These factors have the biggest impact on influencer marketing effectiveness
Research | UW News blog
October 19, 2022
About 70% of people between the ages of 18 and 29 use Instagram, and it’s hard to spend much time scrolling without encountering a sponsored post from an influencer. The same holds true for just about any other social media platform.
New research from the University of Washington examines how factors related to influencers, their posts and their followers impact marketing success. Social media influencers are typically digital creators who have built a large following due to their knowledge on specific topics, such as beauty products, food or pets.
Recently published online and forthcoming in the Journal of Marketing, the study is one of the first to include cost data in its examinations of influencer marketing. Researchers found that if firms spent 1% more on influencer marketing, they would see a nearly 0.5% increase in engagement. They also concluded that reallocating spending based on the study’s insights could result in a 16.6% increase in engagement.
Engagement is the way people react to online content, such as such as liking, commenting or reposting. For this study, researchers prioritized the number of reposts because it represents a deep form of engagement where followers are choosing to share content with their own networks.
Robert Palmatier, co-author and professor of marketing in the UW Foster School of Business, said influencer marketing is currently producing higher return on investment, or ROI, than most other kinds of marketing.
“I predict that in the future, a lot of marketing is going to be crowdsourced,” Palmatier said. “As a marketing manager, you’re going to manage a portfolio of influencers, just like Nike manages a portfolio celebrities.”
For this study, researchers tested data obtained from…