The world is going through one of the toughest economic turmoils.

Let's face it!

In the time of pink slips being handed like candies and marketing budgets being slashed down, Influencer Marketing is holding its ground. 

Yet, amidst the chaos, a staggering 85.8% of brands are gearing up to invest in influencers in 2024, a slight bump from last year's 82%. 👀

But let's cut to the chase: How much does influencer marketing cost? 

Well, there's no easy answer. If only we could slap a price tag on influencer marketing and call it a day!

But every brand beginning their journey deserves to know what they are in for when it comes to Influencer marketing and how do they get the best of returns from a  campaign. And this is what we will be talking about in this issue.

What we are covering on today’s issue:

• Influencer Marketing budgeting tips 💰

• How brands can leverage IM campaigns to get best of returns 💸

• How Spreadd can help you 👀

A Quick Message from Team Spreadd 🙌

You can reinvent great content for your brand with Spreadd 🙌

We at Spreadd have spent over 2 years to solve this problem of BAD content.

Thats why we are working with some of the biggest legacy companies and startups to get them the right content that gets them ROI.

If you are looking to grow your brand’s the right online distribution, we would love to get on a call with you.

We are waiting for you on the other side,

Team Spreadd.

What is the real cost of Influencer Marketing?

Let’s begin with budgeting tips! 🧑‍💻

You will find enough content online telling you how you can prepare a budget for an Influencer Marketing campaign but it's all generic. Here’s a lowdown on how you can do so. 

a. Percentage of Overall Marketing Budget

• As a rule of thumb, allocate 5-15% of your overall marketing budget to influencer marketing.

• For startups, consider starting with a conservative percentage and gradually increasing it as you see results.

b. Fixed Budget Approach

• Determine a fixed monthly or quarterly budget specifically for influencer campaigns.

• Consider factors like seasonality, product launches, and special events when setting this budget.

Once you have set up a budget, the next step is to onboard influencers. Here’s how you can do so.

a. Influencer Database Services

• Use influencer databases to find creators within your budget range.

• These platforms provide insights into influencers’ reach, engagement, and estimated costs.

b. ROI Tracking and Campaign Optimisation

• Track metrics like engagement, reach, conversions, and brand sentiment.

• Choose relevant Key Performance Indicators (KPIs) to track progress towards those goals.

• Calculate the cost per engagement or conversion to evaluate ROI.Here’s how to fix it: Actionable strategies to UP your content game 🚀

Navigating the Influencer Marketing Minefield: A Case Study of XYZ Startup

Like any marketing campaign, the success or failure of the influencer approach depends upon your return on investment. Consider a scenario. Let's say there is a XYZ startup. XYZ Startup, specialising in 2-wheeler repair and maintenance services, aims to boost brand awareness among the local community through influencer marketing. They hire an agency to plan and execute their campaign. The agency’s expertise lies in identifying suitable influencers, crafting content, and executing campaigns.

But Here’s the catch!

The High Commission: The agency charges a hefty commission, sometimes as high as 40%. While their expertise is valuable, this commission significantly impacts the campaign budget.

Transparency Concerns: XYZ Startup wonders about the transparency in influencer selection. Are the chosen influencers genuinely aligned with their brand values and local context?

Involvement in the Process: The agency involves XYZ Startup in a very limited manner for the influencer onboarding process. This may lead to ineffective collaborations or misaligned messaging that may not resonate with the target audience. 

What about ROI?

Like any marketing campaign, the success or failure of the influencer approach depends upon your return on investment. If you do not see the results you want or need, there is little point in persisting with a campaign. For example, if XYZ startup campaign  goal was to increase brand awareness - Did they get any results? Did they experience an uptick in likes, shares and interactions? Did their website traffic see a boost? 

Or, how much, let's say is an Instagram follow worth to their business? When 67% are now using Instagram for influencer marketing campaigns, this metric matters. You can assign a monetary value based on factors like potential sales from that follower or the cost of acquiring a follower through other means.

How do you calculate ROI?

Once you have the values for increased attention (likes, shares, follows, website visits), subtract the expenses of the influencer campaign. This will give you a clear picture of the return on investment—whether the campaign was financially worthwhile and whether you should continue with a similar strategy.

Here’s a word of advice: Putting all your eggs in one basket can backfire spectacularly if algorithms change or your target audience decides to migrate en masse to a different platform. Try to focus your efforts primarily on one or two main sites, to get the best results.

How Spreadd does it?

Spreadd champions transparency, affordability, and strategic partnerships. For small businesses and startups, it’s a refreshing departure from the traditional agency model.

Here’s how we plan IM campaigns- in 5 stages:

Planning:
The initial phase of the campaign before curation begins.

Key Activities: Establishing goals, creating a marketing project plan, and setting up systems for campaign tracking progress.
Importance: Planning stage Sets the foundation for the entire campaign.

Curation:
Involves the creator curation process between support and the brand until the publish stage.

Key Activities: Collaborating with creators, reviewing content, and preparing for publication.
Significance: Curation stage Ensures content aligns with brand objectives and standards.

Ideation:
Post-campaign publishing phase where POC (point of contact) of support sends ideas to the brand for approval.

Key Activities: Generating ideas, seeking brand approval, and refining concepts. The ideation stage remains active till approval.
Role: Ideation stage Facilitates creativity and innovation within the campaign.

Execution:
Campaign moves into execution once all ideations are approved.

Key Activities: Implementing strategies, monitoring progress, and managing tasks.
Criticality: Execution stage transforms plans into action to achieve campaign objectives.

Completion:
Marks the end of the campaign when all deliverables are published and the end date is reached.

Criteria: No manual trigger needed; completion based on deliverables and timeline.
Closure: Completion stage Indicates successful fulfilment of campaign goals.

This structured approach ensures a systematic progression through each phase of an IM campaign for brands, from initial planning to successful completion

But the above process is not our only USP!

Our campaign management tool - From creating campaigns to inviting creators, monitoring performance, and paying for marketed content- the whole process is transparent with complete brand involvement.

Our dispute management system keeps payments secure until milestones are reached, avoiding disputes. 

Choice is yours 🙌

Remember, influencer marketing isn’t just about numbers; it’s about creating meaningful connections that resonate with your audience. Whether you’re XYZ Startup or any other brand, choose wisely, and let authenticity drive your campaigns.

Reinvent great content for your brand with Spreadd 🙌

We at Spreadd have spent over 2 years to solve this problem of BAD content.

Thats why we are working with some of the biggest legacy companies and startups to get them the right content that gets them ROI.

If you are looking to grow your brand’s the right online distribution, we would love to have a conversation with you.

We are waiting for you on the other side,

Team Spreadd.

Thanks for reading this issue of The Brand Advocate, we are bringing you hand-crafted marketing insights from the world of startups and businesses and delivering them straight to your inbox, every Thursday.

See you next week,

Team Spreadd