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Influencer Marketing – What It Is and How to Use It Effectively

09/22/2025 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Influencer marketing has become one of the most powerful tools in modern digital communication. By leveraging the reach and credibility of social media personalities, brands can connect with highly engaged audiences in a way that feels natural and authentic. But how does influencer marketing actually work? What are the key strategies – and where are the pitfalls? In this article, we break down everything companies need to know to run successful influencer campaigns.

1. What Is Influencer Marketing?

Influencer marketing is a form of marketing in which brands collaborate with social media personalities (influencers) to promote products, services, or campaigns. Unlike traditional ads, influencer content is integrated into the influencer’s daily communication, often through stories, videos, reviews, or lifestyle posts.

The strength of influencer marketing lies in authenticity. Followers trust the influencer’s opinions, which makes recommendations appear more credible than standard advertising.

2. Why Influencer Marketing Works

The success of influencer marketing is based on social proof – people tend to follow the behavior and recommendations of others, especially if they perceive them as relatable or aspirational. Influencers act as digital role models, trendsetters, and product testers, often forming close-knit communities with their audiences.

Especially among Gen Z and Millennials, influencers play a more important role in brand discovery than traditional ads, TV commercials, or banner ads.

3. Types of Influencers

Influencers are typically categorized by the size of their following:

  • Nano-influencers (up to 5,000 followers): High engagement, close community, great for niche products.
  • Micro-influencers (5,000–50,000): Balanced reach and trust – often ideal for targeted campaigns.
  • Macro-influencers (50,000–500,000): Strong reach, good for visibility and awareness.
  • Top-tier/Celebrity influencers (500,000+): Broad impact, high cost, ideal for mass-market exposure.

The right choice depends on your goals: smaller influencers often deliver better engagement and authenticity, while larger ones offer more reach.

4. Popular Influencer Platforms

Influencer marketing isn't limited to one social network. Popular platforms include:

  • Instagram: Ideal for lifestyle, fashion, beauty, travel, food.
  • TikTok: Fast-growing, creative, ideal for younger audiences and viral content.
  • YouTube: Great for in-depth reviews, tutorials, and long-form storytelling.
  • LinkedIn: Suitable for B2B campaigns, thought leadership, and employer branding.
  • Blogs: Still relevant for SEO and detailed product reviews.

5. How to Plan an Influencer Marketing Campaign

To run a successful influencer campaign, follow these steps:

  1. Define clear objectives: Brand awareness, product sales, app downloads, content creation, etc.
  2. Identify your target audience: Know who you're trying to reach and where they spend time.
  3. Choose the right influencers: Look at reach, engagement, content style, values, and audience demographics.
  4. Agree on the collaboration type: Sponsored post, product gifting, affiliate links, takeovers, giveaways, etc.
  5. Track performance: Use KPIs like reach, impressions, engagement rate, conversions, or traffic.

6. Influencer Compensation Models

Influencers are typically compensated in one or more of the following ways:

  • Flat fee: Pre-agreed rate per post or campaign.
  • Product gifting: The influencer receives free products in exchange for content (common with nano/micro-influencers).
  • Affiliate commission: Influencer earns a % of sales through tracked links or discount codes.
  • Performance bonuses: Additional rewards based on campaign results.

7. Common Mistakes to Avoid

  • Choosing influencers based only on follower count: Engagement and brand fit are often more important.
  • Lack of creative freedom: Influencers know what resonates with their audience – overly scripted campaigns can backfire.
  • Unclear expectations: Always set clear guidelines and goals for deliverables, timelines, and disclosures.
  • One-off collaborations: Long-term partnerships often deliver better results and authenticity.
  • Ignoring legal requirements: All paid or sponsored content must be clearly labeled as such (e.g., #ad or “Paid partnership”).

8. Measuring Success in Influencer Marketing

Key metrics (KPIs) to evaluate campaign success include:

  • Reach and impressions
  • Engagement rate (likes, comments, shares)
  • Click-through rate (CTR)
  • Conversions (sales, downloads, sign-ups)
  • Content quality and reusability
  • Audience sentiment and brand mentions

Influencer platforms and tools (e.g., HypeAuditor, CreatorIQ, Upfluence) can help you track and analyze results.

9. Conclusion: Influence Is Earned, Not Bought

Influencer marketing offers enormous potential – but only when done right. It’s not about paying someone to say something nice; it’s about finding the right voices to tell your story authentically. Success depends on trust, alignment, creativity, and a deep understanding of the audience.

In an age where users scroll past traditional ads, influencer content can cut through the noise – if it’s real, relevant, and valuable.

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What Is the ROI of PR Activities?

06/11/2025 | by Patrick Fischer, M.Sc., Founder & Data Scientist: PatrickFischer

The Return on Investment (ROI) is a key metric that measures the financial or strategic benefit of an investment in relation to the resources spent. In the context of Public Relations (PR), it answers the question: How much do PR efforts contribute to organizational goals compared to the budgets and resources invested?

ROI in PR – More Than Just Revenue

Unlike traditional marketing campaigns, the ROI of PR is not always directly measurable in sales figures. PR primarily influences reputation, awareness, trust, and credibility – factors that strongly affect long-term business success, including purchase decisions, job applications, and investor confidence. Therefore, PR ROI models need to take a broader perspective.

How to Calculate ROI in PR

The classic ROI formula is:

ROI = (Return – Cost) / Cost

For PR, the “return” can be defined across three dimensions:

  • Financial effects: Increased leads, inquiries, revenue, or investor interest.
  • Reputational effects: Brand awareness, media visibility, trust, and share of voice.
  • Efficiency effects: Cost savings through optimized processes or increased visibility with the same budget.

Typical Metrics for Measuring PR ROI

  • Output: Number of press clippings, articles, reach, and media tiers.
  • Outtakes: Brand perception, sentiment, and message accuracy.
  • Outcomes: Website traffic, social media engagement, and leads generated from PR mentions.
  • Impact: Contribution to business goals (e.g., sales growth, hiring, investor relations).

Methods to Determine ROI

Since PR value cannot always be translated directly into monetary terms, organizations use different approaches:

  • Advertising Value Equivalency (AVE): Comparing achieved media coverage with the cost of equivalent advertising space.
  • Attribution models: Measuring how PR touchpoints contribute to conversions (e.g., leads, sales).
  • Brand tracking: Monitoring brand awareness, trust, and reputation over time.
  • Hybrid models: Combining quantitative metrics (traffic, leads) with qualitative indicators (reputation, message resonance).

Example Calculation

A company invests €20,000 in a PR campaign. The campaign results in:

  • 50 high-quality media articles with a reach of 2 million readers
  • 1,500 additional website visitors, 150 of which become leads
  • 15 new customers generating €60,000 in revenue

ROI = (60,000 – 20,000) / 20,000 = 200%

Challenges in Measuring PR ROI

  • Long-term effects are difficult to quantify precisely.
  • Reputation and credibility cannot always be translated into monetary values.
  • Multiple factors (e.g., marketing, sales, external events) influence outcomes simultaneously.

Conclusion

The ROI of PR activities is not as straightforward to calculate as in performance marketing. Still, it is essential for demonstrating the value of communication. A combination of quantitative metrics (traffic, leads, revenue) and qualitative measures (reputation, trust, message alignment) provides the most accurate picture. The bottom line: PR is not a cost center, but a strategic investment with significant long-term returns.

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Referrers and their significance in the digital world

12/17/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
Referrer

Introduction: What are Referrers?

Referrers are pieces of information that reveal the origin of a website visit. They indicate which website or source a user comes from before accessing another site. Referrer data is a cornerstone of digital marketing and web analytics.

From search engines to social media, referrer data provides valuable insights into user flows and helps companies optimize their strategies.

The Importance of Referrer Data

Organizations and businesses use referrer data to measure the effectiveness of marketing campaigns, understand user behavior, and improve website usability. For example, they can identify which channels drive the most traffic and allocate resources accordingly.

"Referrer data is the digital footprint of users – it tells a story about how and why users land on a website."

Challenges in Handling Referrer Data

Managing referrer data comes with its own set of challenges:

  • Privacy: In an era of stringent data protection regulations like GDPR, companies must ensure that sensitive user data is not exposed.
  • Technological Limitations: Modern browsers and plugins increasingly block referrer data to safeguard user privacy.
  • Manipulation: Referrer data can be inaccurate due to faulty or intentionally falsified information.

The Future of Referrer Data

With the advancement of technologies like artificial intelligence and the integration of data from multiple channels, referrer data could become even more valuable. It could help create personalized user experiences and provide insights into complex customer journeys.

However, balancing data privacy and usability remains a challenge. Transparency and ethical data practices will play a crucial role in the future.

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Build Your Own Address Database or Rent Address Lists?

09/27/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

One of the most important assets for businesses, especially in marketing and sales, is a solid database of customer and prospect addresses. But when it comes to acquiring these contacts, companies are faced with a choice: should they invest time and resources into building their own address database, or should they rent address lists from external providers? Both options come with unique advantages and challenges. In this article, we’ll weigh the pros and cons of each to help you decide the best approach for your business.

Building Your Own Address Database

Creating an in-house address database involves collecting contact details directly from customers or leads through marketing campaigns, website registrations, events, or other means. Here are some of the key benefits and drawbacks of building your own database:

Advantages:

  • Data Quality and Relevance: When you build your own database, you know exactly where the data comes from, ensuring that the contacts are highly relevant to your business. This is especially important for companies with niche audiences.
  • Control and Ownership: Having your own database means you have full control over how data is collected, stored, and updated. This can ensure better compliance with data protection regulations like GDPR.
  • Personalized Marketing: A homegrown database enables you to track interactions with your contacts over time, allowing for more tailored and effective marketing strategies.

Challenges:

  • Time-Intensive: Building a quality database takes time. Collecting addresses organically through content marketing, webinars, or events can be a slow process, particularly for startups or smaller businesses.
  • High Maintenance: Data accuracy diminishes over time as people change jobs, companies, or contact details. Regular maintenance is required to keep your database up to date, which can be resource-heavy.
  • Limited Reach: In-house databases are often limited to existing contacts and leads. Expanding beyond your immediate network can be challenging without access to broader sources of new leads.

Renting Address Lists

Alternatively, businesses can rent address lists from third-party providers, often on a subscription or pay-per-contact basis. These lists offer immediate access to large numbers of potential customers but come with their own set of advantages and disadvantages.

Advantages:

  • Immediate Access to Large Networks: Renting address lists provides instant access to a vast number of contacts across various industries and regions, allowing companies to scale their outreach quickly.
  • Cost Efficiency for Short-Term Needs: If you need a large volume of contacts for a specific campaign or project, renting addresses can be more cost-effective than building a database from scratch.
  • Less Maintenance: List providers usually update their databases regularly, which means less effort on your part to keep the data clean and up to date.

Challenges:

  • Data Quality Issues: The quality of rented address lists can vary greatly depending on the provider. Some lists may contain outdated or irrelevant contacts, leading to low engagement rates.
  • Lack of Personalization: Since rented lists are often generic, it can be challenging to personalize marketing messages for maximum impact. This can lead to lower conversion rates compared to an in-house database.
  • Compliance Risks: Renting contact lists raises concerns about data privacy and compliance. If the list provider has not obtained proper consent from individuals, your business could face legal issues, especially under regulations like GDPR.

Key Considerations Before Making a Decision

Deciding between building your own address database and renting address lists depends on several factors:

  • Long-Term vs. Short-Term Strategy: If your business focuses on long-term customer relationships and personalized marketing, building your own database may be the best option. For short-term campaigns or quick lead generation, renting lists might make more sense.
  • Budget and Resources: Building and maintaining an in-house database requires significant time and resources. On the other hand, renting lists can be costly over time if you frequently need fresh contacts.
  • Target Audience: If your business serves a niche market, it may be easier to build a database from scratch rather than relying on generic rented lists, which may not offer relevant contacts.
  • Regulatory Compliance: With strict data protection laws in place, it's essential to ensure that any rented data is compliant with regulations. Building your own database gives you more control over consent and data handling.

Conclusion: Which Is Right for Your Business?

Both building your own address database and renting address lists have their merits, depending on your business goals, time frame, and resources. If you're looking for quality, personalized interactions and have the time to invest, building your own database is a strong long-term strategy. However, if you need quick access to a large volume of contacts for immediate outreach, renting address lists can provide a fast and efficient solution.

Ultimately, many businesses find success with a hybrid approach—starting with rented lists for quick growth, while gradually building and refining their in-house database over time.

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Planned Growth with Business Addresses – How Companies Acquire New Customers Through Marketing Data

09/24/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

For companies in the B2B sector, growth depends heavily on acquiring new customers, often through targeted marketing campaigns. One of the most effective methods for driving this growth is through the strategic use of business addresses, also known as marketing addresses. These data sets allow companies to reach specific target groups with tailored messages, significantly increasing the chances of turning prospects into paying customers. But how exactly do business addresses contribute to planned growth, and what should businesses keep in mind when using them?

What Are Business Addresses and Why Are They Important?

Business addresses are curated databases that contain detailed information about companies, including key decision-makers, industry, size, and location. These data sets provide companies with the ability to target their marketing efforts more precisely. In a crowded market, personalization and targeting are key to cutting through the noise, and this is where business addresses come into play.

By leveraging up-to-date business addresses, companies can plan their marketing strategies with a clear focus on specific industries or geographical regions, ensuring that their marketing messages reach the right audience.


The Benefits of Using Marketing Addresses for Customer Acquisition

The use of business addresses provides several advantages for companies looking to grow their customer base:

  • Targeted Outreach: With business addresses, companies can filter potential clients based on specific criteria such as industry, company size, or geographic location. This focused approach increases the likelihood of reaching businesses that need the offered products or services.
  • Cost-Effectiveness: Rather than casting a wide, expensive net through generalized marketing efforts, companies can concentrate their resources on reaching prospects that are more likely to convert. This leads to better ROI for marketing campaigns.
  • Better Personalization: Detailed marketing addresses often include information about decision-makers, enabling companies to craft personalized messages that resonate more effectively with the recipient, improving engagement rates.
  • Scalability: Business address databases can easily scale with your company’s growth goals. Whether you're looking to expand within a region or target new sectors, you can purchase or access additional data as needed.

How Companies Use Business Addresses to Drive Planned Growth

Many businesses use business addresses in their marketing efforts, particularly in direct mail and email campaigns. Here's how these addresses fit into a broader marketing strategy:

  • Direct Mail Campaigns: Personalized direct mail is a powerful tool for B2B marketers. With accurate business addresses, companies can send physical brochures, catalogs, or promotional offers directly to decision-makers within target companies. Studies show that direct mail can achieve higher response rates compared to other channels, especially when the message is relevant and targeted.
  • Email Marketing: Similar to direct mail, email campaigns can benefit from precise targeting. Marketing addresses provide the contact details needed to create segmented email lists that ensure the right content reaches the right people. This also reduces the risk of emails being ignored or flagged as spam.
  • Cold Calling and Sales Outreach: Sales teams can use business addresses to directly contact potential clients. By focusing on verified contact information for decision-makers, salespeople can bypass gatekeepers and increase their chances of successful outreach.

Challenges and Considerations When Using Marketing Addresses

While the benefits of using business addresses for customer acquisition are clear, there are also some challenges and important considerations to keep in mind:

  • Data Quality: Not all address databases are created equal. Companies should ensure that the data they are purchasing is up-to-date, accurate, and relevant. Outdated or incorrect information can lead to wasted marketing efforts and reduced effectiveness.
  • Compliance with Data Protection Laws: With regulations such as GDPR, it is crucial that companies comply with data protection laws when using business addresses. It’s important to work with reputable data providers that guarantee legal and compliant data collection practices.
  • Integration with Overall Strategy: Business addresses should be part of a larger, integrated marketing strategy. Simply acquiring addresses without a clear plan for follow-up and nurturing may not yield the desired results. Companies must combine data-driven outreach with personalized follow-ups and nurturing to turn prospects into loyal customers.

Steps for Effectively Using Business Addresses to Drive Growth

For businesses aiming to achieve planned growth through marketing addresses, here are key steps to success:

  • Define Your Target Audience: Before purchasing or using business addresses, clearly define your target audience. Consider factors such as industry, company size, and geographic location to ensure you are targeting the most relevant prospects.
  • Choose a Reliable Data Provider: Work with reputable business address providers that offer accurate, up-to-date, and legally compliant data. Investing in high-quality data is crucial for effective outreach.
  • Personalize Your Marketing Efforts: Use the information provided by marketing addresses to tailor your messaging and offers. Personalized campaigns are far more likely to resonate with potential clients and generate leads.
  • Measure and Optimize: Continuously track the results of your marketing campaigns. Monitor which segments and approaches deliver the best results, and refine your strategy to optimize performance over time.

Conclusion: Unlocking Growth with Business Addresses

In the competitive B2B landscape, business addresses provide companies with a powerful tool to drive planned growth. By leveraging detailed, targeted data, businesses can reach the right prospects with personalized messages, resulting in better engagement and higher conversion rates. However, success depends on the quality of the data and how well it is integrated into a broader marketing strategy.

For companies looking to expand their client base and generate new leads, investing in high-quality business addresses – and using them strategically – can lead to significant, measurable growth.

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