When it comes to Influencer Marketing, metrics matter. But are they the true indicators of measuring the success of an IM campaign? Let's find out! 🧐

Likes and shares are incredibly important for any Influencer Marketing campaign and we wholeheartedly agree. In fact, they are important (KPIs) key performance indicators: numbers that inform and measure your social media strategy and help your team see where you’ve been and where you’re going.

But are they enough? 🤔

The bottom line is….

Vanity metrics may look good on the surface as KPIs but what you really need are the cold hard facts - Did your IM campaign give you the desired ROI? Certainly Influencer campaigns are not just about allocating a budget for your campaign and crossing your fingers that it may work. You need to go beyond the vanity metrics to get a true picture.

And this is what we will be talking about in this issue 🙌

What we are covering on today’s issue:

• What is Influencer Marketing ROI? 🤓

• Common KPIs for measuring ROI of Influencer Marketing 🧐

• Integrated Analysis: Moving Beyond Influencer Metrics 💯

• Formula to measure the ROI for IM campaigns 🙌

A Quick Message from Team Spreadd 🙌

You can reinvent great content for your brand with Spreadd 🙌

We at Spreadd have spent over 2 years to solve this problem of BAD content.

Thats why we are working with some of the biggest legacy companies and startups to get them the right content that gets them ROI.

If you are looking to grow your brand’s the right online distribution, we would love to get on a call with you.

We are waiting for you on the other side,

Team Spreadd.

Exploring Influencer Marketing ROI Beyond Vanity Metrics 🔎

Let's begin with the burning question…

What is Influencer Marketing ROI? 🤔

The Return On Investment (ROI) in influencer marketing gauges the revenue or profit yielded from investing in influencer collaborations and campaigns. It serves as a metric for evaluating the effectiveness and efficiency of your influencer marketing strategy, empowering you to refine budget allocation and select influencers more strategically.

One of the most common ways of measuring ROI is what we call the vanity metrics- likes, shares, & comments. But relying too much on the vanity metrics can lead to some serious pitfalls:

• Shallow insights:  Vanity metrics keep you on the periphery, never providing a full or clear picture. They don't tell you what you need to change or improve.

• Tricksters: Some metrics can be easily manipulated, leading to inflated numbers. They're easily faked and don't always show if your campaign is actually doing well.

• Quantity ≠ Quality: Having tons of clicks or views might look good, but it's like having a lot of- noise without any signal. What really matters is if those clicks turn into customers or real engagement.

• Distorted Reality: Just because the numbers are big doesn't mean you're killing it. True success is when your goals and numbers line up.

So now you know why the vanity metrics are not enough or not even the right way to measure the ROI of your IM campaign. 

And even before you get into the nitty gritty of ROI, you need to ask yourself - What exactly is your campaign goal? What are you trying to achieve with your social media strategy? Is it for brand awareness, lead generation, or direct sales?

Because each objective requires a different set of metrics!

But once you've got your goal sorted, it's time to roll up your sleeves and improve your Social Media ROI game coz there's a whole world of KPIs out there waiting for you to explore. Let's go fishing 🎣

Top 10 KPIs that you can use to measure the ROI of Influencer Marketing:

1. Engagement Rate: This metric shows how many folks are interacting with an influencer's content – think likes, comments, shares, saves, clicks, and views. It's a peek into how interested and engaged the influencer's followers are and how well the content vibes with them. To figure out the engagement rate, just divide all those interactions by the follower count and times it by 100. Aim for a rate higher than the industry average, usually hanging around 5% to 10%.

2. Conversion Rate: This is the percentage of people who take action after seeing an influencer's stuff, like buying something, joining a newsletter, or downloading an app. It's a measure of how well the influencer's content drives sales or leads for your brand. To track this, try using special codes, landing pages, or phone numbers – that way, you can really nail down the conversion rates and see the ROI.

3. Views: This is how many people check out an influencer's content. It shows how much exposure your brand gets.

4. Impressions: It's how many times an influencer's content pops up on screens. It tells you how often their followers or potential customers see it.

5. Brand Awareness: This is how well people remember your brand after seeing the influencer's content. It shows if the influencer helps boost your brand recognition.

6. Brand Sentiment: It pertains to the sentiments people express toward your brand or product following exposure to an influencer's content.

7. Brand Loyalty: This is how likely people are to stick with or recommend your brand after seeing the influencer's content. Does it build trust or make your audience want to spread the word?

8. User-Generated Content: It's the stuff people create or share about your brand after seeing the influencer's content. Does the influencer inspire their followers to engage with your brand and show it off on social media?

9. Click-Through Rate (CTR): CTR measures the percentage of users who click on a link shared by the influencer, showing their engagement level with the content. A high CTR means the content grabs attention and drives action. Brands analyse CTR to gauge CTA effectiveness, content relevance, and audience targeting. Improving CTRs boosts website traffic, conversions, and campaign success.

10. Cost Per Post: By comparing the cost per post to the generated value, such as sales or leads, brands can determine the ROI of each influencer partnership. Understanding the cost-effectiveness of different influencers helps optimize budget allocation and maximize campaign impact. Additionally, negotiating fair rates based on the expected value generated ensures a mutually beneficial partnership for both brands and influencers.

The benchmarks for these KPIs may vary depending on the type of influencers, platforms, industries, products, audiences, and campaigns that you work with.

Therefore, it is important to do some research and analysis before setting your benchmarks and comparing your results with them.

In addition to influencer-specific metrics, analysing broader content marketing efforts can provide valuable insights into overall campaign performance.

Integrated Analysis: Moving Beyond Influencer Metrics 🤓

• Traffic Sources: Analysing how visitors find and engage with content indicates its reach and effectiveness in attracting new customers. Google Analytics is a powerful tool for tracking traffic sources.

• Engagement Metrics: Metrics like time spent on a page, social media shares, and actions taken after consuming content reflect audience engagement and interest, aiding in content optimisation.

• Sharing and Backlinks: Evaluating the number of shares and backlinks generated by content reveals its resonance with the audience and potential reach. 

• Leads and Conversions: Tracking lead generation channels and conversion rates demonstrates content effectiveness in generating interest and driving actions.

• Sales Metrics: Evaluating sales data helps understand the influence of content on purchasing decisions and directly links content performance to business outcomes.

• Content Quality Metrics: Metrics such as time on page, bounce rate, conversion rate, and social shares gauge the content quality and audience preferences, aiding in content optimisation strategies.

Now comes the real question: How do you measure the ROI for IM campaigns? 

There is One common formula!

{Revenue — Cost} ÷ {Cost} x 100.

This formula helps you see the percentage of profit or loss from your influencer campaigns to what you're investing. Remember to include all your expenses, like influencer fees, product giveaways, and any tools or platforms you're using.

When it comes to tracking revenue from influencer campaigns, unique URLs, promo codes, affiliate links, or surveys can do the job. But ROI isn't just about the money. There's a whole bunch of intangibles to weigh in too, like brand awareness, customer loyalty, retention and more. So, another way to figure out your ROI is by putting a price tag on these things. How much is a new follower, a visit to your site, a shoutout on social media, or a glowing review worth to you?

Now, here's the tricky bit!

Putting numbers on these fuzzy concepts can be a bit of a puzzle. That's why it's crucial to gather data from reliable sources and keep your assumptions grounded.

To really nail down the ROI of your influencer game, you have to start by setting clear goals and KPIs that match up with what you're aiming for in your overall marketing plan. Then, it's all about finding the right influencers who can deliver the goods to your target crowd and vibe with your brand.

Furthermore, you need to use appropriate tools or platforms like Spreadd that can help you track and analyze your influencer campaigns and provide you with relevant insights and metrics.

Remember, there's no one way or metric to measure the success of your IM campaign. It's a blend of hard numbers and softer insights that help you understand the overall impact and value of your influencer campaigns.

Get on a call with us today and let us make your Influencer Marketing journey toxic-free and drama-free 🙌

Reinvent great content for your brand with Spreadd 🙌

We at Spreadd have spent over 2 years to solve this problem of BAD content.

Thats why we are working with some of the biggest legacy companies and startups to get them the right content that gets them ROI.

If you are looking to grow your brand’s the right online distribution, we would love to have a conversation with you.

We are waiting for you on the other side,

Team Spreadd.

Thanks for reading this issue of The Brand Advocate, we are bringing you hand-crafted marketing insights from the world of startups and businesses and delivering them straight to your inbox, every Thursday.

See you next week,

Team Spreadd