Marketing with influencers has become big business. To be a successful marketing approach, influencer marketing, like other types of digital marketing, must be measurable and have a demonstrated ROI.
Unfortunately, unlike other marketing strategies, there is no fast and easy way to assess the effectiveness of this marketing strategy. Many firms are still baffled by the numbers involved in this new kind of advertising. There is no way to know how well a campaign performed without suitable parameters.
We will discuss some ways to measure the return on investment for influencer marketing campaigns in this article.
Set campaign goals:
Is it your intention to raise brand awareness? Grow your audience? Or boost sales?
A common mistake brands make is not specifying what they want to accomplish and then getting unexpected results. Begin with a clear goal and determine how you’re going to measure it.
Choose the key performance indicators (KPIs) that are most relevant to your goal:
Be sure that you have the necessary tools in place to measure KPIs correctly.
Your aim will define the KPIs you’ll need to track to ensure the success of your campaign. Monitoring visits and impressions, for example, will outweigh tracking income if you want to create brand recognition. If you need to generate leads, it’s vital to track the number of new email subscribers.
Determine which marketing strategy and platform is best for your objectives:
Consider this: you wouldn’t hold a flash sale to get email subscribers, and you wouldn’t prioritise getting people to follow you on social media if you aimed to increase sales.
Influencer campaigns are no different—they might take the shape of competitions or giveaways, a discount or promo code, or an account takeover—but be designed to achieve your objectives.
Similarly, where you host the campaign is vital since various social networks have varying degrees of engagement and analytics tools for evaluating and calculating ROI.
Evaluate your expenses
It is where the letter “I” in ROI comes into play. How much money do you intend to put into the campaign? Include any influencer or agency fees, production costs, or analytics software fees in your budget. It’s also crucial to think about if you want to put additional money into the campaign.
One of the most common mistakes that eCommerce businesses make is not placing ad spend behind content that performing well organically.
Influencer marketing will be around for a long time. But, if you’re going to invest in influencers, you need to know what’s working.
Calculating the ROI of influencer marketing is the best method to spend your marketing money intelligently. Determine what is important to you. Determine which channels, influencers, and tools will help you reach your goal.