January 28, 2023

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Measuring the ROI on Influencer Marketing

Influencer Marketing

Companies that invest in influencer marketing campaigns can generate greater ROI if they build their campaigns based on a revenue-driving strategy. By collaborating with influencers on social media platforms a company can reach those followers more effectively, building a more authentic relationship with them.

Influencer marketing

Influencers , such as trendsetters, stars, thought leaders and tastemakers often use their social media platforms to promote products, messages or beliefs. Collaborating with influencers on marketing campaigns is a great way for companies to generate more brand awareness and website traffic, and even directly impact the purchasing decisions of potential customers. 

Working with a variety of influencers

Companies that invest in a strong influencer marketing campaign need to work with a few different people to ensure their campaigns are going to be as effective as possible. That generally tends to mean that companies will have to work with both accounts that have a smaller number of followers (micro and nano influencers), as well as accounts that have a bigger number of followers on social media platforms (macro). It’s often quite easy for companies to get caught up in the number of followers that an influencer might have on a social media account, and many people tend to assume that more followers tend to mean better results, however, that’s not always the case. In fact, companies that invest in influencer marketing campaigns, and collaborate with influencers that have a smaller number of followers can also generate great returns on their investment (ROI), if they are working with the right people and reaching their target audiences.

Measuring ROI based on influencer type

There are different types of influencers that companies can work with, not just in terms of the social media platform that the influencer is using, but also in the type of content that they create, as well as the number of followers that they have on a particular social media account. Most people are familiar with social media superstars that have millions of followers on platforms like Instagram or TikTok, however, what many businesses don’t know is that influencers of all sizes can generate a positive impact on marketing campaigns in different ways. Generally, influencers with smaller numbers of followers can have higher engagement rate, or click through traffic to purchase products, while influencers with large numbers of followers are great for brand awareness and visibility.