Throughout CreatorIQ’s recent studies—from our ROI Survey to our 2022-2023 Trends Report—brands have time and time again reported increased investment in influencer marketing. Whether they’re shifting resources away from traditional marketing efforts or building out wholesale new teams, more and more brands are catching onto the truth: influencer marketing sets winning brands apart, and the potential of the Creator Economy is nearly limitless.
Don’t just take it from us—ask our good friends at Aberdeen Strategy & Research, one of the world’s leading marketing intelligence companies. We recently collaborated with Aberdeen on a survey to truly prove the impact of influencer marketing, and even we were surprised by just how clear the results were. Our latest report, Unleashing the Power of Creators, provides our most definitive look yet at how influencer marketing creates leading brands.
Methodology
Before we get to the good stuff, here’s a little background on the report’s methodology. Aberdeen interviewed 204 marketing leaders (VPs or above) across the U.S. and the U.K. These marketing professionals operate across a range of industries, including beauty, consumer electronics, gaming, media/entertainment, retail, fashion, and food/beverage.
Findings
You might have already guessed it, but the survey found a clear and direct correlation between influencer marketing investment and overall marketing ROI. Aberdeen proved this out by determining a select group of “Influencer Marketing Leaders,” which was defined for the purposes of this report as respondents in the 80th to 100th percentile of overall influencer marketing investment. This group was then compared across a range of key business outcomes to the following groups:
- The 1st-80th percentile of influencer marketing investors
- The 80th-100th percentile of investors in digital marketing (Digital Marketing Leaders)
Below, we’ve highlighted some of the survey’s key data points, and what these findings mean for influencer marketing as a whole.
Influencer Marketing Leaders See a $4.70 Return per Dollar Spent
Let’s start with the top-level finding: sweet, sweet ROI. Compared to all other brands, Influencer Marketing Leaders plan on spending 30% more on their influencer marketing programs over the next year, which demonstrates that something is clearly working. That something? An impressive $4.70 return on investment.
At the heart of that ROI is the increased engagement driven by influencer marketing content, especially compared to content created by traditional marketing efforts. Compared to other influencer marketing practitioners, Influencer Marketing Leaders saw an 8.2x YoY increase in content engagement rates, a 9.1x greater YoY improvement in ad views, and an 11.7x greater YoY surge in conversion rates.
Influencer Marketing Leaders See Greater YoY Improvement in Customer Profit Margins
When compared to the 1st to 80th percentile of brands investing in influencer marketing, our Influencer Marketing Leaders make it clear that going the extra mile yields worthwhile results. These leaders achieved an average YoY improvement in customer profit margin of 51%, far outpacing the 11.6% improvement averaged by brands who decided to invest less heavily in influencer marketing.
Not only are Influencer Marketing Leaders’ customers more profitable—they’re also happier. Per Aberdeen’s findings, Influencer Marketing Leaders saw a 4.9x greater YoY improvement in customer retention, a 4.3x greater YoY increase in positive brand sentiment, and a 3.0x greater YoY spike in customer satisfaction. Is there anything that influencer marketing can’t do?
Influencer Marketing Leaders See Greater YoY Improvement Compared to Digital Marketing Leaders
It’s clear that investing more in influencer marketing yields better results than investing less in influencer marketing—you get what you give, and all that. But how does influencer marketing stack up against traditional forms of digital marketing? As it turns out, pretty dang well.
Compared to Digital Marketing Leaders—those brands that missed the memo and continue to invest most heavily in digital marketing—Influencer Marketing Leaders excel in engagement and conversion. Our fearless IMLs enjoy a 27% greater YoY improvement in engagement, defined as clicks on an ad or video, as well as a 29% greater YoY improvement in conversion rates, defined as a percentage of leads converted to purchasers of a product or service. These results demonstrate that for businesses looking to improve their sales funnels and drive more revenue, influencer marketing is the right call every time.
Influencer Marketing: Safe, Smart, Proven
Throughout this blog post, we’ve talked a lot about what Influencer Marketing Leaders see. At this point, the picture should be equally obvious to you. In influencer marketing, brands have an approach that yields ROI, happy customers, and higher conversion rates.
For the full findings from Aberdeen, download the report, Unleashing the Power of Creators. And to learn how CreatorIQ can help your brand become an Influencer Marketing Leader, schedule a demo today.