Influencer marketing has started catching the fancy of every marketer out there. The simple reason for this is that it’s extremely effective and helps brands reach their target audiences with ease. This is perhaps the reason why the total amount spent on it on Instagram in 2018 was over $1.5 billion.
However, with so much money being pumped into this form of marketing, there has to be a good return on it as well. Let’s find out how much ROI influencer marketing can give you and in what forms.
1. Brand Awareness
When you collaborate with an influencer, you get direct access to their audience. This audience is usually highly-engaged and swears by the influencer’s recommendations. You can increase your reach in this manner and increase your brand awareness.
For instance, a frozen foods retailer in Iceland partnered with mom influencers to increase their brand awareness. After the campaign, their approval ratings shot up from 10 to 80%!
The most apparent form of ROI from influencer marketing is in terms of revenue. You can collaborate with influencers to promote your products and push their audiences to buy them.
A survey found that for every $1.29 that was invested in influencer marketing, brands were able to generate $11.38. That’s an ROI of almost 11X.
3. User-Generated Content
Through influencer marketing, you can get unique user-generated content developed by the influencers. This can be further shared on your social media handles.
Additionally, the influencer can motivate their audience to create content around your products too. This content can then be repurposed and used for your social media campaigns as well.
If you want to find out the perfect recipe for a successful influencer marketing campaign, check out this influencer marketing ROI infographic by Grin.