Is influencer marketing still credible, or is it dying? Does influencer marketing still affect your consumers’ purchasing decisions? How do you know if your influencer marketing campaign is helping you achieve your goals and if they are worth your investment? ROI setting and measurement is the answer to all of the above questions. read on to know how.
Influencer marketing has been on the rise for the past few years and is expected to continue its upward trend in 2023. Close to 61% of Millennials trust product recommendations from influencers, as compared to 38% of the audience trusting celebrities for product recommendations. This has led 63% of businesses to plan their influencer marketing budget increase in 2023. This is not surprising given the fact that influencer marketing has proven to be an effective way of reaching and engaging with audiences, driving conversions, and improving brand awareness.
However, to ensure that your influencer marketing campaign is a good investment, it is essential to set clear goals and measure the ROI of your influencer marketing campaigns.
Setting Goals for Your Influencer Marketing Campaign
As of 2023, Raising brand awareness was a priority for 86% of brands, while 74% of brands focused on reaching targeted audiences. Additionally, close to 46% of brands aimed to increase sales conversions with influencer marketing campaigns. Here’s what you should keep in mind when setting goals for your influencer marketing campaign:
Brand Awareness: If your primary goal is to increase brand awareness, you should look for influencers with large following and high engagement rates. The goal here is to put your brand in front of as many people as possible and create a buzz around it.
Drive Conversions: If you want to drive conversions, you should focus on influencers with a highly engaged and targeted audience. This means looking for influencers who have a following that matches your target audience.
Improve Engagement: If your goal is to improve engagement with your brand, you should focus on influencers with a highly engaged following. This means looking for influencers who regularly interact with their followers and have a high level of engagement on their posts.
Measuring the ROI of Your Influencer Marketing Campaign
Reach refers to the number of people who see your influencer's posts. This metric can be tracked using the influencer's social media analytics.
Engagement accounts for the number of likes, comments, and shares that your influencer's posts receive. This metric can also be tracked using the influencer's social media analytics.
Conversions denote the number of people who take a desired action after seeing your influencer's post, such as making a purchase or signing up for a newsletter. This metric can be tracked using conversion tracking tools like Google Analytics.
Cost per Acquisition (CPA) refers to the cost of acquiring a customer through your influencer marketing campaign. This metric can be calculated by dividing the total cost of your campaign by the number of conversions.
Return on Investment (ROI) highlights the amount of revenue generated from your influencer marketing campaign compared to the amount of money invested in it. This metric can be calculated by subtracting the total cost of your campaign from the total revenue generated and dividing that number by the total cost of your campaign.
Influencer collaborations provide quality, and credibility, and visibility to your brand’s content. It is a powerful tool for reaching and engaging with your target audience. By setting clear goals and measuring the ROI of your influencer marketing campaigns, you can ensure that you are getting the most out of your investment in the tool. Wish to know how to create an effective influencer marketing campaign? Connect with us.