You are more likely to die in a plane crash than click on a banner ad. – Edward East
Market
ers are constantly adjusting their strategies to pinpoint the best ways to reach consumers through digital channels. At Billion Dollar Boy, we firmly believe that our most successful campaigns combine influencer marketing content boosted by paid social advertising, to result in maximum exposure and brand coherence. In a world where consumers digest their information across multiple social platforms, websites, apps, print and new media, it’s important for the brand message to be consistent across multiple access points.
That being said, we would like to examine the cost effectiveness of influencer marketing compared to digital social advertising, to highlight the benefits of including influencer marketing in a brand’s digital marketing strategy. A study recently conducted by SocialChorus found that influencer marketing campaigns can capture up to 16 times more engagement than owned or paid media. Influencer platform Tomoson from a study of top marketers found that Influencer Marketing was the most cost-effective digital marketing tool, outpacing display advertising and email.
1. Low Production Costs:
Influencers have become so advanced in their production skills that brands no longer need to hire professional photographers, models and locations to create beautiful content for their brand as they would with a traditional advertorial shoot. Influencers include all production and distribution costs within their fees, which are impressively lower than a traditional production.
2. Low CPMs:
As well as lower production costs, influencers also charge a lower amount per view, impression or engagement than you would pay on a Social Media platform. All the numbers below are sourced from Billion Dollar Boy campaigns and directly from Facebook and YouTube’s advertising platforms. The Average CPM (Cost Per Mile), for YouTube, Instagram and Facebook are as follows:
Avg. YouTube cost per thousand video views:
– Influencer Marketing: £30 – £35
– Paid Advertising: £60 – 80
Avg. Facebook cost per thousand video views:
– Influencer Marketing: £15 – £20
– Paid Advertising: £30 – 40
Avg. Instagram cost per thousand impressions:
– Influencer Marketing: £7 – £14
– Paid Advertising: £8 – £15
Unlike the Influencer Marketing CPM, please bare in mind that the Paid Advertising CPM does not include the cost of production. As you can see influencer marketing is far more cost effective.
3. Ad Blocker Proof:
With the rising popularity of Ad Blockers, many paid digital ads are not even seen by consumers. According to a new report from PageFair and Priori Data, one in five smartphone users -nearly 420 million people worldwide – block advertising when browsing the web on cellphones. That represents a 90 percent annual increase.
A new web browser company co-founded by former Mozilla CEO Brendan Eich, called Brave, has this month raised $4.5 million in seed funding for the continued development of its open source browser, which blocks online ads and other trackers.
4. Higher Engagement than Brand Posts:
Social analytics company Locowise found that brand pages’ engagement rates for Instagram are 0.84% and Facebook 0.53%. The low engagement of branded posts is a result of more brands competing for engagement, the increase of Instagram advertising and the fact that Instagram users now follow more accounts than they did before. Discerning audiences tire of continuous staged product shots. Billion Dollar Boy works with influencers to create fresh content that feels more real and tells the brand story in creative ways.
We’re not saying that paid social advertising is redundant; it’s still a fantastic way to boost a campaign, and maximise your return on investment. However, set against the success of influencer marketing, it’s nowhere near as cost-effective when you compare the two like for like.
To explore the best ways to integrate influencer marketing campaigns into your overall digital marketing strategy, please feel free to drop us an email at mail@billiondollarboy.com We are happy to answer any questions!