How to measure the ROI of Influencer Marketing Campaigns?
Influencer Marketing is known as new-age marketing. Over 60% of the brands – especially those targeted towards millennials – have adopted some form of the modern advertising method. The influencer marketing industry is set to hit $15 billion by 2022. 97% of marketers use Instagram for influencer marketing, making it the most popular social media channel for influencer marketing.
Influencer Marketing is helping brands to aim their target audience. Influencer marketing allows smaller brands to scale bigger by targeting potential buyers rather than spending huge money on TV commercials for large consumers. Influencer Marketing offers some significant advantages over traditional marketing and advertising methods. The ROI of influencer marketing campaigns are much higher compared to the average display ads.
Rather than marketing directly to a large group of consumers, paying influencers to get out the word for you can drive tremendous results. Influencer marketing involves using key brand advocates to drive your message to the broader market in an organic way.
Most importantly, it provides a better Return On Investment (ROI) than other marketing methods. It pinpoints people with large social followings who have sway over your target audience.
With the popularity of influencer marketing, brands are keen on discovering how and who to partner with for effective campaigns. People trust what other people have to say, rather than corporations or advertising. That is why influencer marketing has become such a powerful and effective marketing strategy. An effective influencer marketing strategy can help you in achieving all your business goals. Most brands and marketers don’t know how to measure the return on influencer marketing campaigns.
In this article, we will shed some light on how you can measure core metrics that decide your influencer marketing campaigns’ success:
Investment
Investment is the primary core metric that decides the size of your campaigns. You have to select the type of influencer that suits your budget as well as relates to your brand. Nano and micro-influencers carry more engaged followers as compared to mega influencers. The return on the invested amount on campaigns can be measured by conversions and increased brand awareness on social media.
Resources
Campaigns don’t run solely on money. You need other resources like trainers and a workforce, which educates the influencers about your brand and products. Without these resources, your campaign will not drive results. This metric involves a lot of time and money that a brand needs to put before running these campaigns.
Product
An influencer marketing campaign directly aims towards an audience that has the potential to become your customers. By distributing free samples to influencers, you can increase the chances of overall sales conversion from these campaigns. When an influencer tries your product in front of your potential customers, they can see your product’s performance and reliability. So, the cost of these free samples also plays a significant role in measuring the ROI of your campaigns.
Measure community to follower ratio
A large number of the following does not necessarily mean high engagement. Sometimes, large online communities lack the factor of engagement, which plays a crucial role in influencer marketing. Rather than a large following, focus on the influencers that have engaged following.
The “community to follower” ratio measures the reactions an influencer receives when he/she shares any message. This ratio will give you a specific percentage that can help you narrow down the search for influencers for your marketing campaign.
Sentiment
One of the significant factors deciding the success of any campaign is the customer perception of your brand. By analyzing the sentiment, you can understand how your customers perceive your brand image. It can reveal some significant factors that affect your campaign in negative ways. Sentiment analysis enables you to make necessary changes in your campaign that are affecting the overall ROI.
Visibility
Whether your goal is to promote your brand or a new product line, visibility is the most crucial factor that decides the success of your campaign. Rather than just focusing on numbers, you should also consider the visibility factor contributed by influencers.
When you are visible in front of your potential customers, they will become your loyal customers sooner or later.
Engagement
Apart from visibility, the level of engagement derived from the influencer decides the long term return of your investment. The total number of likes and comments will help you understand how your potential customers perceive your brand.
Conclusion
Influencer marketing can drive more results than traditional display ads if strategized correctly. Influencer marketing allows you to aim towards your target audience and increases the chances of conversions and improves brand engagement. People trust influencers and what they recommend. For a successful influencer marketing campaign, you need to focus on building relationships with authentic influencers and stick to the strategy that works for your brand.
John Smith is a Technology expert and has been working in the technical industry since 2011. As a technical expert, Jason has written technical blogs about computer software, internet security and reviews for many websites such as norton.com/setup.
Source:-https://getnorton.uk.com/how-to-measure-the-roi-of-influencer-marketing-campaigns/