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Want to Try Influencer Marketing but Not Sure How to Measure Its ROI?

Written by ContentBacon | 10/11/23 2:37 PM

If you’re looking into influencer marketing, measuring its ROI is key to ascertaining its benefits for your brand.

Key takeaways

  • Influencer marketing helps brands get their name out there to potential consumers in a more organic way via content collaborations on social media platforms.
  • Measuring the ROI of influencer marketing can be done by tracking insights like reach, conversions, sales, and cost per engagement.
  • Define your audience and goals before selecting the right influencer partner who shares your brand’s values.

Social media platforms have become the new town squares where fresh products, conversations, and interesting topics are shared with communities both big and small. That means influencer marketing, in which well-known, trusted, and/or popular people mention brands/products in positive ways, has emerged as a powerful tool for brands and individuals to boost visibility. In fact, Influencer Marketing Hub’s State of Influencer Marketing 2023 report found that influencer marketing is expected to grow 29% to reach $21.1 billion this year. 

The ability to harness the reach and credibility of influencers has transformed the way brands promote themselves and their products. But how can brands be sure it’s actually lucrative for them? This post delves into why you should consider influencer marketing, how to measure its ROI, and how it can be harnessed not only to elevate brand visibility but also to boost your personal brand in an increasingly competitive online landscape.

 

What is influencer marketing?

Influencer marketing is a strategic, social approach to brand promotion. It involves collaborating with influencers who have a dedicated and engaged following on social media platforms. These users leverage their credibility and authority to endorse products, services, or ideas to their audience, acting as trusted voices in a noisy digital landscape.

Macro, micro, and nano influencers are categories of social media influencers, each characterized by their follower count and reach. Macro influencers already have huge followings – usually more than 100,000 but often in the millions. 

Micro influencers may have between a thousand and 100,000 followers across their social media channels. They often have more dedicated, loyal audiences. 

Nano influencers may have just a few thousand followers, but they can engage with their close-knit communities effectively. In fact, nano and micro influencers often have the biggest sway with their audiences as they feel more intimately connected with them (like a friend). These influencers are also more likely to generate more content about your product or service, and they will engage with their followers about this content.

So, why should you leverage influencer marketing? These benefits paint a positive picture:

  • Increased brand awareness and exposure: Influencers have the power to introduce your brand to a broader and highly targeted audience.
  • Improved brand credibility and trust: Endorsement from influencers lends credibility to your brand, fostering trust among consumers.
  • Access to your target audience: By partnering with influencers aligned with your niche, you gain direct access to your ideal customers.
  • Enhanced content engagement: Collaborative content tends to be more engaging, driving more likes, shares, and comments.

Influencer marketing is a great way to boost your visibility. And, you’ll build your professional network in the process. All of this leads to better marketing ROI, discussed next.

 

Measuring influencer marketing ROI

Understanding the value of influencer marketing investments is the only way to make sure they’re successful. It’s crucial to assess campaign effectiveness and ensure that your resources are allocated wisely. These key metrics will help with measuring influencer marketing ROI:

  • Reach and impressions: These metrics gauge the extent of your campaign’s exposure.
  • Engagement rate and conversions: Tracking likes, comments, shares, and conversion rates helps assess audience engagement and campaign success.
  • Cost per engagement (CPE) and cost per conversion (CPC): These cost metrics evaluate campaign efficiency and cost-effectiveness.
  • Online sales: If your end game is to boost online sales, you can track this metric by having an influencer include a unique link or discount code in their content to see how many people bought your product from their video. 
  • Return on investment (ROI) calculation: The ultimate measure of success, ROI compares campaign gains to costs.

The good news is that there are a lot of tools at your fingertips to track all these metrics. Platforms like Facebook, Instagram, and Twitter provide analytics tools that give you valuable data for measuring campaign performance. Many influencer marketing platforms offer built-in analytics, too. Custom tracking URLs and UTM parameters track traffic and conversions directly attributed to your influencer campaigns.

Ready to learn more about working with the influencers themselves? Next up you’ll find tips to do just that.

 

Tips for collaborating with influencers

To properly boost your brand visibility with influencers, start by taking a deep look at who you’re looking to work with and why. Clearly defining your target audience and campaign goals is essential for identifying the right influencers for your brand. 

Identify influencers and industry experts through research to find whose values align with yours. Always evaluate their credibility and authenticity. Scrutinize their content, engagement rates, followers (if they’re real or bots), and past collaborations to gauge authority.

Then, figure out what kind of collaboration you’re going for. Here are a few common types of influencer collaborations:

  • Sponsored content and product reviews: Influencers create content that showcases your products or services authentically and engagingly.
  • Giveaways and contests: Hosting giveaways through influencers can rapidly increase brand visibility and engagement.
  • Guest blogging and co-created content: Collaborate on blog posts, articles, or videos to tap into an influencer’s expertise.
  • Event participation and brand ambassadorship: Engage influencers as ambassadors for your brand or invite them to participate in events.

If the collab is done right, influencers offer a lot of value in the way of social media marketing. Make sure to figure out your goals and target audience to start the right kind of collaboration. These successful collaborations then do one really important thing: boost your brand visibility. Let’s talk more about how that happens.

 

How to boost personal brand visibility

The way you harness influencer marketing and industry expertise will vary based on your particular market and what your community is looking for. But how does it boost your brand visibility? Always maximize your strategy with these simple steps:

  1. Define your personal brand identity and values

Establish a clear personal brand identity and values that resonate with your target audience.

  1. Set goals and objectives

Determine what you want to achieve through personal brand visibility and influencer marketing.

  1. Identify influencers aligned with your values 

Choose influencers whose values align with your personal brand to maintain authenticity.

  1. Focus on content that amplifies your messaging

Collaborate with influencers to create content that reinforces your personal brand message.

  1. Rely on influencer-generated content for brand promotion

Repurpose influencer-generated content across your online platforms to increase visibility.

  1. Choose the right social platforms

Select the platforms where your target audience is most active.

  1. Post and engage consistently

Regularly share content and engage with your followers to maintain a visible online presence.

  1. Leverage hashtags and trends

Use relevant hashtags and trending topics to increase your content’s reach and visibility.

Whatever you do, stay true to your brand. You don’t want to work with someone who will give the wrong impression to your audience. Be diligent in selecting the right match.

 

Using influencer marketing to boost brand visibility

Whatever stage you’re in with your personal brand, influencer marketing provides a compelling and authentic option to amplify what you have to say. Measuring influencer marketing ROI ensures your efforts are rewarded while effective collaborations and social media strategies amplify your reach. In the end, influencer marketing isn’t just about gaining attention – it’s about leaving a lasting impression. 

The right content helps you do just that. You need copy that will reflect your values while engaging people across your channels. 

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