Digital marketers and PR professionals know that consumers these days pay less attention to a brand’s message unless it comes from a source they trust. Enter the social media influencer.

Influencer marketing, when planned out and executed properly, can generate a significant return on investment for a business. Based on a recent study by Tomoson, businesses are generating $6.50 in revenue for each $1 spent on influencer marketing initiatives.

The article, and numerous studies, also highlight influencer marketing as the fastest growing form of online marketing.

Here are some highlights from a recent study performed by Tomson, a platform, that when combined with the right strategy and team to execute that strategy can be a powerful force in your marketing arsenal.

Key Takeaways:

  • High ROI Potential: Influencer marketing yields an average of $6.50 for every dollar spent, with some campaigns earning even higher returns.
  • Consumer Trust: Influencers provide a trusted voice, with 84% of consumers preferring peer opinions over brand messages.
  • Top Platforms: Blogs and Facebook are leaders in ROI, with 37% of marketers reporting the highest returns from blogs.
  • Budget Shift: Over 60% of marketers are increasing their influencer marketing budgets, recognizing it as a top cost-effective strategy.
  • Strategic Execution: Success hinges on setting clear goals, selecting the right influencers, and tracking performance data to adjust strategies in real-time.
  • Outpaces Other Channels: Influencer marketing now competes with, and often surpasses, organic search and email in customer acquisition effectiveness.

Influencer Marketing Helps Businesses Attract Better Customers

A majority of marketing professionals feel that their company is able to attract a higher-quality customer through strategically planned and properly executed influencer marketing campaigns.

This is a direct result of the shift in consumer trust, from brands to peers. A popular Nielsen study shows that 84% of consumers trust the opinions of their peers and those who they follow online.

Influencer Marketing Yields Higher Returns on Investment

Based on the same study, the average influencer marketing campaign generates a return of $6.50 for every $1 invested. 70% earn more than a $2 return on every dollar, and 13% earn more than $19 on ever dollar invested. Only 18% of influencer campaigns break even or fail to generate a positive return, but from what I have seen this can usually be avoided with the right planning and execution of an influencer marketing campaign.

Blogs and Facebook Generate the Highest ROI

With Facebook’s ever expanding focus on improving their content distribution algorithm, monetization strategies, and ad platform, it’s no wonder that 21% of marketers report the highest ROI when promoting their brands, products, and services through Facebook influencers. Even so, bloggers who have built up large audiences of loyal and trusting consumers are still at the top of the ROI ladder with 37% of marketers reporting that they see better ROI’s when working with bloggers than any other social media channel.

Influencer Marketing is Outpacing Organic Search and Email Marketing

As outlined in the graph below, marketing professionals are focusing more on their influencer marketing strategies then they are on organic search and email marketing. Marketers from around the world choose influencer marketing as their preferred channel for acquiring new customers online.

Budgets are Shifting to Influencer Marketing

Nearly 60% of marketers surveyed are increasing their budgets for influencer marketing over the next year with another 20% considering doing the same. This is the perfect time to reach out to influencers and negotiate rates before their demand grows along with their pricing.

Influencer Marketing Tied for Most Cost-Effective Online Marketing Method

Influencer marketing ties email marketing for first place as the most cost-effective form of online marketing. With 22% of marketers confirming that it is their most cost-effective tool. Email marketing received the same vote, while organic search came in third place with 19% of the vote, followed by paid search and display advertising with 10% each.

While influencer marketing is growing in popularity among large and small brands alike, the biggest challenges lie in the strategy and execution of an influencer marketing campaign.

Here are the 6 key factors that determine whether a campaign is successful or not:

  1. Establish clear goals and objectives for your influencer campaign
  2. Identify the appropriate social channels and blogs that will yield the highest returns for your organization
  3. Select the right influencers who speak to your target audience
  4. Create effective messaging that will resonate and engage your target consumers with the intention to influence their behavior
  5. Distribute the messages in an authentic manner by working closely with the influencers
  6. Track and measure the right data to refine your process and make changes in real-time while your campaign is running in order to maximize the benefit your brand receives.

How to Select the Right Influencers for Your Brand

Selecting the right influencers is key to achieving your marketing goals. Here’s how to make the best choices:

  1. Define Your Goals and Audience: Identify what you want to achieve (e.g., brand awareness, sales, engagement) and understand your target audience demographics and preferences. This helps you find influencers who naturally appeal to the audience you want to reach.
  2. Evaluate Relevance and Authenticity: Choose influencers whose content and voice align with your brand values and industry. Look at their previous posts and partnerships to gauge whether they resonate with your message and can authentically represent your brand.
  3. Analyze Engagement, Not Just Follower Count: A large following isn’t always the best indicator of success. Review engagement rates, including likes, comments, and shares, to see how actively their followers engage with their content.
  4. Assess Platform Suitability: Choose influencers who are active on platforms where your target audience spends the most time. For example, if your demographic skews younger, TikTok or Instagram might be a better fit than LinkedIn.

Creating Authentic Influencer Partnerships

Building genuine relationships with influencers can enhance the credibility and impact of your campaigns. Here’s how:

  • Approach Influencers as Partners, Not Just Marketers: Engage influencers as collaborators who contribute to your brand, rather than as one-off promoters. Seek their input on campaign ideas to make the partnership feel authentic.
  • Encourage Creative Freedom: Influencers know what their followers like, so give them space to create content in their own style. Authenticity is key, and their followers will recognize and appreciate genuine recommendations.
  • Long-Term Collaborations Over One-Time Campaigns: Building lasting relationships with influencers can increase your brand’s credibility. Regular collaboration signals to their audience that the influencer genuinely believes in your brand.
  • Transparent Communication: Be open about expectations, deliverables, and deadlines. Transparency builds trust and helps both sides feel aligned on goals, ultimately leading to better results.

Overcoming Common Challenges in Influencer Marketing

Influencer marketing can yield impressive results, but it also comes with unique challenges. Here’s how to tackle some of the most common issues:

Challenge: Finding the Right Influencers

Solution: Use influencer marketing platforms or analytics tools to find influencers with high engagement and audience alignment. Consider both micro and macro-influencers to achieve a good mix.

Challenge: Measuring ROI Effectively

Solution: Set specific metrics for success, such as clicks, conversions, or engagement rates, and use tracking links or codes to attribute results directly to influencer efforts.

Challenge: Ensuring Content Authenticity

Solution: Prioritize influencers who already align with your brand values and give them creative control. Avoid scripted or overly promotional content to maintain authenticity.

Challenge: Managing Costs

Solution: Start with smaller campaigns or micro-influencers who offer high engagement at a lower cost. Additionally, explore non-monetary incentives like product gifting, which can be effective for influencers who genuinely like your brand.

Wrapping Up

With all the great new tools that social channels provide for business and promotion use, now is the perfect time for a company to get into the game if they haven’t already.

With the right strategy and team in place to execute your next influencer marketing campaign, chances are you too will be placing more focus and allocating more budget to influencer marketing in the future.

There has never been a better time to get started with influencer marketing.

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