The two metrics that make influencer marketing campaigns stand out are their Return on Investment (ROI) and Earned Media Value (EMV). In this online video lesson, we will learn statistical data related to these, as well as discover how influencer marketing stacks up against other marketing channels.
- [Narrator] Regardless of the industry in which you operate, any marketing decision should be preceded by an analysis of the viability of your ideas. And while it's still a relatively new marketing concept, there's plenty of influencer marketing data for us to turn to. A 2015 influencer marketing study conducted by Tomoson revealed that influencer marketing is the fastest-growing customer-acquisition method. It beats search, email, and every other method of online advertising.
The reason is simple. Together with email, influencer marketing has been found to be one of the most cost-effective ways to drive business. When conceiving of the launch of my own influencer marketing conference, Influencer Marketing Days, I polled more than 200 marketers on their company's stance on influencer marketing. No one chose the poll option that said, "We've actively decided not to get involved in influencer marketing." The State of Influencer Engagement 2015 report by Augure discovered that 81% of those surveyed characterized their marketing through influencers as effective or very effective.
The only logical question to ask is, "Exactly how effective can influencer marketing be?" There are various ways one can quantify effectiveness, but we will focus on two: Return on Investment and Earned Media Value. ROI, or return on investment, is by far the most frequently requested metrics, regardless of the marketing channel that you use. It makes all the sense in the world to take a closer look at the ROI that influencer marketing can bring.
When Nielsen Catalina Solutions analyzed the TapInfluence Campaign run for WhiteWave Foods, it arrived at some staggering results. This particular influencer marketing campaign focused on nearly 260 fitness and food influencers, encouraging them to produce content about Silk almond milk and their Meatless Mondays initiative. The published content was also promoted leveraging these individuals' social media influence.
When comparing the ROI of this influencer marketing campaign to the ROI yielded by banner ads, after 12 months it was discovered that the influencer marketing initiative yielded 11 times higher return on investment than banner ads. To give another example, in 2014, when McKinsey analyzed the impact of the online buzz accompanying an Apple iphone's launch in Germany, they discovered that the sales directly attributable to the positive online word of mouth surrounding the launch outstripped those attributable to Apple's own paid marketing sixfold.
Additionally, the effect from the online buzz resonated for 24 months after the launch. This brings up another important point. Unlike a paid ad, influencer content rarely gets taken down but keeps facilitating branding and driving conversions for years and without or with minimal additional investments. Another metric worth turning to is Earned Media Value. RhythmOne defines it as "the dollar value that can be attributed to publicity, social sharing, and endorsement, and other unpaid digital media exposure." It's a useful way to measure an advertising campaign's success beyond the bounds of paid placements, taking into account the amplification effect that influencer marketing always has.
In their 2015 Influencer Marketing Benchmarks Report, RhythmOne looked at the EMV of influencer marketing efforts across different verticals, comparing the results to those from 2014. On average, in 2015 influencer marketing campaigns were found to yield 11.2 dollars in earned media value per every dollar of paid media. This represented a 63% increase over the full year 2014 with its solid average of $6.85 in EMV.
Influencer marketing is a highly effective customer acquisition method that yields impressive ROI and EMV. Whether you get involved in it or not is your choice. Keep in mind, though, that your competitors are likely already employing or about to start doing so. Don't let them eat your piece of the pie.
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- Types of influencers
- Tools for influencer identification, research, and comparison
- Finding contact info
- Activating influencers
- Measuring the effectiveness of influencer marketing