Measuring Return on Investment in Influencer Marketing

T. Srimathi () and S. Subashree ()
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T. Srimathi: SRM Institute of Science and Technology
S. Subashree: SRM Institute of Science and Technology

A chapter in New Paradigms of Business Management in the Era of Analytics, Sustainability and Innovation, 2025, pp 209-223 from Springer

Abstract: Abstract Influencer marketing has become highly utilised by companies to increase the awareness of the company in the dynamic competitive market. As technology has been revolutionised, the utilisation of social media platforms has been paramount. The company has used the social media platform to generate influencer marketing. According to Lal et al. (2020), the company has collaborated with social media influencers having major popularity on Instagram. This way the company has increased the appeal of their brand to the customer and also their product. However, measuring the return on investment (ROI) from influential marketing is necessary for analysing the impact of influential marketing on customers. Apart from this, measures can further help companies to make business decisions. The importance of measuring influencer marketing return is based on the influence of key performance indicators such as customer engagement, brand awareness and the sell encounter through influencer marketing. Developing a real relationship between the influencer and their potential followers becomes a major step toward the success of influencer marketing. Primary quantitative methods are chosen to accumulate information on metrics of influencer marketing. The data has been analysed and interpreted using the IBM, SPSS software. Moreover, a graph and table are provided in this chapter for analysing outcome. This paper consists of the overall discussion of the return on investment over the influencer marketing. Lead generation and the engagement rate are metrics used in this study. The researcher has decided to choose the correct influencer who has a higher fanbase and power to depict and communicate the brand offerings effectively. Conversion rate, engagement rate, and the lead generated through the influencer marketing campaign have effectively supported measuring the ROI in influencer marketing. The researcher believes that the social media platform brands can run the influencer marketing campaign and observe the performance through the lead generated and the engagement in the post. This paper identifies the possible ways to measure the return on investment over the influencer marketing.

Keywords: Influence marketing; Social media; Influencer; Content creation; Engagement rate; ROI (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-97-7030-4_14

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DOI: 10.1007/978-981-97-7030-4_14

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