It’s hard to believe that two years ago, there were less than half of the influencer marketing platforms and agencies we have today. Now that the industry has grown to new heights, influencer marketing has become far more transparent now. Through increased accessibility to influencer marketing data, brands wanting to look back on their performance can thoroughly do so with a proper analysis of their campaign.
The Challenges of Measuring Influencer Marketing ROI
However, influencer marketing ROI and improving metrics to track campaign results are consistently noted as the biggest challenge facing the industry in 2019 and beyond. Though the expansion of the influencer marketing industry sees new software and data doing the ROI calculations for brands, this guide seeks to show you simple ways for evaluating your brand’s campaign by hand. In this blog, we will cover the key metrics such as brand visibility, engagement, and content unique to the message of the campaign that can all be taken into account when calculating the overall ROI.
How to Measure Your Goals
The Concept Behind ROI
ROI is used to see if a campaign’s returns on an investment are positive or negative, or whether or not the brand profited within its campaign. It is viewed as a percentage of each dollar invested into the campaign that could yield a profit. Use the following formula when calculating an ROI:
ROI = (Profit - Investment) / Investment x 100
Using this formula, any positive ROI that is generated can therefore be considered a success to your campaign. However, how you measure your own ROI for your influencer marketing campaign depends largely on your objective. For a brand looking to enter a new market or industry, for example, visibility (or brand awareness) can become more important than sales tied specifically to that campaign. Likewise, a brand looking to reshape its image or roll out a new brand style can measure success in terms of positive engagement with it.
Once the overall goals are identified, it is time to decide which metrics will be used to track progress towards the key objectives of the campaign. According to the study from Influencer Intelligence, 85% of marketers reported engagement data, such as comments and content shares, as the biggest metric of success for influencer marketing. With so much money being invested into campaigns nowadays, here are some key returns you can look forward to seeing for your campaign and the ways you can go about tracking them:
Goal 1: Visibility
Visibility, especially for startup businesses, is one of the most important campaign goals when first starting out. This makes the campaign growth oriented as the return on investment would be the number of new potential customers who become aware of the brand through the rolled out campaign. It’s important to ensure your impressions are targeted --- you know exactly who you want to reach with your new plan of action. Use the following table for some key metrics that can help track visibility as well as tools that can be used to explicitly quantify your visibility.
Goal 2: Unique Content (User-Generated Content)
Consumers and influencers alike are on the prowl today for unique content put forth by brands: whether it is a new type of aesthetic, way of branding, or campaign message, creating unique content is one of the biggest opportunities startup businesses should look to capitalize on.
Often overlooked, content can make for a powerful return on a brand’s investment as it stores the potential for huge sales and audience reach generated by the influencer collaboration. When looking at your campaign, use the following metrics (bounce rate & conversion rate) to track the success of your user-generated content.
The Main Takeaway
In essence, calculating your total influencer marketing ROI is a matter of compiling all the factors that went into your campaign and generating the amount of “return” you were able to generate from those investments. It’s a tedious process, which is why so many brands nowadays rely on influencer marketing data and software to help them manage their campaign growth.
Keep in mind, though, that ROI is something that is always subject to change with new customers engaging with your campaign at all possible times and other factors that may influence the number. At the end of the day, though, keeping the following key performance indicators (KPI) when navigating your influencer marketing campaign will ensure that your project is on track with its growth:
One can argue that measuring ROI is the most important factor in a campaign as it not only is the perfect way to reflect back on a campaign, but it also sets the stage for future success in further campaigns and endeavors down the road. Often seen as one of the biggest challenges when it comes to influencer marketing campaign management, this guide will hopefully have detailed the key points to takeaway when tracking your campaign ROI. Each campaign will inevitably have different objectives which will all just come down to the scale and length of expertise working in the brand.
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