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Influencer marketing has grown exponentially over the last few years, evolving from a popular trend to an essential component of a successful marketing strategy. In fact, influencer marketing spending in the US will reach $4.14 billion before the end of 2022.
Effective influencer marketing campaigns can lead to:
However, not all brands enjoy such cut-and-dry results, as they aren’t effectively measuring and improving their programs based on past performance. In fact, 30% of surveyed marketers don’t know how their influencer marketing ROI compares to other marketing channels. This suggests a gap in influencer marketing performance data and strategy.
In this post, you’ll learn how to talk to your teams about influencer marketing ROI and come away with a list of transparent, comparable, and scalable metrics that will help you and your team improve performance. That way, you’ll keep your influencer campaigns aligned with your more significant company goals and objectives.
1. Ask Your Team About Overarching Goals and KPIs
Misalignment is one of the biggest pain points companies experience when running an influencer marketing campaign. They fail to connect the campaign goal, or the program at large, to specific KPIs and customer journeys.
Here are some important metrics to keep your campaigns connected to your marketing goals.
- Top of the Funnel (TOFU) metrics: Look at KPIs like the number of impressions, video views, and engagements. These metrics are useful when you’re building brand awareness.
- Middle of the Funnel (MOFU) metrics: Look at click-through rates (CTR) for sponsored content, new followers or subscribers gained during your campaign, or pageviews on your campaign landing pages. The goal here is to strengthen brand loyalty.
- Bottom of the Funnel (BOFU) Metrics: Check whether your sales increased during your influencer campaign. Or, if you want to go granular, ask your team about social commerce tactics like affiliate links, discount codes, or social platform shops.
Establishing an influencer marketing measurement framework and unified KPIs will enable your team to measure and compare campaign performance––ultimately, giving you a complete picture of your influencer marketing performance. Overall, a data-driven approach to influencer marketing will make it easier to pinpoint what is and isn’t working.
If you need help with influencer marketing reporting, try using a marketing solution that provides up-to-date data on your campaign’s performance. Look for a platform that helps with:
- Tracking KPIs
- Assessing audience interaction with your content
- Measuring the impact of all marketing campaigns for a brand or region
This will make it easier for you to measure the health of your influencer campaigns and keep them aligned with your company’s strategies and goals.
2. Conduct a Spend Efficiency Analysis to Determine ROI
While it’s important to measure performance through KPIs, measuring the efficiency of your influencer marketing investments is just as important––especially when it comes to scaling your influencer marketing program. Ask your team about key metrics like:
- Cost per Post (CPP)
- Cost per Thousand Impressions (CPM)
- Cost per View (CPV)
- Cost per Engagement (CPE)
- Cost per Click (CPC)
These metrics show which influencers and strategies are delivering the most bang for your buck. Use them to help you improve your ROI going forward.
Also: An effective influencer marketing platform will track your ROI for you. Traackr ensures you always have transparency when it comes to your campaign funding and performance via investment optimization to report on ROI and measure spending across campaigns, influencers, and brands.
3. Dig Deeper and Evaluate the Success of Specific Content and Types of Influencers
If your initial KPI and ROI analysis indicate your program is underperforming, dig a little deeper to help your team determine what went wrong.
Do your influencers resonate with your brand and target audience?
Influencer loyalty is a metric that helps determine a solid influencer-brand match.
Influencer loyalty looks at how frequently an influencer mentions your brand. The higher the loyalty number, the more likely you picked influencers who truly love your brand. When that alignment is lacking, your campaigns can come across as inauthentic, which ultimately undermines their performance.
By tracking influencer data, you can:
- Monitor how they resonate with different demographics
- Determine whether they resonate with your target audience
- Set custom metrics to track
Which type of content drives the best results?
Ask your team how different types of influencer content perform. Influencer marketing content strategy is nuanced because the social trends change at an incredibly fast rate. This is why it’s important for your team to be constantly evaluating what content formats, themes, and platforms work best.
Ask whether your target audience responds better to curated pictures, short TikTok-esque videos, or longer form YouTube videos; but also ask what types of themes get the most engagement. Does your audience seem to prefer tutorial videos? Comedic videos? Photos with long inspirational captions?
If your team hasn’t experimented with different content channels and formats, consider encouraging them to. You can see which platform yields the best results and adjust your strategy accordingly.
When used effectively, influencers can be a powerful component of success for your marketing strategy. But measuring your influencer marketing performance can be tough if you don’t know what to look for.
By following the tips in this post, you’ll be better equipped to assess your influencer campaigns. That puts you one step closer to getting the influencer marketing performance/ROI you had planned for.
To learn more about aligning your teams around influencer marketing reporting best practices, contact us for a demo.