There are four major
trends right now that make influencer marketing more and more important for
marketing. Let us look at these trends:
·
Content is being created
in massive proportions and it is very difficult to break through the noise
·
There is a major decline
in the organic content available on social media platforms like Facebook and
Instagram which make it very tricky to promote the content.
· There are ad blockers
due to which it has become almost useless to opt for these
· Most consumers trust
recommendations from peers rather than ads.
How to measure your own ROI on influencer
marketing
This depends on your
goal largely. Of course the first thing that you will look for is the number of
sales. However, in influencer marketing there are lots of benefits that
ultimately drive sales even though they may take some time to do so. For
instance, if a brand is new then visibility should be the goal of any
influencer marketing campaign rather than looking at the sales generated from a
particular campaign. At the same time, if a brand is trying to reshape its
image then success will be considered in terms of positive engagement. There
are mainly four methods to measure your ROI on influencer marketing.
Visibility
If you are promoting a
new brand or introducing a new product as mentioned above, your main goal
should be visibility. For such growth oriented campaigns the return on
investment is the number of new target customers whom your campaign makes aware
of them. With influencer marketing the consumers are more likely to buy your product
by selecting bloggers who are closely aligned with the target audience. Here it
needs to be mentioned that identifying the right influencer will only get the
right ROI. For this purpose you should use some good influencer
identification tools
which are easily available on the internet. These tools will help you choose
influencers who are just right for your brand.
Engagement
This is a rather long
term return on investment when you measure the cost per ‘like’, a comment, or
interaction like a viewing of the video, or click through. This is a valuable
metric that you as a brand can use to measure long term ROI. This is because
measuring engagement is a good method of understanding how the target consumers
feel about the brand and not just one of the products. Here you should bear in
mind that engagement is a metric that is more than the traditional measurement
of ROI. The traditional methods of tracking ROI simply depend on the immediate
sales that are earned from a single campaign. On the other hand the engagement
metric measures the likelihood that the viewers will become brand loyal in the
near future. Sometimes the cost per engagement goes as low as $0.01 which shows
how effective properly strategized influencer marketing can be.
Cost per engagement or
CPE has become the key to measure the success of influencer marketing
campaigns. There are different types of engagements like click to a website,
comments, likes, video views, repins on pinterest, retweets on Twitter, shares
on Facebook number of sales and other such social interactions.
Content
The other benefit of
influencer marketing is content that brands often do not look at. It is always
more economical to negotiate the image rights to an influencers’ content rather
than coordinating a photo shoot. Here you need to bear in mind that there is
also the benefit of a third party endorsement which is an added benefit. This
is the reason that content is a powerful return on investment. This applies
both for savings on in-house creation of content and the sales potential along
with the reach generated by the collaboration with an influencer.
Revenue
Usually what most people
think of when they talk about ROI is revenue. There are four methods to measure
the revenue that you get from an influencer marketing campaign.
·
Affiliate links – if you combine your influencer campaign with
affiliate marketing it becomes simple to track the ROI in terms of money earned
directly through the influencer. If you generate a unique affiliate link for an
influencer it allows you to track online sales made through their social
channels and blog posts. Usually influencers receive commission from the sales
generated by them.
·
Promo codes – these allow you to track the impact your influencer campaign
creates. As mentioned above, a consumer may not purchase your product or
service immediately on seeing a post from the influencer. In this manner
affiliate links will reveal only part of the ROI. Promo codes on the other hand
track the purchases that are spurred by the influencer marketing.
·
Google Analytics – this is another powerful tool that can track
online sales. If you set up an event goal you can see which of the online
consumers visited the ecommerce site from the influencer social media post or
channel.
·
Isolated marketing – this is a method to measure the impact of an
influencer on the sales whenever the sales take place. Here you can take a test
product and promote it only through influencer marketing and do not promote it
in any other manner. This method will give you the exact ROI in terms of
revenue. Such isolated marketing efforts will allow you to track sales.
This is the manner in
which you can get the maximum ROI from your influencer marketing campaign and
you can also measure the ROI. However, it is important you keep an eye on the
management of your campaign and keep tracking the milestones achieved using
various automatic tools like influencer management tools and influencer
tracking tools.
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