The rise of social media platforms have given birth to new content creators & influencers who can reach and engage with massive audiences; this can range from micro influencers that start social media trends that go viral to mega influencers that already have audiences in place.
Influencer marketing has become one of the fastest growing marketing channels in the advertising world over the past few years. Why? Mega influencers such as Kim Kardashian, Kylie Jenner, The Rock, and Mr. Beast have created companies worth billions of dollars, and have sold hundreds of millions of dollars of product through social media photos and videos. Their reach and power is changing the way companies approach marketing.
Social Media Influencers Build Brand Awareness
Brands see the incredible potential of influencer marketing and have poured billions of dollars into this marketing channel both through their in-house marketing team, and also through marketing agencies & platforms.
However, the rising costs of influencer marketing are becoming a concern for many companies. The rising costs of influencers is due to supply & demand. Here are some influencer marketing statistics to understand:
- The global influencer marketing industry is projected to reach $21.1 billion by 2023, according to The Influencer Marketing Benchmark Report 2023 by Influencer Marketing Hub.
- 81% of brands have used influencer marketing in the past year, according to a study by Influencer Marketing Hub.
- Instagram is the most popular platform for influencer marketing, with 71% of marketers using the platform, according to a survey by Hootsuite.
- Micro-influencers, or those with less than 100,000 followers, have a higher engagement rate (7%) compared to macro-influencers (1.7%), according to a study by Markerly.
- The average cost per influencer marketing campaign is $5,000, according to a survey by Influencer Marketing Hub.
- Influencer marketing has been found to be 11 times more effective than traditional forms of digital advertising, according to a study by Tomoson.
- 94% of marketers believe that influencer marketing is effective, according to a survey by Linqia.
- The fashion, beauty, and lifestyle industries are the top industries using influencer marketing, with 68% of marketers in these industries using influencer marketing, according to a survey by Influencer Marketing Hub.
- 83% of consumers trust recommendations from friends and family, while only 14% trust advertisements, according to a report by Nielson.
- The ROI for influencer marketing campaigns is $5.20 for every $1 spent, according to a study by Tomoson.
These statistics highlight the growing importance and effectiveness of influencer marketing, and the trend is likely to continue as the industry continues to evolve and mature. Brands are recognizing the value of partnering with influencers to reach new audiences and drive conversions, and influencer marketing is becoming an increasingly important part of the marketing mix for many companies.
Cryptocurrency and blockchain technology have piqued the interest of the average consumer, and sophisticated investors because of the rise in prices, as well as the promise of far superior technology to what currently exists.
Super Bowl commercials are now talking about cryptocurrency projects, and it’s officially become mainstream. Thus, the need for influencer marketing.
Crypto & NFT Influencers are in High Demand, and Short Supply
To caveat this statement, high quality Web3, Crypto, & NFT influencers are in high demand, and short supply. There are a number of influencers out there who create fake accounts, and also utilize bots for fake followers, as well as comments.
Companies in this space have been looking for innovative ways to engage, educate, and entertain their target audience, and influencer marketing has emerged as a powerful tool to help these companies get their message across. What makes influencer marketing unique for blockchain projects is that you can leverage existing trust and networks that have been created; this includes everything from influencers such as BitboyCrypto and WendyO that appeal to the masses, to Bankless and Finematics that appeal to niche Web3 audiences.
Crypto companies are using influencers to promote their products and services ranging from Web3 platforms, to crypto exchanges.
Influencer marketing provides a way for crypto companies to reach a wider audience than they might be able to reach through traditional advertising methods which sometimes block crypto products; Facebook and Google the most notable.
Influencers have a large following on social media, and their followers trust their recommendations, as long as they’re not blatantly shilling projects. By partnering with popular influencers, crypto companies can reach a larger audience and get their message across to a wider group of people.
How to Grow your Crypto & NFT Company through Influencers?
Brand ambassadors are your super users, and can often attract more high quality users to your platform. Another reason why crypto companies are turning to influencer marketing is to build brand awareness.
Building brand awareness is critical for companies in the crypto space, as the sector is still relatively new and unknown to many people. Influencer marketing provides a platform for crypto companies to build their brand and gain exposure to new audiences. By partnering with popular influencers, crypto companies can reach new audiences and get their message across in a way that is both engaging and memorable.
Crypto & NFT Influencers Can Help You Build Trust
One of the biggest drivers of the rising costs of influencer marketing is the growing demand for influencer content. With the increased usage in mobile phones, people’s appetite for high quality content is exponentially increasing. This can range from short-term crypto tweets, to long form YouTube video explainers.
Influencer marketing has gained traction as a marketing channel due to its ability to reach and engage with target audiences in a way that is authentic and genuine across multiple niches including finance, entertainment, art, music, gaming, and so much more.
As more and more businesses look to leverage the power of influencer marketing, the competition for top influencers has become increasingly fierce. Top tier companies want to work with top tier influencers that create higher quality content of substance.
The result of this competition has been a significant increase in influencer fees, as influencers seek to capitalize on demand, market value and the ROI they can deliver to brands.
For example, in previous years, many top influencers saw their rates increase by as much as 50%. This trend is expected to continue as the demand for influencer content continues to rise. Brands must be prepared to not just pay a premium for the services of top influencers if they want to reach their target audiences effectively, but to offer more than just money.
Influencers are looking for strong brand alignment, and to work with companies that fit well with their overall brand image.
Another factor contributing to the rising costs of influencer marketing is the increasing complexity of influencer campaigns. Creating successful advertising campaigns is both an art and science.
One of the main reasons why crypto companies are turning to influencer marketing is to reach younger audiences. The majority of the cryptocurrency community is tech-savvy young adults who are highly engaged with social media. By partnering with popular influencers, crypto companies can reach this target audience in a way that is authentic and engaging. Influencer marketing allows crypto companies to connect with their target audience on a personal level, which is essential in building trust and credibility in the crypto space.
Crypto companies are also using influencer marketing to educate their target audience about their products and services. Cryptocurrency and blockchain technology are still new concepts to many people, and they require a great deal of education and explanation. Influencer marketing provides an opportunity for crypto companies to simplify these complex concepts and communicate them in a way that is relatable and easy to understand.
Influencers Can Help you Explain Your Project
Influencer marketing also provides an opportunity for crypto companies to differentiate themselves from their competitors. The crypto space is highly competitive, and companies are always looking for new ways to stand out from the crowd. By partnering with influencers who align with their values and messaging, crypto companies can differentiate themselves from their competitors and create a unique and memorable brand identity.
How to Create Successful Influencer Marketing Campaigns
Choosing between influencer-created video content that’s long form on YouTube and sponsored posts on Instagram Stories are a question that brands should be asking themselves.
This has also led to a corresponding increase in the resources required to execute influencer campaigns effectively which can range from a low budget selfie video, to a large production professionally shot video campaign. With the increasing number of social media platforms and increasingly saturated social media channels, businesses must invest more time and resources into planning and executing influencer campaigns that are both effective and engaging.
Utilize Social Media Content Creation Software & Tools to Maximize Productivity
For instance, businesses now need to invest in tools and technology to manage their influencer campaigns effectively; this can range from schedulers to video editing Ai. They must also invest in research and planning to ensure that their campaigns reach the right audiences and generate the desired results. In addition, businesses must be prepared to invest in production costs, including the cost of equipment and post-production services, to create high-quality content that engages their target audiences.
The rise of influencer fraud is another contributing factor to the growing costs of influencer marketing. With the increasing popularity of influencer marketing, there has been a corresponding rise in fraudulent activity, as some influencers seek to game the system and generate income by faking their followers or using bots to increase engagement. These are often called influencer marketing pods that comment on each other’s profile. This fraudulent activity is short-lived and can also damage the reputation of the brands that partner with these influencers.
Find High Quality Influencers That Align With your Company
To mitigate these risks, businesses are now investing more resources into researching and verifying influencers. This includes verifying influencer followers and engagement rates to ensure that the influencer is authentic and has a genuine following. While tools can certainly help, it requires working with influencer marketing agencies that can spot the best talent. In addition, businesses are also investing in influencer marketing software and tools that can help them identify and eliminate fraudulent influencers. While these investments can help mitigate the risks associated with influencer fraud, they also drive up the costs of influencer marketing.
Influencer marketing provides an opportunity for crypto companies to build relationships with their target audience, while this often sounds cliche, there is an element of relatability that potential users look for. Influencer marketing is not just about promoting products and services, it is also about building relationships with the target audience. By partnering with popular influencers, crypto companies can build a strong relationship with their target audience, which is critical for building trust and credibility in the crypto space.
How to Maximize ROI of Your Influencer Marketing Campaigns
Another advantage of influencer marketing for crypto companies is the ability to track and measure the success of their campaigns. Unlike traditional advertising methods, influencer marketing provides valuable data and insights into the effectiveness of campaigns. Crypto companies can track the engagement rates of their campaigns, as well as the impact they have on the target audience. This allows companies to make informed decisions about their marketing strategies and improve their campaigns over time.
The increasing demands of consumers are contributing to the rising costs of influencer marketing. Consumers are now expecting higher-quality content from influencers, and businesses must invest more in production costs to create this content. This includes not only the cost of the equipment used to produce the content, but also the costs associated with editing and post-production. Consumers are also demanding more authenticity and transparency from influencer marketing campaigns, which requires brands to invest more time and resources into researching and verifying influencers.
In conclusion, the rising costs of influencer marketing are a major concern for businesses looking to leverage the power of influencers; especially in the Web3 industry. influencer marketing is becoming an increasingly popular tool for crypto companies looking to reach their target audience and promote their products and services. By partnering with popular influencers, crypto companies can reach new audiences, build brand awareness, differentiate themselves from their competitors, and build relationships with their target audience. With the potential to reach a large and engaged audience, influencer marketing is a powerful tool that crypto companies cannot afford to ignore.
If you’re looking to hire a crypto & NFT influencer marketing agency, contact Crowdcreate – one of the largest networks of crypto founders, angel & VC investors, influencers, and creators.
Read Also: Web3 Branding: How To Create An Impactful Name For Your Crypto Business?
