In influencer marketing, influencers are paid for their social media posts by brands. The influencers promote a brand’s product or service to their followers. Influencer marketing is a form of word-of-mouth advertising made possible due to the rise of social media.
These influencers have an extensive reach on different platforms, which gives them the power to introduce your business and its products to their audiences in an authentic way. It can be difficult for marketers to measure influencer marketing ROI because it is hard to quantify how much revenue these influencer campaigns generate. Still, there are ways they can find out.
Why ROI is important
ROI is the key to every marketing plan. It’s how you know you well spent your time and what matters, so it needs a lot of attention for everything else around ROAS (Return on Ad Spend) to work correctly. If influencer marketing ROI is high, brands can expect influencers to become more engaged with their campaigns.
How to calculate ROI influencer marketing
Influencer tools can help you calculate influencer marketing ROI by measuring the number of conversions influencers’ posts drive. For example, if an influencer post leads to a sale, it’s counted as one conversion. You could also look at how much traffic or brand searches were driven from influencers’ social media posts and measure those numbers against your average cost per click (CPC) and other critical metrics for determining whether these campaigns will be profitable.
Subscription-based Business Model
Instead of just tracking single transactions, you might want to look at lifetime value (LTV) if your business model is subscription-based. It also considers how much revenue influencer marketing generates after all campaign expenses are paid.
Looking at Indirect Effects
You could also look at indirect effects from influencer marketing campaigns like brand searches or social media traffic to see if there are any trends in interest over time. Brands can see which influencers convert the most directly and what content works best across platforms. Then you can create customized strategies based on these findings while continuing tracking results through various methods mentioned above.
Why influencer marketing is an excellent way to measure your ROI
When influencer marketing ROI is low, influencers are not motivated to work with brands. Brands will need influencers’ audiences to drive sales and increase revenue, while influencers strive for content that drives engagement. You should run influencer campaigns in a way that benefits both parties involved.
List of some successful campaigns that used influencer marketing to
Here are some influencer marketing campaigns that were successful in the past:
Nordstrom influencers campaign
Nordstrom influencers shared their favorite fall fashion looks with their followers. Each influencer created a post featuring an outfit on Facebook, Instagram, or Pinterest and tagged @nordstrom. Shoppers could also click through to the link in each influencer’s bio for more information about where they got their clothes. The retailer gained hundreds of new customers who had never shopped there before and some loyal ones by reaching out to new audiences via these influential bloggers’ social media platforms.
Apple Watch influencers campaign
Apple worked with micro-influential celebrities like Aimee Song, Blair Eadie (a blogger), Chriselle Lim (a fashion influencer), and Zach King (a Vine influencer). The influencers created content on Instagram showcasing how they use their Apple Watch to stay connected. They posted photos of themselves wearing the device, shared screenshots from its activity-tracking app, or wrote about how much they liked it.
The benefits of using influencers in your campaign
The influencers’ strong, engaged followings provide authenticity and transparent value exchange.
Influencer marketing can help you cut through the noise of an overcrowded market. It’s also great for making your brand more relatable. Influencers can connect with people personally rather than just pushing out content from your brand, as many other forms of advertising do. Aside from saving time, influencers create content that is optimized for each social media platform.
We hope this blog post has given you some ideas for your digital marketing strategy. We want to work with you to find the best way to achieve your business goals. If there is anything I’ve missed or would like clarification on, please feel free to reach out!