5 Vital Influencer Marketing Metrics You Should Know
Influencer marketing has been characterized as the fastest-growing form of the modern generation of advertising. The Statista report of last year showed that the influencer marketing industry was worth just $1.7 billion in 2016. It hit $16.4 billion in 2022 and is expected to increase by another $5 billion this year. This exponential growth demonstrates the health of the entire industry.
However, when it comes to influencer marketing, there are a series of metrics that a business needs to take into account and track on a regular basis. These essential key performance indicators help brands and companies evaluate the effectiveness of digital campaigns so that they can optimize current working approaches and business processes.
Influencer marketing metrics are measurable indicators utilized to evaluate the performance and effectiveness of a campaign, as well as the overall success of collaborations between a brand and a blogger. These metrics include such as follower count, likes, comments, shares, click-through rates, and conversion rates.
Monitoring these influencer marketing metrics is vital, as it enables brands to assess the return on investment (ROI) from their influencer partnerships. Additionally, it helps in gauging how well the message resonates with the target audience and refining future strategies to achieve maximum reach and engagement. This, in turn, ensures the efficient allocation of resources and contributes to successful campaign outcomes.
1. Return on investment (known as ROI)
ROI serves as the fundamental metric to monitor during influencer marketing campaigns. Essentially, ROI is calculated by dividing the revenue or profit generated from an influencer campaign by its cost.
Tracking this metric provides insights into which influencers deliver the highest value for your business. If an influencer's fees surpass the returns, it's prudent to reconsider collaboration with them. Employing unique tracking links for each influencer campaign enables you to distinguish influencers contributing to positive ROI from those who are not, facilitating informed decision-making in your marketing strategies.
2. Influence engagement rate (IER)
IER is determined by the ratio between the number of engagements and the number of followers that influencers had at the time they posted your campaign. A higher IER indicates that your message was more engaging for their specific audience.
Leverage IER to identify influencers with similar high engagement rates. This approach allows you to pinpoint influencers whose audiences are particularly responsive to your content, optimizing your strategy for future collaborations.
3. Cost per engagement (CPE)
CPE stands as the second crucial influencer marketing metric, gauging the financial investment required for each audience interaction with your content. It calculates the cost associated with likes, comments, and shares, offering insights into the impact of your investment in terms of generating active audience participation.
Beyond that, CPE is a valuable tool for evaluating the effectiveness of specific collaborations, content types, or platforms. By measuring return on investment for engagement-driven goals, brands can make informed decisions regarding budget allocation and content strategy adjustments. This data-driven approach enables the optimization of resources for higher engagement rates, improved audience connection, and, ultimately, the cultivation of more meaningful and profitable relationships with the target demographic.
4. Cost per reach (CPR)
CPR is a metric that quantifies the financial cost of reaching a single unique user within your target audience. Unlike mere impressions, CPR takes into account the actual potential touchpoints with individual consumers. This metric provides a more refined perspective on the investment required to connect with specific members of your audience, offering valuable insights into the efficiency of your marketing spending in terms of reaching and engaging your desired demographic.
5. Audience growth rate
This rate is another pivotal metric to monitor following the publication of an influencer post. Assuming the influencer's brand aligns with the client's, there is a likelihood of spikes in audience growth corresponding to the influencer's post schedules. Tracking these growth rates provides insights into the impact of influencer collaborations on expanding the client's audience and helps measure the effectiveness of these partnerships in driving brand awareness and attracting new followers.
In my opinion, those five metrics are the most important as they show a clear picture of the potential outcome of a campaign. However, there are more indicators that businesses must know and consider valuable sources of insights:
Brand awareness.
Brand sentiments.
Website visitors.
Brand mentions.
The overall level of online reputation.
Once your influencer marketing campaign is underway, it's crucial to closely monitor every share, mention, or reply the influencers receive. Each retweet or shared post about your company signifies resonance with the audience.
Keep in mind that influencer marketing is an ongoing process that requires time and nurturing for results to manifest. By tracking the mentioned metrics, you can identify influencers delivering positive ROI and continually refine your approach for improved results over time.