Influencer marketing is a multi-million dollar industry. Brands realize the power of influencer marketing and its impact on their business. As of 2018, the total spend on Instagram influencer marketing has been estimated to be more than $1.5 billion.
This begs the question: With so much money being invested, what sort of returns can you expect from influencer marketing? Let’s take a look.
Returns from Influencer Marketing
According to a survey, for every $1.29 spent on beauty influencers, brands are able to generate $11.38 in revenue. So, investing in influencer marketing can help you grow your revenue significantly.
2. Brand Awareness and Sentiment
Influencer marketing helps build brand awareness by helping brands reach their target audiences more effectively. It also helps them build stronger connections with their followers.
Frozen foods retailer, Iceland, collaborated with mom influencers to change consumer perceptions about their brand. The campaign increased their approval ratings from 10% to 80%.
3. Earned Media Value
Influencer marketing helps brands gain more likes, impressions, engagement, and clicks. These, in turn, help to increase their reach and sales.
4. User-Generated Content
Influencers can motivate their followers to share their experiences using certain products or services on social media. This gives brands an opportunity to use and repurpose the content created by influencers on their social media accounts or marketing campaigns.
Now that we know the returns you can expect from influencer marketing, let’s see what it takes to create successful influencer marketing campaigns.
Ingredients of Successful Campaigns
To promote your brand's products or services, influencers are likely to expect monetary compensation. The exact amount you pay them will depend on their reach and industry.
Some influencers might be open to work with you in exchange for free products or services. For such scenarios, you can allott a certain budget for your influencers and allow them to choose any product or service that fits that budget.
Some brands also use an affiliate model to pay their influencers a commission for every sale made through their unique affiliate link or code. However, for this method to work efficiently, you will need to track these links.
A successful influencer marketing campaign requires clear communication between a brand and their influencers. Brands need to invest a good amount of time into explaining their campaign objectives, negotiating compensation, and building relationships with their influencers.
5. Agency / Platform
To run your campaigns efficiently and to measure the ROI, you may need to work with an agency or invest in influencer marketing platforms. Grin can help you find relevant influencers, connect with them, run your campaigns, track its progress, and measure the results effectively. Check out Grin’s pricing at grin.co/pricing.
Measuring the ROI of influencer marketing is essential if you don’t want to waste your resources. For more information on the ROI of influencer marketing, check out the infographic below.
Brian Mechem is CRO and Co-Founder of GRIN, the #1 software solution for direct-to-consumer brands who run influencer marketing programs. GRIN's software powers some of the best influencer programs in the world, providing insights on ROI and adding efficiency to the influencer marketing process.