With Influencer Marketing becoming ever so popular, many brands, both big and small have transitioned into using its modern forms of advertisement. Yet, to their surprise, not all were successful – and some might have not even known how to measure their success. Influencer Marketing has become one of the most profiting forms of advertisement. The reason is its big Return on Investment (ROI) – average to $6.5 per $1 spent. But, like every form of marketing, it too needs to be measured and monitored and knowing what to look out for is the key to success.
1.Defining your Goals
Before you start any type of Campaign, it is very important to have a clear view of what you want to achieve. A good session with your team to define your goals, as well as, your budget (investment), can pave your way for the rest of the duration of the campaign.
When defining your goals, you want to focus on what you expect your final outcome to be. In other words, what number must your campaign reach for it to be considered successful? Will the object of the campaign be to promote or sell a certain product? Or will you be advertising a special service, such as a premium subscription? Maybe you’d want to collect e-mails for a future project?
The possibilities are endless and each one of these goals has a different form of ROI measurement. Since ROI is usually measured in dollars, you’ll need to give your services or un-monetized goals a value in dollars. For example, if you go with a goal of 15 e-mails per month, then you’ll need to value each e-mail appropriately so that you’ll have a good ROI.
But to have the most precise measurements, you’ll need to know how much you’ve invested in your campaign, to begin with. But what exactly do you measure? There are a few key steps in creating an Influencer Marketing Campaign that will consume the most amount of money. These are the ones to measure.
What to Measure when Measuring Investments
You need to have a clear view of how much you spend throughout the creation and duration of your campaign, in order to be able to measure the ROI. This includes everything from team members to sponsorships and the influencers themselves.
Team Members: When measuring your Investments, pay close attention to every $1 spent on the employees who are searching for, contacting and overall involvement in the campaign. The more time spent on any of these steps, the bigger your investment will be. And naturally, the lower your ROI will be, as well. Doing this process manually will take you drastically more time, than using third-party software. Using our own, for example, which finds the perfect influencers for you with filters and checklists.
Ad Sponsorship: Depending on the platform you’re planning to post your ad on, you might want to boost engagement with paid sponsorship. Although this is usually not necessary with Influencer Marketing, it can be a great way to boost engagement – if done right.
Influencer: Probably the most expensive thing you’ll have to spend money on throughout the entire campaign is the influencers themselves. But if you choose the right one, your money will be returned back to you tenfold. And anyway, you as a brand have to give credit where credit is due, and the influencers sure earn it.
Miscellanies: Your costs will rise or fall depending on your pre-defined goals – hence why it’s so important to define them before-hand. Unexpected occasions such as free product samples, discount codes (usually ranging between 10-15%), freelancer interventions are just some of the things that could possibly happen thought the campaign – and they all need to be accounted for in your Investment plan.
2.Factors that Affect ROI
NOTE: Some of these factors will not affect your ROI, depending on what your goals are – don’t waste time with them if they don’t affect your ROI.
Audience Reach refers to how many followers your chosen Influencer has. With this metric system Influencers are categorized into two sub-genres; micro-influencers (below 10,000 followers) and macro-influencers (up and beyond 10,000 followers).
You might believe that the more followers an Influencer has, the better they will be for your Campaign and the bigger the success rate. I mean, after all the more people that view your post, the better the chance for a potential sale. But these are other factors that need to be taken into consideration as well. There’s a reason why you can’t use the standard economic measurements, such as standard reach measurements. You also have to take into consideration the engagement and impressions an Influencer receives (more onto that below).
Some Influencers might be broadcasters. They only share their thoughts with your followers with no form of communication or community. Such influencers will do little for your campaign and might even deny working with you altogether. Others might buy their followers, as many fake accounts are known to do – so good research and background checks are very important.
Impressions tell you what Audience Reach doesn’t. They fill in the gap between the number of followers an Influencer has and how many people have seen their posts. When planning for your ROI it is very important to check the Impressions your Influencer is receiving. But apart from the number of people who see their posts, you won’t see check how many of those people are potential buyers (target audience). Big numbers can be quite seductive, but for good ROI you need the right numbers.
Engagement is the third important factor that reflects the effectiveness of your chosen Influencer. Engagement refers to the number of people that interact with the Influencers posts. When checking these factors, it is important to note whether these engagements are direct or indirect; coming from their followers or not.
Also, when it comes to the Engagements ROI there is a bit of a hierarchy. Whereas Shares are at the top of the pyramid, then come to the comments and lastly likes are at the bottom.
The theory behind this hierarchy system is as following; people like anything and everything without much thought, some people comment for their own benefits and brand awareness. But, all people share with a purpose – because they loved it.
Sentiment refers to the most successful type of posts that your chosen Influencer has. If, for example, you’re looking at a fitness influencer, check all the types of posts that they share; personal training, how to videos, equipment reviews, diets, and so on. After you’ve compiled a list of all the types of posts, chronically check each type to determine which one has the best. Reach, Impressions and Engagement. Once you’ve singled out one post type as the most successful, it is best to use that type of post to market your campaign, to ensure good ROI.
The last, but most important factor to look out for is the number of conversions. Conversions refer to the number of people that have responded to your Call to Action (CTA). This ultimate telltale how successful your campaign was and will help you precisely measure your ROI. If your goal were to sell subscriptions, then the conversion for you would be each person that subscribed. That’s out of all the people who liked, commented, shared or viewed your post.
Since Influencer Marketing Campaigns have an ‘infinite’ lifespan, you will be receiving conversions even long after the campaign itself has ended. So regular monitoring is of high importance when it comes to conversions; during and after the campaign.
We hope you find this article helpful; if you have any questions regarding ROI in Influencer Marketing Campaigns, feel free to contact us at email@example.com!