Risks in Influencer Marketing

From a marketing perspective, if I’m a brand and I’m coming in, there’s a customer segmentation question here which is, you said you can give me your data, I check the demographics, then I have to understand which types of products I’m using. How do brands, typically, work with you, for product positioning and product strategy?

I think it’s up to them, in terms of what they want to get out of the partnership. A lot of campaigns I work with, brands and products are different, in terms of how they want to position things. Sometimes, it’s a product launch, so they just want to get awareness of the product in the most basic level. Other times, they’re trying to boost sales of the product, so they’re trying to really drive the sales targets. Their approach is always going to be slightly different, depending on what they want.

What do you think is the biggest risk for a brand entering the channel?

In entering into influencer marketing?

Yes. Let’s say I’m working with you, what is the biggest risk, from my perspective, as a brand owner?

I suppose there are a number of different risks. One of them could be trust. Do you trust the influencer you are working with? Do you think they’re going to do a good job? Do you think they are, actually, going to do the job? Do you think they are going to say good things about you? Most of the time, you can trust that, especially with professional influencers, who have been doing this for a long time. I guess, there are unknowns that you can’t foresee, sometimes.

Other risks are just that the whole thing just has no impact. I think that might be the biggest fear of some brands. We work with these influencers, we pay this money, we really go all out with this campaign and there is zero impact.

Is the price of influencer marketing increasing, or is it decreasing, with the competition?