One of the biggest challenges in influencer marketing is measuring return on investment. Unlike traditional advertising with clear click-through rates, influencer campaigns impact multiple touchpoints along the customer journey.
Defining Your Goals First
Before measuring ROI, clearly define what success looks like for your campaign:
- Awareness: Reach, impressions, video views
- Engagement: Likes, comments, shares, saves
- Traffic: Website visits, link clicks
- Conversions: Sales, sign-ups, downloads
- Brand Sentiment: Mentions, sentiment analysis
Key Metrics to Track
1. Engagement Metrics
Track likes, comments, shares, and saves on sponsored content. Calculate engagement rate by dividing total engagements by reach or impressions.
2. Reach & Impressions
How many unique users saw the content (reach) and how many times it was displayed (impressions). Request these metrics directly from influencers.
3. Click-Through Rate (CTR)
If using trackable links, measure how many people clicked through to your website or landing page. Use UTM parameters for accurate tracking.
4. Conversion Rate
Track how many clicks resulted in desired actions (purchases, sign-ups, etc.). Use unique discount codes or affiliate links for attribution.
5. Cost Per Engagement (CPE)
Divide total campaign cost by total engagements. This helps compare efficiency across different influencers and campaigns.
6. Earned Media Value (EMV)
Estimate the value of organic engagement and shares generated by the campaign. While subjective, EMV helps quantify the ripple effect of influencer content.
Tools for Tracking
- Google Analytics: Track website traffic and conversions from influencer campaigns
- UTM Parameters: Create unique tracking links for each influencer
- Promo Codes: Assign unique codes to track sales attribution
- Social Listening Tools: Monitor brand mentions and sentiment
- Influencer Platforms: Many offer built-in analytics and reporting
Calculating ROI
The basic ROI formula:
ROI = (Revenue Generated - Campaign Cost) / Campaign Cost × 100
For awareness campaigns where direct revenue is harder to track, consider alternative metrics like cost per thousand impressions (CPM) or cost per engagement.
"Not everything that counts can be counted, and not everything that can be counted counts. Balance quantitative metrics with qualitative insights for a complete picture of campaign success."
Beyond the Numbers
Remember that some benefits of influencer marketing are harder to quantify:
- Brand credibility and trust
- User-generated content for future use
- Long-term brand awareness
- SEO benefits from backlinks and mentions
- Relationship building with influencers