DECODING INFLUENCER MARKETING

Why do companies and brands want to associate with influencers?

Ujaya: Brands want to associate with influencers because they have the ability to reach and engage with specific audience profiles, build authenticity around the brand, and create relatable persuasive content that can drive consumer behaviours.

Sonna: Companies and brands seek to associate with influencers to leverage their authentic connection with a targeted audience. Influencers can humanise a brand, making it more relatable and trustworthy. Their endorsements often come across as genuine recommendations rather than overt advertisements which enhances credibility. Additionally, influencers can create engaging and diverse content that resonates with specific demographics, driving higher engagement rates and fostering a deeper connection with potential customers.

Amar: The digital age has made social media a very essential marketing tool and influencers play a vital role in giving reach and presence in social media. It’s the reach that brands try to tap by associating with influencers for marketing.

Deekay: Being deeply involved in influencer marketing, especially with top influencers and artists in Nepal, I understand why companies and brands are drawn to collaborating with influencers. These influencers have a special talent for forming genuine connections with their followers. When an influencer recommends something, their audience listens and trusts them; it’s like getting advice from a friend. This helps brands reach people who are genuinely interested and engaged. By teaming up with influencers, brands can spread the word about their products in a way that feels authentic and relatable. Plus, it’s a great way to create buzz and build a loyal customer base.

Rasana: There are multiple reasons why brands would want to associate with influencers. Brands have evolved with the evolution of media as well as audiences. Once it used to be a one-dimensional approach from brand to audience, now brands have to turn up to their audience to catch up with their thoughts and behaviour and cater to them accordingly. It is the other way around.

As an audience, also the way we consume content has changed drastically and so has our attention span with the evolution of media platforms and the advanced algorithms these platforms possess. The influencers in this media space have given the audience something to relate to their own lives because they are the people who live amongst them, live the same lives as theirs, but are not seen as someone who is unachievable and unreliable. This builds trust amongst the influencer community, enhancing the brand credibility as well, when they associate with them. Influencers have established communities that align with specific demographics and interests, enabling brands to connect with their ideal customers who are more receptive of their messages as well. Hence the rise of influencer marketing has been a crucial activity in marketing and communications.

How do brands choose an influencer? Is it solely a numbers game or must it align with the brand’s ethos?

Ujaya: Brands choose an influencer based on a mix of factors, not just followers. The particular influencer needs to align with the brand’s thematic values, have a relevant audience, and demonstrate authenticity in their content.

Sonna: While the number of followers is a significant factor, brands primarily focus on alignment with their values and ethos. The influencer’s content, audience demographics, and personal brand must reflect the brand’s image and message. This alignment ensures that the collaboration feels authentic and resonates well with the audience. Brands also consider the influencer’s engagement rate, the quality of their content, and their reputation within their niche to ensure a successful partnership

Amar: Choosing an influencer is very subjective to brands. Some may favour numbers and some may not quantify the reach based on numbers. For me, relevance should be the key factor in choosing an influencer.

Deekay: In my work with influencer marketing in Nepal, where I exclusively collaborate with top influencers and artists, brands look beyond just numbers when choosing influencers. Of course, audience size matters, but what really counts is finding influencers who truly align with the brand’s values and resonate deeply with their audience here in Nepal. This ensures that partnerships feel genuine and that influencers can authentically connect with their followers. It’s all about selecting influencers who can effectively represent the brand’s message and enhance its presence in the local market, using their influence to build strong engagement and trust among consumers.

Influencer Price is determined by their followers, engagement rates, content quality, niche, and social media platforms on which they are popular. Even in Nepal, prices vary widely, with micro-influencers charging modest fees, while top-tier influencers with huge followers can command higher prices.

Ujaya Shakya

Founder of Outreach

Author of Brandsutra

Rasana: Well, as an agency professional and also a brand custodian for many years, we suggest going with the influencers or creators who most resonate with the brand’s attributes or who match the ethos of the audience. This works best because it becomes a good combination, aligning the brand with their lives, and can create very authentic engaging stories around it. A good harmony between a brand, creator, and audience.

But most of the time, it becomes a number game. I am not denying the fact that sometimes it’s just a numbers game, but that is very short-lived for a brand as well as an influencer. It’s just another day, another project for both parties. Instead, a comprehensive campaign with prompt and firm communication via their own lives that the audience could connect will be memorable as well as impactful. A high follower count doesn’t guarantee engagement. Influencers with a strong track record of audience interaction are more valuable. At the end of the day, it is still a part of advertising and storytelling.

What determines an influencer’s price? What are the going values in the country?

Ujaya: Price is determined by their followers, engagement rates, content quality, niche, and social media platforms on which they are popular. Even in Nepal, prices vary widely, with micro-influencers charging modest fees, while top-tier influencers with huge followers can command higher prices.

Sonna: An influencer’s price is determined by various factors including their follower count, engagement rate, niche, content quality, and platform presence. In Nepal, the rates can vary widely. Micro-influencers, who have smaller but highly engaged followings, may charge between Rs 15-20k per post. Mid-tier influencers with a larger following and higher engagement can command fees from Rs 20-70k. Top-tier influencers, who have a significant presence and influence, may charge upwards of Rs one lakh per post, depending on the campaign’s scope and requirements.

There remains a substantial opportunity for new influencers to establish themselves, particularly in niche areas. as long as new influencers can offer unique, engaging, and high-quality content, they can find their place in the market. the dynamic nature of social media and the continuous evolution of consumer interests ensure that there is always room for fresh voices and perspectives.

sonna amatya

founder, director & ceo

fullcircle group of companies

Amar: The value that an influencer can provide to a campaign or brand, should be the primary parameter that determines their fee. The values may vary from thousands to lakhs depending on the influencer and also the brand.

Deekay: An influencer’s price depends on a few things like how many followers they have, how engaged their audience is, the quality of their content, and their niche. Influencers with a big, active following usually charge more. The type of content (like a single post versus a whole campaign) and the platform (like Instagram, YouTube, or Facebook) also affect the price. Influencers who focus on a specific area might charge more because of their expertise and specialised audience. As for specific prices, they can vary widely. For example, micro-influencers with smaller but dedicated followings might charge anywhere from a few hundred to a few thousand Nepalese rupees per post or campaign. Meanwhile, top-tier influencers with extensive reach and influence might charge significantly more. Brands need to consider these factors carefully when planning influencer collaborations to ensure they get the best value and achieve their marketing objectives effectively in Nepal.

Rasana: The industry itself is in the process of learning with many trials and errors. I remember when we started one of the initial influencer campaigns in Nepal back in 2017, we used to call it a “digital evangelists’ campaign”. We had no idea how to equate their social currency with actual working currency. But we, along with key celeb influencers, worked with content and quantifications in mutual understanding. The campaign worked great. Since then, the whole social media platform has changed and become more creator and brand-friendly. Now, the remuneration will depend upon various factors. It will depend upon the campaign’s scope, type of content, duration of the association, number of deliverables, etc.  Regarding the infamous follower count, it does play a role in determining an individual’s fees but it strongly should not be the only parameter. Engagement rates, viewership, content quality, and influencer niche also should be considered equally. Not to forget the consistency of an individual also aids a lot in defining a fee. In Nepal, mainstream celebs still have higher negotiation power compared to influencers and creators. The positive side is that it is time that creators could earn a living in the country working/ collaborating with brands without requiring large followers. They can just have the skill of content creation and contribute it to multiple brands.

I highly feel that influencer marketing should be measured in RoMI (return on marketing investment), which is an unpopular thing, rather than RoI. Influencer marketing cannot guarantee direct sales hence RoI would be difficult to measure with it. However, it can help increase the reach of any marketing campaign and can generate good RoMI.

Amar Neupane

Director- Artist Management

Garage Entertainment

What is the downside of hiring an influencer for a brand?

Ujaya: Potential issues like lack of authenticity if the partnership feels forced, risk of negative publicity if the influencer gets involved in controversies, and the risk of not achieving the desired return on investment if the influencer’s audience doesn’t convert into business results.

Sonna: Potential downsides include the risk of misalignment with the brand’s image, leading to inauthentic or ineffective campaigns. Lack of control over the influencer’s content can result in messages that are off-brand or misinterpreted by the audience. Additionally, influencers involved in controversies can negatively impact the brand’s reputation. Inconsistent performance from influencers can lead to unpredictable returns on investment, making it challenging to measure the campaign’s success accurately.

Amar: I think the biggest downside of influencing a brand would be questions that can be raised on credibility. For instance, if an influencer markets a product and the product harms someone, the influencer’s credibility might be in question, and if the influencer is a controversy the brand can be affected too by it.

When an influencer recommends something, their audience listens and trusts them; it’s like getting advice from a friend. This helps brands reach people who are genuinely interested and engaged. By teaming up with influencers, brands can spread the word about their products in a way that feels authentic and relatable.

Deekay Shrestha

Managing Director Yakeed Studio, Talent Management Company

Amar: I think the biggest downside of influencing a brand would be questions that can be raised on credibility. For instance, if an influencer markets a product and the product harms someone, the influencer’s credibility might be in question, and if the influencer is a controversy the brand can be affected too by it.

Deekay: One downside of using influencers is the risk that the influencer might not perfectly match the brand’s values. If the influencer does something that goes against what the brand stands for, it can lead to bad publicity and hurt the brand’s reputation. Also, if an influencer promotes too many brands, their audience might stop trusting their recommendations. There’s also a risk in depending too much on influencers because if their popularity fades or they stop working with the brand, it can leave the brand in a tough spot. It’s important to balance influencer partnerships with other marketing strategies to avoid these issues.

Rasana: While influencer marketing offers many benefits, there are potential drawbacks as well. Constant brand content or frequent endorsements only can devalue an influencer’s authenticity and individual values which are perceived well by audiences. Especially the endorsement of the same category product in a short period as it leaves the audience with very little to believe. It can erode the trust and credibility an influencer poses. This also overlooks the fact that they need to churn out content every day. This tends to bring fatigue to ideas and lead to the production of the same kind of repetitive content and issues in matching the date of delivery. The whole scenario put many parties at stake. Another factor is brand misalignment. As a brand we need to be able to identify influencers who suits the brand values as well as the influencers need to filter out the brands which does not match with their lifestyle or content niche. Partnerships with influencers who don’t align with the brand’s message can backfire, confusing consumers. This has happened a lot and these factors will slowly start to diminish credibility amongst the influencers.

Celebrities can be powerful influencers or choose not to be one at all. Influencers are certainly the flag-bearers of the new wave of marketing. At this point in time and age, when it comes to authenticating their expertise and building audience engagement, both hold the same sway. In some areas, celebrities hold more power, but in other areas, influencers hold that power.

Rasana Dangol

Head – Digital Media and Content V-chitra

Is the influencer’s market space saturated?

Ujaya: In Nepal, the influencer market space is growing, but at the same time, it is also becoming increasingly competitive. While there is always room for new and unique influencers, brands need to carefully select influencers who can effectively engage their audience profile.

Sonna: While the influencer market is rapidly growing, it is not yet saturated in Nepal. There remains a substantial opportunity for new influencers to establish themselves, particularly in niche areas. As long as new influencers can offer unique, engaging, and high-quality content, they can find their place in the market. The dynamic nature of social media and the continuous evolution of consumer interests ensure that there is always room for fresh voices and perspectives.

Amar: I don’t think the influencer market is saturated. As long as an influencer keeps generating USPs (unique selling points), I don’t expect the market to be saturated that readily.

Deekay: The influencer market is pretty crowded these days with lots of people trying to break into it. But there’s still room for new influencers, especially those who bring something unique or connect with their audience. It can be tough to stand out, but being genuine and engaging can help new influencers find their place. Brands are always on the lookout for fresh voices and new perspectives, so there’s opportunity for talented individuals who can offer something special. If you’re looking to understand how influencer management can work for you, feel free to reach out to me. With my team’s experience, we can guide upcoming artists and help them navigate towards their goals effectively.

Rasana: The influencer market isn’t necessarily saturated. Just like the technology and media spaces which are constantly evolving with time and generation, influencer marketing techniques are also the same. Brands and influencers both need to evolve with time. It is not only an influencer’s job to be innovative and relevant to the audience but also the brand’s needs. Brands have to be open to testing viral trends catching up with what their audience is seeking, keeping the formats of emerging platforms, and presenting the narrative in the most viable form. Influencers cannot just post a generic video with the product in hand as a brand post. Neither brand should direct an influencer’s video line by line, which does not bring out the best in them. It should be a mutual understating of the brand value, influencer forte, and key communication of the campaign. Besides, there is a need to embrace and understand analytics. Both parties should be clear in the objective of the campaign, choose the right ways of measuring campaign performances, and also amplify accordingly. In Nepal, while lifestyle influencers are prominent, there’s room for growth in specialized categories offering niche expertise.

What makes a good influencer? When you choose a micro-influencer over an established name, what are the pros and cons for the brand?

Ujaya: A good influencer is authentic, with good engagement, creates quality content, and aligns with the brand’s thematic values.

Choosing a micro-influencer has its benefits and drawbacks. Micro-influencers often have higher engagement rates, are more cost-effective and cater to niche-relevant audiences. However, at the same time, they also have a smaller reach and less experience.

Sonna: A good influencer is authentic, consistently creates high-quality content, and maintains a strong, engaged relationship with their audience. They should also align with the brand’s values and ethos.

Micro-influencers typically offer higher engagement rates and have niche audiences, which can be highly effective for targeted marketing campaigns. However, their reach is limited compared to established influencers. On the other hand, established influencers can provide broader exposure but may not deliver the same level of engagement or personalised interaction as micro-influencers

Amar: Relevance would be something that would make any influencer a good influencer. Say an artist endorsing a guitar could be a good influencer campaign idea. The upside could be getting into a variety of audiences with the same budget while going with micro-influencers.

Deekay: A good influencer is someone who can genuinely connect with their audience, build trust, and create engaging content that resonates authentically. They are passionate about their niche and demonstrate a sincere interest in the products or services they promote, maintaining consistency and transparency in their messaging.

When brands choose between a micro-influencer and a more established name, they weigh the benefits and considerations. Micro-influencers offer authenticity and often have a devoted, engaged following, making their recommendations feel more genuine. They are also generally more cost-effective, making them attractive for brands with tighter budgets. However, micro-influencers may not reach as wide an audience as established influencers, who bring more experience and polished content creation skills. The choice ultimately depends on the brand’s specific goals, target audience, and campaign budget, aiming to strike a balance between reach, authenticity, and cost-effectiveness.

Rasana: A good influencer is a person who has a great understanding of his or her content strengths, is a good storyteller, is a professional marketer, can create good audience interaction, and also has a good understanding of the country’s employment taxation laws.

Established and micro-influencers are equally credible in their ways. It depends on the nature of the brand’s campaigns. It decides how efficiently we can make an impact in these two categories. A brand ambassador is naturally chosen who has mass influence, equating it to a mass impact. Established names can generate a broader reach and awareness among a wider audience segment and also lend credibility to broader recognition. But when you have tactical campaigns or micro-campaigns, micro-influencers are the go-to people as they specialise in niche segments. They give you variety, are versatile, have a great understanding of the platforms they use, and are technologically savvy. They often have more dedicated and engaged communities, leading to better brand interaction. The choice between micro-influencers and established names solely depends on the campaign’s goals.

Influencer v/s celebrities: who holds more sway?

Ujaya: Influencers have more direct and personal engagement with their followers, which can result in higher trust and authenticity. Their recommendations feel more genuine to their engaged audience. High-profile celebrities, on the other hand, offer broader reach and high visibility, leveraging their fame to enhance brand equity. The choice depends on the brand’s objective in different stages of the Product Life Cycle: influencers for targeted engagement, trust, and technical results while celebrities for high awareness drive, widespread recognition, and impact to establish a thematic approach.

Sonna: Influencers often hold more sway within their specific niches due to their direct and personal engagement with followers. Their content tends to feel more relatable and genuine, which can translate into higher trust and credibility. Celebrities, while having broader recognition and appeal, may not always offer the same level of trust and authenticity that influencers provide. The choice between influencers and celebrities depends on the campaign’s objectives, whether it’s aiming for broad awareness or deep, targeted engagement.

Amar: It’s like comparing apples and oranges. Each has its perks and value.

Deekay: When comparing influencers to celebrities in terms of influence, it really depends on who you’re trying to reach and how. Influencers connect deeply with their followers on a personal level, building trust through genuine interactions and relatable content. This makes their recommendations powerful within specific communities and among certain demographics. Celebrities, on the other hand, have broader fame and reach across traditional media, which can appeal to a wide audience. Their endorsements carry weight due to their established status and visibility in the public eye.

Ultimately, whether influencers or celebrities have more sway depends on the campaign’s goals, target audience, and the product or service being promoted. Brands often weigh both options based on how well they resonate with their audience and the specific objectives they want to achieve.

Rasana: Celebrities can be powerful influencers or choose not to be one at all. Influencers are certainly the flag-bearers of the new wave of marketing. At this point in time and age, when it comes to authenticating their expertise and building audience engagement, both hold the same sway. In some areas, celebrities hold more power, but in other areas, influencers hold that power.

How do you measure impact and RoI on influencer engagement?

Ujaya: Measuring the impact involves tracking metrics like reach, engagement (likes and comments), and e-commerce traffic and business conversions (in terms of sales or app downloads, etc). By setting clear objectives, and KPIs using performance analysis tools, advertising agencies like Outreach have access to understand the effectiveness of any influencer or digital campaigns. Continuous optimization based on a data-driven approach ensures the effective use of influencer strategies.

Sonna: Impact and RoI are measured through metrics such as engagement rates, reach, impressions, conversions, and sales. Tools like Google Analytics, social media insights, and specialized influencer marketing platforms help track these metrics. Brands look at how well the influencer’s content drives traffic, generates leads, and contributes to sales. Surveys and feedback can also provide qualitative data on brand perception changes. By analysing these metrics, brands can assess the effectiveness of their influencer campaigns and make data-driven decisions for future strategies.

Amar: I highly feel that influencer marketing should be measured in RoMI (return on marketing investment), which is an unpopular thing, rather than RoI. Influencer marketing cannot guarantee direct sales hence RoI would be difficult to measure with it. However, it can help increase the reach of any marketing campaign and can generate good RoMI.

Deekay: Measuring the impact and return on investment (RoI) of influencer engagement, especially in Nepal where I focus on top influencers and artists, involves several key strategies. Firstly, we look at how audiences interact with influencer posts—likes, comments, shares, and saves give us a sense of engagement and interest. Secondly, we track the reach and impressions of these posts to understand their overall visibility. Thirdly, using tools like Google Analytics, we analyse website traffic and conversions driven by influencer links to see direct outcomes like sales or sign-ups. Additionally, we monitor social media for brand mentions and sentiment to gauge audience perception and awareness. Lastly, calculating ROI involves comparing campaign costs with the achieved results, ensuring our influencer partnerships are not only strategic but also deliver tangible benefits in the Nepalese market.

Rasana: It depends on the campaign’s objectives and communication design. An influencer campaign is not just a mere campaign; it can be done with an integrated and holistic approach. This will determine how an outcome should be derived. I think brands have to think of the impact more than the visits on their social media platforms, but how it builds brand perception in the long run and how you want the audience to perceive your brand. In terms of qualitative measures, the success metrics should be the enhancement of brand sentiment and mentions. In terms of quantitative measures, it can be social visits, website traffic, engagement metrics, or conversion rates. If the objective is just awareness, influencers with a larger reach and followers would work great, which necessarily wouldn’t generate much in terms of interaction. If the objective is engagement, a similar impactful yet niche influencer needs to be selected. So, both quantitative and qualitative measures should be set.

What are the current influencer trends and what should one avoid?

Ujaya: Current influencer trends favour micro-influencers over mega influencers, authenticity over followers and likes, long-term partnerships over one-time content, short video content like reels, shorts, TikTok, and integrated media approach. These strategies help maintain credibility in influencer collaborations.

At the same time, it is essential to avoid authenticity lapses by ensuring their endorsements align genuinely with their beliefs and audience expectations. Focus on engagement metrics rather than just followers. Clearly define expectations, including deliverables and brand guidelines, to prevent misunderstandings later. Choose influencers whose audience demographics closely match your target market to maximize impact.

Sonna: Current trends include a focus on video content, particularly short-form videos on platforms like Instagram Reels, Facebook Reels & YouTube shorts. Authentic storytelling, behind-the-scenes content, and collaborations emphasizing social responsibility are also trending.

Brands should avoid influencers with fake followers or those who purchase engagement, as these can lead to misleading metrics and poor campaign outcomes. Additionally, steering clear of influencers involved in frequent controversies or who have inconsistent engagement rates is crucial to maintaining a positive brand image.

Amar: I am not very familiar with the trends going on right now, but avoiding contradiction and setting a brand guideline for oneself is something to address in any influencer marketing circumstance.

Deekay: In the world of influencer marketing, it’s crucial to stay updated on current trends while avoiding common pitfalls. Authenticity is key—audiences prefer influencers who share genuine, relatable content rather than posts that seem overly polished. Video content, especially on platforms like Facebook and Instagram Reels, is hugely popular right now, highlighting the power of visual storytelling. Brands are also leaning towards building long-term partnerships with influencers to maintain trust and keep their messaging consistent.

However, it’s important to be cautious about practices like buying followers, not being transparent about sponsored content, over-promoting products, and not analysing campaign performance. By staying aware of these trends and pitfalls, brands can effectively use influencer marketing to connect with their audiences in meaningful ways and achieve their goals.

Rasana: Trends come and go so fast nowadays, especially with short-form video consumption. People who could endure 30 to 40 minutes of video a few years ago can now barely stand for two minutes of video. So, it’s really how we capture attention in a short span of time without losing the essence of the brand.

Now the trend is authentic, transparent, and genuine content, not very overtly brand-led. It is how seamlessly influencers include brand placement in their regular lives. Another trend is mobilising your audiences to create content and form word-of-mouth reviews at mass, making your brand completely user-driven.

Having said that, there are a lot of trending formats like “de-influencing, “where you talk bad about the product, or rage betting, where you portray outrageous and almost non-existent features so that you can generate more interaction and make people more curious about the product. But these are all very short-lived and short-term-focused.

For FMCG brands, the quick trends work great, but the same might not apply to other industries. Hence, it is crucial to see what works for your brands rather than only jumping into trends and working on long-term brand-building exercises because influencer marketing is only one of the mediums of marketing and it has to be supported with other forms as well

Leave a Reply

Your email address will not be published.