How Much ROI Brands Get From Beauty Influencer Marketing?

how much influencer marketing ROI

There’s no greater challenge for brands than measuring influencer ROI. While spending on influencer campaigns increases, tracking influencer marketing return on investment remains the biggest hurdle marketers face.

 

You’re not alone if you’re thinking about how to measure influencer marketing’s return on investment. 86% of beauty brands have already used influencers to market their products. 90% of marketers agree influencer marketing is superior in ROI to other marketing channels.

Influencer marketing is exploding. The beauty industry is a leader here, in terms of high return on investment. 

 

However, ROI is not the same for all brands. Some of the variables that impact beauty influencer return on investment include the age of the brand, the size of the creators, the type of influencer, and even the quality of the product itself.

Influencer campaigns and strategies need to be optimized for high ROI, which is possible in sectors such as the beauty industry. Short buying cycle products of these industries do best for high returns on influencer marketing, especially for influencer KPIs such as immediate sales. Here’s what you need to know as a beauty brand interested in maximizing influencer campaign return on investment.

What is influencer marketing ROI?

Influencer marketing ROI is the ratio of benefits to costs for brands associating with creators for social audience exposure advantages. Return on investment can be positive when the revenue is higher than the spending or negative when the spending exceeds the influencer-generated revenue. Influencer return on investment is calculated based on the total costs of the brand which exceed influencer pay or benefits to include content production costs and associated advertising costs.

The specifics of beauty influencer return on investment

Beauty brands benefit from higher influencer return on investment. In general, brands can hope for $6 in return for $1 spent with influencers with short purchase cycle products. Beauty brands can strive for up to $11 in return for $1 spent with influencers.

 

Higher beauty influencer ROI is tied to the capacity of creators to build dedicated audiences on trust and recommendations over time. Beauty products that are recommended when on trend are those expected to get a double return on investment with a well-planned influencer campaign.

 

Beauty influencers are also ideal marketing partners for beauty brands looking to boost repeat sales and customer loyalty with long-term partnerships.

What’s considered good influencer marketing ROI in the beauty industry

How much return on investment can brands get from influencer marketing in the beauty industry? It depends. Here’s a breakdown.

The average beauty brand is expected to earn $4 to $6 for every $1 spent with influencers. Anything above $10 for $1 spent is considered high ROI while getting only $3 or less for $1 spent is considered low ROI. In rare cases, top beauty brands partnering with the right influencers can get up to $18 for $1 spent. 

A formula of 6 to 1 is used to calculate beauty influencer return on investment where 6 represents $6 for every $1 spent. Here’s a breakdown of common ROI in the influencer beauty space. 

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Aggero researched the most efficient ways to boost ROI. Beauty brands working with micro influencers often see great returns, as confirmed by our poll’s votes. 

Beauty Micro Influencer ROI

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influencer ROI poll results

High variation is common for influencer return on investment. Furthermore, there are a few variables that have a high impact on ROI. Harvard Business Review states 7 variables with high ROI impact. These are influencer followers, audience-brand fit, posting frequency, creator originality, messaging positivity, link to brand or product, and new product announcements. These variables take into account both the specifics of the creator and the video content.

Average TitkTok influencer marketing ROI

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The average TikTok influencer marketing return on investment is $5.2 for $1 spent. This is the average of the beauty industry with influencer campaigns targeting sales.

Average YouTube influencer marketing ROI

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The average YouTube influencer marketing return on investment is $6.5 for every $1 spent. This beauty industry average is also based on sales-oriented campaigns.

Average Instagram influencer marketing ROI

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On average, beauty brands get between $5 and $6 for every $1 spent on Instagram influencers.

Average Twitch influencer marketing ROI

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The average Twitch influencer and streamer return on investment is 11x higher than traditional banner ads.

YouTube vs Instagram vs TikTok for influencer marketing ROI

YouTube gets the highest influencer marketing return on investment due to its long-form video content which allows sales-oriented campaigns to be covered in depth.
Instagram is the video platform with the highest number of influencer marketing campaigns. With $2 billion spent on Instagram influencers alone, this is the ideal platform for high ROI for millennials.
TikTok is the ideal high ROI platform for Gen Z. In 2024, it’s estimated (mostly beauty) brands will spend over $1 billion on TikTok influencer marketing.

Organic vs paid influencer return on investment

Running paid influencer marketing campaigns is beneficial to brands that get to control the messaging and the goal of the campaign.

Aggero, the best social listening tool for creator video content, gives access to real data that shows the difference in organic vs paid influencer campaigns by topic, brand, influencer type, and audience engagement.

We’ve shown how most types of organic Old Spice content outperform paid content in terms of engagement. Some topics just don’t have good ROI with organic content, as was the case with Old Spice’s Deodorant Body Spray.

Types of beauty influencer videos with high ROI

Return on investment of up to $18 per $1 spent is possible in the beauty industry when brands choose the right creators with the most engaged audiences and have positive, original messaging that resonates according to trends or audience expectations from truthful creators. This being said, different types of videos are particularly known for high influencer ROI.

 

Product demo – ideal type of video to showcase what the product does, how it looks, and to present it on the screen.

How-to guide posts – a detailed explanation of how to use a certain type of product

Get ready with me – a characteristic of beauty influencers such as mascara influencers, nail influencers, and makeup influencers personally using the product.

Unboxing videos – presentation videos as a first glance of a beauty product

Makeup transformation – before and after types of videos with strong growth potential. 

Over 6.000 TikTok makeup transformation videos are posted each week, totaling 39 million views in The United States alone. That’s over 6.500 views per average TikTok video. The right type of beauty video gets high exposure on platforms such as TikTok.

types of beauty influencer videos with high ROI
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Quick tips to boost beauty influencer marketing return on investment

Brands can do more with influencer campaigns than simply choosing the right influencer, audience, messaging, and platform.

Track the relevant influencer marketing engagement metrics

Tracking the right influencer engagement metrics discovers high engagement patterns, guaranteed to boost ROI. Companies can boost ROI when tracking these metrics even during a campaign with the right influencer campaign optimization strategy.

Set the right campaign goals

Interested in the high ROI influencer marketing delivers? You should focus on the right campaign goals. Influencer marketing campaign goals include conversions (immediate or long-term sales), boosting brand awareness, getting product reviews, boosting social following, or boosting customer retention rates in the long term. Aggero’s influencer marketing agency leverages the data of our Video Listening Tool for maximum ROI on any campaign goal.

Find influencers with compatible audiences

The highest ROI is often specific to micro and nano influencers. Smaller followings aren’t always bad as they’re very specific and authentic, making them the right fit when brands match the expectations of a creator’s audience. Social media sentiment analysis helps uncover the creators with the most engaged audiences.

Join social media trends early

ROI of $10 – $18 for ever spent dollar is possible for beauty brands tapping into early social media trends trends. As seen with the burgundy mascara trend in our Social Listening Examples post, brands that leverage beauty trends get the rewards.

Use the right video content

Creators truthful to their audiences and also have a positive message are shown to have a large impact on ROI. Influencers triggering positive social media sentiment and reactions have been shown to generate more leads and more immediate sales.

Influencer ROI Trends in 2024

2024 trends show brands plan on spending more on influencer marketing, including those that haven’t done it before. New studies show that more than 70% of large brands already use some type of AI tool for influencer analysis. The rise in precise creator-led video insights is about to boost influencer ROI across all major video platforms.

FAQ
How to calculate beauty influencer marketing return on investment?

A generally-accepted ROI formula for beauty influencer campaigns is: generated revenue – total investment.

What is the average influencer marketing ROI?

The average influencer marketing ROI varies between 3 and 6 dollars for every 1 invested dollar in short-sale cycle industries such as the beauty industry. 

How do you track ROI with beauty influencers?

ROI can be tracked in different ways with or without a calculator. The return on ad spend with creators is the most common type of influencer ROI tracking. Engagement rate, post likes, shares, comments, and the number of new followers are also types of ROI, depending on influencer campaign goals.

What is a good TikTok influencer ROI?

Most brands get $4-$6 for $1 spent on TikTok. Leading beauty brands can expect exceptional ROI of up to $18 for $1 spent in TikTok ROI.