Paid Endorsement vs Influencer Gifting: Which One is Best For Business?

paid endorsements are
Influencer gifting and paid endorsement are the same but different strategies in terms of rewarding influencers.

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Influencer gifting and paid promote endorsements are strategies that often cross the minds of business owner to stay in the digital competition.

However, many of them haven’t clearly defined goals in influencer marketing activities. In fact, the meaning of each strategy is still somewhat ambiguous for some people.

Today, LEMON will explain the two different influencer marketing strategies paid promotion or endorsement and influencer gifting. These two partnerships offer different rewards. Before discussing further, let’s equate the perception of what endorsement is.

What is Endorsement?

Paid promote endorsement is giving rewards to influencers who have a high number of followers

Paid endorsement is giving a reward to an influencer who has a high number of followers in the form of a fee according to the influencer’s rate card. This fee is a reward for promotional content on their social media.

Why do you pay them? Wider campaign reach, larger influencer audience, and creating potential in both sales and ROI are strong reasons for paid endorsements.

Are Paid Endorsements Effective?

Paid to promote endorsement is a fairly effective way for those of you who have a large enough budget, endorsement often called paid promote invites Macro and Mega influencers to work together. And offer you hundreds of thousands of reach in one promotion. High exposure is a trade-off between the fees you pay and the results you get.

Macro and Mega influencers also have professional experience in creating unique promotional content. Of course, this is the value and the reason why paid endorsements are very effective. You don’t have to worry about the quality of the created content!

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What is Influencer Gifting?

influencer gifting and paid promote endorsement are strategies to promote products with different rewards

Influencer gifting is giving free products or services to influencers. Instead, these influencers will promote it through social media. Nano and Micro influencers are very interested in working in this way.

These two types of influencers are also very happy to contribute to the growth and development of a brand.

Nano and micro influencers also still have fewer followers, so this influencer gifting can also be their way to build a career as a celebgram.

Is Influencer Gifting Effective?

Influencer gifting is suitable for those of you who want to promote products but with a less budget. Paid promotion or endorsement is quite expensive and difficult to access for pioneering brands. With influencer gifting, all brands can endorse as needed.

Influencer gifting is effective not only because of budget, here are some other factors:

  • Nano and micro influencers are no less fantastic at reaching new audiences. They are known more optimally cause they have one specific topic so that you can choose influencers that are suitable for your niche.
  • Content generated by nano and micro influencers can also be used as UGC or user-generated-content. This content is one way to build awareness on social media.
  • Nano and micro influencers typically have higher engagement rates, stronger relationships, and bonds with their followers.

Paid Endorsement and Influencer Gifting. Which One Should You Choose for Business?

When to Use Paid Endorsements?When to Use Influencer Gifting?
You want to focus on exposureYou want guaranteed content
Want to increase sales and conversionsGenerate user-generated-content
Already have a list of influencers you want to collaborate withIf your influencer marketing budget allocation is low

Final Thoughts

It can be concluded from these two strategies, each has its own advantages. Back again to what goals you want to achieve in influencer marketing. If you are still unsure which one is right for you, consult your business with our team. LEMON provides the right solution according to your needs.

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