How to Maximize the ROI of Your Influencer Marketing Campaigns
Let’s take a look at the ideal investment in influencer marketing, and how much ROI you should expect.
Brands spend billions on influencer marketing. In fact, Mediakix reported that brands have already spent around $1.6 billion on influencers this year. What kind of ROI do they expect? And do you think it’s worth it?
Let’s take a look at the ideal investment in influencer marketing, and how much ROI you should expert.
Returns in Revenue and Brand Sentiment
For every £1 ($1.26) spent on beauty influencers, Celebrity Intelligence suggests that you can get an ROI of £8.81 ($11.38). Influencer marketing can get you an 11x times higher return than banner ads.
Influencer-created videos for Iceland Foods have reportedly garnered a 55% retention rate on Facebook and 59% on YouTube. They also saw an increase in their approval rating from 10% to 80% after their target audience was exposed to the vlogger-created content.
This shows that influencer marketing helps improve brand reputation and engages an audience.
You can also repurpose influencer content for your brand’s social media profiles and for your ads. But of course, you need to have the influencer’s approval to use their content.
So, for this kind of return, what do you need to invest?
Influencers, especially the bigger ones, will expect monetary compensation for promoting your brand. Depending on their niche and reach, the exact cost will vary.
Some influencers may accept products or event tickets for promoting you. You can always set a budget and let them choose anything up to that amount.
You have to pay influencer’s a commission if you are using an affiliate model. In this case, you pay them a percentage of the sales instead of paying them cash up front. All you need for this is special tracking links.
Apart from these, you need to invest your valuable time, mostly on the required communication with the influencers. From rate negotiations and campaign details to product fulfillment, there’s a lot of communication needed.
To get a better understanding of influencer marketing ROI and the investments, you can check out the following infographic.
Image courtesy: Grin.co