Influencer marketing has become an increasingly important part of a company's marketing mix, and it's not hard to see why. A recent study found that the majority of marketers consider influencer marketing ROI comparable or superior to that of other marketing channels.
Influencer marketing delivers 11x ROI over all other digital marketing channels, and it's only going to become more important in the years to come.
So, what is influencer marketing, and why is it so effective? Influencer marketing is a form of marketing that involves working with key individuals who have influence over potential customers. Rather than targeting all consumers indiscriminately, companies work with key individuals who have the ability to sway the opinions of others.
This form of marketing can be extremely effective, as people are more likely to trust the recommendations of their friends and family than they are advertisements.
ROI, or return on investment, is a way of measuring how successful a particular marketing campaign has been. It takes the total earnings from a campaign and divides it by the amount of money that was spent on that campaign. This gives you a percentage that tells you how profitable the campaign was.
Influencer marketing return on investment is a performance measure used to evaluate the efficiency or profitability of influencer marketing. It is the positive effects of your campaigns divided by thecosts of running them. To measure this, you'll need to track a few different things:
-The money you've spent on influencer marketing
-How much traffic that spending has generated
-How much of that traffic has become customers
Studies have confirmed what we've long suspected – that influencer marketing is a powerful tool for brands looking to drive awareness and engagement with their target consumers. There are a few reasons.
Very effective: Influencer marketing is a very effective way to reach your target audience. The right influencers can help you to increase brand awareness, drive traffic to your website, and boost sales.
Reaches a new audience: When you work with the right influencers, you can reach a whole new audience that you wouldn't be able to reach through other marketing channels.
Cost-effective: Influencer marketing is a relatively low-cost way to reach your target audience. According to Smart Insights, saving money and getting value for your money is easier when you work with influencers with smaller following (Expert commentator).
Working with micro influencers (with 1k-100k followers) has proven effective for small businesses because they have the ability to connect with their audience on a deeper level.
Authentic endorsement: People are more likely to trust the recommendations of other people than they are to trust the recommendations of a company. This is one of the main reasons why influencer marketing is so successful.
Influencer marketing is a booming industry and the ROI on this form of advertising can be 11 times higher than any other digital type. Some past reports show that in some cases, companies have seen a yield between $5-$6 for every dollar spent in influencers (99Content).
In addition, advertisers should expect around $11-$18 worth of earned media whenever they invest in influencer marketing. This number is only slated to grow as social media becomes an even more integral part of our lives.
The reason this form of marketing is so fruitful is that it taps into the consumer's natural inclination to trust word-of-mouth recommendations from their peers. In fact, 88% of consumers say they trustonline reviews as much as personal recommendations (Bernazzani, 2019).
We continue to see tremendous momentum in the space as more and more marketers come to understand the value of working with authentic voices to create engaging content. It's clear that influencer marketing should be an important part of your marketing mix.
When done correctly, influencer marketing can provide a significant return on investment for brands. By working with the right influencers and creating engaging content, you can reach new customers and boost sales.
If you're not already using it, now is the time to start using influencer marketing and see the amazing results for yourself! Visit SocialPayMe to connect with influencers in your industry.
99Content. "InfluencerMarketing Spend." 99firms ,3 Jan. 2022, 99firms.com/blog/influencer-marketing-spend/.
Bernazzani, Sophia. "20Examples of Social Proof in Action in 2021." HubSpot Blog | Marketing, Sales,Agency, and Customer Success Content, 23 May 2019, blog.hubspot.com/marketing/social-proof-examples.
Expert commentator."Make Influencer Marketing As Cost-effective As Possible[Infographic]." Smart Insights, 23 July 2020, www.smartinsights.com/online-pr/make-influencer-marketing-as-cost-effective-as-possible-infographic/.