The ROI of Influencer Marketing

Steven Tulman — February 27, 2017 Follow @StevenTulman

Calculating ROI for Influencer Marketing – www.socialpulsemarketing.com

Digital marketers and PR professionals know that consumers these days pay less attention to a brand’s message unless it comes from a source they trust. Enter the social media influencer.

Influencer marketing, when planned out and executed properly, can generate a significant return on investment for a business. Based on a recent study by Tomoson, businesses are generating $ 6.50 in revenue for each $ 1 spent on influencer marketing initiatives. The article, and numerous studies, also highlight influencer marketing as the fastest growing form of online marketing.

Here are some highlights from a recent study performed by Tomson, a platform, that when combined with the right strategy and team to execute that strategy can be a powerful force in your marketing arsenal.

Influencer Marketing Helps Businesses Attract Better Customers

A majority of marketing professionals feel that their company is able to attract a higher-quality customer through strategically planned and properly executed influencer marketing campaigns.

This is a direct result of the shift in consumer trust, from brands to peers. A popular Nielsen study shows that 84% of consumers trust the opinions of their peers and those who they follow online.

Influencer Marketing Yields Higher Returns on Investment

Based on the same study, the average influencer marketing campaign generates a return of $ 6.50 for every $ 1 invested. 70% earn more than a $ 2 return on every dollar, and 13% earn more than $ 19 on ever dollar invested. Only 18% of influencer campaigns break even or fail to generate a positive return, but from what I have seen this can usually be avoided with the right planning and execution of an influencer marketing campaign.

Blogs and Facebook Generate the Highest ROI

With Facebook’s ever expanding focus on improving their content distribution algorithm, monetization strategies, and ad platform, it’s no wonder that 21% of marketers report the highest ROI when promoting their brands, products, and services through Facebook influencers. Even so, bloggers who have built up large audiences of loyal and trusting consumers are still at the top of the ROI ladder with 37% of marketers reporting that they see better ROI’s when working with bloggers than any other social media channel.

Influencer Marketing is Outpacing Organic Search and Email Marketing

As outlined in the graph below, marketing professionals are focusing more on their influencer marketing strategies then they are on organic search and email marketing. Marketers from around the world choose influencer marketing as their preferred channel for acquiring new customers online.

Budgets are Shifting to Influencer Marketing

Nearly 60% of marketers surveyed are increasing their budgets for influencer marketing over the next year with another 20% considering doing the same. This is the perfect time to reach out to influencers and negotiate rates before their demand grows along with their pricing.

Influencer Marketing Tied for Most Cost-Effective Online Marketing Method

Influencer marketing ties email marketing for first place as the most cost-effective form of online marketing. With 22% of marketers confirming that it is their most cost-effective tool. Email marketing received the same vote, while organic search came in third place with 19% of the vote, followed by paid search and display advertising with 10% each.

While influencer marketing is growing in popularity among large and small brands alike, the biggest challenges lie in the strategy and execution of an influencer marketing campaign.

Here are the 6 key factors that determine whether a campaign is successful or not:

1. Establish clear goals and objectives for your influencer campaign
   
2. Identify the appropriate social channels and blogs that will yield the highest returns for your organization
   
3. Select the right influencers who speak to your target audience
   
4. Create effective messaging that will resonate and engage your target consumers with the intention to influence their behavior
   
5. Distribute the messages in an authentic manner by working closely with the influencers
   
6. Track and measure the right data to refine your process and make changes in real-time while your campaign is running in order to maximize the benefit your brand receives.

With all the great new tools that social channels provide for business and promotion use, now is the perfect time for a company to get into the game if they haven’t already. With the right strategy and team in place to execute your next influencer marketing campaign, chances are you too will be placing more focus and allocating more budget to influencer marketing in the future.

There has never been a better time to get started with influencer marketing.

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