Of the hundreds of types of digital marketing, influencer marketing is one of the fastest-growing and most controversial.
In fact, 63% of marketers plan to increase their influencer marketing budget for the upcoming year and this study revealed a return on investment of $6 for every $1 spent advertising through influencers.
Before you go ahead and gear up to spread the word about your cryptocurrency brand through the industry’s most influential people it’s important to be prepared.
We’ve broken down some of the most commonly asked questions regarding crypto influencer marketing so that you can start your viral campaign on the right foot.
Crypto Influencer Marketing FAQs
How does it compare to other forms of crypto marketing?
When we stack crypto influencer marketing up against other forms of crypto marketing, it’s like comparing a personalized playlist to just hitting shuffle on your music app. Both have their place, but one offers a tailored experience that resonates.
On average influencer marketing is more expensive than other types of paid media and this is largely due to the “trust factor” influencers bring to the table.
There’s certainly a big difference between seeing a banner ad on a blockchain news site and hearing it from a person you respect and follow. Trust costs more.
Furthermore, studies done on the subject show that the majority of marketing teams have found ROI on Influencer marketing to be higher than that of other forms of online growth tactics.
This study shows that 89% of marketers say ROI is comparable to or better than other channels.
Compared to more traditional or broad marketing channels, crypto influencer marketing has some unique benefits for Web3 brands.
Community Engagement vs. Passive Viewing
Standard marketing tactics often rely on passive consumption. You see an ad pop up while scrolling through a website or a banner while reading an article. It’s there, you might glance at it, but there’s no engagement. Crypto influencers bring the conversation to life.
They’re not just talking at the audience; they’re sparking dialogues, answering questions, and building a community around genuine interests and shared passions.
Authenticity vs. Ad Speak
Let’s face it, traditional ads can sometimes feel a bit… ad-like. You know there’s a pitch coming. Influencers, though, have this superpower to weave in their personal stories and experiences with crypto products or platforms in a way that feels natural and authentic.
Their followers are there for their opinions and insights, so when they talk about a crypto brand, it comes across as more genuine and less salesy.
Targeted Reach vs. General Audience
With traditional marketing, targeting can be hit or miss. You’re aiming for a specific demographic, sure, but the message is broadcasted in a one-size-fits-all manner. Influencer marketing, by nature, is niche.
Influencers have carved out their own specific space in the crypto world, attracting followers who are deeply interested in what they have to say about blockchain, cryptocurrencies, and everything in between.
This means your message hits the right ears, not just any ears.
Cost Effectiveness vs. High Investment with Varied Returns
Traditional digital marketing can be pricey, with costs accumulating for ad space, PPC campaigns, and SEO optimization without guaranteed engagement. Influencer marketing can be more cost-effective, especially with micro or niche influencers.
They offer a more budget-friendly way to tap into dedicated communities, potentially providing a better ROI thanks to their engaged and loyal followers.
To sum it up, crypto influencer marketing brings a personal, engaging, and authentic touch to the table that other forms of marketing can struggle to match. It’s about leveraging those personal connections and trust built over time to introduce, educate, and persuade in a way that feels more natural and less like a hard sell. So, while each marketing approach has its merits, influencer marketing holds a unique position in the crypto space, offering a direct line to engaged and interested audiences.
What are the most effective social media channels for targeting crypto audiences?
Twitter, as digital marketing guru Gary Vaynerchuck calls it, is the “water cooler” of the internet.
It’s where casual conversation and idea-sharing is easy. Unsurprisingly, the cryptocurrency community has found it an especially convenient way to communicate.
If you’re curious to learn more about crypto Twitter check out our article on the top crypto Twitter influencers like CryptoWendyO.
YouTube
YouTube has also found its way into the daily routine of millions of cryptocurrency enthusiasts worldwide.
Popular accounts like BitBoy, Ivan on Tech, CryptoBud, and CryptoZombie attract thousands of views on their videos discussing current crypto news, reviewing blockchain organizations, and more.
It’s not surprising that brands have found a great deal of success in reaching a highly-targeted audience through crypto YouTubers.
How much should you expect to pay for crypto influencer marketing?
Short answer: it depends.
In terms of the total budget, the average amount spent on an influencer marketing campaign, regardless of industry, varies greatly.
According to this study by MediaKix, the most popular budget range for a company, regardless of industry, is $1,000-$10,000 per year.
The next most popular yearly influencer budget is $100,001-$500,000 per year with 18% of study participants reporting.
Being a top Web3 marketing agency allows Coinbound to work with influencers across all sizes and as such offers influencer and KOL marketing services at many different price points.
A general ballpark for YouTube influencers is $10,000 per 250,000 subscribers on a premium channel.
Are the results guaranteed?
Unfortunately no, but then again, when are they?
Influencer marketing is one of the more volatile forms of brand growth.
We advocate spending small amounts across many influencers to see which content creator’s audience performs the best for your product or service. Marketing is all about experimenting.
When working with a crypto influencer marketing agency be sure to ask about their results from past campaigns.
An agency that has done its homework should have access to a plethora of previous social media campaign results and be able to give you a semi-accurate picture of the results you can expect.
Is it possible to pay for performance and not upfront?
Yes!
Affiliate marketing is a massive piece of marketing through influencers and cryptocurrency brands have found tremendous success.
In fact, some of the influencers that work with Coinbound have reported earnings in the multi-million dollar range from Web3 affiliate marketing programs alone.
It’s worth knowing, however, that most agencies will require upfront payment.
What are the biggest challenges to cryptocurrency influencer marketing?
Influencer marketing is an extremely useful tool but there are certainly some key points to keep in mind before your next (or first) dabble into the thought leader marketing sphere.
The first point: Your copy needs to be on point
Influencer marketing is still relatively new and audiences that aren’t familiar with it can feel it’s done distastefully if the messaging isn’t organic sounding.
This is one of the main reasons we advocate for brands to give the influencers they hire freedom to promote the brand in a way that feels natural for them.
Second point: Influencers can be difficult to work with.
This is an unavoidable and unfortunate part of the influencer business. But don’t get frustrated when an major social media persona doesn’t answer your message.
With the accessibility provided by being able to Direct Message nearly anyone, you have to realize they are getting pitches like yours every day.
Here are some tips to getting your message read and responded to:
- Be upfront that you are willing to pay. Influencers are often asked to do things for free which they are not super eager to do, regardless of how great your product is. They know that, if you are reaching out to them, it’s because you find value in their audience and they are expecting to be properly compensated.
- Mention how your brand would provide value to their audience.
- Explain why their audience is aligned with that of your brand.
The difficulty of influencers to work with is often a function of the size of their audience. While you might think the bigger the audiences following is the more difficult they are to work with, this isn’t always the case.
There is a certain threshold of influencer at which content creators become professionally aware of the value they are able to provide and build out systems
Third point: Be aware of the rules to stay legally compliant
In recent years the FTC has made it clear they are looking more closely at influencer marketing. The main point highlighted is disclosure.
Be sure any influencer you are working with is aware they are expected to disclose that a post is sponsored.
Top Crypto Influencer Marketing Agencies
Also read: Top Crypto Influencer Marketing Agencies
Coinbound is known as one of the first, and best, crypto influencer marketing agencies. Based in NY, Coinbound has a network that includes all of the major crypto and Web3 influencers and, as such, is a great agency to work with if you want to grow your crypto company with influencers on Twitter, YouTube, TikTok, and more.
Conclusion
Wrapping up our deep dive into the world of crypto influencer marketing, it’s clear this space is a gold mine for those ready to think outside the box. Influencers have the magic touch when it comes to talking to their peeps, stirring up the crypto pot, and making things happen. They’re not just about the hype; they’re the bridge connecting your brand to the crypto-curious and the crypto-serious alike.
