The Impact of Influencers
Study Identifies Impact of Social Influencers
Influencer marketing proven to increase sales and store visits
In the last few years, influencer marketing has saturated the internet. It’s a simple concept; find out who your customers admire, incentivize (either through cash payment or free stuff) that person to plug your product or service, then wait for their devoted admirers to spend money on your website or at your store.
Is the juice worth the squeeze?
According to eMarketer, influencer marketing generated about $570 million on Instagram in 2016. There’s no disputing the enormity of its impact, but can it really help you? What kind of ROI can you expect from engaging an ‘influencer’?
In April 2017, Collective Bias, a group that studies influencer marketing and shopping, released a study that examined influencer marketing and how it affects actual in-store sales and visits.
“What makes this study significant is its breadth,” said Irv Turner, VP of Analytics and Applied Data Sciences at Collective Bias. “We didn’t settle on a singular way of looking at influencer marketing’s impact nor on one particular use case.”
The report analyzed 450 influencers’ effect on 11 campaigns across five major consumer-packaged-goods categories to determine how they drive real sales. Collective Bias observed influencer content that included promotions or coupons to track redemption rates and sales.
In one of the samples, a national rice brand saw a 45 percent redemption rate on a coupon promoted by an influencer, tripling its typical 15 percent redemption rate of coupons included in store flyers and newspapers.
By partnering with Placed.com, Collective Bias was also able to track in-store visits. Their analysis revealed that 48 percent of people who saw influencer content visited the promoted retailer within four days of exposure. Only 29 percent of people in the control group (who did not see the content) visited the store.
As with most marketing techniques, the performance of influencer marketing varies based on seasonality, price, budget, and purchase frequency.
The trends identified by Collective Bias are indisputable. Influencer Marketing is making a real and meaningful difference in sales and store visits. Consider your customer base, who they look up to, and how you can harness influence to grow your business.