Did you know that 86% of marketers are still unsure how compensation of influencers is calculated, and 38% can’t tell if a particular campaign drives sales or not? The ROI of influencer marketing is something that continues to baffle many marketers. In this article, we’ll take a look at how to calculate the ROI of influencer marketing. But first, let’s see what kind of results you can get from influencer marketing:
Table of Contents
Engagement:
Influencer marketing can help to generate a lot of engagement. This includes clicks, shares, likes, and comments. The more engagement you get, the better you can communicate with your customers. You can understand what they value and what their grievances are.
Brand Awareness:
Influencer marketing can get you a considerable amount of brand awareness too. If you collaborate with influencers from your niche, you can get a lot of visibility in front of the right audiences.
Content To Be Repurposed:
Influencers create content on your behalf, and in most cases, you can reuse that content. 74% of marketers repurpose influencer-generated content on their social channels after the campaigns are over. This is a main benefit you get from your campaigns.
Revenue:
Influencer marketing is said to be fastest-growing method of acquiring customers online. Businesses have been known to make $6.50 in earned media value for each $1 spent on influencer marketing. However, in order to reap the benefits of influencer marketing, you need to make some investments too. Let’s take a look at what they are:
Time:
Right from shortlisting your influencers to executing your campaign, you need to invest a lot of your time into influencer marketing. You need to have regular communication with your influencers and make sure that they understand your objectives and deliver on time. So you need to have a good amount of time on your hands if you want to run successful influencer campaigns.
Agency Fees / Cost of Platforms:
If you hire the services of influencer marketing agencies, then that will involve some cost. And if you want to use an influencer marketing platform to run and manage your campaigns effectively, you’ll need to factor in that cost too.
Compensation:
You can’t expect influencers to work with you for free. Some influencers might be happy to work for free products or services. However, many of them will be more interested in working for monetary compensation.
For more information, check out the infographic below:
This Infograph is shared here after legal permission from Grin Co
About the Author:Brian Mechem is COO and Co-Founder of Grin, a software solution for companies who run influencer marketing programs. Grins 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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