According to Relatable’s 2019 State of Influencer Marketing Report, over 80% of businesses have allocated budget to influencer marketing this year. It is also stated Instagram influencer marketing alone is predicted to cost an estimated $8 billion by 2020.
While these statistics clearly illustrate the rise of influencer marketing, they don’t tell us if it’s being done correctly. To assess the effectiveness of your influencer program, you must track campaign performance and ensure that the return on investment is acceptable. This step-by-step strategy allows you to measure the ROI of your influencer campaign. Continue reading to be ready to launch your next influencer campaign.
While calculating your influencer marketing ROI may appear to be a bit daunting process (and we don’t deny that it can be! ), allow us to convince you to reconsider incorporating influencer marketing in your marketing plan.
If done right, influencer marketing may be one of the most effective digital methods for your company.
However, in order to comprehend influencer marketing and influencer marketing ROI, you must first understand influencer marketing statistics.
Consider necessary findings from the “Influencer Marketing 2020” report:
The majority of customers choose influencers that provide real, engaging material.
Authenticity, according to 90% of marketers, is crucial to the future of influencer marketing.
According to 85 percent of marketers, the most important indicator of success for influencer marketing is engagement statistics.
The number one issue in influencer marketing is ‘fake followers.’
‘Relevance’ is the most sought-after characteristic in influencers, according to 100 percent of marketers.
For 84 percent of marketers, proving the ROI of individual influencers is a significant issue.
Indeed, influencer marketing may be one of your most beneficial strategies.
What is Reach Effectiveness?
The impact of these influencers and influencer platforms is one of the most significant criteria in determining which influencer to choose to market a product for your business. In other words, this is exactly the number of unique, active viewers who see their content.
The efficiency of influencer reach is a measure of how many unique persons will view advertising, articles, or types of content. You can determine an influencer’s “average reach” by looking at their engagement statistics, such as the average number of likes or comments received per post in recent history, because engagement is a significant indicator of reach and whether their audience is paying attention to their material.
Set Campaign Objectives to Ensure Proper ROI Tracking
Setting defined goals and objectives is the first and most crucial stage in any influencer marketing effort. Determining your goals allows you to choose the type of influencers to work with, the type of content that must be produced, the distribution platforms, and so on. Marketers frequently pursue the following influencer marketing and influencer platform objectives:
- Boost brand awareness
- Reach out to new/target audiences
- Increase brand engagement
- Increase your sales.
- Manage the reputation of your brand
Track Social Engagement
Working with influencers may significantly increase your social media following. This, in turn, may have an effect on your social media ROI. Assume you offer notebooks and calendars, it’s December 2019, and one of your most important forthcoming items is a 2020 calendar. You collaborate with an influencer, who may, for example, organize an Instagram planner giveaway. The influencer will most likely link to your Instagram profile or perhaps your official website, providing you with further visibility and website traffic.
Increased social interaction will bring your brand to the attention of people who have never heard of you before, as well as inform you how your target audience perceives your product.
Divide the overall pay an influencer receives for a campaign by the number of interactions produced by a given type of content to determine the real value an influencer offers in terms of audience engagement.
However, you must exercise extreme caution when picking up your influencers. Because many influencers have enormous followings, this does not always imply that their audience is engaged – or even real! Use influencer tracking tools to assess and understand your influencers’ genuine reach.
Monitor Sales & Conversions
The capacity of a digital campaign to drive sales is one of its most vital aspects. Influencers are key persons in the digital realm, therefore when one supports a particular company, the brand acquires more relevance and validity.
If a well-known influencer wears a certain hat, the followers want the same hat; if the influencer eats at a newly-opened restaurant, the followers want to visit the same restaurant; if the influencer recommends a new face cream, the followers want it as well. You get the idea. It comes as no surprise that an influencer’s endorsement is highly appreciated, and getting one of the quickest methods to increase product awareness, and increase purchases.
Influencer marketing is a fantastic technique to advertise and enhance the visibility of your brand. And what better way to achieve so than to collaborate with an influencer who is relevant to your brand’s niche?
An influencer may generate more talk about your business and products than anyone else.
If you want people to talk about your brand? It only takes an influencer to share a photograph of your product or mention it in an Ig post! Influencers have the ability to convert new brands into instant successes as well as increase the power of already-known brands. It may seem too wonderful to be true, but evidence demonstrates that influencers can help a company raise visibility while also providing actual commercial benefits. It is simple to determine the impact of an influencer campaign on brand visibility: simply monitor your traffic, engagement, and follower count 24 hours after an influencer has published fresh material about your brand.
How To Calculate Reach Efficiency Rate
Calculating the reach efficiency rate will help you to maximize your company’s ROI because – in general – the more followers an influencer has, the more you will have to invest to get them to endorse your item or brand.
However, some influencers may have a large following but a low reach efficiency rate, which means that a company may pay money for their product to reach a certain sized audience – which they predict based on the number of followers a specific influencer has – but may receive far less engagement and make a smaller impression on their target audience due to a lower average reach.
Note- Reach Efficiency Rate = (Average. Reach / X Number of Followers) X100
Choosing an influencer with fewer followers but a high reach efficiency rate and a high degree of engagement on their content, for example, is likely to enhance a company’s Return on Investment because the cost of engaging in a commercial partnership with the influencer is lower. The reach, though, maybe the same as the influencer with more followers.
Having said that, an influencer’s number of followers is crucial in assessing their worth as a promotional resource, as well as the potential reach they are likely to have. The reach efficiency rate enables organizations to make the most informed choice possible regarding the real value of the influencers they are considering.
Predict the ROI of Influencer Marketing?
If you are willing to choose the best possible influencer to promote your product – as well as gain insight into the world of influencer marketing in general – make sure you connect with us, where you’ll be able to access all of the information about hire influencers and influencer platform to maximize your ROI through the same highly effective marketing method.