It's no secret, influencer marketing has experienced huge growth in the last few years, leading brands to increase marketing budgets in favour of influencer content.
In fact, according to a recent report by Influencer Marketing Hub, the influencer marketing industry is expected to grow by 16.4 billion in 2022 alone. With so much investment into influencer marketing, today's brands need to measure every aspect of a marketing campaign to determine its success.
So, what options do companies have? We know the most direct way to measure an influencer marketing campaign starts with learning how to measure a campaign's ROI. After all — you need to know if an influencer campaign generated meaningful results and achieved your marketing goals, whether that's more leads, increased website traffic, or a boost in brand awareness.
But it's not always that simple. Measuring influencer marketing ROI can be more complex than other marketing campaigns, such as traditional paid ads on Google or social media. The good news is: it's still possible by updating the formula you’re using and keeping broader company goals in mind.
It’s time to learn how to calculate return on marketing investment (ROMI) for influencer marketing. Let's explore why influencer marketing should be on your radar and how you can measure the results of future campaigns.
Measuring the success of sales in influencer marketing relies on using a ROMI calculator — or at least using the correct equation. What is ROI in marketing? It’s calculating the amount spent on a campaign as compared to the amount of revenue the campaign generates.
It’s essential to use the ROI marketing formula rather than the overall ROI formula with broader applications: The ROMI formula is:
ROMI = (Revenue - Marketing Expenses / Marketing Expenses) * 100
Leveraging this updated version of the ROI calculator helps you understand how much net revenue is generated by considering what was spent.
The cost of influencer marketing campaigns is not as direct as other paid marketing campaigns and depends on various factors, including influencer engagement, the social media platform you're using, and the particular industry.
Important questions to ask include:
Using an influencer calculator can help you prepare for influencer marketing and determine a campaign's budget by considering the different costs required to run a successful campaign. It’s essential to remember the cost of any free or discounted products involved in the campaign.
Calculating the ROI of influencer marketing leverages the formula we discussed earlier for sales-focused campaigns. However, how do you evaluate non-sales metrics, such as engagement rate, likes, follower growth, affiliate links and other social metrics?
It starts with learning how to track influencer marketing beyond sales.
First, you’ll need to establish a baseline of your social metrics before the campaign, then monitor how they change during and after the campaign.
The simplest way to track the true ROI is to assign a dollar value to social metrics. For example, how much is a new follower worth to your company? You can then use the same ROMI formula to determine your campaign's effectiveness.
You may also wish to use an influencer engagement calculator to hone in on which influencers produced the most engagement. This allows you to invest in influencers with higher engagement rates and improve your influencer marketing campaign goals.
It’s important to work with the right influencers if you want to get the best results from your influencer marketing campaigns. However, the challenge for many brands is finding and making connections with those influencers.
MODERNSPEAK helps our clients create valuable influencer campaigns that deliver a high ROI through our industry expertise, proven influencer marketing strategies, and influencer marketing campaigns designed for engagement.
We work directly with hand-picked influencers and content creators, helping our clients get the best value from their marketing budgets.
Ready to experience the power of influencer marketing? Contact us today to see how we can accelerate your growth through the power of influencer marketing.