When it comes to traditional advertising and marketing budgets, we look for the value for money invested based on the standard performance indicators like CPC/CPM, conversion rate, sales statistics, and all-round ROI. These numbers have always been our benchmark on whether the budget was spent successfully.
Most often digital campaign budgets are split up amongst Facebook, Instagram, and Google ads, web banners, and other standard advertising channels.
But then came the pandemic of 2020, COVID-19 and budgets are suffering. Advertisers, marketers, and brands alike are all having to work more cautiously as they tighten their belts and strategize extra carefully to try get the most out of their spend.
As budget and channel distributions are being scrutinized, making the right decision on where to spend has become more pressurized than ever, especially if we are looking for the best return on investment during a global crisis.
Making noticeable waves as the rising star amongst it all is influencer marketing, proving its worth as the smart choice with evidence-based statistics to back up its momentum.
The best way for us to illustrate this is by simply looking at some examples (note – all identifying elements have been removed but the numbers are real).
Sampling one influencer marketing campaign, here it is:
- The influencer – Established in the men’s fashion space with around 280,000 followers on his Instagram account
- His followers’ profile – 75% English speaking, 67% located in the USA, Canada, and UK, predominantly male at 80%, with other interests including pets, fashion, and lifestyle
- He was paid $1000 for 1 post
- Engagement – The post received a bit more than 11,000 in terms of likes, shares, and comments which represents 3.9% (the benchmark in the industry for such account size is around 2.5%)
- The brand reported an increase of 4% in entries to its website in the first 48 hours after the campaign started
So, the campaign gained a reach of around 280,000 and engagement of 11,000.
We then estimated the performance of paid ads with this same budget of $1000 and with these same profile definitions in the audience section of Instagram and Facebook paid ads platform. Here are the results:
- Reach – 13,000
- Engagement – 1800
To compare: 21X more reach and 7X more engagement for influencer marketing.
We then did the same exercise in different niches, on different social media platforms, different followers and influencers profiles and the results are almost always the same:
- Reach – 15-23X more reach
- Engagement – 4-9X more engagement
Now since it is already proven that the conversion rates for influencer marketing are way higher (due to authenticity and followers acceptance to a message from someone they love and are invested in), consider the bottom line in terms of increase in sales and spike in brand awareness.
Bottom line – Think carefully where you invest your next $ in terms of marketing, especially these days.