A new report has uncovered the exact ROI (Return On Investment) brands receive on average from influencer collaborations.
According to the Influencing Beauty report, put together by marketing firm Celebrity Intelligence, beauty brands that spend $AUD1.77 on influencer activity secure an average return of $AUD15.58.
Celebrity Intelligence director of product Megan Falconer-Taylor explained to Cosmetics Business: “We have entered a more considered age of influencer marketing where beauty brands are looking for stronger metrics across each social media platform, to help them differentiate between the influencers and celebrities who are achieving the highest levels of engagement, and ultimately delivering the best ROI.
“I think the report findings prove that when collaborations are well thought through, there is the potential for influencer marketing to deliver ROI that easily surpasses traditional forms of advertising.”
Another report by the same firm – titled The Age of Social Influence – found that influencers are overtaking celebrities as the most sought after product ambassadors. Digital influencers have 44 per cent of brands planning on using the social media stars in their 2018 strategy; while TV actors come in second with 38 per cent, followed by film stars at 37 per cent and musicians at 35 per cent.
Celebrity Intelligence head of content Sarah Penny told Cosmetics Business: “The fact that they [digital influencers] work on so many tiers means that there is an influencer and a budget to suit every brand and collaboration’s needs, whereas celebrities can often be reserved for bigger brands with bigger budgets.