Influencer marketing is helping big brands reach out to more people and it’s helping small businesses scale bigger by giving them more publicity. And the best part is that it provides better ROI than other marketing methods.
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A study on influencer marketing showed that it can give 11x more ROI than banner ads. So, it’s only obvious that it’s the latest buzz in the world of digital marketing.
But how do we calculate ROI from influencer marketing? Let’s look at a few factors that we need to look at while calculating influencer marketing ROI.
1) Brand Awareness
When you want to grow your business, you need to make sure that you create buzz around your brand – and influencers can help you do so quickly. A social media post or a video by an influencer can help put your brand in the limelight. Influencers, who have large, loyal audiences, can make your brand more recognizable and easily relatable.
2) Better Brand Perception
Influencers are known to engage with their followers and form genuine relationships with them and their word on a product or service is seen as trustworthy. So, getting an influencer on board can actually affect the way that consumers perceive your brand.
The best things is that when influencers promote your product or service, it doesn’t come across as advertorial. For frozen foods retailer, Iceland Foods, collaborating with influencers made a huge difference to their approval ratings. After they released influencer-backed videos, their approval ratings saw a jump of 70%.
3) Increased Traffic & Engagement
Affiliate links and social media tags help the followers of influencers directly reach a brand. This means they can be redirected to your brand’s website or social media pages.
Because of this, influencers often use affiliate links and social media tags along within their posts. These can provide a way to redirect followers to your brand’s website. So, marketers can expect an increase in website traffic and engagement.
Keep an eye on number of page views, daily visitors, likes, shares, and comments to keep track of this ROI.
4) Diversified Content Feed
Influencers know what kind of content resonates with their audiences, so working with influencers will help you diversify your content feed. From reviews to social media takeovers and tutorials, you can experiment a lot. Influencer testimonials can also help you gain more credibility.
To understand the ROI of influencer marketing better, check out this infographic: