So, an Influencer Marketing or PPC Campaign?
Influencer marketing and PPC have been in a head-to-head battle for quite some time. However, influencer marketing will be the victor. But why opt for an influencer marketing campaign rather than a PPC campaign? According to the 4,500 marketers contributing to HubSpot’s 2016 State of Inbound report –
- 11% outbound marketers and 15% inbound marketers believe online paid advertising to be overrated.
- Mobile ad blocking has increased by 90% year-over-year.
- Customers have more power over ads than marketers now.
While paying for a PPC campaign is perceived to be a useful marketing strategy, PPC marketing has lost a lot of credibility recently. After all, PPC marketing neglects to nurture the customers it attracts and fails to convert many of them. Moreover, it delivers little value to marketers, due to market saturation, ad blockers and a lack of audience interest. Also, the growing issue of ad fraud poses serious problems for companies, with up to 90% being stolen through ad-bots and robots creating fake views and impressions.
Influencer marketing, however, is the fastest growing online customer-acquisition method and a study discovered that influencer campaigns bring in 11x more the ROI of traditional advertising. Basically, that means that an investment in influencer marketing can be significantly more cost-effective.
The method delivers a high ROI, connects a brand to the right audiences, and impacts conversion rates tremendously. In short, it’s more effective than PPC. And the next four points support this claim:
1. Influencer Marketing, one of the Most Trusted Marketing Methods
A 2014 study by Goo Technologies revealed that 92% of Americans ignore at least one type of ad. 82% of the 2,000 survey respondents ignore online ads, especially online banner ads, social media ads, and search engine ads.
On the other hand, digital influencers have more clout with today’s consumers. According to a joint study by Twitter and Annalect, 40% of respondents have purchased items used by social media influencers and 20% shared content from an influencer. Buyers’ trust aside, these numbers prove a brand’s ability to convert interested buyers and reach out to prospects through influencer marketing.
2. Influencer Marketing is more Cost-Effective than PPC Ads
Contrary to what most marketers know, not all online influencers accept money in exchange for promoting a brand. According to a 2015 survey of 441 influencers, GroupHigh reported that 84.89% accept monetary compensation, 3.83% accept products, and 11.28% take nothing at all. However this entirely depends on the individual themselves -Many influencers charge in excess of £10,000 for a single photo endorsement. The majority of influential influencers with high followings will expect money in return.
That aside, there’s always the high return on investment in this form of marketing compared to a standards PPC campaign.
As for PPC, the actual cost can be much more than you’d expect. Agency Analytics admitted that PPC management alone is far from cheap, costing $250 to $1,500 per month on average. There’s also the cost per clicks (CPC), which averages at $2.32 in AdWords across all industries according to WordStream. However, the highest CPC is $5.88 for the legal industry. So, you may want to check how much you’ll be paying per click according to your industry first.
Strike 3 – Influencers Can Ensure Higher Return on Investment (ROI)
When it comes to a PPC campaign, PowerTraffick states that brands make $3 in revenue on every $1.60 they spend on AdWords. While this may sound like brands have a great chance attaining a higher ROI, that may not always be the case. If the math works in your favour, you’ll be achieving the click-through rates and low CPC rates you desire. Unfortunately, that’s not always the case.
In contrast, influencers can deliver $285 incremental sales per 1,000 views according to a case study by Nielsen Catalina Solutions. This number is 11 times the ROI of all other forms of digital media. This is possible as this form of marketing attracts a better quality of customers and engages them throughout the funnel. In fact, Launch Metrics’ ‘The State of Influencer Engagement in 2015’ reports –
- 93% of marketers were able to improve their brands’ visibility through influencer engagement strategies.
- 75% of influence marketers deem this form of marketing effective when it comes to lead generation.
- 59% of marketers prefer using influencers during product launches because of their ability to reach more people and engage them.
Strike 4 – Influencer Marketing allows you to Unleash Your Creativity
Creativity is the key to a great and successful campaign, and the numbers prove this. In its thought piece ‘Who’s Killing Creativity Now?’, Ipsos Connect revealed that 75% of an ad’s ability to leave brand-linked memories stems from creativity. The IPA also published a study, revealing that creative commercial campaigns were seven times more efficient in delivering market share growth per point.
Combined with a personalized message that resonates with their audiences, influencers’ creativity can sway the opinions of real people in a genuine way. Take Revolve’s strategy for instance. Influencers would post pictures wearing the brand’s merchandise along with the hashtag #RevolveMe. The best images would be filtered and added to the brand’s website. According to Fortune, the strategy is expected to generate up to $440 million dollars in revenue come 2017.
In addition, our influencer marketing experts at PMYB managed to get our client, The Meat Man over 10 million video views in 48 hours due to the creative minds in our team. You can see how we did this here.
On the other hand, a general ad banner PPC campaign allows limited creativity. For starters, there’s the limited character count and small design space. Companies relying on this model also tend to focus more on bidding and targeting, ignoring crafting messages that resonate with their customers. Moreover, companies with smaller budgets tend to copy existing ads in hopes of getting clicks. Unfortunately, this can backfire as their ads may appear as if generated by a machine.
PPC Out; Influencer Marketing Wins this Round
With studies, reports and surveys supporting it, influencer marketing has become THE go-to marketing method. So, brands should consider allocating their resources accordingly to avoid lagging behind in the ruthless competition for consumers. In addition, a little help may be necessary at first to ensure higher returns. Therefore, don’t hesitate to get the help you need to maximise the success of this unique form of marketing. You can get in touch with us here to discover more so you can implement your own influencer marketing strategy and achieve the improved brand awareness and customer conversions you seek.