Understanding Social Media Influencer Marketing ROI

These days, businesses and brands are always looking for creative ways to connect with their customers. Among the plethora of options available, social media influencer marketing is becoming the new-age trend.

An influencer typically associates with a brand on social media through paid collaborations, barter deals, or referral-based programs. Any brand influencer marketing campaign includes these three major elements. Whereas previously, measuring the return on investment of strategies was neither relevant nor feasible; Over the years, the analysis of social media influencer marketing campaigns is becoming smart and measurable with the adoption of digital. According to the Influencer Marketing Hub report, 67% of global brands now measure the ROI of their influencer marketing campaigns. In this digital-driven world, there are various tech-backed influencer marketing agencies, especially those driven by artificial intelligence that help brands map their campaign ROI efficiently and transparently.

Measurement of ROI in influencer marketing on social networks
For any brand, understanding and measuring ROI is not just limited to revenue or lead generation. It goes beyond sales and encompasses various KPIs. However, the first step in measuring the effectiveness of the influencer marketing strategy is to clearly define the campaign objectives.

While success metrics vary by brand and campaign objective, they typically take into account key performance indicators (KPIs) of viewability, engagement, and revenue generation.

Visibility: the pivotal criteria for evaluating the return on investment of an influence marketing campaign on social networks

While measuring the impact of any influencer marketing strategy, brand visibility is one of the primary goals for brands. Any business wants to tap into both its existing target audience as well as potential customer base through its campaign. Gaining exposure helps brands foster connections with their existing audience and tap into unexplored markets as well. This ultimately paves the way for customer satisfaction and retention.

Therefore, the more impressions, followers and views are secured, the greater the visibility and reach of the campaign will be. As reported by Influencer Marketing Hub in its research, 27% of brands consider reach to be the KPI to measure campaign effectiveness.

Engagement: The Essential Element for Measuring the ROI of a Social Media Influencer Marketing Strategy

Generating engagement is another important goal for brands while evaluating the ROI of influencer marketing campaigns. The higher the number of likes and comments compared to followers, the greater the engagement will be.

According to Influencer Marketing Hub research, 32.5% of brands globally are interested in campaign engagements. 39% of the brands surveyed also consider this factor as the essential element when evaluating the influencers who will partner with them.

Generating sales: the ultimate goal of brands

The mere mention of the term ROI conjures up flashes of sales and revenue generation. Measuring the impact of the influencer marketing campaign by referring to the revenue generated versus the amount invested is challenging but essential for any brand.
Although influencers include the app or website link in their social media bios and the content they post, it’s the usability of promo codes that really helps measure campaign ROI. These are personalized and help track campaign impact by monitoring downstream purchases driven by the influencer marketing strategy. Influencers help in publicizing promotional codes to be used by consumers while purchasing the product or using the service.


An effective influencer marketing campaign is one that helps drive organic brand growth. Organic follower growth is measured by engagement and reach of social media posts or curated content. Understanding and evaluating ROI is an integral process in determining influencer marketing strategy success. Measuring ROI is indeed important for any brand to analyze the investment in the influencer marketing campaign against its result. However, the impact depends on the objectives of the campaign as well as the sector in which our company operates. Generating sales is seen as one of the critical success metrics, but brands typically prioritize garnering visibility and engagement among the broad base of influencers as important KPIs. because these results ultimately pave the way for customer loyalty and retention.



The opinions expressed above are those of the author.


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