Influencer marketing has rapidly grown, and it is predicted to be a $5-$10 billion market over the next five years, resulting in more FTC guidelines and punishments when these guidelines are not followed. There is also a growing number of lawsuits over influencers not meeting their contracts. With this in mind, it is even more critical for businesses to know the actual value an influencers’ marketing can provide, and then use scrutiny to decide whether that value is worth the risk.
Using analytical and valuation tools, you can calculate the actual value that the influencer’s marketing can carry. This insight is extremely helpful when determining if a certain influencer is the right fit, and even more helpful when determining any financial damage an influencer has caused. This damage can stem from the brand representative’s image changing, or from influencers with bad publicity supporting your business without your permission. “It can be very risky when you connect your brand with somebody’s personality because we’re all humans,” said Doug Bania, comments. “Some people do good and bad things, so it’s a risk. The hard thing to determine is if the risk is worth the potential reward.”
Influencer marketing no doubt has the potential to help many businesses boost their market reach and boost value, and being able to identify and prove the value of their influence is extremely helpful when making strategic business decisions. Contact Nevium experts for more information on how this process can be done.