Today’s marketing budgets range anywhere from $0 to several billion dollars. Currently, Samsung holds the crown for the largest marketing budget in history at $12 Billion. What could these brands possibly spend this much on? Well… a 30-second ad during this last Super Bowl cost an impressive $4.5 million. In 2004, Chanel spent a whopping $33 million to promote its leading perfume, Chanel No. 5, with a 2 minute commercial featuring Nicole Kidman. These marketing budgets cover the costs of ads, staff, content, and other promotional expenses. Many brands are investing in a less traditional type of marketing: influence marketing.
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Influence marketing is a type of marketing that focuses on utilizing key individuals that have the ability to influence their peers’ opinions. Your target audience is reached through these individuals’ voices, not your brand’s. In order to use influence marketing, marketing budgets must include the cost of managing social media. This year, 70% of marketers will spend more on social media ads than ever before. According to Adweek, 66% of marketers believe that social media is core to their business and also have a dedicated social media team to manage their networks. Not only is influence marketing more effective than traditional marketing, it’s less expensive. So just how much are marketers spending on influence marketing? Well let’s take a look…
As we can see, the cost per 1,000 impressions for posts by long tail influencers is more expensive compared to the other tactics listed. But, the overall cost of utilizing influence marketing gives you more bang for your buck in comparison to these tactics used over social media. So the answer? Less. A lot less. We’ve found that marketers spend about 9 times more on the usual Facebook News Feed Ad when it comes down to cost per purchase.
If you’re wondering how you can start using influencer marketing to drive ROI for your business objectives, Mavrck can help. Book a demo today, or if you want to learn a little more about the state of influencer marketing, download our latest eBook, “The State of Influencer Marketing in 2016”: