One of the aspects of Influencer Marketing for brands is to measure ROI. After all, it’s easy to pay an influencer for something and know what those costs are for. And it would be good if you know what you're getting for your money. Some are easy to measure and some actually need some effort to track.
Why do you need to measure influencer marketing ROI?
At the end of the day, we need to have the ROI of every campaign in our hands. And it’s important to measure your ROI of influencer marketing too. As marketers, we’re used to measuring campaign returns similar to PPC or Paid Social. Still, those costs are more predictable and the impact is frequently easier to track. With influencer marketing, you can have a lot of different things to measure and track. In addition, with variable payment rates that depend on each individual influencer
What is the objective of your influencer marketing strategy?
Your first step for calculating the ROI of a given campaign would be determining the objective. We define these in terms of KPIs. different KPIs can be measured in different ways. Likewise, the ROI can be measured in the campaign objective.
Types of influencer marketing objectives that many businesses have -
Goals Related To Immediate Sales Increases
Goals Related To Positive Exposure
Goals Related To More Effective Marketing
How do you calculate the ROI of influencer marketing?
Set your goal
Determine the key performance indicators (KPIs) most relevant to your goal
Determine what marketing strategy & platform works best for you goal
Evaluate your expenses
How to optimize your influencer marketing ROI over time
If you want to boost your ROI over time, Analytics & Search Console are your friends. In short, the best way to increase ROI is to see what's been working and as per that you can increase or decrease the cost, and then you can negotiate this in several ways.
First, consider doing A/ B testing with different influencers. In this case, you’ll come to know how influencers perform with the same kind of campaign and then use the further effective influencer more frequently to maximize return.
Another way to do this is by seeing which social platform is performing a better job for your audience. For example, if the audience is more active on Instagram than on YouTube then focus on Instagram and find a suitable Influencer for your service/product on Instagram. You can also consider content types for the same.
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