Many companies prefer using influencer marketing so they allocate a majority of their budget to it. Influencer marketing is a form of online marketing; utilizing prominent members of the online community (bloggers, vloggers, celebrities, etc.) who can use their viewer-base to promote the company. It is one of the most common types of internet advertising in the 21st century. However, even if the majority of businesses prefer this method of marketing, they would still want to know the Return on Investment (ROI) regarding this technique. In this article, we will guide you through 5 Steps to Calculate your Influencer Marketing ROI.
After selecting the influencers you will ultimately use, the next step is to compare and contrast their performance levels. Firstly, review the performance of the influencers at the beginning of their respective campaigns.Secondly, take each influencer’s rate of post engagements and measure them against each other. If you design a custom URL for each influencer, you can track the traffic from each of their domains. Overall, comparing your influencers allows you to choose which ones to use for your next fiscal year,and which ones to let go.
Manually tracking your influencers’ campaign ROI can be a burden, so why not try out an easy-to-use program instead? There are a number of ROI tracking programs available on the net. Grin is a popular program which besides tracking an impressive list of KPIs (Key Performance Indicators), also gives you the perk of breaking down the performance of each influencer and piece of content based on similar KPIs. TapInfluence is another popular choice where you can analyze ROI in real time. The performance of each influencer can be tracked via reach, ROI, engagement, etc. Industry benchmarks can also be accessed using this program. NeoReach is another program which offers a real-time tracking mechanism. An added advantage is the capacity to measure the performance levels of your influencers and even your comprehensive campaign.
Even after selecting the best influencers in the business, it is not possible for each and every influencer to contribute to your ROI in the same way. This is why you should match your campaign aims with individual influencer goals. One example would be to raise the awareness of your company’s main website. Therefore, a separate influencer aim would be to complete that goal in a specific amount of time. Individual influencer metrics include, but are not limited to, revenue, conversions to customers, and average engagement rate.
Not only will this let you know what your company wants, it would also help in finding those influencers who best complement your business’s aims. Common aims include raising brand awareness and enhancing sales, but you should also explore more unique goals for the long term.
Common metrics comprise of being realistic and being achievable. If you are confused about which metrics to choose, simply examine which metrics are frequently being utilised by other marketers. Popular options include clicks, impressions, and conversions.