Question 1

What do influencer marketing agencies do?

Accepted Answer

Brands approach influencer marketing agencies with a brief asking for a campaign that improves conversions, traffic, downloads, and/or awareness by working with influencers. Once appointed the agency would:
Make the creative and content strategy
Produce the campaign timeline
Find relevant insights on the brand, competitors, industry, and audience
Find and select the most relevant Influencers for the brand and campaign
Outreach to the influencers, brief them and contract them
Manage the influencers and produce the content with them 
Report the success metrics in the campaign

Question 2

How do influencer marketing agencies make money?

Accepted Answer

An influencer marketing agency would typically charge a monthly management fee for managing their client’s influencer campaign. Sometimes they may charge a percentage fee for specific campaigns. In some cases, the agency fee may depend on the number of posts required. Because every influencer marketing campaign is different, agencies may customize the way they charge for each campaign. Depending on the size and sophistication of your influencer marketing campaign, agencies often charge between $1,000 and $18,000 per month.

Question 3

What is an Instagram influencer marketing agency?

Accepted Answer

While some firms prefer to run their Instagram influencer marketing campaigns internally, others prefer to work with an advertising agency, just as they have in the past with traditional advertising. As its name suggests, an Instagram influencer marketing agency is a specialist agency that works with brands wishing to use influencer marketing on Instagram. In recent years, Instagram has become the most popular social network for influencer marketing. Brands pay specialist Instagram agencies to create their campaigns, find influencers, and deliver the campaigns on their behalf.

Question 4

How do I start an influencer marketing agency?

Accepted Answer

With influencer marketing now an established industry, it is more challenging to start an influencer marketing agency and compete with the existing companies.  As with all new businesses, you will need sufficient capital to get you through the early days of the business. It will also help if you already have influencer contacts or access to an existing influencer database. Clearly, you will need good people and communication skills and a solid understanding of how influencer marketing works.

Question 5

Is influencer marketing effective?

Accepted Answer

Whether you work with an influencer marketing agency or manage your campaign internally, influencer marketing can be a highly effective marketing medium. As we discovered in our Influencer Marketing 2020 Study, the Influencer Marketing Industry was expected to grow to approximately $9.7B in 2020. The average earned media value per $1 spent increased to $5.78. 91% of survey respondents believed influencer marketing to be an effective form of marketing.

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