Case Study: Influencer Marketing ROI (AMA)


Influencer Marketing

Influencer marketing has evolved into a pivotal strategy for businesses across various industries, enabling them to connect with target audiences authentically and effectively. Maximilian Beichert, Andreas Bayerl, Jacob Goldenberg, and Andreas Lanz delve into this realm, exploring the potential return on investment (ROI) in their article titled "Influencer Marketing ROI: Research Shows Influencers with Smaller Followings Are More Cost-Effective."

The essence of influencer marketing lies in its ability to leverage the credibility and reach of influencers to endorse products or services. Traditionally, influencers with a large following were seen as more impactful due to their extensive reach. However, the research conducted by Beichert, Bayerl, Goldenberg, and Lanz indicates that influencers with smaller followings can provide a more cost-effective solution while still driving substantial results.

The study involved examining data from over 15,000 influencers across multiple industries and countries, seeking to understand the relationship between follower size and engagement. Surprisingly, the findings suggest that the engagement rate—defined as the percentage of followers who interact with a post—decreases as the influencer's follower count increases. In other words, influencers with smaller followings tend to have a more engaged audience, leading to a higher ROI for businesses that partner with them.

Beichert and his team highlight the significance of engagement over mere reach in the influencer marketing landscape. While influencers with a larger following may have more visibility, the engagement of their followers with sponsored content is often lower compared to influencers with a smaller, more dedicated audience. This underscores the importance of micro-influencers—individuals with a smaller yet highly engaged following—whose endorsements can generate genuine interest and conversions.

Moreover, the research suggests that influencer marketing with micro-influencers can result in a significantly higher ROI compared to macro-influencers (those with a larger following). This is attributed to the higher engagement rates and lower costs associated with micro-influencers, making them an appealing option for businesses seeking to maximize their marketing budget.

In conclusion, Beichert, Bayerl, Goldenberg, and Lanz's research provides valuable insights into the dynamics of influencer marketing. It underscores the potential of micro-influencers to deliver a more cost-effective and impactful ROI compared to their macro-influencer counterparts. This shift in perspective challenges the conventional notion of influencer marketing, highlighting the importance of engagement and audience relevance in driving successful marketing campaigns.

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