How to Measure Influencer Marketing ROI and Campaign Effectiveness?

Frequently we make purchases under the impact of external factors: advice from colleagues, friends or relatives, advertising on mass media or internet. Sometimes even a certain thing of a passer-by can cause our desire to buy the similar. Marketers took this aspect into account a long time ago and successfully use it in their strategies.

It's quite difficult to influence a person with information from mass media. But when we hear the same information from somebody we trust it makes more impact on us and our opinion.

Over times this idea underwent different transformations. Initially, brands decided to use celebrities in their advertising campaigns in order to make consumers buy their products. Then, due to technical development, this method moved to the internet. When social media gained their wide popularity, the current influencer marketing showed up — and now it has become one of the most important marketing activities for many companies.

Influencer marketing is not only about placing advertising with the help of social media influencers. In fact, it's a good opportunity to make a big community of those who really appreciate your brand.

According to influencer marketing statistics of One Production corporate, 94% of marketers consider the collaboration with social media influencers very effective, and 90% of consumers absolutely follow influencers' advice. At the same time, only 33% are impacted by traditional advertising.

To prove the effectiveness of this method let's consider one example of the recent campaign from our influencer marketing platform.

ZV Development company made their new project (QDRO) with modern energy-saving cottages. They wanted to increase the awareness about the project among their target audience and decided to work with 9 micro-influencers. As a result, they generated 9 273 interactions and the total reach of the campaign was 367 861 users.

First of all, you need to specify particular goals. What do you need: to increase brand awareness or loyalty, to increase the number of sales or clicks on the website, to get customers feedback, to attract a new audience, etc?

Then plan your strategy, write a brief and find appropriate influencers. If you want to make things easier, it's pretty good to use an influencer marketing platform. There you will find a filtered list of influencers, together with all the statistics and rates. So, you'll not need to search for all the info manually.

While choosing influencers for your campaign pay attention to their previous advertising posts or even ask them to provide you with the full information about their results. It may take you some time (again, on the platform it will be easier), but it'll help you to assume how effective will be your posts.

At the first sight return on investment in influencer marketing seems a little bit blurry. It's quite hard to predict how many sales or impressions generate influencers posts.

You can analyze your ROI through such indicators, as:

• Audience reach
• Engagement rate
• Impressions
• Subscriptions
• Traffic to your website
• Downloading apps
• Followers growth on your official brand's pages
• Sales

According to this influencer marketing statistics, 81% of marketers pay the biggest attention to engagement (the number of users who saw the post, their likes, comments, and shares) while measuring ROI. Using influencer marketing they place more bet on brand awareness and increasing loyalty among consumers. After all, this type of advertising is mostly about to get consumers trust and commitment to the brand. Thus it's very important to find the social media influencers who may become your brand's advocates.

There are different ways which can help you in tracking ROI from your influencer marketing efforts.

First of all, ROI is money. This means, all the metrics mentioned before are just additional metrics, but they are not equal to the return of investments. All liked, comments and followers don't necessarily bring you money.

So, how to measure influencer marketing ROI?

First, count the income. Use Google Analytics to track the traffic sources, use UTM links to make it even better. Use separate landings and everything you can to separate influencer marketing's traffic from all the other sources. Ideally, you should track every single influencer to understand the ROI of every dollar you pay,

Measuring influencer marketing ROI itself is not difficult.

Say, you paid $100 for a post that gave you 10 customers, and each of them bought your $50 product.
Here, your volume of sales is 10*50=$500
And your ROI is (500-100)=$400 which is 400%.