How To Measure And Track Influencer Marketing ROI

Influencer marketing can put a massive dent in your digital marketing budget, so your business must know how to measure the right metrics.

If you’ve used micro-influencers and not seen any real success with new sales, you may think it’s not the correct type of marketing for your business. However, maybe you’re just not measuring the right metrics!

Using influencers before you know what this type of marketing is and how it works is a high risk, particularly for small businesses that need every marketing dollar to go further.

Influencer Marketing Measurement Basics

Your process in 2023 must be methodical and consistent to measure and track influencer marketing ROI.

1. Set Clear Goals

Before starting your influencer marketing campaign, make sure you have clear goals. This will help you track and measure the success of your campaign.

2. Track Engagement Metrics

One of the most important metrics to track is engagement. This includes likes, comments, shares, and clicks on the influencer’s content. You can follow these metrics using social media analytics tools or the influencer’s analytics.

3. Use Unique URLs Or Promo Codes

Using unique URLs or promo codes in your influencer’s content can help you track the traffic and sales generated by your campaign. This allows you to track the direct impact of your influencer marketing efforts.

4. Monitor Sales

Keep an eye on your sales during and after your influencer campaign. If you see a significant increase in sales during the campaign, it’s a good indication that it is successful.

5. Calculate ROI

To calculate the ROI of your influencer campaign, you need to compare the cost of the movement to the revenue generated. This can be done by calculating the cost per engagement or conversion.

Deep Dive Into 5 Influencer Measurement Tasks

Lets now delve deeper into some of the requirements to ensure you’re accurately measuring your influencer marketing campaigns, including the following:

• SMART goal setting
• Using measurement tools
• Understanding engagement levels and content reach
• Witnessing conversion drivers
• Tracking conversions and leads

Identify Your Campaign Goals

​​Before you start an influencer campaign, it’s important that you clearly define your goals and objectives. Are you aiming for increased brand recognition? Product sales? Awareness of a new service or offering? Once you have identified the goal of your campaign, it’s much easier to determine the metrics you’ll need to measure to assess its success. Setting realistic goals and objectives is essential to understanding whether the efforts have succeeded.

Set Up Measurement Tools And Collect Initial Data

There are various measurement tools to choose from for monitoring your influencer campaigns. Analytics platforms such as Google Analytics effectively track customer engagement and website performance.

Furthermore, social media monitoring tools like Sprout Social or Buzzsumo are great for capturing a comprehensive view of the conversations taking place about your brand on social media.

Setting up these measurement tools properly is essential for collecting accurate data that can be used to measure success.

Analyze Engagement Levels And Content Reach

To track the overall performance of an influencer marketing campaign, it’s essential to analyze engagement levels between the influencer and their audience and the content reach generated by their posts. This can be done by evaluating the number of likes, comments, shares, views, and other metrics associated with a particular post.

For successful campaigns, these metrics should show increased engagement by people interested in a particular brand or product. Additionally, sentiment analysis can measure the positive or negative sentiment around a brand or product based on what people say about it online.

Examine Interactions To See Conversion Drivers

Looking beyond basic metrics like likes and comments, analyzing interactions between influencers and followers is essential to uncover their conversations. This can be done by examining replies, quotes, tags, and other interactions related to content that significantly affect the tone of a conversation. Doing so can reveal which topics drive the discussion and how people feel about a brand or product.

By understanding these insights, you can use them to refine your campaigns in the future and build better relationships with followers.

Track Conversion of Followers and Leads Generated

Conversions are the key metric you should track within an influencer campaign. This helps identify how many followers have taken action after seeing the endorsement. Tracking conversions is essential for determining return on investment for campaigns, as it helps establish whether following your content generated sales or leads in your target market.

How Much Do Influencers Cost?

Influencers’ fees are determined by how many followers they have and also their niche. TheHealthyJournal.com says the highest-paid influencers are household names like celebrity footballer Cristiano Ronaldo, who topped the list with $85.22m in 2021. In second place is another footballer, Lionel Messi. The top influencer in the USA is talk host Ellen DeGeneres, who typically earns more than $33m annually from paid posts.

Influencers with 1 million or more followers will have a base rate per post in the thousands. For example, businessinsider.com interviewed Nate White, who has 1.8 million TikTok followers and 340,000 Instagram followers, and his base rate is $3000 per post.

Is there a formula for gauging Influencer rates?

Insider says you should be looking at paying $500 for accounts with 100,000+ users. Under 1000 users and some businesses will pay $10.

However, more niche followers and the fee per post for accounts of 1000+ followers can be as much as $800. Publishing sponsored photos earn influencers more than a text and link mention.

Celebrity status does pay very well. For example, Kim Kardashian, with just 107 million Instagram followers, can make over 500,000 for a sponsored post. It’s not ideal for startups and small businesses with much smaller budgets. Instead, find a niche nano influencer and build up from there.

Summing Up

Measure the success of your influencer marketing campaign requires SMART Goals so you know how to track your ROI.

Using data to perfectly measure and track your influencer campaigns is more manageable with measurement tools like Google Analytics.

Therefore, measuring and tracking your performance is key to launching successful influencer campaigns. This guide shows you how to set up and manage effective campaigns that can be accurately tracked and measured for maximum impact. Now, learning which metrics are essential for maximizing your efforts is over to you.