Measure Influencer Marketing ROI Like a Pro: 5 Easy Tips
Influencer marketing works.
This is an undisputed fact shown by countless campaign analytics, proven in numerous studies, and proclaimed by a wide range of marketing experts.
In fact, the influencer marketing industry is expected to reach $24 Billion by the end of this year. But big spending calls for smart tracking. How do we know if the money spent is really making a difference? That’s where measuring influencer marketing ROI (Return on Investment) comes in handy.
If you’re dreading the process already, we’re excited to share these 5 easy tips to help simplify the task while ensuring no important details are missed.
Here’s a sneak peek at the tips you’ll find ahead:
- Leverage Advanced Analytics
- Use the Right ROI Formula
- Establish Clear Campaign Goals & Metrics
- Track Long-Term Engagement & Conversions
- Calculate Engagement Value
Still sound complicated? Let us walk you through how to measure influencer marketing ROI so you can do it without breaking a sweat.
Why Is Understanding ROI Important?
In marketing, ROI calculates the amount spent on a campaign as compared to the amount of revenue the campaign generates. In terms of influencer marketing campaigns, it tells us whether the money we put in is actually worth it. ROI can help us:
- Keep Track of Money: ROI helps us see if we’re using our money wisely.
- Make Smart Choices: When we know which projects or ads bring us more money back, we can make better decisions about what to do next.
- Budget Like a Boss: Knowing our ROI helps us spend our budget on things that work well and stop wasting money on things that don’t.
- Check Our Success: ROI tells us how well we’re doing and if we need to shift our approach.
- Plan for the Future: By understanding ROI, we can understand how new ideas or strategies might turn out.
- Win Over Investors: If we need people to invest in our ideas, showing them good ROI numbers helps them trust how their budget will lead to results.
- Beat the Competition: When we understand the ROI of influencer marketing, we can move faster and smarter than our competitors.
- Be Clear and Honest: ROI helps everyone understand why we spend money the way we do, which makes things clearer and leads to transparency.
So with all of that in mind, how do we measure influencer marketing ROI correctly and effectively?
5 Easy Tips to Measure Influencer Marketing ROI
Tip 1: Leverage Advanced Analytics Tools
First off, let's talk about tools. Advanced analytics tools are your best friends here. They help you look beyond just who liked or shared a post, ensuring brands make an impact and stay competitive.
For example, UTM tracking codes in your URLs can show you exactly where your traffic comes from, which parts of your campaign are working, and which aren’t. This detailed info helps you make smarter decisions next time.
Tip 2: Establish Clear Campaign Goals & Metrics
Before you even start your campaign, you need to set clear goals. Your content marketing strategy should include measurable goals so you can regularly review what’s working and what needs to be improved.
What do you want to achieve? More website visits, more sales, or maybe more followers?
Decide on these goals and how you'll measure them. Keep track of these metrics as your campaign rolls out. This helps you see if you’re on track or need to tweak something.
Tip 3: Use the Right ROI Formula
Now, onto the math part, but don’t worry, it isn’t too complex. When we talk about influencer ROI, we’re figuring out what we earned back compared to what we spent.
A good formula to remember is ROMI: (Revenue−Marketing Expenses)/Marketing Expenses×100.
The ROMI (Return on Marketing Investment) formula will show you in percentage how much you’ve gained or lost on your investment. While it’s traditionally used for sales-focused campaigns, we can use it to evaluate non-sales metrics too, such as:
- Engagement rate
- Likes
- Follower growth
- UTM links
- Other social metrics
But doing this starts with learning how to track influencer marketing beyond sales. First, you’ll need to establish a baseline of your social metrics before the campaign and then monitor how they change during and after the campaign.
Tip 4: Track Long-Term Engagement & Conversions
It's not just about immediate results. Sometimes, the real benefits of a campaign show up much later. That’s why it's important to keep an eye on long-term engagement and conversions.
Are people still talking about your product or visiting your website weeks or even months after the campaign? These are good signs that your influencer marketing campaign has a lasting impact.
Systems That Track Long-Term Engagement & Conversions
- Google Analytics
- CRM systems like Hubspot and Salesforce
- Social media analytics tools like Loomly, SproutSocial, Hootsuite, and Buffer
- Influencer marketing tools like Lefty and Klear
- Email marketing platforms such as Mailchimp
- Heatmapping tools like Hotjar and Crazy Egg
Tip 5: Calculate Engagement Value
Lastly, think about the value of each like, share, or new follower. It might sound tricky, but putting a dollar value on these can really help.
Think about how much a new follower is worth to your brand. When doing this, you can add these numbers to your ROI calculations to get a fuller picture of your campaign’s success.
Simplify Your Next Influencer Marketing Campaign with MODERNSPEAK
It’s important to work with the right influencers to get the best results from your influencer marketing campaigns. However, the challenge for many brands is finding and making connections with those influencers.
MODERNSPEAK helps our clients create valuable influencer campaigns that deliver a high ROI through our industry expertise, proven influencer marketing strategies, and campaigns designed for engagement.
We work directly with hand-picked influencers and content creators, helping our clients get the best value from their marketing budgets.
Ready to experience the power of influencer marketing? Contact us today to see how we can accelerate your growth.
FAQ
What are UTM tracking codes?
While traditional metrics assess the reach and engagement of your influencer campaigns, UTM codes (Urchin Tracking Module) codes, are tracking codes added to URLs to track and analyze the effectiveness of digital marketing campaigns.
UTM codes provide detailed information about the source, medium, campaign, and content associated with a particular link. This data allows for a more in-depth analysis of the effectiveness of each influencer's contribution.
How do I estimate the costs of an influencer marketing campaign?
The cost of an influencer marketing campaign is not as direct as other paid marketing campaigns and depends on various factors, including influencer engagement, the social media platform you're using, and the particular industry.
Important questions to ask include:
- Are you giving out free products?
- How much are you directly paying per post?
- Are you focusing on sales or pushing branded content to enhance brand awareness?
Using an influencer calculator can help you prepare for influencer marketing and determine a campaign's budget by considering the different costs required to run a successful campaign. It’s essential to remember the cost of any free or discounted products involved in the campaign.
