively and easily create and share engaging content, the Instagram influencer market will continue to grow and evolve. And knowing the value of the Instagram influencer market is a key part of finding the pulse of the market as a whole.

Influencer marketing on Instagram isn’t without its pitfalls, though. Fake followers (that is, fake accounts created to increase another account’s followers and/or engagement) are a growing problem. They allow Instagram users to purport a higher following to brands to command higher rates for sponsorship. The result is a unique form of ad fraud within influencer marketing, a market that can attribute some of its own growth to advertisers shying away from online display advertising where ad fraud and viewability are two common issues.

THE 16 BIGGEST BENEFITS OF INFLUENCER MARKETING

The 16 Biggest Benefits of Influencer Marketing

The 16 Benefits Of Influencer Marketing All Marketing Pros Should Know

The average person spends up to two hours on social media each day with certain demographics spending nearly every waking moment on their phones. In light of this, it’s no wonder that influencer marketing, which leverages the popularity of social media stars to promote brands and their products, has emerged as one of the fastest-growing segments of advertising.

Today, businesses from almost every conceivable category are leveraging the power and potential of influencer marketing. According to a recent survey, 86% of marketers used influencer marketing in 2017, and of those, 92% found it to be effective.

Below, we’ve compiled a list of the top benefits of the influencer marketing that illustrate its effectiveness as an advertising strategy.

1. Return On Investment (ROI)

From large corporations to newly minted startups, all varieties of businesses are seeing positive returns from influencer marketing. Influencer marketing has been shown to produce up to $11.69 in earned media value (EMV) per $1 spent.

Its proven ability to generate enormous returns on investment has helped to make influencer marketing a $1 billion industry on Instagram alone and has led nearly half of marketers surveyed to say they’ll increase their influencer marketing budgets in 2018.

2. Influencers Impact Purchase Decisions

Numerous studies show that influencers have the power to impact the purchase decisions of consumers of all ages. In a joint survey conducted by Twitter and Annalect, 40% of respondents reported that they’ve purchased an item online after seeing a social media influencer use it.

Furthermore, 22% of marketers cite influencer marketing as the fastest growing customer acquisition channel, and more than 50% say they acquire higher quality customers through influencer marketing compared to other acquisition channels.

The results of these studies and more indicate that influencer marketing is a successful tool for attracting consumers with high purchase intent, and thus is an effective method for driving sales.

3. Access To Millennial & Gen Z Consumers

As young audiences leave TV behind in favor of digital media, influencer marketing is now a mandatory channel for reaching critical millennial and Gen Z audiences.

85% of Gen Z uses social media to learn about new products, indicating that young consumers in particular are highly receptive to receiving specific product information through social platforms.

Furthermore, 40% of millennial YouTube subscribers believe their favorite influencer understands them better than their friends, illustrating the trust, credibility, and deep personal connections social media influencers forge with their young followers.

4. Influencers Are Trendsetters

Influencers are often a go-to source of information about new products within their industry (beauty, fashion, tech, fitness, etc.). Influencers’ followers respect and sometimes even idolize their opinions within their categories of expertise.

As a result, a product often gains “cool factor” when an influencer recommends it. In this way, influencers are trendsetters that social media users trust to identify and comment on the hottest products and trends.

Often, influencers are given access to new products before they are even available to the general public. For example, Huawei Mobile gifted top tech influencer Judner Aura (UrAvgConsumer) the new Mate 10 Pro smartphone prior to its US launch. Aura created a 13-minute YouTube video that provided viewers with an in-depth review of the phone, getting them excited about the new tech product in advance of its US release.

5. Authentic Messaging & Endorsements

Most large influencers are highly selective when choosing brand partnerships, adding a level of authenticity to sponsored influencer content.

By selecting sponsorship opportunities that are a good fit for their image and audience, influencers are able to partner with brands they genuinely love and deliver sponsored messages that feel relevant and organic.

6. Relatability & Credibility From Beloved Peers

Influencers are trusted by their followers, and their opinions have high value and reliability. On YouTube, 70% of teenage subscribers say they relate more to the platform’s influencers than traditional celebrities.

Moreover, six in 10 subscribers say they’re more apt to follow purchase advice from their favorite YouTube creator over traditional TV or movie stars. These statistics illustrate that many consumers perceive influencer endorsements to be substantially more credible than celebrity endorsements, likely due to the ability of influencers to relate with consumers.

7. Audience & Demographic Targeting

Influencer marketing campaigns can be as broad or niche as a brand desires and a variety of different methods can be used to help determine the most appropriate influencers to reach a desired audience.

Brands can work with influencers who specialize in a particular category of content, such as fashion, travel, or cooking. Additionally, when selecting influencers for a campaign, businesses can request access to information on their follower demographics. These factors can be instrumental in helping brands optimize their campaign to reach a specific target audience.

8. Optimization & Economies Of Scale

Proper strategy and planning of an influencer marketing campaign helps brands achieve the largest reach and highest engagement rates. Qualified professionals like influencer marketing agencies can also monitor and manage influencer marketing efforts from beginning to end, helping to optimize the entire resource-intensive process.

After the data from a campaign has been analyzed properly, content can also be relaunched or repurposed with messaging tweaks — or promoted by other influencers — to further help optimize KPIs and ROI.

9. Versatility Across The Most Popular Social Platforms

Influencer marketing allows brands to reach audiences on both web and mobile. Additionally, many influencers are active on multiple popular social platforms.

Depending on the influencer and campaign, the content created for brands can be cross-promoted on a variety of platforms, including Instagram, YouTube, Facebook, Snapchat, and personal blogs, in order to maximize a campaign’s reach.

10. Shareability Across Both Web & Social 

In comparison to native advertisements, social media users are more likely to share influencer marketing content with their own followers, expanding the reach of a brand’s message to even greater audiences.

Because influencers are experts at creating content their followers love, influencer marketing campaigns often achieve a level of virality that many traditional advertisements lack.

11. Custom Tailored To Each Brand & Campaign 

Influencer marketing is a fully-customizable. Campaign elements such as budget, number and type of influencers used, creative messaging, post frequency and scheduling, key performance indicators (KPIs), and a host of other variables, can all be tailored to fit an individual brand’s needs.

12. Licensability Of Sponsored Influencer Content 

Depending on the terms of the agreement between the brand and the influencer, content from influencer marketing campaigns can be reused to further a brand’s marketing goals.

When pitted against the costs of content associated with a production company or traditional ad agency, influencer content presents marketers with immense value, and, if licensed, can be shared on a brand’s social platforms or even used in traditional advertising formats such as print or television.

13. Longterm Influencer Relationships

Embarking on an influencer marketing campaign isn’t just about metrics — it’s about building positive relationships. By establishing rapport with influencers, brands can create strong and lasting partnerships that drive long-term results.

Additionally, having a relationship with a leading influencer marketing agency keeps a business up to date on new opportunities, as well as the latest industry trends and best practices.

14. Actionable Insights & Data

Influencer marketing campaigns can yield invaluable data for brands. From engagement information such as views, likes, comments, and shares, to click through rate (CTR), acquisitions, social sentiment, and other important KPIs, brands not only have the ability to reach new audiences through influencer marketing, they can learn about the behaviors of their own customer base as well.

15. Flexible Pricing

In contrast to celebrity endorsements, television commercials, and other forms of traditional advertising, influencer marketing is a highly accessible form or promotion that can meet the needs of both large and small businesses. Due to its flexible pricing structure, campaigns can be designed to fit a wide range of goals and budgets.

16. Immense Reach And Visibility

Many social media influencers have audiences in the millions, with the 50 most followed Instagram influencer accounts totaling more than 2.5 billion followers. While influencer marketing certainly isn’t about blindly following alluring numbers, marketers can build highly effective campaigns that reach millions of consumers with proper influencer vetting based on both qualitative and quantitative factors.

Furthermore, influencer marketing helps brands bypass obstacles many other online marketing mediums face today. With the mainstream adoption of ad blockers, as well as users’ general disdain for overt advertising, influencer marketing offers brands a viable, proven way to interact with consumers in a natural and unobtrusive way.

Benefits and importance of digital marketing: Beyond SEO and AdWords!

Nowadays, customers have access to information any time and any place they want or need it. Thanks to the Internet and globalization, most people on the globe are able to access the information via computers, tablets or mobiles. What business owners should remember is that everyone can influence the image of their companies via ex. Social Media and you can be sure that your customer feedback will be more trustworthy for others to read than your own one. 

Why Digital Marketing is so important and gives you so many benefits?

Because via electronic channels and by posting positive comments, feedbacks about your company/product you (and your happy customers) can attract new customers and build long-lasting relationship. But, be careful! It works both ways! Happy customers can help you, but unhappy customer can harm your business very seriously. That’s why as a business owner make sure you always remember about the following points: 

Encourage engagement through digital media

You can simply acquire new clients via ex. Social Media channels. When doing so, ensure you segment them into different customer groups according to their interests. Later, you will be able to interact with them and encourage to various actions. 

The more likes the better!

As part of Digital Marketing – Social Media is underestimated. It’s a big mistake because your “Facebook” likes or “Twitter” shares can help your company grow as they build credibility and trust. They also bring traffic to the website and are costless. What you have to do is to insert a Social Media plugin onto your site and keep updating your customers about the company news, discounts, etc. Bear in mind to schedule the frequency of updates and not to overwhelm them with too much information at once. You may be surprised with the outcome.  

Get ahead of your competitors

Every year more and more businesses give up traditional advertising methods and focus on SEO, Google Adwords or Social Media spending huge money on these resources. This is the reason why the market gets increasingly competitive and big players get ahead of little companies. As a small business on the market, you cannot compete with them but there is something you can do. You can use Google Alerts tool to monitor your competitors. This tool will allow you to track your competitors products and marketing strategies so that you can learn something from them and improve your own business strategy.   

Go beyond the boundaries

It’s important to understand that digital marketing doesn’t only apply to your website! However most of the marketers create a website or an eCommerce and  invest in SEO and/or AdWords. But to make your business stand out from the crowd, you need a real strategy that puts potential customers first and use all the available tools to acquire them. 

Business reputation first!

Good reputation of any business is essential. Without the trust and confidence of the customer, a company will not survive. Especially in the past years the importance of reputation has become increasingly noticeable. If a business has a good reputation, customers may choose that particular company from many on the market. The positive reputation enables marketers to differentiate their products/services in a highly competitive market and successfully compete with big players. How to build a good reputation? Make sure that you communicate with your customers and everyone who interacts with your company through website, e-mail, Social Media. Answer any doubts, offer help and make sure you build a long-lasting relationship with your customers.