Influencer marketing, for the uninitiated, is a focused form of advertising in which you form relationships with influencers in order to reach their audiences. Influencer marketing can range from offering free products to content creators in the hopes that they will mention them to more structured engagements in which influencers are rewarded for posts.
Hybrid collaborations, in which influencers can also profit from affiliate tracking networks, are becoming increasingly prevalent.
Influencer Marketing is exploding in popularity, & it is just improving over time and becoming more quantifiable. Despite the increasing vogue of this marketing channel, only around 67% of the total brands who are using Influencer Marketing as one of their marketing channels, care to measure their ROIs.
Return On Investments (ROI)
Recently, I came across many articles that declare “Influencer Marketing delivers 11x ROI over all other forms of digital media”. Impressive, isn’t it?? Businesses make $6.50 in revenue, on average, for every $1 spent on influencer marketing, a 2019 survey by the Influencer MarketingHub studied. Typically a 5:1 ratio is the rule of thumb for ROI that marketing quantifies, with around 10:1 being an exceptional ROI.
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Influencers put forward economical ways of creating exclusive content. But as it is rightly said, with every opportunity coming our way, are the threats that accompany along. Understanding how to monitor the ROI of your influencer marketing strategy is more crucial than ever because of changing algorithms on social networks.
Following are some ways of effectively calculating the ROI of influencer marketing:
Goal Identification
What is your goal? To increase brand awareness? Or to increase sales? Or growing the number of viewers? The most common blunder made by brands is not realizing what they really want to achieve.
KPIs Determination
KPIs are the Key Performance Indicators. The KPIs you’ll need to track to ensure your campaign’s success will be determined by your goal. So, say, if your goal is lead generation, it makes the most sense to measure the number of new email subscribers.
Identifying Marketing Strategies & Platforms
Determining marketing strategies & platforms that, which will be more effective for your set goals is an important thing to do next for measuring ROI. Influencer campaigns can take the shape of competitions or freebies, discounts or promo codes, or account takeovers, but they all need to be tailored to your objectives.
Expense Evaluation
This is where the “I’ in ROI enters. How much investment are you planning to make in the influencer campaign? Your planned investments should include all costs starting from the smallest expense to any large expense.
