[Infographic] Guide to the ROI of Influencer Marketing

As digital marketing becomes more popular, consumers become more aware of how they are sold to.

Gone are the days when you could get away with simply putting up banner ads with the hope of luring consumers with them.

Today, you need to give them social proof that your products or services actually work the way they are advertised.

It is for this reason that influencer marketing has become extremely popular among marketers. The global influencer marketing spend on Instagram alone has crossed $1.5 billion in 2018.

With so much money being spent, you need to know the ROI of influencer marketing too. Here are some returns you can expect from it:

1. Revenue

The most obvious form of the ROI of influencer marketing is revenue. According to a survey, for every $1.29 that was spent by brands on beauty influencers, the ROI was $11.38. This alone is about 11 times the amount actually invested by the brands.

You can also collaborate with influencers based on commissions. With this compensation model, you pay the influencer a commission for every purchase they drive for you. This can help you increase your ROI too.

2. Consumer Sentiment

Influencer marketing not only gives you monetary returns but also affects consumer sentiment. When the followers of an influencer see them vouching for a product, they will start perceiving it in a positive light.

3. Content to be Re-Purposed

When you collaborate with influencers, you can ask them for the rights to the content created by them. This way, you’ll be able to utilize the same content for a variety of purposes.

For instance, you can use the influencer’s post as a testimonial on your website or social media. This can help you further affect the sentiment of consumers.

4. Brand Awareness

Influencers tend to have huge fan-followings on social media. When they showcase themselves using your products or vouching for your brand, their audience is influenced by it. This can help you increase the reach of your brand and help in improving your brand’s image as well.

While the ROI on influencer marketing is great and multi-faceted, you must dedicate a lot of time to your influencers too. You need to build a rapport and long-term relationships with them to effectively execute your influencer marketing campaigns. Check out the infographic below to learn more about the ROI of influencer marketing.

(Infographic Source)

Author bio:

Brian Mechem is COO and Co-Founder of Grin, a software solution for companies 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.

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