Influencer marketing has taken the world by storm. Brands, big and small, are jumping on this trend to reach their target audience more authentically. But there’s one big question that every business asks after running a campaign:
How do we measure influencer marketing ROI?
It’s tempting to dive into collaborations, but without a clear understanding of your influencer marketing KPIs and how to track them, it’s like driving in the dark. To truly reap the benefits of influencer marketing, you need to know how to measure success.
Let’s break it down.
Why Measuring ROI Matters
Would you invest in something without knowing its return? Of course not! Whether it’s time, money, or resources, you need to see what you’re getting back. The same goes for influencer marketing.
According to a recent survey, nearly 65% of marketers need help to evaluate the ROI of influencer campaigns.
Without a solid plan to measure influencer campaigns, you could be pouring money into a strategy that doesn’t work. However, calculating ROI isn’t just about looking at sales numbers. There’s so much more that factors in.
What is ROI in Influencer Marketing?
ROI, or return on investment, measures the success of your campaign. It answers the question: “Did the money spent on influencers bring tangible results?”
In influencer marketing, ROI is a combination of:
- Brand awareness
- Engagement (likes, shares, comments)
- Traffic to your site
- Sales and conversions
But it’s not just one-size-fits-all. The real question is, how can a business assess the ROI from influencer marketing effectively? Let’s take a look.
How to Measure Influencer Marketing ROI?
1. Set Clear Campaign Goals
Before anything else, decide what you want to achieve with your influencer campaign. Without goals, you won’t know what success looks like. Your goals could be:
- Boosting brand awareness
- Driving traffic to a new product page
- Increasing sales
- Growing your social media following
Each of these goals will have its specific metrics. For example, if your goal is brand awareness, you’d look at metrics like reach and impressions, not just sales.
Pro tip: Make sure your goals are measurable. Instead of saying, “We want to increase sales,” say, “We want to increase sales by 15% in Q4.”
For example, Dunkin’ partnered with TikTok star Charli D’Amelio to reach Gen Z consumers. The campaign included posts featuring D’Amelio enjoying Dunkin’ products and a contest to win a virtual hangout with her.
(Source)
The campaign was highly engaging, with D’Amelio’s content receiving over 1.4 million likes.
2. Track Engagement Metrics
Engagement is one of the most important ways to measure influencer campaigns. This includes:
- Likes
- Shares
- Comments
- Mentions
- Click-through rates (CTRs)
Why does this matter? It’s simple. Engagement tells you how well the influencer’s audience interacts with your content.
An influencer posts about your product, but no one likes or comments. That’s a red flag. You want your audience to engage with your content because higher engagement typically leads to higher conversions.
3. Analyze the Quality of Engagement
Look beyond the numbers. Engagement is great, but are the right people engaging? Is the influencer’s audience interested in your brand?
For instance, something’s off if an influencer with 500,000 followers only gets a few comments and likes.
On the other hand, if another influencer has 50,000 followers but consistently gets many meaningful comments and conversations, their audience is likely more engaged.
How do we measure influencer marketing ROI when engagement is fake? Learn to spot fake followers on Instagram to gauge whether it will be worth the investment.
How to check engagement quality:
- Read through the comments. Are they thoughtful or just emoji responses?
- Look for questions or people sharing their personal experiences.
- Check for audience responses to stories or polls.
Nike’s “Dream Crazier” Campaign is the perfect example. This campaign featured female athletes and was narrated by Serena Williams, focusing on empowerment and breaking stereotypes in sports.
It effectively resonated with a female audience, enhancing brand loyalty and engagement through relatable stories.
4. Use Promo Codes and Affiliate Links
One of the most direct ways to measure ROI is to give influencers unique promo codes or affiliate links. This way, you can track the number of people who purchased because of their posts.
Here’s how it works:
- Give the influencer a code (e.g., “INFLUENCER20” for 20% off).
- Every time a customer uses the code at checkout, you know it came from that influencer.
- Track affiliate link clicks to see how many people visited your site via their content.
This is one of the most transparent ways to measure influencer marketing ROI directly from sales.
5. Monitor Website Traffic
Did the influencer drive traffic to your site? Use tools like Google Analytics to see where your visitors are coming from.
Here’s what you can track:
- Referral traffic from social media (did the influencer’s post bring visitors?)
- Time spent on your site (did they stay long enough to browse?)
- Bounce rate (did they leave after visiting just one page?)
If you notice a spike in traffic during the influencer’s campaign but no sales, this could mean your landing page isn’t optimized or the traffic wasn’t from your target audience.
Measure influencer campaigns based on the customer journey, not just the final purchase.
6. Track Sales and Conversions
Sales are the bread and butter of ROI. If your goal was to increase revenue, this is the number to watch.
- Did the influencer’s post lead to actual purchases?
- Were customers returning, or did they only buy once?
To measure this accurately, use tools like Google Analytics conversion tracking or any eCommerce platform’s built-in features.
This will show how many sales were directly tied to the influencer’s promotion.
7. Evaluate Cost per Engagement (CPE)
CPE is a valuable metric when your goal is engagement rather than direct sales. It shows how much you pay for likes, comments, or shares.
Here’s the formula:
CPE = Total Campaign Cost / Total Engagements
This is helpful because it lets you compare different influencer campaigns. If one influencer has a lower CPE than another, that might be the more cost-effective option for future campaigns.
Example:
You spent $1,000 on an influencer, and their post received 10,000 engagements.
CPE = $1,000 / 10,000 = $0.10 per engagement.
Compare that to another influencer who brought in 5,000 engagements for $500. Their CPE would also be $0.10, making both influencers equally effective in engagement.
8. Compare Earned Media Value (EMV)
Earned media value (EMV) is the value of the exposure you receive through social media, influencer content, and other unpaid sources. It’s what it would have cost you to get that exposure through paid media.
For example, the campaign for the Barbie movie utilized a pre-release social media strategy, encouraging influencers and fans to share their interpretations using the hashtag #BarbieTheMovie.
The campaign generated over 1.5 million Instagram posts and significant global engagement, creating immense hype before the movie’s release.
Tracking your EMV gives you a broader understanding of how much value the influencer brings compared to your overall marketing strategy.
KPIs for influencer marketing should always include EMV when focusing on brand awareness.
9. Assess Brand Lift and Sentiment
Influencer campaigns are also about building a positive brand image. This is where brand lift and sentiment analysis come in.
Brand lift measures the increase in brand awareness, perception, or favorability after a campaign. Sentiment analysis tells you how people feel about your brand.
How can a business assess the ROI from influencer marketing regarding brand sentiment? You’ll need to use listening tools like Brandwatch or analyze comments and mentions on your social profiles.
10. Post-Campaign Surveys
Finally, go straight to the source—your customers. Post-campaign surveys can give you valuable insights into how people discovered your brand and whether the influencer impacted their decision to purchase.
Ask questions like:
- How did you first hear about us?
- Did you purchase because of [Influencer Name]’s recommendation?
- Would you purchase it again?
These direct responses will help you understand the influence of the campaign from a customer’s point of view.
Conclusion
The power of influencer marketing is undeniable, but without a solid framework to track your success, you’re flying blind. By following these steps, you can confidently answer how to measure influencer marketing ROI and decide whether your campaigns are truly worth the investment.
Remember, it’s only sometimes about immediate sales. Sometimes, the value of an influencer campaign lies in long-term brand building, engagement, and audience growth.
To recap, focus on:
- Clear goals
- Quality engagement
- Tracking sales and traffic
- Utilizing promo codes and affiliate links
- Measuring cost per engagement (CPE)
Combining these metrics with brand sentiment enables you to measure influencer marketing ROI precisely and make data-driven decisions.
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