Influencer Marketing – How to Get and Prove ROI from Influencer Marketing?
In a world dominated by technology and everything digitized, it is easy to influence people to consume something from the trend market. Find out what you need to know about influencer marketing and how it helps the ROI in a business.
Get to know What Influencer Marketing Is
Many people spend their time scrolling through their feeds and switching to different social media platforms. With this, a new form of marketing strategy has risen, and it is still the most effective form of advertisement until now.
Influencer Marketing involves a collaboration of a brand and a content creator, usually people who have a large scale of social followers in their social media account. A brand will form an agreement to a content creator to endorse their product or feature it in their posts.
Depending on how formal the agreement will be, the content creators could receive payment for their posts. When people relate to the endorser as they present the product, the higher the chance they will be influenced to purchase it.
Effectiveness of Influencer Marketing in ROI
Since Influencer Marketing is known as being the most cost-efficient strategy in marketing, its effectiveness is proven to be at 89%. Brand companies are taking the chances of forming relationships with content creators to reach out to far more audiences with less cost to both parties.
With that, many marketers are engaging in this strategy rather than sticking to the traditional form of advertisements.
People’s trust and loyalty are drawn more towards the authenticity of the influencers that endorse the products. When influencers provide raw and uncurated reviews or posts, audiences tend to be influenced more by that transparency. These are social media platforms that have high engagement when it comes to influencer marketing:
This app is used by celebrities, content creators, rising personalities— everyone. It is an engaging platform where anyone can easily influence individuals since that is where you can find what the current trend is. That’s why, many brands use this to their advantage to connect to influencers and make them market their products to social audiences.
By providing a link to a product, the online shopping platform, or simply tagging brands in Instagram Stories and Posts, people can easily engage and be influenced to purchase the product.
A lot of content creators make reviews of the product that are in partnership with them, and there are people who enjoy seeing that type of content. In this way, brands could partner up with the content creators and send them products to review. They influenced the people through speaking and providing their thoughts about the products.
Ways to Track the ROI from Influencer Marketing
Define your goal
Be definite in what you want to achieve. Whether it is audience engagement, increased awareness about your brand, or new content for your products. Stick to the goal that you want to focus on. This will help you to have consistency in influencing the audiences through social media influencers.
Make sure that your goal is aligned with your vision, and this will be beneficial if your chosen influencer has the same view as you do.
Determine the KPIs and Metrics
Your goal will help you measure your KPI (Key Performance Indicators) and evaluate it through different tracking metrics.
To do this, you can compare the difference in audience engagement in an influencer’s post between a product they endorse and posts that are not about promotions. If the sponsored posts have more engagement, then it is a success.
You may also need these things when checking the engagement rate:
Insights in Social Media Platforms
This can be measured by tracking the increase in likes, comments, click-throughs, page views, or shared posts about the product campaigned by a content creator. As the marketer, you can also ask the content creator about their analytics for more transparency and accurate metric calculations.
Number of New Followers or Subscribers
The loyalty of the followers and the effectiveness of the content creator are involved in the increase of audience. An increase in followers or subscribers in your business social media platform or in the social media accounts of the content creators indicates that influencer marketing is a success.
Assess the expenses
The budget is an important part of any form of business. You should know the limit of your expenses and make sure that you won’t lose a lot upon paying endorsers. Influence Marketing involves payment to content creators, production costs, products that you will give them, and other fees that you and the influencer will agree on.
It is a discipline not to go overboard with the budget that you have. Be mindful that it is not just money that you will be spending in business but also time. If content for your product will cost more of your money and time, try negotiating and giving content creators alternatives aligned to your goals.
Calculate the Result
To calculate the ROI (Return of Investment), you have to know the formula for it. You have to get the quotient of return and cost first, then multiply it by a hundred to get the ROI.
In simple formula, (Return/Cost) x 100 = Return of Investment.
Besides influencer marketing, one marketing strategy you can use is email marketing. Here are the Top-3 E-commerce Email Marketing Services you can use for starters!
What is a good ROI for Influencer Marketing?
Brands are getting more than $5 ROI in every dollar that brands spend on sponsored content creators. Also, it was indicated in a study that influencer marketing could raise the ROI up to 11x compared to the traditional marketing strategies, and this will continue to increase in the years to come.
How much should you spend on Influencer Marketing?
Since Influencer Marketing is rising in popularity nowadays, businesses put up to 25% – 50% percent of their budget allocated for influencer marketing. There are at least 17% of businesses willing to allocate their whole budget for this new strategy.
How much should I pay the influencer?
The payment depends on your agreement with the content creator since the negotiation includes their rate per post. Usually, in Influencer Marketing, content creators who have at least a thousand of followers could get up to 25$ per post. This could take higher depending on what social media platform they will endorse the product, and their followers count.
Influencer Marketing is a good investment considering how it overpowers traditional advertising strategies. People tend to believe content creators rather than brand companies who make commercials since they find relatedness to them.
To be successful in this new marketing strategy, make sure to stick to your goals and use your budget with mindfulness. Learn what is the most appropriate campaign for your business, determine the suitable platform, find the right content creators, and be wise in calculating your ROI from influencer marketing.