Influencer marketing has become one of the most popular and effective ways to reach and engage with audiences in India. As a result, many brands are turning to influencer marketing to build brand awareness and drive conversions. However, one of the main concerns that brands have when it comes to influencer marketing campaigns is budget.
According to a recent survey, the average cost of an influencer marketing campaign in India is around INR 50,000 – INR 1,00,000. However, this cost can vary significantly depending on a number of factors, including the type of influencer, the size of their audience, and the goals of the campaign.
As an influencer marketing agency, we understand that budgeting for influencer marketing can be a daunting task for brands. That’s why we’ve put together some tips and strategies for Indian brands to understand how to budget for a successful influencer marketing campaign.
1.Set clear goals
As an influencer marketing agency, we always advise our clients to set clear and measurable goals before launching a campaign. This allows you to align your budget with the specific objectives of the campaign. For example, if your goal is to increase brand awareness, you may want to invest in a larger influencer with a large following.
On the other hand, if your goal is to drive conversions, you may want to invest in a smaller, but highly engaged influencer. Based on a survey, it was found that on an average, Indian brands spend around INR 50,000- INR 1,00,000 for brand awareness campaigns, whereas the cost for conversion driven campaigns is around INR 1,00,000- INR 2,00,000.
2.Research influencers
As an agency, we understand that not all influencers are created equal. That’s why we always conduct thorough research to identify the influencers who align best with our clients’ brands and target audiences. By working with the right influencer, you can get more bang for your buck. For example, a micro-influencer with 50,000 followers and a 15% engagement rate may be more effective than a macro-influencer with 500,000 followers and a 2% engagement rate.
3.Consider micro-influencers
Micro-influencers are a cost-effective way to reach a highly engaged audience. They often charge less than macro-influencers, which can be a great way to save money on your influencer marketing campaign. According to a recent survey, the average cost of working with a micro-influencer in India is around INR 10,000- INR 20,000, while the average cost of working with a macro-influencer is around INR 50,000 – INR 1,00,000. We have also seen an average ROI of 2.5 times the investment made for our influencer marketing campaigns with micro-influencers.
4.Negotiate rates
Negotiating rates with influencers can be a great way to stretch your budget further. Many influencers are open to negotiating their rates, especially if they believe in your brand and are excited about the opportunity to work with you. We have seen in our past campaigns, that influencers have been open to negotiate rates by 15-20%.
5.Utilize user-generated content
Encouraging influencers to create user-generated content (UGC) for your brand, such as Instagram stories or videos, can be a cost-effective way to increase the authenticity of the content. This can save you money on production costs and also increase the authenticity of the content. In our past campaigns, we have seen that UGC has resulted in a 15-20% increase in engagement and conversions
6.Plan ahead
As an agency, we always advise our clients to plan ahead and book influencers in advance if they want to run a influencer marketing campaign on. budget. This can help you secure better rates and ensure that the influencer is available when you need them. Planning ahead can also help you avoid last-minute surges in pricing, which can happen when brands scramble to book influencers at the last minute.
By planning ahead, you can also ensure that your campaign runs smoothly and that you have enough time to properly promote it. Additionally, planning ahead allows you to take advantage of seasonal promotions, holidays, and other events that align with your brand and campaign goals. By doing so, you can take advantage of the increased attention and engagement that these events receive.
7.Measure and Analyze
It is very important to measure and analyze the performance of your campaign, as it will help you identify areas that need improvement and also to understand the effectiveness of your budget allocation. Utilize tools such as Google Analytics, Instagram Insights, and other analytics platforms to track the performance of your campaign in terms of website traffic, conversions, engagement and ROI. Based on the analysis you can re-strategize and optimize your future campaigns for even better results.
8.Leverage affiliate marketing
As an influencer marketing agency, we often recommend our clients to leverage affiliate marketing as a cost-effective way to drive sales. By partnering with influencers and providing them with a unique affiliate link, you can track the sales generated from their referral and only pay them a commission for the sales they drive. This can be a great way to save money on influencer fees and also ensure that you are only paying for tangible results.
For example, one of our Indian fashion brand client recently partnered with 20 micro-influencers and provided them with a unique affiliate link. The campaign resulted in a 10% increase in sales and a 30% increase in website traffic.
9.Use Influencer-generated coupon codes
By providing influencers with unique coupon codes, you can track the sales generated from their referral and also give your customers an added incentive to make a purchase. This can be a great way to drive conversions and also save money on influencer fees. For example, another of our client from e-commerce industry recently partnered with 10 micro-influencers and provided them with unique coupon codes. The campaign resulted in a 15% increase in conversions and a 20% increase in repeat customers.
10.Collaborate with other brands
Collaborating with other brands can be a great way to split the cost of an influencer marketing campaign and also reach a wider audience. By teaming up with a complementary brand, you can pool your resources and create a bigger impact with your campaign. For example, if you are a skincare brand looking to promote your newly launched makeup line you can partner with another brands that has skincare line and hire an influencer to create a makeup tutorial featuring your makeup as well as other brand’s skincare products. This looks more authentic and usually drives higher social media engagement and eventually more website visitors.
By keeping these tips in mind, you can ensure that you can run a successful influencer marketing on a budget. Remember, it’s not just about how much money you spend, but how you spend it that will determine the success of your campaign. These tactics provide a cost-effective way to drive sales, increase conversions and reach a wider audience.
Book a free demo with our experts to learn more about how to budget for a sucessful influencer marketing campaign!