Influencer marketing is the new marketing channel that everybody loves.
It’s cool. It’s sexy. Occasionally you get to work with hot models.
But at the end of the day, you’re doing it because you want a marketing campaign that’s profitable.
And well, it’s that too.
In fact, 89% of marketers say that ROI from influencer marketing is comparable to or better than other marketing channels.
ROI isn’t the problem when it comes to influencer marketing. Actually, what many businesses do have a problem with is actually calculating their ROI.
Sure, you can see how many likes and comments a post has gotten, but what does that actually mean?
Think of your ROI as an impressionable young child—it’s influenced by a lot of things. Even the smallest change can drastically alter your ROI, so it’s important to know what to keep an eye on:
- Content Promotion: Where your content is being promoted matters. Even if you’re marketing on channels outside of social media, these campaigns directly influence your ROI.
- Audience Demographics: The spending habits of audiences vary wildly. Who you market to has a huge effect on ROI.
- The Influencer: Follower bases, engagement rates, and influencer rates all make an impact on your bottom line.
Influencer ROI, three-piece suits, the Jonas Brothers… All good things come in 3’s. Let’s take a look at the three types of ROI you can expect from your influencer campaign.
The most obvious form of ROI is in revenue. Using influencer marketing, you can push your products and services out to new audiences and gain more sales.
Just ask Loot Crate. Through their campaigns with popular influencers like Pewdiepie, they’ve built a huge following since they started in 2012.
Their annual revenue? $123 million.
Talk about ROI.
Some of the largest companies have built their success around user-generated content—just take a look at Starbuck’s #whitecupcontest.
In 2014, Starbucks launched a contest encouraging their customers to submit drawings on their iconic white cups. The winning drawing would be used as an official limited edition template, generating a lot of interest.
By the end, they had a whopping 4,000 submissions.
User-generated content is insanely valuable. With more and more people ignoring targeted ads, this kind of content allows companies to bypass this barrier and market through their customers.
Not to mention, it’s the gift that keeps on giving. User-generated content can be repurposed and used in future marketing efforts without worrying about copyright issues. Most of the time, customers are over the moon when their content is shared by their favorite brands!
There’s a reason macro-influencers charge so much. Getting access to hundreds of thousands of new customers not only gives you an opportunity to push your products, but it also increases your brand presence.
It’s estimated that people need to see or hear your ad 7 times before they make a purchase. Brand awareness gets your customer one step closer to that goal.
That’s precisely the reason why mattress company Leesa invested so heavily in their influencer strategy. Not only did they generate over 100,000 website visits, but they also got 400 direct mattress sales out of it.
Maybe you’re in the planning stages of your influencer campaign and you want to know how much ROI you can expect to make with a certain influencer. Here’s what you need to pay attention to.
Using Social Media Famous, you get access to a compiled report of average engagement statistics. Knowing how many likes and comments an influencer gets on average is a good start to figuring out how much ROI you can expect.
The engagement rate of your campaign is one of the best indicators of ROI. Using our platform, you can see an influencer’s average engagement rate based on their past activity.
You can also take a look at an influencer’s follower growth. This lets you know whether their fanbase is increasing or declining, something that can have a direct impact on your ROI.
To paraphrase the great Brian Johnson, “We do it for the money, honey”, or in this case, for the ROI. When estimating influencer ROI, remember:
- ROI is influenced by many things so take that into account when making changes within your campaign.
- The main three types of ROI you’ll experience include brand awareness, user-generated content, and revenue.
- Collecting data on influencers you want to work with will help you get a more accurate estimate of ROI.
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