Be Honest: Does Influencer Marketing Increase Sales, Actually?
Your ROI will thank you later.
Does influencer marketing increase sales? I don’t know, did Tula contribute 50% of their sales in 2021 to influencer marketing, only to achieve $106.1 million dollars in ending market value (the #1 skincare brand in EMV that year) and THEN get acquired by P&G?
Yes, yes, and yes.
Let’s talk more about what is making influencer marketing such a hot-ticket tactic for 2024.
Facts You Need to Know
On average, brands make $6.50 for every $1 spent on influencer marketing. The top 13% of brands utilizing influencer marketing make $20 or more for every $1.
In 2022, the U.S. influencer marketing industry was valued at a record 16.4 billion dollars.
72% of Gen Z and Millenials follow influencers on social media
1 in 4 marketers utilizes influencer marketing
What Kind of Influencers Can Brands Work With?
Why Does Influencer Marketing Increase Sales?
#1- High ROI
Influencer marketing now has the second-highest ROI of any trending marketing campaign. It’s trumping nearly everything from email marketing, affiliate marketing, paid ads—you name it!
Because brands are likely to make back their investment in influencers, if not make a profit, the choice to work with creators is a no-brainer. Companies only have the power to reach so many people, so if they can utilize influencers to expand their reach (without losing sales), it’s a win-win.
In fact, 63% of brands are increasing their influencer marketing budgets in 2024 due to the extremely high ROI! (That’s a win for you, influencers!)
#2- Reduced Customer Acquisition Costs
Brands are quickly realizing that influencer marketing is one of the fastest-growing channels for acquiring new customers online. Without running ads on content produced by creators, customer acquisition costs truly only come out to be the influencer’s rate (which we’ve established is a win for the brand).
Customer acquisition is as easy as having an influencer market a product and watching the new followers roll in from their promotion.
#3- Trust = Sales
We all have a favorite influencer or two that we LOVE to follow and listen to like they are some higher power. If they love a product or service, OBVIOUSLY we will love it too and need to try it immediately. For the brand collaborating with them, this is a huge win.
By collaborating with trusted influencers who have established and nurtured audiences, any brand will likely see an uptick in sales. Genuine content = trust and engagement = higher $$$.
Want to see this double? Build long-term relationships with influencers!
64% of consumers repeatedly purchase products based on the influencers they follow. If followers see an endorsement from an influencer more than once, the brand’s credibility immediately skyrockets for the customer!
Ready to Work with Influencers? Let’s Find Them For You
It’s one thing for a brand to confidently decide to work with influencers. It’s another for a brand to confidently find them. That’s where Scott Social comes in!
We do the work of an influencer marketing agency in addition to our regular work as a digital marketing agency. We’ll take care of everything from finding the perfect influencers to represent your brand to influencer communication, campaign execution, and reporting.
We’ve collaborated with companies like Americana Motor Hotels and HealthScope Labs to successfully execute influencer marketing campaigns—and their results have been jaw-dropping.
Check out our social media pages for some peeks into influencer marketing stats, and inquire today to increase your sales with influencer marketing.
🚨 Interview Alert 🚨
There’s more where that came from ↓
Now that we know that influencer marketing really does drive results for business, let’s dig into the world of ambassador programs.
Our Founder, Chelsea got to sit down with DesignRush to chat about all things brand ambassador programs! From authentic influencer connections to real client results, this article spills the tea on why you should get in on the ambassador game.
Check it out here: “Find Out If Your Brand Should Leverage Ambassador Programs”