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Influencer marketing drives strong ROI and long-term impact
New data from the IPA reveals the effectiveness of influencer marketing.
Georgie Moreton
Deputy Editor, BITE CreativebriefAccording to new research from the IPA unveiled at the IPA Effectiveness Conference (8th October), influencer marketing delivers strong ROI and long-term results.
An array of new data points show influencer marketing to be a key driver of effectiveness, smashing outdated stereotypes of the creator economy.
The findings have been drawn from the industry’s first-ever cross-industry Influencer Database, spanning 220 campaigns from 144 brands across 36 sectors and 28 markets and capturing over £133 million in influencer spend. Key findings show that influencer marketing delivers commercially, particularly when the brand influencer fit is strong.
This study, for the first time, gives us a really clear view that influencers can hold their own relative to other channels and, particularly in the longer term, are a highly effective source of growth for brands.
Dominic Charles, Managing Director, Audience Intelligence and Marketing Science, Wavemaker
“Influencer marketing has seen exponential growth over the past couple of years but we've been lacking a robust view of how they perform and how they stack up against the other media channels. This study, for the first time, gives us a really clear view that influencers can hold their own relative to other channels and, particularly in the longer term, are a highly effective source of growth for brands particularly when brands are able to maximise the synergistic relationship between brand, creator and their audience,” explains Dominic Charles, Managing Director, Audience Intelligence and Marketing Science, Wavemaker.
The initiative, led by IPA Effectiveness Leadership Group member Jane Christian, EVP Analytics at WPP Media, provides the most comprehensive view to date of influencer marketing’s commercial impact.
Headline findings show that the short-term ROI of Influencer Marketing is comparable with all channel averages, influencer marketing has long-term impact and effective influencer marketing hinges on the fit between brand and influencer and the quality of creative content.
The data underlines the importance of influencer marketing as part of an effective media marketing mix.
“This is a landmark moment for Influencer Marketing. For the first time, we have comprehensive, cross-industry evidence that shows influencer campaigns can deliver real commercial impact, not just in the short term, but over the long haul,” says Laurence Green, Director of Effectiveness at the IPA.
He continues: “With the right influencer-brand fit and powerful ideas, influencer marketing has the potential to punch well above its weight. While it’s still early days, and we need to build further evidence, this data gives marketers a far firmer footing for investment and creative ambition alike.”
Key analysis of Influencer Marketing data
1) Influencers perform: The short-term ROI of Influencer Marketing is comparable with all channel averages (based on 59 UK campaigns unless otherwise stated)
- Influencer marketing delivers a short-term ROI index of 99, closely aligned with the all-channel average of 100, with 4.5% of short-term sales from influencers.
- While the short-term sales percentage of Influencer Marketing is considerably lower than that of Linear TV (4.5% of sales contribution for influencers vs 32% for TV) the ROI Index is comparable (Influencer ROI index – 99, Linear TV - 97).
- The ROI Index of Influencer Marketing exceeds that of standard Paid Social (Influencer ROI Index – 99, Paid Social - 86), although the percentage of sales contribution of Paid Social is considerably higher (Influencers – 4.5%, Paid Social – 13%)
- Globally, short-term ROI performance remains consistent with the overall channel average of 100.*
2) Influencer Marketing has lasting impact: Long-term multipliers of Influencers are the strongest of any channel (UK results only, based on 18 campaigns)
- The longer-term effect of Influencer Marketing is substantial with an ROI Index of 151, while the percentage of sales contribution of Influencer Marketing over the longer-term is 6.2%.
- There is a significant difference emerging between the ROI Index of Influencers and Paid Social (151 vs 77 respectively).
- Influencer marketing also boasts the highest long-term multiplier across all media channels at 3.35. Linear TV follows closely behind at 3.27.
3) Message > Execution: Distribution of ROIs is high across brands and campaigns. Variability has little to do with media optimisation levers (based on global findings)
- The Databank reveals wide variability in Influencer ROI, with many outliers and extremes.
- Unlike traditional media channels, Influencer Marketing ROI outcomes do not strongly correlate with media optimisation factors such as spend levels.
- The data suggests effective influencer marketing hinges on the fit between brand and influencer and the quality of creative content.
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