What inspires an influencer to post? It is all about passion and payment. However, payment can boost that passion and often result in a killer influential post for brands. One thing you should always keep in mind, i.e. bloggers spend a lot of time building their influence. Requesting them to share a new product or opinion without payment is similar going to an eatery and requesting for a free meal just because you’re hungry.
What is Influencer Marketing?
Influencer marketing refers to the process of identifying significant individuals who have a sturdy online presence. Influencer marketing works by leveraging these individuals to influence their followers or subscribers for buying a product or service. Influencers can be bloggers, authors, analysts, journalists, consultants, etc.
How Does Influencer Marketing work?
First and foremost, you need a strong online presence with influence over potential customers. Then a significant website audience reach and a social media footprint. You need to have the ability to convey strong brand affinity. Try to build credibility and trust with your audience and try to perceive them as an expert on a subject matter. Basically, influencer marketing is a contemporary marketing strategy that has been used efficiently for years.
How Does Affiliate Marketing Work?
Affiliate marketing pays on a per-click or on reach basis. The affiliate model moves the risk from brands to bloggers. There are two ways of affiliate marketing: You can offer an affiliate program to other individuals or you can sign up to be another business’s affiliate.
- You sign up for an affiliate program so that you get an affiliate link, which includes a special URL comprises of a username of the affiliate.
- Every time you mention the advertiser on your website you use that particular affiliate link.
- A customer visits your website and clicks on the affiliate link to visit advertiser’s website.
- The advertiser generates cookies to your potential customer’s system.
- The customer orders or purchases items from the advertiser’s website.
- As the customer finishes the checkout process, the advertiser generates the cookie on his or her system.
- The advertiser fetches a cookie that belongs to you and credits you for the sale.
- The advertiser updates the reports by showing all the sales and clicks that got generated from your affiliate link.
- Revenue or commissions are remunerated, usually on a monthly basis depending upon advertiser’s payment policy.
Measurement and Tracking – Influencer
Influencer marketing uses the social analytics and publisher’s site in order to track and measure, this includes:
- Potential Reach or Total Audience which includes subscribers, social media following, blog traffic or site visits, etc.
- Escalated rate of social engagement which comprises of clicks, likes, views on various links, comments, social sentiment and more.
- Another way of tracking can be shares, embeds, and social sharing.
- Giveaway entries or Newsletter sign-ups for the customers.
- New social media followers
- Along with all these CPM (Cost Per Impression) is very important.
Measurement and Tracking – Affiliate
In Affiliate Marketing there is a usage of tracking cookies and pixel located on the brand’s site. This is done to measure and track responses. These metrics are often more concrete and can lead to a consistent ROI control for the brand. This includes:
- Email Sign-Ups, Registrations, Giveaway entries for the customers.
- Then its includes sales, orders, and subscriptions for them.
- Another measurement used by the affiliate is conversion Rate.
- Ecommerce metric like Average order value that helps to measures the average total of every order placed over a defined period of time.
- Cost Per Acquisition (CPA) also known as pay per acquisition (PPA) which helps them to pay out a specified acquisition.
- Customer Lifetime Value (CLV) helps in predicting the net profit attributes towards the entire future relationship with a customer.
In affiliate marketing, a brand partner with affiliates i.e. bloggers, publishers, companies, organizations, etc. join hands to promote their brand, sales, offers, deals, etc. via them. Affiliates are paid a revenue share on the sale they assisted from their site. This payment structure gradually makes affiliate marketing one of the most economical rather cost effective acquisition channels.
On the other hand, with influencer marketing, the influencer gets paid a flat fee to endorse the brand. In addition, the influencer might also get free products and goodies in return for their endorsement. Affiliate programs are mainly designed for new customer acquisition and incremental returns, whereas influencer marketing mainly focused on brand awareness.
As mentioned above, some companies and organizations do find it valuable to add influencers to their marketing blend, mostly for escalating brand awareness and gathering brand affinity. But there are also more important things to be aware of so that you can guard your brand and your budget. To learn more about affiliate marketing program and how it can benefit your company while defending your brand, click here to know more.