When we are looking for recommendations, who do we go to?
Many times it’s someone we know or follow online or in-person. They often have three things in common:
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They’re honest and authentic,
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They share our values, and,
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Ultimately, they have our best interests at heart.
Let’s take it a step further. You receive a recommendation by word-of-mouth, but you’re not sure what the product looks like or where to shop for it. Enter influencer marketing on Instagram.
Blame it on our senses, but the more interaction we have with a product, the more familiar, comfortable and confident we feel purchasing it.
Historically, brands have targeted messaging at consumers, without listening for a response. But with the introduction of social media messaging platforms, like Instagram, consumers have changed the conversation.
Now, conversations between brands and consumers have become so fluid that products take on a human-like persona to communicate their value proposition. We experience this often through sensory marketing.
According to the Harvard Business Review, brands utilize sensory marketing with three goals in mind:
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To identify and understand consumers’ emotions,
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To explore and capitalize on new markets, and
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To grow brand loyalty.
Sounds a lot like how we interact with brands and products via influencers on Instagram, right?
After working at a marketing agency, facilitating Instagram influencer marketing partnerships with some of America’s leading brands, I personally became invested in this strategy.
That’s right. I became an influencer.
On my blog, The Letter Bea, I share content on topics that interest me such as:
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My life with Type 1 Diabetes,
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fashion-related topics,
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travel,
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my Golden Retriever Lucy,
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and any other activities and products that capture my attention.
Since I began my influencer journey in 2017, I’ve grown, worked with some amazing brands (like Anheuser-Busch, Outdoor Voices, and Mejuri), and have learned the behind the scenes of influencer marketing.
I even landed some of my first paid brand partnerships with just 2,000 followers.
Big picture, I learned that the combined work of Instagram and influencer marketing gives us the luxury of regular sensory exposure – one that has become the norm – and it’s why the traffic and conversion driving tactic has grown exponentially in recent years.
To set the stage, let’s look at the growth numbers:
The facts are clear – Instagram influencer marketing is not going away anytime soon. The power of influencers is rising and will considerably change the way consumers shop.
In this post, I’ll dive into why and how brands are investing in this strategy and what it means for your ecommerce company – from the eyes of both an ecommerce expert and influencer.
What is an Influencer?
An influencer, often times referred to as a blogger or content creator, is a trusted resource with a significantly engaged following on social media who shares genuine opinions and information on various topics, products and services that interest them via social media, a website or blog.
Contrary to popular belief, an influencer doesn’t need to have a large following on their Instagram account. I know, I was just as surprised as you when I learned this.
Influencers with a smaller number of followers experience higher engagement (like number of likes). In other words, a lesser amount of Instagram followers translates to higher engagement rates and ROI.
Source: Statista
I will never forget getting invited to my first major influencer event – at just 990 followers on Instagram. Anheuser-Busch invited me to their Influencer Holiday Night to promote the St. Louis-based company’s famous Brewery Lights season. There I sat next to some of the city’s top influencers – wondering, quite honestly, how I scored an invitation.
That’s when I was approached by the women representing the public relations firm. She was in charge of scouting influencers for the brand. I learned that while still small, my high engagement rate, authentic voice, and robust influence in my niche stood out. To the brand, this meant potential for higher ROI.
Best part? They weren’t wrong.
The content from that evening ending up getting shared on other social media accounts – generating thousands of likes, comments and shares. It was a win-win for both my platform and the brand.
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Drinks – Lights – More Drinks – More Lights! What’s not to love?! ????: @theletter_bea #stlouisgram
A post shared by St.Louis Official Instagram (@stlouisgram) on Dec 17, 2017 at 5:11pm PST
Different Types of Influencers
Influencers fall into different niches, different followings, and have different ways of creating content. It’s important to understand what type of influencer will work best for your brand (taking into consideration both budget and relevance).
The four groups of influencers you need to know are nano-, micro-, macro- and mega-influencers.
1. Nano-influencers.
This is currently where my blog lives. While my peers and I have the smallest amount of followers, by range, we proudly attract the best engagement across the industry.
Nano-influencers have typically less than 10,000 followers and resemble everyday people – like your family and friends.
This group of influencers have gained popularity from both brands and consumers in the past year for various reasons:
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From a brand perspective, it is much more cost-effective to partner with a nano-influencer. Due to their high engagement rates and lower compensation rates, your brand has a greater ROI potential on these marketing efforts.
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From a consumer perspective, nano-influencers are increasingly gaining more trust in the market and recommendations made are in turn more powerful. Their niche focus and smaller community create a larger sense of transparency and authenticity.
In simpler terms, consumers feel recommendations from nano-influencers are more genuine, whereas a celebrity endorsement or high-paying advertisements can feel like a pure digital marketing tactic.
Here are some Instagram influencer marketing examples from nano-influencers we love:
The Letter Bea x Mejuri
Proof that nano-influencers can land partnerships with brands that boast nearly half a million followers.
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A post shared by beatriz estay | austin, tx ???? (@theletter_bea) on Jul 3, 2019 at 6:30pm PDT
Kaitlin Claywell x Aerie
Kaitlin landed this partnership after sharing her personal weight loss journey with her following. Her story was so influential that it caught the attention of major fashion brand, Aerie, and has now turned into a year-long partnership.
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A post shared by Kaitlin Claywell (@kaitlinclaywell) on Jul 23, 2019 at 10:02am PDT
2. Micro-influencers.
Micro-influencers have less than 100,000 followers and are often known as an industry expert or topic specialist in a specific niche.
Similar to nano-influencers, they deliver great ROIs for brands. This is mostly thanks to the strong relationships they build with their followers.
Different than nano-influencers, a micro-influencertarget audience is more niche and focused. For example, if the micro-influencer grew the platform off their interest in vegan products, their following will likely majorly include those who follow a vegan diet.
This gives brands an easier way to tap into their target market.
Here are some Instagram influencer marketing examples from micro-influencers we love:
Sara Covey x #AlbionGirlsTrip
Sara is known for her high-quality photography, centered around different color palettes. Her followers high engage with her content – especially travel content – which made her the perfect fit for the #AlbionGirlsTrip campaign.
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Say formaggio! ???????????? @albionfit #albiongirlstrip #goingplaces
A post shared by SARA ???? (@saracovey) on May 25, 2019 at 3:52pm PDT
Lauren Bongiorno x Abbott Freestyle Libre
Type 1 Diabetic health coach, Lauren, frequently shares her journey with her chronic illness. This made her the perfect candidate for the Abbott Freestyle Libre campaign – the go-to-market strategy for the glucose monitoring device.
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A post shared by Online Diabetic Health Coach (@lauren_bongiorno) on May 3, 2019 at 6:06am PDT
Jaclyn Johnson x Mural Cervesa
Founder and CEO of Create & Cultivate, Jaclyn, is always promoting brands that fit the lifestyle of the ultimate #girlboss.
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A post shared by Jaclyn Johnson (@jaclynrjohnson) on Jul 10, 2019 at 5:40pm PDT
3. Macro-influencers.
Macro-influencers have between 100,000 and 1 million followers.
Sometimes these influencers can be celebrities, but often are just micro-influencers who have continued to grow their following base. Instagram influencer marketing is their full-time job.
Here are some Instagram influencer marketing examples from macro-influencers we love:
Marianna Hewitt x Summer Fridays
Marianna is the Co-Founder of Summer Fridays, a clean label skincare brand. The brand was completely built from social media influence. She commonly shares content related to the brand on her account.
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A post shared by Marianna Hewitt (@marianna_hewitt) on Jul 25, 2019 at 7:18am PDT
Remi Ishizuka x Justin’s Nut Butter
Remi, a fitness and wellness influencer, is another great example of influencers working with brands that match their niche.
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A post shared by REMI ISHIZUKA (@rrayyme) on Jun 30, 2019 at 3:58pm PDT
4. Mega-influencers.
Mega-influencers have more than 1 million followers. These influencers tend to be celebrities or major public figures.
Here are some Instagram influencer marketing examples from macro-influencers we love:
Bobby Berk x Corian Design
Bobby, widely known for his role in Netflix’s Queer Eye, is an interior designer when he’s not on the show. He often collaborates with design firms or tools to share his story.
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A post shared by Bobby Berk (@bobbyberk) on Jul 23, 2019 at 4:33pm PDT
Sazan x Omega
Sazan, the fashion influencer, began her blog long before influencer marketing took the world by storm. Most of her collaborations are with beauty and fashion brands – like Omega.
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A post shared by Sazan Hendrix (@sazan) on Jul 19, 2019 at 8:43am PDT
Kylie Jenner x Kylie Cosmetics
Boasting one of the highest followings on social media – it’s hard to miss Kylie Jenner. Her favorite brand to promote? Her line – Kylie Cosmetics.
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A post shared by Kylie (@kyliejenner) on Jul 10, 2019 at 3:09pm PDT
What is Influencer Marketing?
Depending on who you ask, you may get various opinions on influencer marketing. Truth be told, I could probably write an entire blog post on all the answers I’ve received.
I’m ready to set the facts straight and put the marketing strategy into simple terms.
So, let’s ask the question. How do brands leverage influencers to drive traffic and conversion to their brand?
This is done via influencer marketing.
Influencer marketing is a content marketing strategy that consists of promoting your products, services, or brands by collaborating or partnering with an influencer.
Examples of influencer marketing include:
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Sponsored Instagram posts or stories.
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Sponsored blog posts.
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Sponsored offline event with an influencer appearance (e.g. conferences/panels, meet and greets, store openings, brand trips, etc.)
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Other sponsored social media marketing posts (e.g. Pinterest, Twitter, Snapchat, Facebook, LinkedIn, and other social networks).
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And more.
Different brands target influencers for different purposes – some for increasing brand awareness, some for increasing conversion.
A recent Statista survey found that brand awareness is the leading goal for brands using influencers in their marketing strategy.
Influencer Marketing on Instagram
With over 1 billion monthly active users (and more than 500,000 of them active every day), it’s no surprise that social media influencers use Instagram as their primary platform.
In all transparency, when I started my blog, I never thought twice about what platform I’d use for my main social strategy – it was always Instagram.
While the platform sits under the Meta umbrella, compared to Facebook, Instagram has become a social media haven for younger generations.
Millennials (ages 24-34) hold the top demographic spot while Gen Z (18-24) takes the second. All together, these two age groups consist of 71% of Instagram’s active user base.
Tools like Instagram Analytics allows influencers to see which age group dominates their following – and I’ve found my numbers also match this statistic.
Active users look to Instagram to be influenced.Facebook Business recently conducted a survey and found promising insights for the platform.
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83% discover new products and services on Instagram.
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81% use the platform to research products or services.
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80% engage with Instagram content to decide whether to purchase a product or service.
So, what does this mean for brands working with influencers?
Brand-led communication, like influencer marketing campaigns, is a key tactic to connecting users to a brand – both to its voice and products. This marketing strategy is a brand’s early step to creating an engaged relationship with consumers.
To take it a step further, after engaging with content that features product information, 87% of active users on Instagram took the following actions.
A key takeaway: Instagram content is the key to making the magic happen.
Users can publish content in two ways: posts or stories. With each, they also can choose if they want to upload photo content (the more popular option) or video content.
For my blog, photo content tends to perform better – but that can be different for every influencer and the niche they participate in.
Sponsored content is more often found in many Instagram posts – at 66% of distribution of sponsored content on Instagram worldwide.
I personally find brands are more interested in posts over stories for a few reasons:
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Posts last forever, while Instagram Stories are temporary.
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There are more analytics available for Instagram Post performance.
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Instagram Posts are more easily shareable.
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It is easier to capture engagement (likes, comments, and shares) on Instagram Posts.
While photo content is wildly more popular than video content, the rise of Instagram stories and IGTV usage is sparking an increase in video content.
In addition to the creative options behind the social media channel, today’s consumers know how to use Instagram to find the right influencer to follow, using hashtags, in their niche.
Consumers are most active and likely to convert in the clothing and shoes industries. Food & drinks and consumer electronics fall closely behind.
Categories where consumers are more likely to convert are also categories that have heightened influencer competition.
Influencers today must combat industry competition by offering a genuine, more niche-focused perspective on some of the highest converting categories across the world, like fashion.
On The Letter Bea, I talk a lot about fashion and lifestyle, but always integrate my life with Type 1 Diabetes into the mix. For example, I’ll share how I wear my insulin pump with a trending dress from BigCommerce merchant, Pink Lily Boutique. This makes my recommendation more authentic, genuine, and relevant to my particular following.
Benefits of Using Instagram As Your Influencer Marketing Platform
Google searches for “influencer marketing” have grown by 1500% over 3 years and you can bet it’s with good reason. I’ll take you one step further than a case study and tell you why Instagram is the best social media platform for influencer marketing campaigns.
1. It’s more organic.
While Instagram ads are still relevant across influencer marketing strategies today, influencer content on Instagram is a strong driver for organic traffic.
Real-time content (like Instagram Stories or Live) and high-quality posts (featuring images or videos) give consumers multiple ways to engage with an influencer.
Rather than engaging with one advertisement, consumers can engage with content they resonate with. This means influencers, your brand ambassadors, can use their creative freedom to integrate your product into their daily lives, showcasing it in a medium they deem the best fit.
With the use of influencer marketing on Instagram, referral traffic to ecommerce websites has skyrocketed. It’s become such a dominant source of traffic that even tweets are no longer convincing consumers to convert like they did before.
Source: Statista
This shift in social media channel leaders is shaping future content strategies to come.
2. It’s niche.
Instagram provides various ways for consumers to find and engage with niches that interest them.
First – say hello to hashtags. Hashtags (like #bigcommerce) are easy ways to relate content to a specific niche. When searching a hashtag, consumers have instant access to any post that has used it. Many brands create their own hashtags for campaigns or brand awareness and encourage their followers to use them as well.
Second – the coveted Instagram Explore page. While it’s still a mystery as to how one can make it onto the Explore page, it’s a big win if you can. The Instagram Explore page is curated for each user – based on what content they engage with. Most times, this page is filled with posts from the niche the user is interested in. Recently, they’ve also unveiled a topic channels feature, so you can look at Instagram Explore pages based off niches (like fashion, travel…and even Instagram Shopping).
Third – the algorithm. Although it feels like it’s changing by the day, the Instagram algorithm is designed to show users content they are highly likely to engage with. What does this mean? Instagram no longer follows a chronological feed, rather, it boosts post from accounts a user engages with the most or accounts they don’t already follow that match the style and theme of those they often engage with.
All in all, it’s a great way to find a niche that you want to tap into. Since a certain influencer might be targeting a niche already, they’ve done all the hard work of gathering followers together.
3. It’s personal.
One of the biggest reasons why influencer marketing thrives on Instagram is because the connection between influencers and their target audience is personal.
The key to success with influencer marketing is leveraging a genuine, authentic, and engaged relationship. By having brand ambassadors on Instagram, their followers see your brand as a trusted and successful one.
Truth be told, brands don’t realize how many conversations occur between influencers and their followers. You may be working with them on a specific post, but the influencer is then answering questions and encouraging their followers to shop your brand.
What to Look for In An Influencer
Finding a relevant influencer for your brand or product campaign needs a strategic approach. There’s more to finding the right people for your campaign than measuring an influencer’s follower count or what influencer marketing agency or influencer marketing hub they work with.
Here are the qualities and metrics you need to focus on to find the right influencer for your brand.
1. Brand fit.
Every successful Instagram influencer marketing campaign begins with this step.
Let’s say your company sells vegan food products. You want to partner with an influencer that is vegan themselves or talks about the benefits of a vegan diet or use of vegan products.
By finding the perfect brand fit, your influencer partnership seem more authentic and genuine from a consumer’s perspective and in turn will add more ROI potential to your campaign.
Here are some ways you can scope out brand fit with a potential influencer
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Determine the niche they fall into by looking at influencers’ posts and stories.
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Explore frequently discussed topics on their Instagram feed.
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Discover what conversations spark from the influencer’s content by looking at the comments section.
2. Engagement rate.
Follower count is no longer the measurement to scope out influencers. More recently, the importance of measuring engagement rate has become top of mind and increasingly important to brands.
Last year, the narrative of the influencer marketing industry was how to combat influencers’ use of fake followers and how the disingenuous marketing tactic impacts brands total marketing spend. Cheq, a cybersecurity company focused on the digital media space, recently released a report that found this type of fraudulent activity cost advertisers $1.3 billion in 2019 alone.
How can you protect your brand from lost ROI when working with influencers? Maximize influencers as a marketing tool for your business by paying close attention to engagement rate.
By measuring engagement rates of influencers, you can identify a genuine following – which is more likely to translate into increased traffic and conversion for your brand.
Engagement rate is measured by the number of likes, comments and shares combined per post, divided by the influencer’s following.
Ready for a mythbuster? Nano- and micro-influencers have the best engagement rates in the industry.
That’s right, while celebrities and public figures (like macro- and mega-influencers) still hold influence, it’s nano- or micro-influencers’ audiences that can maximize ROI for your brand.
Who has an influencer partnered with in the past? Are they competitors? Brands that compliment your product?
By studying past sponsors, you can see how similar campaigns performed and get a sneak peak of what a partnership with your brand could look like.
4. Clear communication.
When you’re ready to pitch an influencer program, take into account how the influencer handles communication. Are they quick to respond or do they take days to get back to you and provide very little information?
Between content requirements and timelines, clear communication is vital to the success of an influencer marketing campaign. Make sure you can rely on clear communication from a potential influencer.
5. Love for your brand.
It all comes back to authenticity. Has the influencer been promoting your brand without a sponsorship? Can you trust them to provide a genuine promotion of your product – or do they just see your campaign as another form of income?
Look for an influencer that will advocate for your brand with excitement, authenticity, and creativity.
How To Compensate Influencers
Brands can compensate influencers in three ways:
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With free products,
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Rates that work within their marketing budget, or
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Commission from the use of affiliates.
Truth be told, there is no perfect guide on how to choose the right compensation type for an influencer. Each influencer comes with a different audience, performance metrics, and unique way of producing content.
When determining how much to compensate an influencer, you will need to take into account the following aspects:
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Production (e.g. how long will it take, what is needed to create the post).
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Travel expenses (e.g. for travel influencers, this includes things like airline and hotel fees).
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Agency fees (this is more prevalent for macro- and mega-influencers).
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Additional usage rights (e.g. exclusivity requirements, additional images for brand use, paid media requests, and white labelling content).
Paid Campaign vs. Free Product vs. Affiliate Compensation
Choosing what type of compensation to provide influencers will never be a straightforward answer. It will depend on the campaign, its deliverables, and the influencer’s metrics and brand fit.
Before we dive into some examples, let’s define the three types of compensation:
Free product compensation is when a brand provides the influencer with a complimentary free product or service. For example, a travel influencer may be compensated with a complimentary hotel stay.
Paid compensation is when a brand pays the influencer to promote their brand, products or services based on predetermined rates that work with the brand’s marketing budget.
Affiliate compensation is when an influencer makes commission from the use of affiliate links via platforms like rewardStyle or ShopStyle for a particular brand. Many brands couple affiliate compensation with paid compensation.
The biggest debate of compensation is between free product or dollars. Here’s some insight on when to pursue each option.
Examples of When To Compensate with Free Product:
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The influencer is an existing customer.
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The influencer is small, with minimal signs of impact.
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The influencer cares about the impact you make (e.g. non-profit campaign).
Examples of When To Compensate with Dollars:
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The influencer’s livelihood is by making money on Instagram.
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The influencer has a large following with clear signs of impact.
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The influencer has set rates and prices.
Paid Compensation By Instagram Content Medium
Rates for each medium vary, and even within each one there is no perfect rate calculation.
When negotiating rates, be sure to set a desired ROI metric. Let’s say your goal is to increase reach – then set a reach or impression metric-based rate with that influencer. This will help control costs and keep your influencer partnership in line with the goals for the campaign.
Instagram Stories
Stories can cost anywhere from a couple bucks to a couple hundred dollars. Instagram Stories are the cheapest medium for a few reasons – they are a new content type, they are temporary, require less effort to create, and are quick pieces of content.
While there are specific rates for each story, many influencers include Instagram Stories as part of a package deal.
Image Posts
Instagram posts featuring your brand, product or service is a mid-range expense that can start around $200-$300 for nano- and micro-influencer – and add up to (hundreds of) thousands of dollars for macro- or mega-influencers.
Video Posts
There’s no denying that videos take longer to produce for both your brand and the influencer – which means you can expect a heftier price tag. These can cost upwards of $500 with the influencer being paid and products being provided.
Where Can I Find Influencers?
Self-discovery, influencer agencies or influencer platforms are all great ways to recruit potential influencers. Depending on your brand’s resources, you may follow a specific method to sourcing your influencers.
Here are some of the best places to source Instagram influencers.
1. Scroll through Instagram.
Yes – it can really be this simple.
Scroll through Instagram and personally pick out influencers you think would be a good fit for your campaign. While it’s easy to send them an Instagram Direct Message, you can find their contact information in their profile biography.
2. rewardStyle.
rewardStyle is known as the leading influencer marketing monetization platform – around the world. The company makes it easy for brands to succeed by providing end-to-end influencer services. Thanks to their leading influencer marketing shopping app, LIKEtoKNOW.IT, working with rewardStyle is a great choice for brands looking to increase sales via influencer marketing.
LIKEtoKNOW.IT allows Instagram users to screenshot posts from their favorite influencers and shop the linked items in the app. Influencers then earn a commission for purchased items through their links. If you want to learn more about how the app works, feel free to give me a follow in the app here.
From a brand perspective, here’s what you can expect from rewardStyle:
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Full-service influencer programs.
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Trackable organic sales and content.
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Content licensing.
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Conference and event integration.
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Amplified distribution.
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Growth consulting.
3. AspireIQ.
Named a leader in influencer marketing solutions by Forrester, AspireIQ helps brands with the following:
The unique aspect of AspireIQ is that the platform uses AI powered technology to analyze millions of influencer posts to in order to find the most relevant influencers for your brand. This can help save you time (and money)!
4. Traackr.
Traackr prides itself on helping brands transform their influencer marketing strategies with their IRM – influencer relationship management system.
Here’s what you can expect from Traackr:
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Influencer discovery.
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Influencer evaluation (yes – even tracking how many real followers someone has).
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Audience insights.
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Campaign management and optimization.
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Collaboration and visibility.
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Brand safety.
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Predictive influencer performance.
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Insights and trends reporting.
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Cross campaign measurement.
5. Collectively.
Collectively takes a different approach to influencer marketing services. Naming itself an influencer marketing agency, the company positions itself in a spot for change – understanding that influencer platforms will change with time.
You can find the following services with Collectively:
Start Tracking for Your Next Influencer Campaign
Once you’ve set up and ran your influencer campaign, you need to know how it performed. When you evaluate the campaign, don’t just look at metrics – but the actual relationship between your brand and the influencer. And yes – influencers do this on their end as well!
This will give you a full scope on the success of the campaign. Plus, the exercise may even help you pinpoint areas of improvement for the future.
The Metrics
Data or it didn’t happen, right? Here are examples of some metrics you should measure with an influencer marketing campaign. Keep in mind the metrics will vary depending on the goals you had for the campaign.
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Engagement rate on campaign deliverables.
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Brand sentiment: (how people are talking about your brand?)
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Referral traffic (how many visitors came to your site from the campaign?)
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Sales (conversions and revenues generated)
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Follower count (did it increase significantly?)
Evaluating The Influencer Relationship
Just as important as evaluating the data, take a few moments to evaluate the relationship. Here are a few examples of what to look for and think about.
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Did the influencer adhere to the deadlines?
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Did they follow the content requirements?
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Did they go above and beyond to promote the content to their followers? (like engaging in conversation about the brand in the comments)
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Did the influencer share any feedback (e.g. wanting to collaborate again in the future)
If you found your partnership to be successful and positive, make sure you continue to facilitate the partnership in the future.
Remember – influencers are also evaluating their relationship with your brand after a campaign, so make sure you do your part too!
Summary
Influence is not a new concept, but its transformation continues to carry ecommerce growth to new heights.
Now the people we admire and want to be like aren’t just celebrities, family, or friends. They are influencers who are just like us. Mom bloggers who share the reality of hard work that goes into raising their children or fitness bloggers who inspire us to get up at 7 a.m. to run or to eat a little bit healthier.
Instagram even gives us a behind the scenes look at the lives of celebrities and public figures we are fans of.
These influences are becoming stronger because, whether we like it or not, we want to make a connection with people we’ve never met.
So pass it along: Instagram influencer marketing is here and taking the marketing world by storm.
Brands today have a great opportunity to engage with consumers and drive traffic to their stores – organically.
By finding the right influencer for your brand – one that matches your niche and target audience demographic – you enable the power to bring your store to new heights.
If you are interested in learning more about influencer marketing or my blog, The Letter Bea, feel free to connect with me!