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The ROI of Influencer Marketing

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Even though influencer marketing is widely acknowledged to be the most effective yet highly affordable form of advertising, the actual return on investment is still a looming question for marketers who haven't yet worked with influencers. In this white paper, you will learn about research data and case study examples that prove the ROI of influencer marketing.

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The ROI of Influencer Marketing

  1. 1. what is the of influencer marketing Social media has become a noisy and competitive space for marketing. Smart brands understand that social is about engaging target audiences with an authentic voice, and influencer marketing is becoming the most effective way to pull this off. Like celebrity endorsements, influencer marketing is a way to connect with consumers by using the voice and creativity of someone they know, like, and trust. But influence on social media is a different kind of celebrity, built on a foundation of quality content and authentic connection.
  2. 2. 74% OF CONSUMERS say online wom PURCHASE 77% of brand conversions online are people looking for help or advice 84%trust recommendations from people they know over brands The challenge is identifying and measuring the return on investment when it comes to influencer marketing. But make no mistake, there is data validating the efficacy of influencer marketing as a strategy for reaching young audiences on social and mobile, with a strong return on investment. 55%of businesses report better quality customers Some industries fare better than others when it comes to influencer marketing. According to an eMarketer study, the consumer packaged goods (CPG) food industry has seen the biggest return, followed by travel, beauty, alcohol and beverages, and grocery. However, with the democratization of media, influencer marketing is increasingly the most effective way to reach online and mobile audiences. 70%report a 2:1 return for every dollar spent 13%report a 20:1 return for every dollar spent recommentations INFLUENCE their buying decisions Millenials said IS THE #1 INFLUENCER IN THE of big ticket items Once the connection is made, an influencer recommendation can hold far more power than a branded message. This isn’t a particularly new phenomenon; social has just opened the door to more voices than ever before. In the end, influencer marketing turns the consumer trust in word-of-mouth into a strategic marketing opportunity by capitalizing on the intimacy of the social medium.
  3. 3. For example, if your goal is to raise awareness about your brand in a particular demographic, measure engagement in the form of additional followers, brand mentions or the use of a campaign hashtag. If your goal is to boost sales, measure the rate of conversion during and immediately following a campaign. The key is to identify the campaign goals and the metrics for success, then track those metrics during and after the campaign. Below are a few Case Studies that saw excellent results from using influencers: So how do you quantify the results from your influencer marketing campaigns? Use specific business goals as the basis for developing campaign strategy Identify the right creative talent based on your target audience Track key social media metrics such as reach, impressions and engagement to measure success.
  4. 4. Italian fashion brand, Calzedonia, launched its 2015 swimwear collection with a web friendly campaign that included influencer marketing. TARGET: Young, modelesque women TALENT: bloggers/celebrities STRATEGY: Reach 15 million social media users with 23 posts from influencers. RESULTS: Instagram reach: 15,726,582 New Followers: 74,645 27 15,756,582 74,645 POSTS REACH NEW FOLLOWERS Calzedonia: A Web Friendly Promotion Total online reach: 25,880,770 Ripple effect: More than 30,000 posts using the campaign hashtag #CLZ CASE STUDY01
  5. 5. The L.A. - based non - profit, Harold Robinson Foundation wanted to generate buzz for its Pedal on the Pier fundraiser. TARGET: Fitness, Fashion and Philanthropy TALENT: Snapchat and Instagram STRATEGY: Raise awareness, create real-time event buzz, and raise $600,000. RESULTS: Media: Featured LA Snapchat Story New Followers: 500 200 $800K 500 POSTS RAISED NEW FOLLOWERS Pedal on the Pier: Influencer Marketing to Raise Awareness Fundraising: Exceeded fundraising goal by $200,000 Ripple effect: 200 posts using #WeSpinKidsWin hashtag CASE STUDY02 PEDALONTHEPIER
  6. 6. The top challenges marketers face when working with influencers Competing with other brands for the attention of social media influencers Identifying the right influencers for their campaigns Communicating and managing creative talent Dealing with the privacy concerns of social media influencers
  7. 7. Both Calzedonia and the Harold Robinson Foundation benefitted from having the influencer marketing agency, InstaBrand, manage their campaigns. It is entirely possible to manage your own influencer campaigns. However, by-passing an agency means having to compete with other brands for the attention of creative social media talent, as well as having to identify the right influencer for your campaign . Working with an agency means placing these challenges in the hands of experts. The benefits of working with an influencer marketing agency include: Account management: Agencies like InstaBrand assign your campaign a dedicated account manager to act as liaison between your brand and creative talent. Creative Execution: While you might have some business goals in mind, an agency can help you develop a strategic plan for achieving those goals. Analytics Tools: Influencer marketing agencies already have the tools and expertise to track and understand the data most important for measuring the progress of your campaign. The bottom line is that influencer marketing is becoming the most effective way to reach online audiences. Working with an agency is the best way to ensure the strategic and successful execution of your influencer campaign. Interested in starting a campaign? SIGN UP HERE
  8. 8. http://www.nielsen.com/us/en/insights/news/2012/consumer-trust-in-online-social-and-mobile-advertising-grows.html http://think.storage.googleapis.com/docs/the-path-to-purpose_articles.pdf http://www.adweek.com/socialtimes/social-media-brand-mentions/498969 http://www.radius-global.com/about/news-releases/millennial-and-boomer-shoppers-may-be-more-alike-than-you-think http://www.convinceandconvert.com/digital-marketing/influencer-marketing-for-businesses/ http://www.emarketer.com/Article/How-Big-Influencers-Influence/1012904 http://www.marketingprofs.com/charts/2015/28107/marketers-biggest-challenges-with-social-influencers instabrand.com