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 industries most influential people its 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.
How does it compare to other forms of cryptocurrency marketing?
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.
What are the most effective social media channels for targeting cryptocurrency 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.
YouTube has also found its way into the daily routine of millions of cryptocurrency enthusiasts worldwide.
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?
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.
Coinbound works with influencers across all sizes and as such offers influencer and KOL marketing services at many different price points.
In terms of pricing you should expect to pay for individual posts and campaigns be sure to check out Coinbound’s crypto influencer marketplace.
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 dataset.
An agency that has done their 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?
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 affiliate marketing programs alone.
What are the biggest challenges to cryptocurrency influencer marketing?
Influencer marketing is an extremely useful tool but there’s 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.
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.
With the rapid rise in virtual currencies and influencer marketing, the time has never been better for blockchain brands to add influential names to their marketing programs.
Want to learn more about crypto marketing? Check out our weekly cryptocurrency marketing newsletter. It’s full of helpful, actionable tips and strategies to grow your brand in the blockchain industry.
Coinbound is the leading cryptocurrency marketing agency. Coinbound has worked with major crypto brands like eToro, OKEx, ShapeShift, and Coinmine to boost brand growth through influencers, publishers, SEO, social media management, and paid advertising.