Elvira

Project Manager of JOY ads

Elvira

Jan 15, 2023

4 min read

Promo codes are also actively used
for conversion tracking and sales promotion. For example, in the EAPTEKA influencer campaign, unique promotional codes were created for each influencer to monitor purchases. As a result of the campaign, sales increased by 24%.

Affiliate programs can attract a large number of influencers and provide statistics on their effectiveness. Unlike UTM tags, which are tied to a specific campaign, affiliate programs give influencers the ability to promote
a variety of products.

UTM tags are the most common and reliable way to track conversions in influencer marketing. Each influencer receives a unique URL link that can
be used to track metrics such as
traffic source, number of clicks,
unique visitors, and conversions.

trust a brand

61%

38%

of buyers trust influencers

What should be the goal
and KPI of the campaign?
How to choose them
correctly?

Introduction

93% of marketers use influencers in their marketing strategy,
as evidenced by the increase in the budget for this type of promotion. In 2022, the influencer marketing budget was
$16.4 billion and, according to statistics, will only increase.

Why? Everything is very simple - diversity, targeting and audience trust.

Goal and KPIs

Goal #1: Increase brand awareness

The first step in measuring the success of influencer marketing is to determine the main campaign objective and key performance indicators. Without a clearly defined objective and KPIs, you will be partnering with influencers just for the sake of it and in order to add it to your portfolio, but the right objective gives marketers performance metrics, the right strategy, optimization, and analysis.

Most often influencer marketing is used to increase brand awareness. Glossier, MVMT, Audible and many others have chosen this type of promotion as one of the main ones in their strategy. Influencers help brands not only reach their target audience, but also reach new audiences and test their potential.

With a goal to increase conversions, regardless of the target action, tracking only the main goal will not give you a complete analysis of the effectiveness of collaboration with an influencer. However, tracking all stages of the conversion funnel will let you understand at what stage there were difficulties, what worked and what needs to be changed. For example, if your main goal
is subscriptions in an in-app service, you should also track
installs and registrations. To analyze conversions from
influencer marketing, pay attention to the following methods.

The effectiveness of this type of promotion leaves no doubt,
but how exactly to measure it? How do you know if an influencer campaign was successful? Let's figure it out.

These are equally important questions that you need to know the answers to before launching.

Set a clear objective and KPIs, measurable in numbers.

Measure the metrics before the start of the campaign
this will help you set an ambitious and at the same
time realistic goal.

Don't forget about deadlines and try to stay
within the timeline.

Now let's analyze the success of influencer marketing using the examples of two most popular objectives and their main KPIs.

Reach and impressions of influencers' publications
is a direct indicator of success.

Engagement shows the interest and response of the audience. The higher the engagement, the more likely it is to deliver the advertising message and achieve the goal.

The number of followers, even with constant steady growth,
can also be a demonstrate brand awareness. To do this, you need to measure the average growth of subscribers in the last few months before the launch of the campaign and compare
it with the growth during the campaign.

Organic traffic to a website is a more or less stable unit, but
if you notice a jump in the number of visitors during and after the campaign, then this is a great sign that your audience is expanding

The number of references will help to evaluate the effectiveness of the marketing strategy and study the audience. To monitor brand mentions, you can use services such as Google Trends.

Key Performance Indicators:

ROI in influencer marketing - how to determine it?

So, we have defined the goal, we are tracking KPIs - but how do we know that the cooperation was profitable? Let’s take a look at the brand awareness and conversion goal as an example.

Expenses. What are the expenses of influencer marketing? It depends on the campaign, but most often it is the influencers’ payment, delivery and shipping and props.

Revenue is more difficult to determine. If your goal is purchases, then, obviously, it is profit. But in order to measure ROI of a brand awareness campaign, it is necessary to consider indicators such as impressions, clicks, and reposts. To convert these into monetary units, you can look at the experience of previous campaigns and find out the average cost of the required indicators.

Influence marketing is not an exact science where you can make the most accurate calculations. But despite this, the success of any influencer campaign is ensured by competent planning and post analysis. Global brands and start-ups include influencers in their promotion strategy, and judging by the forecasts, influencer marketing budgets will only increase.

Thanks for reading,
Elvira

The Future of Influence Marketing

Goal #2: Conversions