Tracking Your Influencer Marketing ROI
Influencer marketing has been touted as being the latest big trend to hit the business and advertising world. This is in the wake of influencer marketing studies showing impressive results like a 650% ROI – that’s right: for every dollar spent, there are influencer marketing campaigns that have tracked as returns as high as $6.50.
It can be easy to guess why influencer marketing is working as well as it is: it’s not promotion by superstars, A-list artistes, or entertainers — not in the strictest sense. Rather, it’s product promotion by regular people with considerable followership and an active audience who are brought together by similar interests.
Nevertheless, just because it sounds simple, doesn’t mean it is. Many brands have made the mistake of assuming that it was a cakewalk to just find and pick an influencer, only to sink a bunch of money without seeing that return.
This guide is meant to show you what to do to set up and execute a profitable influencer marketing campaign, whilst sticking to your budget and getting the most bang for each buck you spend.
Understand Your Audiences
This is so simple that it’s often missed. Yet, this is still the single biggest reason why influencer marketing campaigns (and other marketing, besides) will fail. The idea of “going viral” isn’t enough for something to take off — you need to understand what going viral means for your market and the audiences of the influencers you’re working with.
What appeals to men probably wouldn’t appeal to women. For instance, you can trust a Benz ad to appeal to men more, and a Sienna minivan ad to appeal to single mothers.
Even among men, you can expect an ad for a Benz sports coupe like the AMG C63 or C-Class coupe to appeal to younger guys in the 20-35 age range and a regal looking GLS SUV or E-Class sedan to appeal to men in the 35-45 age range.
The point is: your target audience is all-important. You MUST accurately determine and “niche down” your audience before beginning any influencer marketing campaign.
Understand Followings and Reach
We recommend that you create a list and weed out less-opportune influencers by using metrics such as followership, audience reach, and audience engagement.
Followership is basically the same thing as the audience of the influencer or how many people are following them, subscribed to their channels or visit their blogs in a given day, week, or month. For instance, a Youtube influencer can have 300k+ subscribers on their channel.
Audience reach is how many of those subscribers or followers receive or view the influencer’s messages, posts, tweets or videos at any given time. Therefore, if a Facebook page has 120k fans, but only 1000 “see” the messages posted or click to open the messages over the course of 24-48 hours, your real reach is that 1000.
Audience engagement means how many people respond to, like, share, comment, retweet, repin or repost an ad, content, video or image posted by an influencer. You’re looking for a fair/average ratio over the course of an entire day.
For example, if on a Facebook page with 80k fans, every post gets an average of 900-1500 comments, over 2k+ shares and likes all relevant to the topic, then you have a winner. Ascertain what types of content get the most engagement too.
Some influencers get better results with images, others with videos, and many with text or a mix of two or three media. Determine which works for that specific influencer’s audience so that you can align your campaign materials with their best-performing formats, and increase your odds of success.
Use Tools and Analytics to Your Advantage
You need to know how to track and measure activity, subscriptions, and conversions. There are so many tools out there that do this like NeoReach’s rich array of reporting and tracking tools across every social media platform and identify influencers that will work well with your brand and campaign.
The service boasts of a robust influencer analytics data designed to ensure that you can track everything that happens on your campaign. This is the motherlode of all influencer marketing platforms out there.
In fact, check out these case studies for of how brands used the platform to connect with great influencers and got a healthy ROI from their campaigns.
This is extremely important. You need to know what actions the influencers’ audiences are taking on your campaign. Track every impression, clickthrough, like, pin, share, tweet and retweet, +1s, milestone, conversion and every other thing you can track.
As much as possible, allow nothing to slip through the cracks. You should also do some A/B testing on your landing pages, copy, and colors while you’re at it. The idea is to be able to determine where every cent is going and how much you’re making or losing –hopefully not- from the campaign.
Specify Influencer Guidelines
Where do you want your campaigns running? Which of the platforms would you prefer?
For example, brands have recorded a 50 percent increase in sales and brand awareness by being simply tagged on Instagram images and captions as against just the images alone. See what we mean by being specific? Missing out seemingly small details like that can easily translate into hundreds of thousands of dollars left on the table.
While this guide is by no means exhaustive, it should help you get a better perspective on how to look at influencer marketing and optimize the performance of your influencer activities.