Changing Approaches to Influencer Management in Marketing Procurement
In recent years, some large-name brands have experienced significant drops in sales and revenue due to public backlash over their influencer campaigns. This has had an impact on the way many organizations manage influencers in their marketing procurement departments. Many companies are also auditing their influencer campaigns to determine the benefits of the costs they are paying and to protect their brands from potential risks.
This blog post will explore why these shifts are taking place. It will also explore how marketing procurement leaders can improve the results of influencer campaigns and reduce risks to the brand moving forward.
A Second Look at Influencer Marketing
Influencer marketing has skyrocketed as a viable means of reaching audiences and gaining recommendations for brands and products. Social media has given rise to an entire ecosystem of influencers, many of whom cater to specific demographics or interest groups.
But recent developments in the influencer marketing world have demonstrated that this marketing approach is not without risk. The most recent and notable example is perhaps the consumer fallout from AB InBev's partnership with influencer Dylan Mulvaney, which incited backlash against the company.
According to Marketing Dive, "Alissa Heinerscheid, Bud Light’s vice president of marketing, and Daniel Blake, group vice president of marketing for AB InBev’s mainstream brands, took leaves of absence" following the fallout from the campaign. According to Forbes, shares of Bud Light’s parent company dropped by more than 20% in the two months since the campaign launched.
Despite the increased scrutiny, plenty of brands are still planning to partner with influencers. A study by Influencer Marketing Hub revealed that the influencer marketing industry is set to grow to approximately $21.1 Billion in 2023. The study also found that more than 83% of its respondents, including respondents from brands, marketing agencies, and PR agencies, still believe influencer marketing to be an effective form of marketing.
Reducing Risk in Influencer Marketing Campaigns
As companies continue to invest in influencer campaigns, they will also be hyper-vigilant about any potential risks associated with new partnerships. Marketing procurement will play a significant role in assessing the risks and viability of those partnerships, and there are a few steps procurement departments will take moving forward.
Partner Selection
For example, they can ensure that they have an effective strategy in place for selecting and managing partners. Brands should conduct due diligence on potential influencers and evaluate their track record with brands, as well as any negative press or public relations issues they may have experienced.
Influencer Guidelines
Companies can also set clear guidelines and expectations with influencers before entering into a contract. This includes both financial and non-financial terms. Brands should also be prepared to ensure that their influencer partners follow all legal requirements, including those related to copyright laws and FTC regulations.
Audience Profiling
Finally, companies must recognize who their target audience is before launching an influencer campaign. This isn't merely an important step for ensuring the effectiveness of a campaign—it is also an important step in preventing a potential fallout among customers.
In today's world, it is increasingly important for brands to take a stand on public issues. Consumers are looking for companies that share their values and support the causes they believe in.
A company taking a stand, particularly when it comes to controversial topics, can have a big impact on how customers view the brand. It allows customers to connect with the company on a deeper level and ensure that their values are aligned, and it can give the cause more visibility and attention in the public sphere.
However, each company must recognize whether its brand appeals to customers of different values and whether aligning itself with a specific cause is worth potentially alienating some of its customers.
Improving ROI from Influencer Marketing
Marketing procurement leaders can also take some general steps to improve the ROI from influencer marketing campaigns.
Amplifying Campaigns
Aside from choosing influencers who align with the brand's target audience, companies can
also focus on amplifying their campaigns' reach. This includes leveraging influencers’ social media networks, as well as other channels such as email and even traditional media. For example, marketing procurement can arrange contracts with agencies to amplify specific types of influencer content.
Performance Monitoring
In addition, companies can monitor the performance of their campaigns and analyze the data for insights into how they can better target potential customers. Companies should also track conversions generated from the campaign, as well as other metrics such as click-through rate and cost per lead.
By gathering this data, marketing procurement leaders can optimize their campaigns to maximize their return on investment.
Influencer Contract Management
Finally, the procurement department should ensure that they have an effective system in place for tracking influencer payments and contracts. This process should include clear communication of expectations between the brand and the influencer, and it should be monitored to ensure that all contractual obligations are being met.
Build a Better Influencer Program at ProcureCon Marketing
Today's marketing procurement departments have a critical role to play in ensuring the success of influencer marketing campaigns and reducing risk to brands. Although this area of marketing can be challenging, it can also bring significant rewards for both brands and audiences.
According to Forbes, "Many consumers find that an influencer is a more trustworthy and personal source than a formal media campaign and are thus more likely to follow through on investing time and money in a new company or product."
To learn more about how you can better manage your influencer marketing campaigns, don’t miss the next ProcureCon Marketing event. It’s happening from November 6th through November 8th at the Hilton Tampa Downtown in Tampa, Florida.
Download the agenda and register for the event today.