Several years ago, hiring an influencer would set a company back by a few thousand dollars/pounds. Now, fees have skyrocketed to the tens or hundreds of thousands upfront fees, often accompanied by additional commission rates. This surge demands businesses to reassess their budgets and expected returns. However, it’s important to remember that influencer marketing isn’t just about raw numbers. A partnership with the right influencer can skyrocket brand awareness and authenticity, bringing value that transcends immediate sales.
But, there’s a darker side to the glittering world of influencer marketing: the rise of influencer fraud. While affiliate fraud has been a long-standing concern, influencer fraud, where individuals inflate their follower counts or engagement metrics to seem more appealing, or generate high value orders with a 100% returns rate (including the cost of free shipping and free returns) has become increasingly prevalent.
Spotting such fraud requires vigilance. Brands should look for:
Disproportionate Engagement: If an influencer has millions of followers but only a handful of comments or likes, it might be a red flag.
Sudden Follower Spikes: Unnatural growth in followers, without corresponding engagement or a justifiable reason, is suspicious.
Quality of Engagement: Generic comments or those that seem out of context can indicate automated bots.
Higher than average order values originating from the influencer with 100% returns rates.
In conclusion, while the allure of influencers remains potent, the increased up front costs and potential risks mandate a more discerning approach. Companies, regardless of size, must weigh the potential benefits against the costs, considering both tangible sales and intangible brand value. As with any investment, it’s crucial to do the homework, be aware of potential pitfalls, and ensure that the partnership aligns with the brand’s ethos and goals.
We’re seeing our clients spend far less, but be much more discerning on influencer investment, preferring to spend the reclaimed budget on Google, where ROI and genuine sales are a given. If your influencer ROI isn’t what it used to be and you’re looking for an increase in ROI, we’d love to hear from you!
