Hardwood Floors December 2018/January 2019

5 “DOES IT REALLY WORK?” In 2016, shopper-focused influencer marketing firmCollective Bias surveyed 14,000 adults and found the following: • Thirty percent of people are more likely to purchase a product based on a recommendation from a non- celebrity blogger. • Of that 30 percent, 70 percent of 18- to 34-year-olds most preferred peer endorsements. • Nearly 60 percent of survey respondents have considered a blog review or social media post on a smartphone or tablet while shopping in-store. • Men are two times more influenced by blog reviews than women. One in five men (18.3 percent) have been influenced by blog reviews while making in- store purchases versus only one in 10 women (9.2 percent) who have done the same. According to the Linquia study: • Ninety-four percent of marketers find influencer marketing effective. • Influencer marketing can generate 11 times the ROI of traditional advertising. • Ninety percent of consumers trust peer recommendations, but only 33 percent trust traditional ads. • Eighty-eight percent of customers trust online reviews by strangers as much as they would a recommendation by a friend. Influencer marketing is growing in popularity. Another study by Influencer Marketing Hub found an increase of 325 percent in the searches of the term “influencer marketing” on Google from 2016 to 2017. Adding influencers to a company’s marketing strategy can also create brand awareness and increase SEO value through more brand mentions and increased backlinks. 6 “HOW MUCH DOES IT COST?” The costs associated with influencer marketing vary widely. The average cost to hire a micro-influencer is about $180 per post. The cost for a macro-influencer can range from $400 for a single Twitter post to $187,500 for a YouTube video according to The New York Times.

Following are the current compensation models for influencer marketing: • Pay per post or pay per video: influencers are paid a flat rate for posting, tweeting, or publishing a piece of content. • Free product or experience: influencers receive a trip, product, or other experience in return for creating, publishing, or sharing content. • Cost per engagement (CPE): influencers are paid per like, share, retweet, comment, or other engagement. • Cost per click (CPC): influencers are paid when consumers take an action inspired by their content (for example, clicking through to a website or landing page). Some influencers will accept compensation based on sales or customers acquired. The Linquia study found that, although the “flat rate” or pay-per-post model is most widely used, only 17 percent of respondents feel it is effective. The highest-rated methods were the cost-per-engagement and cost-per-click methods, with 25 percent of respondents considering them “most effective.” 7 “HOW CAN I FIND INFLUENCERS?” First consider your position in the marketplace, target audience, and goals. If sustainability is a priority, look for influencers who are committed to green building. If your target audience is high-end residential contractors, align yourself with high-end interior designers or builders on Instagram, for example. “Influencer marketing is growing in popularity. Another study by Influencer Marketing Hub found an increase of 325 percent in the searches of the term “influencer marketing” on Google from 2016 to 2017.”

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