In the past, influencer marketing was just an ancillary marketing tactic. However, it has grown into a mammoth $5-10 billion industry today. In fact, $1.5 billion was spent just on Instagram influencer marketing in 2018.
The reason for this is simple. Influencer marketing’s ROI is at par or better than other modes of marketing, according to 89% of marketers.
However, this ROI is complex to understand because it is not just in monetary terms. Let’s try to understand it by going through the various ROIs of influencer marketing.
Understanding the ROI of Influencer Marketing
This is the most obvious form of ROI and results in monetary gains. A survey of beauty influencers found that for every $1.29 that was invested, influencer marketing delivered revenue of $11.38. This high ROI is what attracts marketers to influencer marketing.
2. Brand Awareness
One of the best ways of using influencer marketing is to generate brand awareness. When an influencer posts about your brand or product, they are promoting it to their audience.
This increases your brand awareness and reach. In the long run, it can help you generate buzz among your target audience.
3. User-Generated Content
Influencer marketing can also help you generate a vast quantity of user-generated content. You can ask your influencers to motivate their followers to create content around your products and services.
It will also help if you give some of them shoutouts. This will encourage them even further to create it.
You can encourage them to use your branded hashtags in these posts so that you can find them all in one place. This content can then be used to promote your brand.
4. Earned Media Value
It is difficult to understand the value of the impressions and the engagement that your campaign has generated. This is because likes, shares, and comments don’t have a direct monetary value. You can, however, find out the dollar equivalent of them to calculate your ROI. This is called the Earned Media Value.
To learn more about what constitutes a solid influencer marketing campaign, check the infographic below.