Influencer marketing ROI: How to measure & get the most out of your influencer efforts
Influencer marketing is growing at a rapid pace. Not only that, but it’s evolving to get smarter and more measurable. And this makes it easier to track your influencer marketing ROI so that you can rest assured that you are getting a high return on your marketing investment.
Despite this fact, according to statistics, only 67% of brands measure the return on investment (ROI) from their influencer campaigns, either because they claim to not have time, or more often than not, because they don’t know how to.
Do you know how to track the ROI of your influencer marketing efforts? Are you aware of all the marketing KPIs you should be monitoring to find out if your campaigns are as successful as you’d like them to be?
If not, then read on to find out everything you need to know to get started.
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What is influencer marketing ROI?
Influencer marketing ROI is an all-encompassing metric used to calculate the return on your investment when you launch an influencer marketing campaign. Put simply, it provides you with an overview of how well your influencer marketing campaigns are performing, and how much revenue they are generating for the bottom line of your business.
How do you calculate the ROI of influencer marketing?
There are a number of steps you have to follow in order to determine your influencer marketing ROI:
- Goals: Firstly, you need to set your influencer marketing goals. Do you want your campaign to raise brand awareness? Increase followers? Drive more traffic to your website? Increase sales? It’s important to know what your main objective is so that you know in which direction you should be headed. This makes it much easier to quantify your performance and determine whether or not your campaign is a success.
- Influencer tracking: Secondly, once you’ve established your campaign objectives, you need to determine which influencer marketing KPIs are most relevant to your goal. Then make sure you have the right tools in place to accurately measure your KPIs
- Strategy and platform: The next step is deciding which marketing strategy and platform will help you meet your goals.
- Evaluate your expenses: You also need to calculate how much you are investing in your campaign. Make sure you include any influencer or agency fees, production costs, or fees for analytics software.
- Determine your campaign revenue: This will depend on the goals of your campaign. For example, if your objective is to achieve increased sales, you might get your influencer to share a discount coupon during their campaign. That way you can calculate which sales have occurred as a direct result of their campaign.
- Calculate your influencer marketing ROI: Finally, you need to use all the information collected to calculate your ROI. The formula is simple:
(Revenue/Cost) x 100
For instance, let’s imagine your goal was to increase sales. You invested $50 in a campaign and received $1000 profit from direct sales. Your ROI would therefore be 1000/50 x 100 = ROI 2,000%. Voila!
Influencer marketing KPIs to track
There are a number of KPIs you need to track in order to calculate your influencer marketing ROI. The specific metrics you use will, of course, depend on the goals of your campaign. However, generally speaking, you should aim to track the following:
- Revenue and conversions.
- Page views and impressions.
- Engagement, including the number of shares, likes, comments, click-throughs, and overall engagement rate. You could also use a social listening tool to track mentions that your brand gets on social media.
- Earned media value (EMV), which can be measured through page views, daily unique visitors, likes, shares, and comments on social media posts. This gives you a dollar amount for the value of the impressions your influencers have created.
- Number of followers.
What’s considered a good influencer marketing ROI?
Ultimately, there is no universal standard for measuring influencer marketing ROI. A successful campaign for one brand might be deemed less successful by another. It all depends on the ultimate goals of your campaign and how much you have invested.
However, to give you an idea in general terms, Influencer Marketing Hub’s 2020 Benchmark Report indicates that you can earn up to $18 in earned media value for every dollar spent on influencer marketing, with the average being closer to $5.78 per dollar spent.
How to track ROI easily with an influencer marketing software
Influencer marketing platforms help you centralize each stage of the influencer process. Using a centralized platform like Influencity will not only save you valuable time, but you will also get access to the right influencer tools to track your influencer marketing ROI.
With Influencity, you get a full spectrum of influencer marketing tools and features that help you find the right influencers and track the performance of your influencer analytics so that you can be sure your campaign is a success, and you get the biggest return on your investment.
For example, you get:
- An influencer search tool with advanced filters that allow you to filter accordiong to audience demographics, follower quality, interests, hashtags used, and more. Once you’ve found what you’re looking for, you can view details about the influencer on their profile page to make sure they’re a good fit for your brand.
- An influencer relationship management tool where you can save interesting influencer profiles and keep track of their contact details, pricing, and emails exchanged. Not only does this tool let you keep all relevant information in one place, it also offers a host of useful metrics such as follower quality, follower age distribution, and brand affinity. This puts all the the important insights at your fingertips to help you make the right choice for your campaign.
- Tracking tools to monitor your defined KPIs and identify how well an influencer is performing. In other words, whether or not they are effectively promoting your brand.