Paid Media vs. Influencer Marketing: Which One Is Best for Your Brand?

As anyone serving in a marketing role these days can attest, the 21st century marketing world is blisteringly fast-paced. And to add to the head-spinning challenges it can present, it never seems to stop evolving, either (or even slow down, for that matter). 

So it’s easy to understand why brands and marketers may sometimes feel like they’re in a constant race to capture consumers’ attention. And with so many marketing tactics and strategies on tap — not to mention more being added all the time — the route to success is full of twists and turns, with plentiful decisions to be made at each of them. But it’s also full of opportunities.

A guide to two top tactics: paid media and influencer marketing

To help brands better understand two of today’s most popular marketing tactics — paid media and influencer marketing — this article will take a deep dive into each. Both of these approaches bring their own strengths and nuances, offering distinct pathways to growth. And to help you decide whether your brand would be better served by the big flashy ad, the micro-influencer charm or maybe even a strategic balance of both, we’ll break down some of the key differences between these two powerful forms of marketing. In addition, we’ll walk through some of the biggest paid media vs. influencer marketing pros and cons, offer guidance on when to employ each, and give some insights on how to best track each of the two tactics’ performance.

Paid media and digital marketing defined

Paid media refers to a traditional marketing approach where brands pay for advertising space to promote their products or services. Think of it as buying a billboard or a TV commercial — except in the digital age, that space could be a paid search ad on Google, a Facebook sponsored post or a display ad on your favorite website. The goal of paid media is straightforward: increase brand visibility and drive traffic to your product or service. By purchasing space through established advertising channels, brands can target specific audiences, control the timing and placement of their ads and measure performance through detailed metrics. It’s the classic pay-to-play approach that lets you get your message in front of a large, often highly targeted, audience.

Influencer marketing, on the other hand, taps into the power of social media personalities — those influencers whose followers tend to place a lot of trust in their recommendations. Brands pay influencers to promote their products, typically through sponsored posts, stories or videos that feel more like personal endorsements than traditional ads. Unlike paid media, which is often clearly marked as an ad, influencer marketing often blurs the lines between organic content and promotion. These influencers can create content showcasing the product in a way that aligns with their personal style and voice, making it feel more authentic to their audience. The goal here is to leverage the influencer’s existing relationship with their followers to build trust and drive engagement with the brand.

The pros of paid media

Paid media offers several distinct advantages that make it an attractive choice for brands looking to boost sales, drive traffic and reach targeted audiences. Whether you need immediate results or want greater control over your advertising budget, paid media can deliver powerful outcomes. 

Some of the key benefits of paid media include:

• Generates sales quickly: Paid media can create an immediate impact by driving traffic and conversions as soon as your campaign launches, which is ideal for product launches or time-sensitive promotions.
• Retargeting shoppers: Platforms such as Meta’s Facebook allow you to retarget users who have already interacted with your brand — whether they’ve made a purchase or visited your website — helping you keep your brand front and center for these potential customers.
• Expands reach with lookalike audiences: Meta and other advertising-platform providers also offer features that allow you to target lookalike audiences, helping you reach new consumers who share similar traits and behaviors with your existing customers, effectively expanding your potential market.
• Precise budget control: With platforms such as Meta and Google, you can monitor and adjust your spending throughout your ad campaigns. This flexibility helps you ensure that you’re maximizing your budget by eliminating underperforming ads and optimizing for the best results.

The pros of influencer marketing

Influencer marketing has become a go-to strategy for brands looking to tap into the power of social media personalities. By partnering with influencers who already have a loyal following, brands can build trust and credibility while reaching targeted audiences, often more effectively than through traditional advertising methods.

Some of the key benefits of influencer marketing include:

• Reach an aligned audience: The right influencers already have a built-in audience that aligns with your brand’s niche, making it easier to connect with consumers who are likely to be interested in your products and/or services.
• Deep trust with followers: Many influencers have also developed a close relationship with their followers, and their product recommendations can carry a lot of weight. This trust makes influencer marketing highly effective for driving engagement and conversions.
• Builds credibility and authenticity: When an influencer promotes your product, it can feel more like a personal endorsement than an ad, helping your brand build credibility, authenticity and trust with the influencer’s audience.
• Reach a huge audience quickly: Influencers, especially those with large followings, have the ability to introduce your brand to thousands — or even millions — of people quickly and effectively.
• Cost-effective micro-influencers: Micro-influencers tend to be more affordable than the larger-scale macro-influencers, and their smaller but highly engaged audiences often have deeper trust in their recommendations, making them a cost-effective option for many brands.
• Saves time on content creation: One of the biggest perks of influencer marketing is that the influencer creates the content for your brand. This can help your brand save time and effort while still ensuring the message aligns with the influencer’s style and resonates with his or her followers.

The cons of paid media

While paid media offers numerous advantages, it’s not without its challenges. Brands need to be aware of some potential downsides that come with this advertising approach. 

Here are a few of the cons that can come with paid media:

• Can be seen as intrusive: Paid ads often disrupt the user experience, and many people find them annoying or invasive, which can lead to ad fatigue or outright avoidance.
• Sometimes hard to target a specific audience: Despite advanced targeting options, it can still be difficult to reach your exact desired audience with paid media. Some ads can end up being shown to people outside your target demographic, reducing overall effectiveness.
• Easily ignored by users: If your brand is not already well-known, users are more likely to skip or scroll past your ads without engaging, making it harder to capture attention and drive conversions.
• Limited ad space: While Meta boasts 3 billion active monthly users, the ad space is still limited and highly competitive, which can make it challenging for your ad to stand out among the clutter.
• Requires a skilled marketing team: Crafting effective paid media campaigns typically requires a team of highly skilled marketers. Ensuring your ads reach and resonate with the right audience involves strategy, optimization and continuous monitoring, which can also be resource-intensive.

The cons of influencer marketing

While influencer marketing has its benefits, there are also risks that brands should consider before diving in. Partnering with influencers can be unpredictable, and there are several potential downsides that may impact your campaign’s success. 

Here are some of the cons that can accompany influencer marketing:

• Can damage credibility: If an influencer you’re working with goes through a scandal or faces backlash, your brand’s credibility and reputation could be negatively affected simply by association — making it important to partner with the right influencers.
• High variability in outcomes: Influencer marketing can be a high-risk strategy because results can vary significantly from campaign to campaign. Even with careful planning, it’s hard to predict how well an influencer’s audience will respond to a promotion.
• Engagement isn’t guaranteed: Just because an influencer has a large following doesn’t mean his or her audience will engage with the campaign. Many brands have been disappointed when high follower counts don’t translate to actual engagement or sales.
• Hard to measure results: It can be challenging to measure the effectiveness of influencer marketing. While tools like coupon codes and trackable links help, it’s often difficult to accurately gauge how many sales or clicks are directly attributable to an influencer campaign.
• Saturation of influencer ads: The growing popularity of influencer marketing has led to a high saturation of sponsored posts. This has, in some cases, eroded the sense of authenticity, making some audiences less receptive to these promotions.

How to use paid media

Paid media can be a powerful tool when used strategically. By carefully planning your campaigns, you can use paid media to build your brand, connect with the right audience and drive conversions. 

Here are some key ways to leverage paid media effectively:

• Build your brand and reach new customers: Paid media helps you introduce your brand to fresh audiences. Whether you’re launching a new product or expanding your business, paid media campaigns can boost your visibility and help you reach potential customers who haven’t yet discovered you.
• Connect with your target audience: Platforms like Meta’s Facebook and Instagram provide sophisticated targeting options that allow you to connect with a specific audience based on demographics, interests and behaviors. This helps ensure your ads are seen by the people most likely to engage with your brand.
• Retarget previous shoppers: As mentioned above, Meta offers a retargeting feature that allows you to reach out to previous shoppers — whether they’ve made a purchase or recently visited your website. This is an excellent way to target repeat customers, lowering the cost of acquiring new customers while maintaining strong relationships with existing ones.
• Expand your reach with lookalike audiences: Meta and other advertising platforms also allow you to target lookalike audiences, which are groups of consumers who share characteristics with your existing customers. By expanding your reach to people who are likely to be interested in your products, you can tap into new markets and drive growth.

How to use influencer marketing

Influencer marketing can be a highly effective way to build your brand, increase awareness and reach new audiences — especially when targeting specific niches. By working with influencers, you can leverage their established relationships with their followers to promote your brand authentically. 

Here are some key ways to use influencer marketing effectively:

• Build your brand and reach new customers: Influencers can help introduce your brand to their audiences, allowing you to build awareness among people who may not have discovered you otherwise. Their personal endorsement can give your brand credibility and create interest among their followers.
• Reach a new audience: Influencer marketing is also a great way to tap into new demographics or markets that might be outside your usual reach. By selecting influencers whose audiences align with your target market, you can broaden your brand’s exposure.
• Increase overall brand awareness: Partnering with influencers can significantly boost your overall brand awareness. With consistent influencer partnerships, your brand can gain visibility across multiple channels, keeping you top-of-mind for consumers.
• Reach a niche target audience: Influencer marketing is particularly effective when trying to reach a specific, niche audience. By selecting influencers who cater to particular interests or demographics that are a fit with your brand and its offerings, you can directly target consumers who are more likely to be interested in your products or services.
• Drive sales through influencer discount codes: Many brands use influencer marketing to promote special sales or offers, often using discount codes. This strategy not only incentivizes new customers to make a purchase but also helps track how well the influencer is driving conversions.

How to track paid media

Tracking the success of your paid media campaigns is crucial for understanding their effectiveness and optimizing your advertising spend. By monitoring key performance indicators (KPIs), you can measure your return on investment (ROI), evaluate how well your ads are performing and make informed decisions to enhance your strategy. 

Here are some of the leading ways you can effectively track the success of your paid media efforts:

• Google Analytics: Google Analytics is a powerful tool for measuring ROI on paid campaigns. It tracks key metrics such as impressions, click-through rates and conversions, providing valuable insights into which traffic channels are performing best. Additionally, it offers social media reports that can help you understand which platforms drive the most traffic and identify which types of content resonate most with different audiences.
• Cost per Lead (CPL): CPL measures the dollar amount spent to acquire each new lead through your campaigns. By analyzing CPL by campaign, channel or overall spending, you can assess which strategies are most cost-effective and adjust your budget allocation accordingly.
• Customer Acquisition Cost (CAC): CAC is calculated by dividing your total marketing costs by the number of new customers acquired during a specific period. This KPI helps you determine the cost of acquiring each new customer, allowing you to evaluate the efficiency of your paid media efforts and ensure that your advertising spend is delivering a positive return.

By regularly reviewing these metrics and resources, you can gain a clearer picture of your campaign performance, identify areas for improvement and make data-driven decisions to enhance your paid media strategy.

How to track influencer marketing

Tracking the success of your influencer marketing campaigns is essential for understanding their impact and optimizing your future efforts. By focusing on the right KPIs, you can evaluate the effectiveness of your influencer partnerships and measure how well your campaigns are performing. 

Here are some of the leading metrics for tracking the success of your influencer marketing efforts:

• Cost Per Mille (CPM): CPM, or Cost Per Mille, refers to the average cost a company pays for every 1,000 times an ad is viewed. This metric helps you assess the efficiency of your spending by measuring how much you’re paying for exposure. By analyzing CPM, you can compare the cost-effectiveness of different influencers and campaigns.
• Video View Time: For influencer campaigns that involve video content, video view time is a critical KPI. It measures how often a video has been watched and can indicate the level of engagement and interest from the audience. A higher view time suggests that the content is resonating with viewers, which can be a positive sign of campaign effectiveness.
• Return on Advertising Spend (ROAS): ROAS is a key metric for evaluating the financial return of your influencer marketing efforts. It is calculated by dividing the revenue generated by the campaign by the total amount spent on the campaign. For example, if a company spends $2,000 on influencer campaigns and generates $10,000 in revenue, the ROAS would be 5:1 ($10,000 divided by $2,000). A higher ROAS indicates a more profitable campaign and helps you determine whether your investment is yielding a positive return.

By monitoring these KPIs, you can gain valuable insights into the performance of your influencer marketing campaigns, assess their effectiveness and make data-driven decisions to enhance your strategies.

When your brand is ready to tap into influencer marketing to increase its brand exposure, awareness and conversions, the experienced team of influencer-marketing pros at Joybyte is here to help. And to ease the experience, we can handle all the critical campaign elements for you — from influencer identification and contract structuring to campaign execution and management, success measurement and optimization, influencer relationship management, and all points in between.

Ready to get started with assistance from a marketing agency with a wealth of specialized experience in influencer marketing? Joybyte has you covered — reach out to us today about our range of influencer marketing services.