The year’s winding down, and that means we’re already looking toward 2024. Q1 is right around the corner. Do you have your Q1 influencer marketing budget secured? If not, never fear. We wrote this whole article to help you do just that. Read on to get all the juicy info you need to wow your CMO and have your marketing leaders saying hey, they really know what they’re talking about! Let’s give them budget galore! (Results may vary, but you get the gist.)
We’ll break down why you need to secure an influencer marketing budget specifically and why Q1 is a great time to get it. Plus we’ve included strategies for how to make a case for influencer marketing specifically as it relates to your brand and stakeholder needs. Trust us, we know the importance of investing in quality influencer marketing. If you secure the right budget, you’ll likely have some successful campaigns and impressive ROI in your future. Happy New Year to you!
Let’s get started.
Understand Why You Need a Q1 Influencer Marketing Budget in the First Place
If you’ve never had a dedicated influencer marketing budget, it may be time for that to change. And what better time to set the tone for your 2024 marketing strategy than right off the bat in Q1? Influencer marketing is an incredibly lucrative industry. When used strategically, it can make big bucks for your brand. With influencer marketing-specific dollars set aside in Q1, you’ll be able to ensure your influencer campaigns get the time and resources they deserve to move the needle for your brand.
If your CMO isn’t down with allocating an influencer marketing budget, they’re likely behind the times. We can’t guarantee influencer marketing is right for every brand. But if you’re a marketer here reading this, it must be for good reason! And you’re not alone. A vast majority — 82 percent, to be exact — of marketing teams are setting aside dedicated influencer marketing budgets this year. And 67 percent are planning to increase their influencer marketing spending from last year.
Clearly, something is working for those who invest in influencer marketing. And we’ll tell you what it is: Influencer marketing drives sales! Sure, you could spend your money on more traditional modes of marketing. There’s definitely a place for that, too. But here us out:
INFLUENCER MARKETING VS. TRADITIONAL MARKETING
Traditional marketing is outbound. It takes consumers out of their regularly scheduled program and interrupts it with an ad of some kind. Think a print advertisement, radio spot, commercial, billboard, etc.
Influencer marketing is inbound. Instead of taking you out of your regularly scheduled programming, it is seamlessly integrated into it. The best influencer marketing is highly creative and entertaining. And perhaps most importantly, it feels like word-of-mouth advertising.
Of course, influencer marketing is digitally native and involves creators proven to have influence over a consumer base. We call them influencers, duh. In today’s increasingly digital world, nearly everyone is exposed to influencers. The difference between influencer exposure and traditional marketing exposure is that in most cases, the consumer has chosen the influencers they want to see. So they’ve consented to the advertising rather than it being thrust upon them. As you can imagine, that makes a big difference in the path to purchase.
To find out which strategy is best for you, check out our full breakdown post of the benefits and drawbacks of influencer marketing vs traditional marketing. Spoiler alert: There’s likely a place for both methods in your larger strategy. But the benefits of influencer marketing are undeniable. And a little allocated influencer marketing budget can go a long way. Plus, it’ll help you keep up with your competitors.
Appeal to Your Stakeholders
Of course, as with any marketing budget request, you need to know how this will serve your stakeholders. What are your consumers looking for in the new year? And where are they looking for it? What are your leaders’ goals and aspirations for the brand? How can you appeal to all of them using influencer marketing?
Chances are, your target audience is on social media. And if they’re on social media, they’re likely interacting with influencer posts. Why not meet them where they are, on the platforms they love scrolling on, and reign them in with thumb-stopping content that drives clicks for your brand?
And we’re willing to bet your leadership wants to get the most bang for their marketing buck while spending the least. They want big results and small costs. Right? Influencer marketing can deliver.
Every target demo is different. But we’re willing to bet yours has some exposure to influencer content. Find your niche in the influencer marketing sphere and speak to that when trying to get buy-in from marketing leaders.
The world of advertising has gone digital. So much marketing happens on social channels, much to the benefit of consumers. Find out where your stakeholders are, and meet them there with exactly what they want. Chances are you’ll be able to do it using your influencer marketing budget for a fraction of what it would cost to go the traditional advertising route.
Know the Numbers — Having an Influencer Marketing Budget Pays Off
Influencer marketing isn’t a rapidly growing, multi-billion dollar industry for nothing. The proof is in the pudding. The average ROI for an influencer marketing campaign is $5.20 for every $1 spent. Talk about a decent return! The average influencer marketer more than quintuples their money. If you’re looking for a selling point to get your CMO to buy into your Q1 influencer marketing budget, maybe lead with that stat.
As of 2023, influencer marketing is a $21.1 billion dollar industry. To put this in perspective, a few years ago, the industry was expected to reach a total value of $22 billion by 2025. Worldwide, influencer marketing ad spend reached $30.8 billion in 2023. By 2027, that number is expected to be more like $47.8 billion.
But – if I may – I just saw a projection that put the global market at $199 billion by the end of the decade. Not too shabby for a tactic many marketers thought was a passing trend a few years ago.
Cha-Ching! Get Ready to Talk Cost
Of course, you can throw out industry stats and impressive average ROIs until the cows come home. And yes, we think having this data will help make your case. But when you’re speaking specifically to your marketing leaders, you need to provide the numbers that matter the most to them. Namely, how much influencer marketing budget are you asking for? What is this going to cost them?
Lean on your campaigns from years (or quarters) prior to gauge how much you need and why. If you’ve never run an influencer marketing campaign before, or you have, but you’ve never had a dedicated budget for it, never fear. The beautiful thing about influencer marketing is that it can be successful at nearly every price point for any kind of brand. You just have to get creative and know how to strategize.
According to Influencer Marketing Hub’s The State of Influencer Marketing 2023: Benchmark Report, here’s how influencer marketing spending broke down this year:
- 43 percent of brands spent less than $10k
- 22 percent of brands spent $10k – $50k
- 14 percent spent $50k – $100k
- 11 percent spent more than $100k
Lean on Your Results, Let the Data Back You Up
If this is your first influencer marketing rodeo, don’t fret. You can rely on market data to back up your request. Check out our success stories with influencer marketing clients here. Or throw out some of these impressive stats:
- Globally, brands spent $30.8 billion on influencer marketing in 2023.
- The creator economy doubled in size between 2020 and 2023, adding 165 million new creators.
- 25 percent of brands dedicate 10-20 percent of their marketing budget to influencer marketing.
If this is your second or third influencer marketing rodeo, yeehaw! You better dust off that data and bring it out of the stable. It’s time to show your leadership what you can do. Here at The Shelf, we’re always preaching the power of analytics and tracking. This is exactly why. The proof is in the pudding, people!
Show your leaders where influencer marketing has helped your brand in the past and how you plan to increase your ROI with future campaigns. And don’t limit yourself to just sales. Give them the goods on brand lift, your mailing list, followers, clicks, and conversions. Influencer marketing is good for more than just making sales. Be sure to show them the results at both the top and bottom of the marketing funnel.
Go for Growth
Influencer marketing isn’t going anywhere anytime soon. It’s a $21.1 billion dollar industry, for crying out loud. And it’s still growing! That’s good news for your brand. Especially if you choose to buy into influencer strategies now. Getting your CMO to buy in to your Q1 influencer marketing budget can set the tone for growth throughout the entire fiscal year.
The industry itself is projected to grow 29 percent year over year as we head into 2024. Who wouldn’t want a piece of that pie? Whether your brand is new to influencer marketing (hurry, hop on!) or you’re hoping to increase your budget from last year, a hearty Q1 budget is a recipe for success. Successful influencer marketing leads to growth. And we have all the resources to help you create your most successful campaigns yet.
So go for growth. Show your CMO what dreams are made of, and get that Q1 influencer marketing budget locked down. Check out this blog post for all the deets on how to grow your influencer marketing on social media in 2024.
Get Outta Here! Go Secure that Q1 Influencer Marketing Budget
There you have it. Now you’ve got all the goods on how to approach your CMO and internal leaders to ask for the Q1 influencer marketing budget you need. You know as well as we do how lucrative influencer marketing can be for your brand. Now all you have to do is make your case, wow your higher-ups, and secure the funds to go out there and work your marketing magic!
Here at The Shelf, we do a lot more than write blogs full of must-know-info. We help brands like yours run kick-ass campaigns. If you’d like assistance running influencer marketing campaigns in Q1 or beyond, please schedule a strategy call today. One of our experts will help you discover the best way to utilize our full-service agency. We love to see our brand partners succeed.
Can’t wait to see all the influencer marketing magnificence you dream up. Wishing you a happy, generously budgeted Q1!
About This Author
Ariana Newhouse | B2B Writer
I am a freelance writer and comedian based in Los Angeles. While making people laugh is my jam, it’s not always the company brand. So, I strive to make people feel something. My writing philosophy is collaborative, empathetic, and humanistic. At the end of the day, no matter the message, there are real people on both ends of the process.