Influencer marketing is an impactful form of social media marketing. The impact of influencer marketing is due to:
All of these reasons are why businesses choose to invest in influencer marketing promotions. This article will cover statistics showing the effectiveness of influencer marketing, how it impacts consumer behavior, and will provide you with strategies to boost the ROI of your influencer campaigns.
The average return on investment (ROI) for social media influencer marketing is $5.78 for every $1 spent. Many businesses can see much higher ROIs than the average, with top companies having an ROI of $10 for every $1 spent. Influencer marketing is a growing industry with many businesses investing in it because of the high ROI.
The high ROI isn’t the only statistic that shows how effective influencer marketing is for businesses. Some other statistics showing the effectiveness of influencer marketing are:
Each of these statistics shows the high effectiveness of influencer marketing and why many businesses see it as a valuable investment as part of their marketing strategy.
Influencer marketing has a big impact on consumer behavior. Billions of people are active social media users, with studies showing that 56% of people check social media at least ten times per day. This high usage of social media and the connection that many consumers feel with their favorite influencers leads to influencer marketing being very impactful on purchasing decisions.
Nearly every active social media user will be impacted by influencer marketing in some way since it is very widespread, with 93% of marketers reporting that they use influencer marketing as part of their company’s marketing strategy. Whether it is brand awareness or making a purchase, most consumers will see influencer ads from accounts they follow and be impacted by them.
In addition, 49% of consumers say they rely on influencer recommendations for purchasing decisions. Many consumers will actively seek out reviews and other social media content showcasing the features and benefits of products or services before making a purchase. This makes influencer content an impactful part of the consumer buying process.
Some influencer marketing strategies can lead to higher ROIs when done correctly. These strategies will help you efficiently utilize your influencer marketing budget.
The most effective social media strategies with a high ROI are:
These strategies will lead to efficient spending and a high return on investment for your influencer campaigns. The next sections will provide more detail on each one.
Influencers promoting contests, sweepstakes, or branded hashtags that encourage UGC have a high ROI. These promotions get consumers involved with the brand and influencer, creating a sense of community that makes purchasing and using a brand’s products fun.
Allowing consumers to purchase directly on social media leads to higher ROI from influencer promotions. When an influencer’s followers see an ad and can buy directly on social media without leaving the platform, it makes purchasing easier, and consumers are more willing to make a buying decision.
Influencer ads that use video tend to outperform still photos and other types of content. Video leads to influencer promotions having a more personal feel, since consumers get a better idea of how the product looks and works, so they know how it would fit into their own lives.
Conducting market research before investing in influencer promotions will help you learn about your target audience and choose the right influencers for your brand. Choosing the right influencers and niches will lead to spending your influencer marketing budget more effectively.
Influencer marketing platforms like Lionize AI will help you create a more effective influencer marketing strategy. Lionize uses artificial intelligence to streamline the influencer marketing process and gives you valuable insights on how you can optimize your campaigns.
Influencers with less than 100,000 followers typically have more engaged followers, well-defined niches, and will charge less to promote your brand. Finding micro and nano influencers in your niche can be a cost-effective way to promote your brand to a highly targeted audience.
Lionize is an influencer marketing platform that can help you create a winning social media marketing strategy. Lionize uses artificial intelligence to learn about your business and influencer marketing needs to help you connect with the right influencers, optimize your influencer marketing budget, and create goals for success. All of this is done on a streamlined platform that helps automate the process and track data from influencer promotions. For more information about how Lionize can help, contact us today.