How to measure influencer marketing?

The last step in any influencer marketing campaign should be measuring the results: that helps you to decide which influencers to use in the future also and what the budget for your next campaign should be. Here’s your guide on how to measure influencer marketing!

Which metrics should you measure in influencer marketing?

The first thing you need to decide when planning a campaign is your goal. Based on your goal, you can decide on which metrics to measure.

One thing to keep in mind is the classic marketing psychology: if you’re just starting out with a new or unknown brand, you can’t expect sales right away. There are so many ads around us – that we don’t even notice them anymore.

People rarely do their purchase decisions the first time they hear about the product. In fact, studies have shown that, on average, consumers need 7-8 touchpoints before they make a purchase decision! As a new brand, you need to build the foundation first: attention, interest, desire, then sales.

AIDA model in influencer marketing

a) Measuring the impact on brand awareness

If your goal is to raise brand awareness, you should mostly focus on the metrics like reach and impressions – but you can also take a look at the resulting activities, such as website visits, number of branded searches on Google.

The good news is that if the influencer has a Business or Creator Account on Instagram, they can see the impressions and reach for each image separately. Thus, after the collaboration, they can take a screenshot of the actual results.

If you are using an influencer marketing platform, you’ll see the same data for every post and story separately as well as for the campaign in total.

screenshot of measuring influencer marketing with platform

Posted content statistics on Promoty

b) Measuring the impact on the brand image

One of the most popular goals in influencer marketing is building a brand: products used by influencers are often perceived as much more attractive and trendy.

If you’re trying to improve the brand image, build relationships with your customers, and build a community around your brands, focus on engagement-related metrics – such as comments, post saves, new Instagram followers, and hashtag usage.

Both brand awareness and brand image are quite difficult to measure, especially for the brands that don’t have huge budgets to invest in brand surveys. In this case, the brands don’t have any other way than to rely on the social media data and customers’ feedback.

3) Measuring the impact on leads and sales

One of the biggest criticisms of influencer marketing is that it’s not measurable – which is true in many cases – it’s difficult to track someone’s journey from scrolling their phone to walking to a physical store – and that’s why the e-commerce companies have a huge advantage here!

In general, there are 3 ways to measure sales from influencer collaborations:

1.  giving influencers personal discount codes;
2. creating trackable URL-s, for example, with UTM tags;
3. using affiliate services where the links have been created for you.

1. Using trackable links to measure influencer marketing

In autumn 2021, Instagram launched story links for all the users – which means that all the influencers can now easily direct their followers to brands’ websites or online stores!

Link to Instagram story screenshots

Using UTM tags to measure influencer marketing

The easiest way to make your links trackable is UTM tags. It basically means adding certain keywords to an URL before sharing it – and as a result, you’ll see on Google Analytics exactly which collaborations brought you the most traffic and what was the quality of that traffic.

Fortunately, you don’t have to code anything here: you can use the UTM Tag Builder to easily create tagged URLs that help you see the results per every channel, campaign, and collaboration in Google Analytics.

 website URL – the address where you want the influencer to direct traffic, such as your brand’s online store or product page;
campaign source – channel of the collaboration, such as Instagram;
campaign medium – the placement of the campaign, such as collab, collab_story, or influencer;
campaign name – the name of your campaign, such as Product_launch or Summer_sale;
campaign content – you can use the influencer’s username here to distinguish between different collaborations;

screenshot of creating UTM tagged URL to measure influencer marketing

As a result, you will have an URL that looks something like this:

https://promoty.io?utm_source=Instagram&utm_medium=collab&utm_campaign=Product_launch&utm_content=marelleellen

The final URL looks a little clumsy – but if the influencer adds it to the story, only the main domain will be shown (in our case: promoty.io). Additionally, the text on the link can be customized.

The charm of the UTM tags is that you can see the results on Google Analytics – users, new users, average time spent on the page, number of pages visited, purchases, and revenue – divided by Sources (Acquisition > All traffic > Source / Medium) or Campaigns (Acquisition > Campaigns).

2. Using personal discount codes and coupon codes

If your e-commerce platform allows it, one of the easiest ways is to create a unique promotional code for the influencer. The greater the discount you can offer – even in the short term – the more the influencers are motivated to share it! It’s a value for their followers, after all.

@itslindaling's Instagram post with a discount code

Linda Ling (@itslindaling) x Katrina Silks collaboration

In case you don’t have an online store, the impact of influencer marketing is much more difficult to measure. In that case, the brand has no other way to compare the sales results of the period with the influencer marketing campaign period to see if there is any correlation.

How to measure influencer marketing ROI?

If you know the sales results of your influencer marketing collaboration, you can also calculate ROI – the return on investment. For this, you need to subtract the influencer cost from the generated profit, and then divide this new number by the cost of the investment.

Influencer marketing ROI = (generated profit – influencer marketing cost) / influencer marketing cost

6 KPIs to measure in influencer marketing

To sum it up, here’s a list of 6 KPIs you need to measure for every influencer marketing campaign:

1. Reach – how many people did see the collaboration post;
2. Engagement – likes, comments, and saves on the post;
3. New followers on the brands’ Instagram page;
4. Indirect metrics, such as website traffic or branded searches;
5. The number of leads, purchases, and revenue generated;
6. ROI – how was the sales revenue compared to the marketing investment;

The best way to measure influencer marketing is using an influencer marketing platform where all the social media data is gathered in one place. If you’d like to learn more about the Promoty platform, let us know – we’d love to brainstorm ideas with you!

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