As more and more companies consider investing in influencer marketing, the question that repeatedly arises at conferences, dinners and client meetings is: How much should I spend on influencer marketing? And, not only that, but how much do I need to spend to make influencer marketing effective?
Starting at $20,000, if you’re working with an agency.
“I think $20,000 is the minimum budget required to create impact for brands. We think that’s the starting point for working with a group of professional influencers,” said Yuli Ziv of Style Coalition. “The space is so complex. You need a partner to help you navigate.”
At that price point for entry, you are getting an agency to help you manage, navigate and access top tier influencers with proven campaign results. They will have the knowledge and ability to work on a wide variety of brands, projects and concepts.
Of course, larger brands are spending millions of dollars on influencer marketing with agencies (sometimes many agencies) and mid-sized brands are spending hundreds of thousands of dollars, too. Twenty thousand dollars is just the starting point.
Kristin Luck of Luck Collective consults with a beverage company that is generating nearly $20 million in revenue and spending nearly 1 percent of that on influencer marketing – more to be allocated in 2018.
The more money spent is not necessarily correlative to more success, but it does allow top tier brands to try multiple tactics and concepts until one ultimately proves successful.
With this level of spend, comes access to better connections, better analytics and more campaign experience. As a result, the time to find success with influencer marketing is often significantly reduced.
Buyer beware: sometimes money isn’t everything.
“You can put a ton of money in and get huge results. You could put a ton of money in and get nothing,” said Julia Moonves, COO at Nomad Armory. “As with any form of marketing, this one is not necessarily about the amount you spend but how you spend it and what your goals are.”
Moonves suggests that you spend more time thinking about strategy than…
