Everything You Need to Know about Influencer Marketing Campaign Costs and ROI.
It is common knowledge that Influencer Marketing is considered to be more effective in terms of revenue than other marketing channels. McKinsey states that it generates twice the sales of paid advertising. Influencer Marketing is definitely on the rise.
Micro Influencers VS Celebrities.
Influencer Marketing Hub announced, that marketers receive $7.65 in earned media value for every $1 spent on Influencer Marketing. But not everyone is lucky to get revenue that high. Comparing investments into celebrities and micro influencers, the second option seems to be a better choice. Though it definitely depends on your brand and target audience. A recent study by Exprecity showed that micro-influencers have 22.2 times more conversions than celebrities. It is due to higher engagement rates. It means that having the right mix of several micro bloggers will help you get the same reach with higher conversions for lower budgets.
How much do Influencer Marketing Campaigns cost?
First thing you have to understand about the costs is that there is no single formula to measure it. The amounts may differ based on Influencer’s popularity and number of subscriptions, platform and the product that you are planning to promote. It varies from several hundreds to millions of dollars.
The final cost depends on:
Youtube is considered to be one of the most expensive platforms due to more time consuming process of video production. Precise costs are:
- $20 for 1,000 subscribers;
- $1000 for 50,000 subscribers;
- $2000 for 100,000 subscribers;
- from $25000 to $50000 for 1 mln subscribers.
Instagram is one of the most popular platforms to promote brands, though it is usually cheaper than Youtube.
- $10 per 1,000 subscribers;
- $250 per 50,000 subscribers;
- $1000 per 100,000 subscribers.
Another way to count estimated budgets is not per reach (number of followers), but according to number of engagements Influencer can provide you with:
- Instagram $250-$750 per 1,000 engagements
- Youtube $50 to $100 per 1,000 views
Number of platforms.
It is usually cheaper to promote with one Influencer on different platforms at the same time, than using different Influencers on Instagram and Youtube.
Duration of promo.
You should always discuss this in advance, before the promo. The longer you want your post to be published — the more it is going to cost you.
How to measure ROI of Influencer Marketing campaigns?
Another challenge in Influencer Marketing is measuring the returns.
InfluencEye already provides an opportunity to track Instagram and Youtube posts performance and audience in real-time. And the platform is already on its way to become fully-automated and even more efficient.
Meanwhile, here is an overview of the most essential metrics used by marketers to measure ROI. The performance indicators will differ depending on what goal is set for a particular campaign.
Influencer Marketing Campaigns may have the following goals:
- To drive an extra amount of sales per month;
- To generate extra leads per month;
- To increase followers in your Social Media accounts;
- To increase subscribers’ engagement;
To calculate any return on investment (ROI) you first need to calculate the investment.
Money spent on campaign is not only the payment to the Influencer, but also the cost of your work, content creation (if not included into Influencer fee), free product samples (if used for promotion), demos, Influencer Marketing Platform subscription costs, etc. Nevertheless, these costs are usually much lower than any traditional marketing campaign with the same reach.
ROI = (revenue earned from campaign — money spent on campaign) / money spent on campaign.
So what do you have to measure, once the campaign is set up?
- Audience reach;
- Number of Impressions;
- Engagement rate (comments, likes, shares);
- Content quality;
- Conversion rate;
- Followers growth;;
- Brand mentioning;
- Traffic to landing page;
- Sales growth.
Reach is the total number of people who see your content. It is an important metric while setting up the campaign and choosing Influencers to work with according to potential reach. But when it comes to analyzing the campaigns results — it is not so efficient.
Number of Impressions.
Impressions are the number of times people view an Influencer’s post.This is an essential metric to understand how many times people actually saw your post. For example, the reach may be 1,000 people, while the number of impressions — 1,250. What means that some people saw the post several times.This metric shows you how interesting the post was, whether it makes people come back and reread/rewatch it again.
Traditionally engagement was measured simply in terms of Likes (Love rate). However, this is a very broad measurement. It doesn’t show you how much attention did a subscriber actually pay to the post. The problem is that lots of people like content in a habitual way . The proportion of shares, comments and likes will give you a more profound knowledge of the engagement level. According to Linqia 90 percent of marketers use engagement rates as the main measure of success of their Influencer Marketing campaigns.
Love rate = (number of likes) / (number of followers) * 100%.
Talk rate = (number of comments) / (number of followers) * 100%.
Total engagement = (number of comments+likes+shares) / (number of followers) * 100%.
Engagement rate differs on different social platforms. Below are the standards for instagrammers:
Low engagement rate — less than 1 percent;
Average — from 1 to 3 percent;
Good — from 3 to 6 percent;
High — from above 6 percent.
Sentiment will help you analyze the type of content that your target audience is more interested in. By observing which of your brand’s posts resonate with your influencers’ followers, and which ones they ignore, you can better target your future messages.
Content is the King
You need to create exceptional high-quality content, that gives value to your readers. That will help you get better engagement rates and more sentiments.
Conversions may be different, depending on the campaign goal and sphere. It may be subscriptions, sales or registrations, for example. In order to measure conversion you have to use trackable links or special promotion codes.
The bottom line.
The most popular way to measure ROI is using engagement rates.
Depending on the goals of the campaign other metrics may be used: conversion rate, growth in subscribers, traffic to landing page, etc.
It is handy to use Influencer Marketing Platforms to measure ROI and track posts performance in real-time.
Get started now. Try InfluencEye:
– To search millions of influencers on Instagram, Youtube, Twitter and Twitch.
– Uncover influencers’ content statistics and learn every detail about their audience.
– Build your own network of influencers and never lose valuable contacts.
– Refine your search using filters to find particular influencers or audience.
– Track Instagram and Youtube posts performance and audience in real-time.