Influencer Marketing – To Pay or to Gift? That is the question.

In our previous article, we discussed the concept of Influencer Marketing, and its importance. Given its increasing value in today’s digital marketplace, it comes as no surprise that more and more brands, large and small, are integrating this approach into their marketing strategy. 

But next comes the question of how to compensate these new-found Brand Ambassadors. To Pay or to gift? That is the question…

To Pay?

When it comes to Influencer Marketing, the most common form is brand-sponsored posts. According to Forbes, this type of collaboration has been deemed just as, if not more, effective than traditional ads.

While there is some cost involved, the beauty of a sponsored collaboration is that the brand has a greater guarantee of a return on the investment, as the Influencer is being paid to deliver high quality content to their audience. In addition, a paid agreement can give brands the ability to sign-off on content prior to publishing, and generally have more input on content creation.

A paid collaboration with @samanthasommelier, part of our award-winning campaign with D.O. Cava.

Or, to Gift?

An alternative to a paid collaboration is to give away your product for free, in exchange for a potential review or feature on the Influencer’s social media. Not every Influencer will be open to this approach, but those who are can be incredibly valuable to the organic growth of your brand.  According to source ‘#gifted’, micro- and nano- influencers are the most open to gifting and have highest engagement rates with their audience, who trust the Influencer’s authenticity and opinions.

But, there is a catch. Gifting a product, with no monetary exchange, means that the Influencer is not obligated to promote it. It also poses the risk that they may, in fact, choose to share a less than favourable review with their audience. Success or failure of a gifting campaign will hinge on finding the right Influencers for your product.

A gifted campaign for the new releases of “Washington’s new benchmark Cabernet”, Trothe.

Key Takeaways

When it comes to the question of ‘to Pay or to Gift’ there is no right or wrong answer. Ultimately, either can be successful if done right. But, before you decide on which route to take, carefully consider the type of Influencer that will be the right fit for your chosen approach and product. Keep an eye out for our next blog on ‘How to Find the Right Influencer’.

Interested in learning more about Influencer Marketing? Or want to speak to our team about running a campaign? Contact us at team@firstpour.co.uk