Currently, Influencer Marketing is a popular strategy that many brands are familiar with. A survey by Mediakix, a leading US company renowned for Influencer Marketing, found that over 89% marketers reported a higher ROI (Return on Investment, which shows the return on investment) from influencer marketing compared to other marketing strategies.
Because people today spend most of their lives online, a 2021 study by We Are Social found that Thailand had a high number of active social media accounts, totaling 55 million, which represents 78.7% of the total population. This is a 5.8% increase from the previous year, and more than 55.5% of people use social media to find information about brands they are interested in.
This data highlights the opportunities to reach customers through various social media platforms. One effective marketing strategy for targeting specific audiences is Influencer Marketing (One-to-Team-to-True). This is because people tend to follow individuals they admire for their lifestyle and ideas, who often have a significant influence on their thinking. Brands utilize these individuals to communicate with their target audience, encouraging them to learn about and try their products and services.
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Insightful data that helps brands identify business growth opportunities with Influencer Marketing.
Insights into Thailand reveal that over 87% shoppers often read product reviews before making a purchase. As a result, influencer-based campaigns yield 11 times higher ROI compared to traditional advertising, and campaigns using micro-influencers show a 7 times higher ROI. Furthermore, over the past three years, searches for the term Influencer Marketing have increased by 1,500%.
Furthermore, insightful data from 2022 reveals that the US influencer market was valued at $16.4 billion, and this year, 63% of marketers plan to double their influencer marketing budgets.
According to marketers, finding the right influencers is one of their biggest challenges, as it requires time for research, communication, and service. (75%) Influencer Marketing HelloAds's solutions can effectively help you achieve your campaign goals. If you are interested in our services, please let us know. Contact us now!
The influencer industry has also continued to grow at a rate of over 40% per year, eventually surpassing $10 billion in 2021 to reach $13.8 billion. From 2016 to 2022, the industry's average annual growth rate was 46.9%, and by 2023, the influencer industry is projected to grow to approximately $21.1 billion.
In addition to the rapid growth of the influencer industry, the number of consumers influenced by influencers has also doubled. 61% consumers trust influencer recommendations, while only 38% trust brand social media content. 51% marketers stated that influencer marketing helped them acquire more customers. The most popular platform in the influencer market is Instagram, with 79% brands using it for their campaigns, followed by YouTube, 51%, and TikTok (43%).
7 Variables Affecting the ROI of the Influencer Marketing Strategy That Brands Can't Miss.
Nowadays, both small and large brands are using influencer strategies. For example, Coca-Cola's campaign collaborated with fashion, travel, and lifestyle influencers to promote the brand in Europe. They used 14 influencers on Instagram, resulting in 22 sponsored posts tagged @cocacola.eu and #ThisOnesFor. This garnered over 173,000 likes and 1,600 comments, making the hashtag one of the trending hashtags on Instagram. Another example is Dior's award-winning 67 Shades campaign, which partnered with numerous influencers to promote their Forever Foundation, available in 67 unique shades.
But does hiring influencers to promote a brand actually yield a return on investment? This question was explored by Harvard Business Review (HBR) and international influencer marketing agencies. Their analysis of over 5,800 influencer marketing posts on Weibo, a popular Chinese social media platform, found that, on average, an increase of 1% in influencer marketing spending resulted in a 0.46% increase in engagement, indicating that the Influencer Marketing strategy can have a positive impact on ROI.
If brands want to use the Influencer Marketing strategy to increase engagement, reach, and sales, they need to understand the 7 variables that affect Influencer Marketing's ROI:
1. The number of followers an influencer has.
Data shows that the more followers an influencer has, the greater their reach. Furthermore, these influencers are perceived as more popular and trustworthy, leading to higher engagement rates compared to less popular influencers when considering brands with the same budget. HBR data reveals that posts from influencers with a follower base whose standard deviation is 1 above the average result in a 9.21% increase in ROI.
2. The frequency of influencer posting.
Analysis suggests that influencers who post infrequently are perceived as lacking sufficient presence to build engagement and trust among their followers. Conversely, posting too frequently can annoy followers. Influencers who post moderately, around 3-4 posts per week, can achieve the highest ROI for brands, reaching 53.8%.
3. An influencer's number of followers must be appropriate for the brand.
When an influencer's followers are interested in brand-related content, the influencer's review posts are more likely to engage them because they feel a personal connection. HBR analysis shows that just approximately 9% of an influencer's followers having aligned interests with the brand can significantly increase ROI. A single standard deviation from this level reduces the ROI by 7.9%.
4. The originality of influencers.
An influencer's authenticity significantly impacts ROI. Posts that reflect their genuine personality tend to be more distinctive, engaging, and credible than those endorsed by brands. Analysis shows that reviews from authentic influencers increase ROI by 15.51%.
5. Influencer posts
Because nowadays, consumers tend to engage with positive posts quite a bit. However, if a post seems too exaggerated and unbelievable, consumers may not engage as well. Posts that are realistic can increase ROI by an average of 1.9%.
6. The post includes a link to the brand's website.
Research on content marketing shows that posts containing links to a brand's website or social media accounts result in a higher ROI (11.4%) because these links provide consumers with more important information about the brand's products and services, making them more likely to engage.
7. Influencers posting about new products or services.
The Influencer Marketing strategy is currently popular among brands, often using influencers to promote new products or services. Data shows that the ROI for posts announcing new products is 30.5% lower than posts unrelated to new products.
These seven points are key variables affecting ROI in the influencer market. If a brand wants to maximize the effectiveness of its Influencer Marketing strategy, it should plan its influencer search using these guidelines. However, for those who prefer a simpler approach and don't want to spend time searching for influencers, you can contact us.Inquire about HelloAds You can hire an agency to provide full-service online marketing.
