Influencer Marketing ROI: Is it the Real Deal?
You’re re-optimizing your marketing strategy on the regular -- maybe twice as much, given how insane 2020 has been. You’re constantly searching for new ways to boost your business, score those conversions, and remain fresh in your audience’s minds. With consumers more attached to their phones than ever via social distancing, you’re trying to capitalize on all fronts. The real deal of influencer marketing ROI (return on investment) is a lot to consider after all.
The following might apply to you...
- Perhaps you’re curious about the real deal of influencer marketing ROI
- You’ve already integrated it into your strategies, but you’re having trouble configuring it in a way that makes sense for your business
- Maybe you aren’t seeing the true ROI from influencer marketing - either as an influencer or a business
Whichever boat you’re in, you still have a lot to benefit from influencer marketing. Though the ultimate goal for any marketing strategist is sales, influencer marketing can provide plenty of benefits outside of dollars - for a pretty small price to pay. No more long hours of trying to develop the next big campaign for your product. Though such a tradition is still important to any brand, the rise of influencer marketing is hard to ignore, and influencer marketing ROI is becoming increasingly larger by the year.
We’ve mentioned the value of influencer marketing many times on this blog, but in case you’re new here or need a reminder, the influencer marketing niche is projected to be worth up to $15 million by 2022.
As an influencer, you have so much opportunity from these businesses who have committed to working with influencers, and even if your favorite company hasn’t just yet, there’s always an opportunity.
Below, we’re going to dissect a bit more of how that’s been possible, why now is a better time than ever to profit from the ever-increasing value of influencer marketing ROI, some tips on how you can best integrate it into your business (regardless of what hesitations you might have), and how to sustain a steady flow of influencer marketing ROI.
Understanding Influencer Marketing ROI
Influencer marketing is providing more answers than questions to businesses these days, but if you still have some of the natural questions that tend to pop up when examining a new marketing strategy, we’re here to answer.
Influencer marketing ROI can be a pretty lengthy subject because of the MAJOR possibilities when exploring the influencer marketing industry. If you’re still having a tough time buying into the “hype”, consider this piece of info from tapinfluence: “Influencer-led campaigns generate $23 for every dollar spent - more than FIVE times the number produced by banner ads.”
Pretty powerful, I’d say.
With the number of companies clamoring over to this highly lucrative strategy, it can be pretty difficult to distinguish yourself from the rest to tap into the genuine nature of this type of marketing. Audiences are picking up on it everywhere - we’ve got more advice further into this piece if you want to stand out as a trusted brand when working with influencers.
Like we mentioned, the dollars side is key, but not the only benefit of influencer marketing. You’re scoring plenty of extras when working with social media influencers, including a greater reach, cost-effective content, and engagement unseen anywhere.
To give you a better idea of what this qualifies as for businesses….
- When you’re agreeing to work with influencers who fall closely aligned with the values and message of your brand (some more tips for this later in this post), you’re popping into the heads of consumers who have A LOT of options - and now that their trusted influencer is touting yours as one, they’ve received a signal.
- Organic, user-generated content is arguably the most cost-effective out there. You omit so many associated costs with in-house campaigns (photoshoots, graphic design for visuals, social media strategy) and rely on influencers to hit ALL of those benchmarks at a reduced cost - with results guaranteed.
- Brands see some of the lowest overall engagement rates on their social media profiles - but when they delegate their advertising over to influencers, they tend to see greater engagement, leading to profile visits, website visits, and a completed journey throughout each step to landing that desired conversion.
Stock advertisements and celebrity endorsements just don’t hit the same way they used to. With more internet users turning to YouTubers, Instagrammers, podcasters, and TikTokers for entertainment, lifestyle tips, inspiration, and knowledge, influencers are receiving more exposure and growing their audiences like never before. Social media applications have noticed and are developing new ways for the ad space to grow since it aids their pockets too.
Influencers, you have so much to take away from this as well. You’ve got a lot to offer to these potential brands you haven’t worked with yet, and the more you understand their language and can assist in easing their fears, the easier it will be to land these relationships.
Business jargon can seem a little intimidating if that isn’t your background, but if you take some to develop particular skills within the overall world of marketing, you’ll have a better understanding of your value and the semantics behind the deals you’re agreeing to.
Stop stalling and jump on board - influencer marketing ROI is in fact the real deal.
How To Integrate Influencer Marketing In To Your Business
Making the shift can see a little petrifying, sure. But every business has the right influencer(s) somewhere. It just takes a little bit of digging.
Social media influencers come in practically every genre these days. No matter your hobbies or interests, there are plenty of faces rising to represent just about everything possible. Partnership programs have emerged from video game companies to sports apparel companies. You might think it’s a no-brainer for large corporations, but that visibility for the “smaller guys” is huge too.
No matter what service or product you offer in the world of e-commerce, there’s definitely a group of influencers who can exist to help you grow in your marketing efforts.
- Research the influencers who represent your industry.
- Study their audiences, data, and their profile at first glance.
- Have they worked with brands before? Is there a pending flight risk?
There’s a lot you need to factor in before making that initial contact. How much do you want to devote to this new initiative in your budget? You want to dedicate an appropriate amount that every part will be happy with, and that will deliver that ROI that’s been touted.
20% of brands reportedly said in survey data acquired by Linqia that they would devote 26-50% of their digital marketing budgets to influencer marketing budgets after witnessing the incredible results that arise from the business - so don’t delay.
You don’t have to go ALL-IN, but testing the waters with a deal or two with a trusted influencer can really make a substantial difference in your sales.
And influencers, don’t sit and wait around for the gifting or business emails for the clue that a brand who’s just jumped in wants to work with you. Assess your overall content creation brand, gather your results, and pitch to clients. No matter the size of your following, you might be surprised at the number of businesses that would love the chance to work with someone with a platform like yours.
A tool like Kalyspo can help you get the ball rolling. If you’ve spent hours plugging away at calculations, storing your data in a bajillion different places but have struggled to visualized which campaigns have worked for you and which haven’t, Kalypso is an amazing addition for your influencer marketing business.
Kalypso helps you visually and numerically identify your ongoing and past campaigns through a clean, organized dashboard. Your metrics are easily accessible through the Kalypso portal, merging the results of your hard work altogether in one place.
For pitching, specifically, Kalypso can generate automatic gorgeous, detailed wrap-up reports that enable you to supplement your pitches. These wrap-up reports contain a wealth of information, including a detailed campaign summary and a detailed summary of each individual platform’s results.
Pro-tip to brands: If the dedicated influencer your working with isn’t this attuned to the results you’re looking for, that’s a huge red flag.
How To Maintain That Influencer Marketing ROI You’ve Been Craving
Brands and influencers - I know you’re each looking for ways to expand at any given moment. That’s what any success-driven entrepreneur strives for.
Businesses, here are a couple of ideas on how to maintain and grow that influencer marketing ROI you’re consistently hearing about.
- Promo codes are an awesome way to signal to consumers just what you’re about. Everyone loves a good discount and linking that to your brand is an immediate interest for just about everyone.
- Don’t shy away from challenges and hashtag campaigns - these performed extremely well during the height of quarantine, and with many people still searching for ways to fill their time during a period of limited socialization, another avenue of connection is a great way. These participatory challenges are particularly successful on TikTok, a platform that’s trending upward in the influencer marketing industry.
- Think of some natural ways to integrate your brand with the influencer’s current content - despite Instagram being the hub for influencer marketing, a post solely dedicated to a sponsorship might not see the active engagement you want. Does the influencer regularly update their beauty routine? Are they always chatting about productivity methods? Do they love to cook? Whomever you felt closely identifies with your product, try to seamlessly mix the content and your product placement.
- Finally, long term deals may seem costly, but they can really hone in on the significance of the influencer’s endorsement. If your influencer has agreed to work with you past a temporary campaign and is inserting your brand (not saturating)...into a lot of their work, many fringe or skeptical customers may take that as the final push they need to investigate the product you’re putting out there.
Influencers, don’t be afraid to offer your two cents on the best strategies for every individual campaign. This is especially important if you have experience working with other brands. Newer brands who are unfamiliar with the influencer marketing space will appreciate your expertise and ability to contribute to the campaign instead of expecting a fully developed plan.
The e-commerce market might seem like it isn’t a personable space, but people are all driving these companies. Don’t be afraid to be personable - that’s the entire idea behind influencer marketing, and why so many consumers are shifting in that direction to guide their purchasing decisions.
Influencer Marketing ROI: IS it the Real Deal?
Simply put, yes.
There’s a lot at stake when you’re configuring marketing budgets and with the pandemic leading to many companies tightening or even completely slashing these budgets, many companies are trying to sort out the best way to bring in revenue while not being completely invisible.
This year, influencer marketing ROI has especially proven its effectiveness across various industries and has turned soured profits into dollars.
Influencers: Your value is increasing just by the month and with some nifty navigating, you can give brands everything they’re asking for and more in accomplishing their objectives at a lovable rate. Kalypso is here to help every step of the way.
Brands: This is a great chance to transform everything you’ve ever thought about marketing and put your success toward proven, affordable methods. Just when you thought marketing seemed impossible in a chaotic time, influencer marketing provides a great alternative from what you’re used to that is essentially turning into the standard.
What are you waiting for? Make that push and begin those discussions today. The results are certain to impress, no matter which side of the negotiating table you’re sitting at.