Calculating creator and influencer ROI
“What I am getting out of it?” This is the most obvious question brands will ask before investing substantially on any social media campaign. One way to figure out what’s in it for your brand is to calculate your Return On Investment ROI. That way, you’re able to see if your social media campaign is actually paying off, or if your company is spending money for nothing.
What Is Social Media Creators Return on Investment (ROI)?
ROI is a relatively simple concept that appears to be difficult. In the simplest of terms, it determines whether you earn more from campaign than you end up spending on the campaign.
ROI is often used to help investors see what they have earned from buying and selling a particular stock. For example, if you buy $100 worth of stock in a company, then end up selling your stock for $200, you’ve earned $100 and your return on investment is 100 percent. You calculate ROI by subtracting your costs from the sale price (in this case 200-100). You then divide the difference by your original costs (in this case 100/100, which gives you 1, or 100 percent).
Although the concept is similar when you’re calculating social media ROI, there are a few differences. For one thing, with social media ROI, you’re not simply buying something and then selling it for more money at a later date. To evaluate the cost of a creator marketing campaign compared to the revenue it brings in, you need to look at a few key performance indicators (KPIs) that are exclusive to the creator social media marketing ROI.
What Are Creator Social Media Marketing Key Performance Indicators?
A KPI is a measurable value that your brand can use to measure your creator social media ROI. You can use KPIs to measure sales success, to measure your site’s SEO quality, and to gauge how your marketing is doing. A few examples of influencer marketing KPIs include:
Coupon or promotional codes
Giving your creators coupon codes to share with their followers is one of the easiest ways to track response and ROI. For example, if every creator you work with has a coupon code that’s in their name, you can add up how many codes get redeemed and figure out how much revenue that one campaign earned your company.
In some cases, you might be interested in seeing how many people are clicking on your site from the creator’s page. Using a tracking pixel lets you see how many people are coming to your site and where those visits are coming from. If each of your creators has a tracking pixel, you’re able to see who is generating the most visits.
Clicks or purchases in a set time frame
Evaluating the number of visits or purchases your brand gets during a set time period can help you calculate ROI. A good example of this is blogger Arielle Charnas, who posted a Snapchat story about a beauty mask. During the 24 hours after her story went life, the brand working with her sold more than 500 masks.
How to Calculate creator Marketing ROI
How do you actually go about calculating Influencer Marketing ROI? It does involve a bit of math, but don’t panic. Let’s say you hired a creator to create a sponsored photo featuring your product through offering a sponsorship (fixed or repetitive). You pay the creator $62 for the photo.
You give the influencer a coupon code, Creatorsxxyy77zz, to share with her followers in the photo. The code gives people 10 percent off their purchases. Within one day, 10 coupon codes have been redeemed, bringing in sales of $1,000. So far, you’ve only spent the $62 on the campaign, so you subtract that from the 1,000 to get $938. You then divide 938 by 62 to get 15.12, or a creator social media marketing ROI of 1,512 percent.
Here’s another example. You pay an influencer for a sponsored photo and include a tracking pixel on the post. After 24 hours, 100 people have clicked from the influencer’s post to your site. Of those 100 people, two ended up buying something from your brand, bringing in $300 in revenue. Subtracting the cost of the photo ($62) from the $300 results in a creator social media marketing ROI of under 400 percent.
Additional matrix and ROI based on a comprehensive score
Moving from simpler economics to comprehensive trends and traits, social media marketing tool will collect data such as likes, shares, video views, followers, comments, click through, total rewards shared to followers, special niche talent and skills, national and international awards, total crowd fund raised etc., as well as an creator’s demographic, psychometric, social media posts reach. The creator score will take all of the above information to determine the worth of a creator based on engagement, relevancy, and interest.
Does Brand need a budget before starting a social media marketing campaign?
Successful social media marketing programmes through the creator’s require brands to allocate a budget. Social media creators and influencers charge a fee for partnering with a brand on a sponsored post. Both parties negotiate the cost of a partnership based on many factors, especially:
Social reach of the influencer (i.e. how many followers across given social media channels),
Type of sponsored content (e.g. Instagram in-feed post, Instagram Stories post, YouTube video, Twitter Tweet, Twitch activation, blog post, Facebook post)
Length of sponsored integration (for example, a one-off Instagram Stories post will cost less than a series of Instagram videos spanning several months)
How can brands measure their ROI for creator and influencer marketing campaigns?
Brands must think critically about all the costs associated with a marketing campaign before setting a budget. There can be hidden costs that impact ROI in running a campaign in addition to the sponsorships fees.
Quantamix software for social media marketing includes tools to help you determine how certain posts or pieces of content are doing. With Quantamix social media marketing software, you can adjust your strategy or campaigns to boost ROI in just a few clicks.
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