How do you measure ROI of your influencer marketing campaigns?
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Influencer marketing is a popular strategy to promote your brand, products, or services on social media platforms. But how do you measure the return on investment (ROI) of your influencer marketing campaigns? In this article, we will explain what ROI means for influencer marketing, how to set realistic goals and metrics, and how to track and optimize your campaign performance.
What is ROI for influencer marketing?
ROI for influencer marketing is the ratio of the benefits you gain from your campaign to the costs you incur. Benefits can include increased brand awareness, engagement, traffic, leads, sales, or customer loyalty. Costs can include influencer fees, agency fees, production costs, or ad spend. To calculate ROI, you need to assign a monetary value to your benefits and subtract your costs from them. Then, divide the result by your costs and multiply by 100 to get a percentage.
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Even when partnering with influencers, it is not enough to build it and think that the audience will come. When investing in an influencer effort, go the full distance to: - Build a longer-term relationship with the influencer - Create a robust shared content calendar - Plan engagement scenarios around the shared content - Promote content with ads to ensure it is seen at scale - Leverage influencer credibility to amplify storytelling
How to set goals and metrics for your campaign?
Before you launch your influencer marketing campaign, you need to define your goals and metrics. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, your goal could be to increase your website traffic by 20% in three months. Your metrics should be aligned with your goals and reflect the key performance indicators (KPIs) of your campaign. For example, your metrics could be impressions, clicks, conversions, or cost per acquisition (CPA).
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You can estimate the metrics of your campaign well before partnering with an influencer, for both organic and paid content. For organic metrics, anticipate that a small portion of your and the influencer's followers will see content - impacting subsequent metrics like website traffic. Tools like Traackr can help you to estimate the legitimate portion of an influencer's following, and their overall reach. With paid social and other paid media, you can especially control the parameters to 1) target a relevant audience, 2) reach a large audience, and 3) incorporate valid tests. With such tools at your disposal, there is so much you can calculate without relying solely on an influencer's portfolio or claims.
How to track and optimize your campaign performance?
To track and optimize your campaign performance, you need to use the right tools and methods. You can use influencer marketing platforms, analytics tools, or tracking codes to monitor your campaign data and measure your ROI. You can also use surveys, feedback forms, or social listening to gauge your audience's sentiment and satisfaction. To optimize your campaign performance, you need to analyze your data and identify what works and what doesn't. You can then adjust your strategy, budget, or influencers accordingly.
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Throughout the years, my team would utilize different tools to measure successful campaigns actively: - MAVRCK (influencer marketing platform): the ability to track posts, clicks, engagements, engagement rate, impressions, etc. - UTM tracking: individual links to track conversions or user behavior by providing discount codes specific to the influencer. - Social listening: Track overall brand mentions & conversions or sales directly attributed to the influencer campaign.
How to choose the right influencers for your campaign?
One of the most important factors that affect your campaign ROI is the choice of influencers. You need to find influencers who are relevant, credible, and engaging for your target audience and niche. You also need to consider their reach, engagement rate, content quality, and audience demographics. You can use influencer marketing platforms, databases, or social media searches to find and vet potential influencers. You can also reach out to them directly or through agencies and negotiate the terms and expectations of your collaboration.
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When researching influencers, focus on their credibility and relevance to both your brand and campaign. If you take a long-term approach, then their voice can help to build your brand far beyond the campaign. Platforms like Tagger and Traackr can help you to understand the scope and validity of an influencer's following. Many influencers have fake and bot followers, despite their own efforts and platform cleanups. When you determine how an influencer will bring your campaign to life, and you don't rely solely on organic content, then your combination of all tactics (including paid media) will transform your campaign from a checked list to a robust story.
How to create engaging content for your campaign?
Another key factor that influences your campaign ROI is the content you create with your influencers. You need to create content that is authentic, valuable, and appealing for your audience and goals. You also need to follow the best practices and guidelines of each social media platform and format. You can work with your influencers to co-create content that showcases your brand, products, or services in a natural and creative way. You can also encourage your influencers to interact with their followers and generate user-generated content (UGC).
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The sky is really the limit - and your own imagination, plus the digital boxes you can fit content into. Consider different dimensions t uncover a variety of creative approaches. Like these as a kickstart: - Formats: Stories, Videos, Live, and Facebook Instant Experience - Behind the Scenes: Show what went into the campaign, or a day in the life of the influencer, or let them “take over” your brand profile and Stories - Engagement: Solicit ideas, questions, and other inputs from followers - Participation: Create a campaign, giveaway, or something that fans can do - Journey: Create a path that viewers can follow, such as an interactive or gamified website experience - Exclusivity: Consider timed events or releases, or items to unlock
How to measure the long-term impact of your campaign?
Influencer marketing is not a one-time tactic, but a long-term strategy. You need to measure the long-term impact of your campaign on your brand, audience, and business. You can use metrics such as brand awareness, brand affinity, customer retention, customer lifetime value, or organic growth to assess the lasting effects of your campaign. You can also build long-term relationships with your influencers and leverage their influence and loyalty to boost your brand advocacy and word-of-mouth.
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If your influencer campaign investment includes paid social, you might spend enough to meet the minimum budget required for a social media brand study. Unlike the typical social media metrics, a brand study creates the environment for determining your campaign's impact on measures of brand awareness, affinity, and more.