Influencer marketing is an effective way of promoting your business in front of millions of people. It significantly brings you a diverse range of audiences who buy your products and services. However, influencer marketing only shows positive results if your campaign is properly executed and ROI optimized.
Statistics show that around 17% of brands spend half their budget on collaborating with influencers. It requires so much detailed campaign planning, effort, and time to track ROI. ROI is basically a main metric that shows whether your campaign is working or not.
But calculating ROI is not as easy a process as it seems. If you are struggling with measuring the ROI of your influencer marketing, then don’t worry. We have got your back. In this blog post, we have covered every single detail you wanna know about ROI. It will help you understand which metrics you need to measure, how, and when.
So without further ado, let’s get started.
Important Metrics To Track
- Brand Visibility
Influencer marketing is an effective way to enhance the visibility of your brand. Influencers have millions of followers on their social media platforms. When an influencer posts about a brand on their SM, fans immediately tend to go to that store and brand.
Therefore, there is no doubt about the effectiveness of influencer marketing in raising awareness about your brand. You just need to keep track of engagement levels, views, impressions, and visits of non-followers on your brand page when an influencer posts about you on their page.
- Social Engagement
Influencer marketing efficiently increases the engagement rate of your business page. It also has a great impact on your ROI. Influencers add your page, product, or even website link on their page. When fans see that link, they feel validated about the authenticity of your brand.
Hence, they visit your page without any hesitation, buy your products, and engage with your content. However, before choosing any influencer for your influencer marketing, check their engagement level. High followers do not mean they have authentic followers who will engage with your content.
- Sales And Conversions
Generating leads and sales is the main goal of any marketing campaign. Influencer marketing is one of the effective ways to attract a diverse range of audiences to buy your products. Influencers have an impact to tend their followers to generate leads and sales for your brand.
It is difficult to track the sales of an influencer. But you can always use methods like a promo code, coupon, affiliate links, or a special landing page specifically designed for influencers. This way you can track the conversion rate and sales you get due to endorsement.
Formula For Calculating Influencer ROI
Calculating the ROI of your Influencer marketing campaign is the most difficult part. Well, you can easily calculate the ROI of your brand campaign through the following formula:
ROI = Profit Return/Investment x 100
ROI refers to Return on Investment. It means how much money you generate in your business. Profit return is the amount you generate, while investment is the amount you invested in the business.
You may have to make changes in your current ROI with every new influencer marketing campaign.
Tools To Track ROI
Influencer marketing needs a lot of effort to properly plan the marketing campaign and frequently track its results. Social media is a place where everything is changing every other second. If one post is not responding right now, it may become viral the next morning.
If your marketing campaign is showing promising results now, it might not work tomorrow. Therefore, it is best to get help from tracking tools that measure the ROI properly. Moreover, they also keep you updated whenever your sale goes up and down.
There are various user-friendly tools that you can use to track your business ROI. Some of them include:
- Google Analytics
- Keyhole
- Snovio
Final Thoughts
Influencer marketing is an effective way to promote your business and brand. You can see immediate results of your influencer marketing campaign compared to traditional marketing methods. Well, you can experience positive results, if you have chosen the right influencer.
By keeping track of the ROI of your influencer marketing, you can see how far your campaign is working. If you do not want to calculate it by yourself, then contact our expert team. Vavo Digital helps you find an efficient influencer, plan your campaign, calculate your ROI, and bring positive results.
