Social media has had a huge effect on our society, and since almost half of the world's people use it, businesses have realized how important it is to have a strong online presence.
Since more than half of social media users follow their favorite brands to get advice on what to buy, influencer marketing data is an important tool for businesses that want to reach their target audience.
This blog post will discuss why having true influencer marketing data is important and how using old data can hurt your marketing efforts.
What is Data-Driven Influencer Marketing, and Why Does it Matter?
Data-driven influencer marketing involves using real-time and historical data to optimize campaigns and generate a higher return on investment. This process includes leveraging data throughout influencer activities' planning, activation, and follow-up stages. By identifying high-performing influencers, improving content strategy, and optimizing future campaigns, businesses can reach their target audience more effectively and generate a greater ROI.
The Importance of Data in Influencer Marketing: Good and Bad Data
As the world becomes increasingly digital, influencer marketing has emerged as a powerful tool for businesses seeking to reach their target audience. Research conducted by The Influencer Orchestration Network found that 49% of consumers rely on influencer recommendations for new product purchases. Additionally, Social Media Week revealed that 74% of respondents use social media platforms to make purchase decisions. At the same time, Fullscreen (via Wayback Machine) found that 42% of consumers have purchased it after seeing it in an influencer video or post.
However, the success of influencer marketing campaigns depends heavily on the quality of the data being used.
The Importance of Good Data in Influencer Marketing
- Helps businesses to identify the right influencers for their target audience
- Enables the creation of relevant and engaging content
- Facilitates the optimization of campaigns for better results
- Allows for more accurate measurement and reporting of campaign performance
In short, good data is crucial for the success of influencer marketing campaigns. Businesses can better understand their target audience and create more effective campaigns by analyzing the right data.
Regarding influencer marketing, bad data refers to inaccurate or incomplete information that can lead to ineffective campaigns and wasted resources. This can include fake followers, inaccurate audience demographics, or unreliable performance metrics. Studies have found cases where the influencers engaged by major brands have follower bases estimated to be up to 70% fake.
Types of bad data in influencer marketing
Fake followers: Dummy accounts are purchased or fake social media followers that artificially inflate an influencer's reach and engagement. Brands should be cautious when working with influencers with a large following but little engagement.
Inaccurate metrics: Metrics such as impressions, reach, and engagement are crucial for measuring campaign success. However, inaccurate metrics can be misleading and skew the campaign results.
Poor content quality: Poor content quality can damage a brand's reputation and result in low engagement rates. Brands should ensure that influencers produce high-quality content that aligns with their brand values.
Non-compliance with regulations: Influencer marketing is subject to regulations and guidelines, such as the Federal Trade Commission's guidelines on endorsements and disclosures. Non-compliance with these regulations can result in legal penalties and damage the brand's reputation.
An Alarming situation?
According to a recent study by National Herald, approximately 16 million accounts of Indian influencers on Facebook-owned Instagram are fake. This high prevalence of fake accounts has created a new advertising economy driven by "influencer marketing," where brands partner with influencers to promote their products or services. However, this also increases the risk of bad data in influencer marketing campaigns, as brands may unknowingly partner with influencers who have purchased fake followers to boost their perceived influence. Brands must verify an influencer's audience data before partnering to ensure campaign success and avoid wasting advertising budgets on fake accounts.
All this leads to Fraud.
"Influencer fraud occurs when influencers misrepresent their reach, engagement, or audience demographics to secure brand deals. Brands should verify an influencer's audience data before partnering with them."
Bad data means inauthenticity.
Influencer marketing might backfire if users regard the information as unauthentic or false. According to a Bazaarvoice poll, over half of the buyers are weary of fake influencer material, and 62% feel that influencer endorsements exploit susceptible audiences. To avoid losing credibility, marketers should collaborate with influencers who genuinely connect to their brand and provide them with creative freedom.
Bad data impacts ROI
Bad data can harm ROI in influencer marketing. Inauthentic or unengaged audiences will not generate the desired returns, making it crucial to vet influencers before partnering with them. Prioritizing audience engagement and authenticity over follower count is key to maximizing ROI and protecting the brand's reputation.
Fake Followers Can Lead to Legal Issues
Influencer marketing regulations, like those set by the Federal Trade Commission in the US, demand transparency and authenticity to protect consumer welfare. However, a study found that 38% of influencers use tactics to artificially inflate their followings, leading to ethical concerns and potential legal issues. To avoid these issues, brands must work with genuine influencers with real audiences and verify follower authenticity. By prioritizing authenticity, brands can ensure compliance with regulations, protect their reputation, and maintain consumer trust.
Final Take: Improve Data Quality for Effective Influencer Marketing
Modern consumers are heavily influenced by what they see and hear. 49% of consumers say they rely on influencer recommendations, so there's no time to build an effective influencer marketing strategy.
Importance of High-Quality Data in Influencer Marketing
- Data-driven influencer marketing requires reliable data sources and accurate data analysis.
- Influencer marketing campaigns' success depends on the data quality used.
Challenges of Ensuring Data Quality
- Lack of transparency in influencer metrics.
- Difficulty in identifying fraudulent activity.
- Limited tools for data verification.
Strategies for Improving Data Quality
- Work with reputable influencer marketing platforms with built-in fraud detection tools.
- Look for influencers who are transparent about their metrics and have engaged authentic audiences.
- Use third-party tools for influencer data verification.
- Regularly monitor and analyze data to identify potential issues and adjust strategies accordingly.
Effective influencer marketing requires high-quality data, reliable sources, and accurate analysis. By implementing strategies to improve data quality, brands can ensure successful campaigns, increased ROI, and improved reputation.