The IROIN® Influencer Marketing FAQ
Influencer marketing has been on everyone's lips for many years. But what are micro or macro influencers? How much should you pay a creator and what is the engagement rate?
We have put together some answers and can also support you personally with your influencer marketing strategy.
Influencer marketing basics
-
What is an influencer and what makes them special?
An influencer is a person who reaches people on social media and can influence the behavior, opinions and purchasing decisions of their followers through their content. Influencers are characterized by authenticity, a close connection to their community and expertise in a specific area, be it fashion, fitness, technology or gaming. They are often also called creators, as the term has better connotations. -
How do I find the right influencer for my brand?
The right creator should match the brand's values and image. Pay attention to the relevance of the influencer's content for your product, the demographic match of their followers with your target group and the engagement rate (interactions such as likes, comments and shares) of their posts. Tools such as the Influencer Marketing Suite from IROIN® can help with the search. -
How much does it cost to work with an influencer?
The costs for influencers and creators vary greatly depending on the niche, expertise and target group. A good reference can be to calculate an organic CPM of €25 for a post/reel on Instagram and between €60 and €75 for stories. For TikToks and YouTube shorts, €22 is a good guideline, while YouTube videos can quickly exceed €100 CPM due to the effort involved and their longevity. Material perks or benefits can also be part of the remuneration. In addition, costs for buy-outs for using the content for your own communication or for use in social ads must also be taken into account. -
How do I measure the success of my influencer campaign?
The success of an influencer campaign can be measured using various metrics, including reach (how many people were reached), engagement (likes, comments, shares), traffic (visitors to your website), conversions (how many of the people reached carried out a desired action, e.g. a purchase) and ROI (return on investment). It is important to set clear goals from the outset and to track these with suitable tools and analyses. -
What legal aspects do I need to consider?
With influencer marketing, it is important to observe the applicable legal provisions. In particular, this includes the obligation to label advertising in order to ensure transparency for consumers. Posts that are the result of a collaboration or payment must be labeled as advertising or an advertisement. Influencers and brands should also conclude written contracts that clarify the details of the collaboration, remuneration, content and rights. If AI is used, the reference must also be clearly indicated on all common platforms.
More about influencers
-
What is an influencer?
An influencer is a person who reaches people on social media and can influence the behavior, opinions and purchasing decisions of their followers through their content. Influencers are characterized by authenticity, a close connection to their community and expertise in a specific area, be it fashion, fitness, technology or gaming. They are often also called creators, as the term has better connotations. -
What types of influencers are there?
An exact classification depends on the country and the thematic niche of the creator. It is also important to pay attention not primarily to the followers, but to the actual reach. Especially on TikTok, but also Instagram Reels and YouTube Shorts, impressions are much more important.
- Mega influencers: Celebrities or personalities with over one million followers.
- Macro influencers: Influencers with a following of between 500,000 and 1 million followers.
- Mid-tier influencers: Influencers with a community of between 100,000 and 500,000 followers.
- Micro influencers: Influencers with 10,000 to 100,000 followers - often with a very engaged community.
- Nano influencers : Influencers with fewer than 10,000 followers who have a very close relationship with their followers.
-
How do you become an influencer?
The following steps should be followed to become an influencer:- Find a niche: Choose a topic or industry that you are passionate about and have expertise in.
- Consistent content: Create and regularly share quality content that appeals to your target audience.
- Engagement: Interact with your followers, respond to comments and messages and build a community.
- Network: Network with other influencers and brands to expand your reach
- Authenticity: Be authentic and transparent to gain trust and credibility with your followers.
-
How do influencers earn money?
Influencers can earn money in various ways:- Brand collaborations: Paid partnerships and sponsored posts with companies.
- Affiliate marketing: Income through commissions for products they recommend and sell.
- Own products: Selling their own products or services such as merchandise, e-books or online courses.
- Advertising: Income from advertisements on platforms such as YouTube or paid subscriptions on Twitch.
- Donations and crowdfunding: Direct support from followers via platforms such as Patreon or through donations during live streams.
-
What makes a successful influencer?
A successful influencer is characterized by several features:- Relevance: The influencer's content is relevant and appealing to their target group.
- Engagement: The influencer has an active and engaged community that regularly interacts with their content.
- Consistency: The influencer posts regularly and stays true to their brand and message
- Authenticity: The influencer is honest and transparent, which gives them trust and credibility.
- Creativity: The influencer is able to create original and innovative content that stands out from the crowd.
Social media basics
-
What is social media?
Social media are platforms that enable people to create and share content and interact with each other. These include networks such as Facebook, X (formerly Twitter), Instagram, LinkedIn and platforms such as YouTube, TikTok and Snapchat. They offer a variety of functions such as text posts, photos, videos, live streams and private messages. -
Why is social media important?
Social media is important because it connects people worldwide and provides a platform to disseminate information quickly. For companies and brands, they offer the opportunity to communicate directly with customers, increase brand awareness, monitor market trends and conduct targeted marketing campaigns. Social media is also a valuable tool for personal networking and the exchange of ideas and opinions. -
How do I create an effective social media profile?
An effective social media profile starts with a clear and appealing profile picture and a concise bio that describes the user or brand. Important steps include:- Profile picture and cover photo: Professional and appealing.
- Biography: Clear, informative and with relevant keywords.
- Contact information: Easily accessible.
- Regular updates: Post consistent and relevant content.
- Engagement: Actively interact with followers.
-
Which platforms should I use?
Choosing the right platform depends on the individual or business goals and the target group:- Facebook: Broad audience, good for community building and advertising.
- Instagram: Visually-oriented content, ideal for fashion, lifestyle, food and travel.
- X (formerly Twitter): Short-form news and real-time updates, good for news and trends. Threads and Bluesky are growing strong alternatives.
- LinkedIn: Professional networking and B2B marketing.
- YouTube: Video content, tutorials, vlogs and product launches.
- TikTok: Short videos, ideal for young target groups and viral content.
-
How do I measure the success of my social media activities?
The success of social media activities can be measured using various metrics and KPIs (Key Performance Indicators):- Reach and impressions: How many people have seen the content?
- Engagement: Interactions such as likes, comments, shares and clicks.
- Follower growth: Increase in the number of followers.
- Click-through rate (CTR): Percentage of users who have clicked on a link.
- Conversion rate: Number of users who have carried out a desired action (e.g. purchase, registration).
- Return on investment (ROI): Ratio of profit to the costs of social media activities.
Types of influencers
-
Nano Influencer
Number of followers: Less than 10,000Characteristics:- Very close and personal relationship with their community
- High credibility and authenticity
- Ideal for targeted, local campaigns
Advantages:- High engagement rate
- Cost-effective
- Strong basis of trust with the followers
-
Micro Influencer
Number of followers: 10,000 to 100,000Characteristics:- Often specialized in niche markets
- Engaged and loyal followers
- Good compromise between reach and engagement
Advantages:- High engagement
- Authenticity and expertise in certain areas
- Cost effective compared to larger influencers
-
Mid Tier Influencer
Number of followers: 100,000 to 500,000Characteristics:- Greater reach with still relatively high engagement
- More professional appearance and content quality
Advantages:- Balance between reach and engagement
- Suitable for larger campaigns that address specific target groups
-
Macro Influencer
Number of followers: 500,000 to 1 millionFeatures:- High reach and professional content
- Often experienced in dealing with brands and advertising partnerships
Advantages:- Wide reach
- Credibility and influence in broader target groups
- Effective for brand awareness and broader campaigns
-
Mega Influencer
Number of followers: Over 1 millionFeatures:- Often celebrities or well-known personalities
- Very high reach, often international
- Professional content production
Advantages:- Maximum reach.
- Strong brand presence and high influence
- Effective for large-scale, international campaigns
Influencer marketing KPIs
-
Impressions (Impressions)
Impressions measure how often a post has been viewed. In contrast to reach, impressions can also include multiple views by the same user. This metric helps to understand how often the content was viewed overall and how visible it was. -
Reach
Reach measures how many unique users have seen the influencer's content. It indicates how far the message of a campaign has potentially been spread. A high reach means that many people have been reached, but is not synonymous with high effectiveness, as it does not necessarily reflect engagement. -
Interactions (engagements)
This metric includes all types of interactions with an influencer's content, such as likes, comments, shares and clicks. Engagements are an indicator of how well the content is received by the target group and how active the followers are. The number of interactions shows how strongly the target group engages with the content and helps to evaluate the success of the campaign. -
Engagement Rate (ER)
This metric calculates the interactions (likes, comments, shares) in relation to the total number of followers. The formula is: (number of interactions / number of followers) x 100. A high engagement rate indicates that the content is well received by the target group and that they are actively interacting with it. -
Interaction Rate (IR)
The interaction rate is a specific form of engagement rate and calculates the sum of all interactions (likes, comments, shares, clicks) in relation to the reach of a post. It provides a more comprehensive overview of the total user interaction with the content. The formula is: (number of interactions / reach) x 100. A high interaction rate indicates that the content actively appeals to the target group and encourages a variety of interactions. -
Like Rate (LR)
The like rate measures the percentage of followers who have liked a post and is a specific indicator of engagement. It helps to understand how well the content is received by the target group. The formula is: (number of likes / number of followers) x 100. A high like rate indicates that the content is particularly appealing and well received by the followers. -
Return on investment (ROI)
The ROI calculates the financial success of the influencer campaign in relation to the costs. The formula is: (income from the campaign - costs of the campaign) / costs of the campaign. A positive ROI shows that the campaign was profitable. This metric is crucial for evaluating the economic effectiveness of the collaboration.
-
Cost per click (CPC)
CPC measures the cost for each click on a link in a post. This metric is particularly relevant if the goal of the campaign is to drive traffic to a website or landing page. The formula is: total cost of the campaign / number of clicks. A low CPC shows that the campaign has generated traffic cost-effectively. -
Cost per Engagement (CPE)
This metric calculates the cost per interaction (like, comment, share) and helps to understand how efficiently the budget was used to generate engagement. The formula is: total cost of the campaign / total number of interactions. A low CPE indicates that the campaign was cost-efficient. -
Cost per impression (CPI)
CPI measures the cost per individual view of the content. This metric helps to evaluate the cost efficiency of a campaign in relation to the impressions generated. The formula is: total cost of the campaign / number of impressions. A low CPI means that many people were reached at a low cost. -
Cost per Mille (CPM)
CPM measures the cost per thousand impressions (ad impressions) of a post. This metric is important to evaluate the cost efficiency of a campaign in terms of visibility. The formula is: (total cost of the campaign / number of impressions) x 1,000. A low CPM indicates that the campaign has reached many people at a low cost. CPM is particularly useful for evaluating the efficiency of campaigns with a high reach. -
Cost per Reach (CPR)
CPR measures the cost to reach a certain number of unique users. This metric is particularly useful to evaluate the cost efficiency of a campaign in relation to the reach achieved. The formula is: total cost of the campaign / number of users reached. A low CPR indicates that the campaign has cost-efficiently reached many unique users. -
Conversion Rate (CR)
This metric shows the percentage of users who performed a desired action, such as making a purchase, signing up or downloading an app, after seeing the influencer's post. The formula is: (number of conversions / number of clicks) x 100. A high conversion rate shows that the campaign was effective and achieved the desired goal. -
Click-Through-Rate (CTR)
The click-through rate measures how often a link in a post was clicked on in relation to the number of people who saw the post. The formula is: (number of clicks / number of impressions) x 100. A high CTR indicates that the content was relevant and appealing enough to persuade users to take action.
Let's make great things happen
Find out how our innovative software solution can help your business grow and succeed online. Take the first step towards successful digital marketing. We look forward to working with you!
Question not answered?
Get in touch with us and we will support you!