So here is an example of how you can evaluate the return on investment in influencer marketing. Imagine that you have invested $30000 in 10 publications from 10 influencers. Then, the price for one placement will be $3000. If the sales volume amounted to $200000, then the cost recovery amount is calculated according to the formula: revenue minus costs.

$200000 – $30000 = $170000

Therefore, we calculate the ROI (170.000/30.000)*100% = 566%. Then the cost of the campaign paid off five and a half times.

At first glance, ROI from influencer marketing looks a little hazy. It may seem difficult to specifically calculate how many sales or interactions influencer posts will generate. But you can analyze ROI using these indicators:

• audience reach;
• engagement;
• interactions;
• subscriptions;
• traffic;
• application uploads;
• the growth of subscribers on the brand’s official pages;
• sales.

The metrics to measure have to correspond with the goals set. Famesters experts help make these things clearer and easier to understand.

According to statistics, 81% of marketers pay the most attention to audience engagement indicators (the number of users who saw the post, their likes, comments and reposts). Using influencer marketing, they are betting on brand awareness and brand loyalty. After all, the main idea of such a promotion is to gain the trust of consumers and make them support the brand. Therefore, it is important to find creators who can later become the so-called ambassadors for your products.

HOW TO TRACK ROI?

There are several ways you can track ROI from influencer marketing. This could be an influencer marketing platform, a dedicated marketing analytics software, or professionals’ help. Let’s find out what will help you track these indicators in more detail.

It is quite simple to analyze the growth of subscribers on the official pages of the brand or the number of registrations on the site. You need to track these indicators within a week or two after the creators publish their posts. Most of the new users or followers during this period will be brought to you by the posts from campaigns with influencers. Yes, you have to track organic traffic during this period, too.

One easy way to track how many clicks to your site or service have been generated by an influencer is to use custom UTM tags. The influencer should attach such a link to a post about your products. You can also use promotional codes with discounts for your product in influencer posts and see how many sales each post brings.

If you want to understand how much brand awareness or audience engagement has grown, you need to analyze creator posts. The number of likes, comments, and shares will indicate how effective each influencer’s post is.

Outreach, impressions, and engagement are the most commonly used metrics when summarizing an influencer campaign, but they are not the only metrics to rely on. Other performance parameters give an idea of the success of the collaboration with creators.

Outreach shows the potential audience that can see the influencer’s content. It is important to pay attention to this indicator when planning your marketing campaign.

But estimating the benefits of outreach is not easy. And if the creator even has a million subscribers, not everyone will be able to see the post physically. Therefore, it is also important to look at another parameter – impressions, the number of users who saw the influencer’s post. The ratio of outreach and impressions will give a more realistic picture.

Another important metric when collaborating with influencers is engagement. Thanks to this parameter, you can assess the level of interest of subscribers to the creator’s posts. Engagement indicators include likes, comments, video views, and reposts. They can also change or be supplemented depending on the social network in which the influencer is represented. For YouTube, this can be viewing depth, for Instagram it can be “save to favorites”.

However, at present, the indicators of reach and engagement are gradually fading into the background. An influencer can generate real sales for a business by converting followers into loyal customers. And the results of campaigns can be measured by sales growth.

To estimate ROI in influencer marketing, you also need to pay attention to metrics such as direct sales, click-through rate (CTR), and app uploads. To track direct sales, you can use promotional codes and affiliate links that an influencer indicates in advertising messages.

Unique affiliate links and promotional codes for marketing campaigns allow you to track online sales. Influencers can earn a commission on these sales. Links can also be used as a tool to get data on the number of visits to a website and the average cost of an order. If the company has a CRM set up, then this can be easily tracked.

Analyzing ROI, we can conclude that the advertising campaign was not particularly successful. But influencer marketing doesn’t just work directly. It is important to take into account that as a result of cooperation with the opinion leader, the overall brand awareness and audience loyalty have increased, the subscriber base of official accounts has increased, etc.

Also, do not forget about potential buyers who went to the site after seeing the publication. Site visitors can subscribe to a mailing list, add the site to their favorites, or make a call. In short, sometimes additional touch points may be required to convert into a purchase. Given this factor, the resulting ROI will be slightly higher than the ROI initially shows.

In any case, the main idea that influencer marketing embodies is to achieve the same influence, sorry for the tautology! And this means gaining the trust of consumers and making them true supporters of the brand.

FEATURES OF INVESTMENT IN INFLUENCERS ON INSTAGRAM AND YOUTUBE

Instagram has recently started showing important data, which has greatly simplified the process of managing ads. Previously, this was not the case, and tracking some data, for example, socio-demographics, was much harder. 

To assess the reaction of the audience to an influencer’s advertising, you need to ask yourself the question: “Why was it made?”. If you get the results you expected, then the campaign can be considered successful.

For example, on YouTube, you can pay attention to the number of likes and comments. YouTube Analytics will show you how long a video has been watched. Thanks to this, we will be able to see, in percentage terms, the number of those who watched the video to the end, not skipping the brand advertising. If the video or its description section contains links to the site, you can easily calculate the frequency of transitions to the page.

The Famesters influencer marketing agency uses AI and other high-tech solutions to track important metrics. Also, it is common to request necessary data from the influencers or their agents.

WRAPPING UP

Businesses, as well as their marketing activities, must be based on clear data – then advertising campaigns work and the indicators go up. As we found out, tracking the effectiveness of influencer marketing is absolutely not difficult. There are metrics, formulas, and platforms that make this task easier. Also, you can always rely on experienced professionals from an influencer marketing agency.

For influencer marketing to be effective, do your research before partnering with any creator. Analyze the live audience and match it with your brand’s target audience. Find out whose content is popular with your customers. For example, this can be done using a regular client survey.

Analyze and then experiment with different opinion leaders and types of content, increasing the effectiveness of the channel with each campaign or single post. At Famesters, we always suggest testing different options to make a campaign more flexible and, in the end, choose what works best for a given brand. Influencer marketing really works, but like any other advertising channel, it requires high professionalism and knowledge.

Frequently asked questions about influencer ROI

How do you measure the influence of influencers?

The influence of influencers is typically measured through a combination of factors including their reach (number of followers and views), engagement rates (likes, comments, shares, views), the quality of their audience (demographics and interests), and the conversion rates they can generate (clicks, sign-ups, sales). Looking at an influencer’s past campaign performance can also provide insights into their influence. And influencer ROI is what helps evaluate influencer marketing efforts when your brand collaborates with the influencer.

What tools are available to measure the effectiveness of influencer marketing?

Several tools can aid in measuring the effectiveness of influencer marketing. For instance, analytics features built into social media platforms can provide a wealth of data such as reach, impressions, engagement, and conversions. Tools like Google Analytics can help track website traffic and conversions from influencer campaigns. Additionally, there are paid dedicated influencer marketing platforms and tools that offer deeper insights.

What is the effectiveness of influencer advertising?

The effectiveness of influencer advertising varies greatly and depends on several factors including the suitability of the influencer to the brand, the quality of the campaign, and the relevancy to the target audience. However, when done right, influencer advertising can be highly effective. According to some studies, businesses can make an average of $5.78 for every dollar invested in influencer marketing. This makes influencer ROI higher than that of multiple “traditional” advertising channels.

What are 3 things you can measure on social media?

On social media, you can measure:

1. Reach. The number of unique users who have seen a particular content.
2. Engagement. The number of likes, comments, shares, or views a content generates.
3. Conversion. The number of desired actions taken, such as clicking on a link, filling out a form, making a purchase, or downloading an app, attributable to the social media content.

How do you measure the effectiveness of a social media campaign at your agency?

We at the Famesters agency measure the effectiveness of a social media campaign using a combination of metrics that are directly aligned with the campaign’s goals. These may include audience reach, engagement rates, click-through rates, conversions, ROI, etc. We employ advanced analytics tools and technologies like AI to track these metrics. We can also use UTM parameters for precise tracking of web traffic and conversions and special promo codes to track sales from individual influencers when necessary. Here you can learn more about our measurements and reports.

How does influencer engagement directly relate to influencer ROI?

Influencer engagement measures the interaction between content and the audience, including likes, comments, shares, and video views. High engagement rates suggest that the content is resonating with the audience, which can lead to increased brand exposure and stronger consumer action, ultimately boosting influencer ROI. For instance, a high engagement rate often correlates with increased brand recall, more effective dissemination of brand messages, and higher likelihood of conversions from promotions or call-to-action elements within the content.

What specific steps can I take to track influencer ROI effectively?

Effective tracking of influencer ROI involves a multifaceted approach:

• Implement tracking links: Use UTM parameters on all links provided by the influencer to track traffic sources and conversions explicitly from each influencer’s content.
• Dedicated promo codes: Assign unique promo codes to each influencer, which allows for easy tracking of sales and conversions directly attributable to specific influencer campaigns.
• Engagement metrics: Regularly analyze engagement data to gauge the audience’s response to influencer content, adjusting strategies as needed to enhance performance.
• Influencer marketing platforms: Employ specialized software that provides integrated analytics for tracking reach, engagement, conversions, and other key performance indicators.

Or you can simply contact us via [email protected], and we will do all the measurements at any stage of your influencer marketing campaign and craft neat reports to help you analyze the results, including influencer ROI.

How can influencer content style impact ROI?

The content style chosen by an influencer can play a critical role in determining its authenticity and appeal. Content that aligns with the influencer’s natural communication style and audience expectations is more likely to be perceived as genuine, fostering trust and leading to higher engagement rates. When content feels organic rather than forced, it enhances the audience’s receptivity to the brand message, which can significantly increase conversion rates and thus influencer ROI.

Can the timing of influencer campaigns affect ROI?

Timing can significantly influence the effectiveness of an influencer marketing campaign. Aligning influencer posts with peak user activity times, relevant cultural or seasonal events, or alongside major product launches can maximize visibility and engagement. For example, launching a campaign during the holiday shopping season or just before major sales events can capitalize on heightened consumer spending behavior, thus improving potential ROI.

How important is influencer-audience alignment for maximizing ROI?

It’s simply crucial. Influencers whose followers mirror a brand’s ideal customer profile can deliver more relevant and compelling content to an audience that is more likely to engage with the brand’s products or services. This targeted approach reduces wastage of marketing spend and increases the likelihood of higher conversion rates.