Influencer marketing is the way of the future. Some people remain unconvinced about just how important influencer marketing is to their brands.
Whether it’s your boss, the VP of marketing, or one of your co-workers, someone’s no doubt digging in their heels about this new marketing technique. You can’t blame them for being skeptical. After all, you’ve seen marketing fads come and go too. What’s to say influencer marketing isn’t another passing trend? Moreover, does anyone know it really works?
There are a few statistics floating around out there, and they all say yes, influencer marketing works! The return on investment (ROI) is often much better for influencer marketing campaigns than traditional digital advertising.
One problem remains: How exactly can you prove ROI?
What Is ROI?
A return on investment (ROI) is pretty much what it sounds like. It’s the money you make on your investment. While it’s usually applied to actual investments like stocks and mutual funds, the business world has adopted the concept as one way to measure the success of any initiative.
For example, if your company upgrades its IT infrastructure, someone might discuss the ROI of “investing” in new technology. Essentially, ROI is a way of justifying spending money on a project in order to cut costs, save money, or make more money.
Since influencer marketing campaigns require you to splash out a bit of money, they also have an ROI measurement.
A Better Investment
So far, the numbers indicate influencer marketing is probably a better investment than other traditional forms of digital advertising. One study revealed influencer marketing, on average, had an ROI 11 times higher than these other forms of digital advertising.
Influencer marketing is a better investment for two reasons. First, it obviously works. You can’t achieve an ROI 11 times higher than other forms of advertising if this method doesn’t work any better than other techniques. The other factor is cost. Influencer marketing often costs less than those other digital campaigns, which boosts ROI.
It’s all well and fine to say influencer marketing campaigns have a higher average ROI than other digital advertising techniques. The office skeptic will still ask for proof your campaigns are actually working. Averages sound nice, but they don’t mean much. Some campaigns perform better than average, while others underperform.
If you’re already running campaigns and you want to increase your budget or save your program in the face of cuts, you’ll need to prove influencer marketing’s value. If you’re just proposing influencer marketing, you need to prove how valuable it can be, even if you haven’t run a campaign yet. You’ll need estimates.
The question is where can you pull these numbers from?
A Simple Answer
If you find yourself needing to prove ROI to get a budget approved or to save your campaign from being closed down, you’ll want to turn to the influencer marketing platform
You’ve probably heard of influencer marketing platforms before. Many marketers laud them, and most influencers use them to connect with brands. In fact, they’re the preferred way for influencers to conduct business with brands. If you’re not already using one, you should be.
Your influencer marketing platform does more than put you in touch with potential influencers. It’s probably recording some data you can use to prove ROI.
The Influencer Marketing Platform Yard Stick
Your influencer marketing platform probably records a lot of information about your campaigns. You can keep track of different metrics. These measurements provide feedback on your campaigns, including what’s working and what’s not.
They can also help you prove your campaigns have a positive ROI. Once you have the hard numbers in hand, it’s much easier to silence the office skeptic. If you need proof your influencer marketing is working, check in with an influencer marketing platform.