Our experts at Digital Marketing Article have conducted thorough research and compiled several methods for assessing the return on investment (ROI) from influencer marketing campaigns.
The global influencer marketing industry has more than tripled in size since 2019, reaching a projected value of $21.2 billion in 2024. On average, brands earn $5.78 for every dollar invested in influencer marketing, with some achieving returns as high as $20 per dollar spent. Yet, despite its effectiveness, nearly 30% of marketers fail to track ROI, missing out on critical insights to improve campaign strategies.
Understanding “how can a business assess the ROI from influencer marketing” is essential. With the right metrics and strategies, you can evaluate both short-term and long-term campaign success, making data-driven decisions to maximize returns.
Why Measure Influencer Marketing ROI?
Learning “how can a business assess the ROI from influencer marketing” is crucial for several reasons:
- Prove Campaign Value: Demonstrating ROI helps secure buy-in from stakeholders, especially for campaigns with long-term goals like brand awareness.
- Optimize Strategies: Tracking ROI reveals which influencers, content, and tactics drive results, allowing businesses to refine their approach.
- Maximize Impact: By understanding what works, brands can allocate resources efficiently, prioritize high-performing influencers, and focus on strategies that yield the greatest returns.
How Can a Business Assess the ROI from Influencer Marketing
Here are the best practices for assessing the ROI from influencer marketing you can use in 2025:
1. Track Conversions with Affiliate Links and Discount Codes
Conversions are critical for assessing the direct impact of influencer campaigns.
- Affiliate Links: Create unique links for each influencer to track clicks and sales accurately.
- Personalized Discount Codes: Assign custom codes to each influencer to attribute conversions directly.
Pro Tip: The average attribution rate for influencer marketing is 70%. To estimate true sales impact, divide attributed sales by 0.7.
2. Measure Brand Awareness
Brand awareness campaigns focus on increasing visibility and recognition among target audiences.
- Key Metrics: Impressions, reach, cost per mille (CPM), and follower growth.
- Best Use: Leverage influencers with high engagement rates and strong credibility to amplify your brand’s visibility.
3. Focus on Engagement Metrics
Engagement metrics provide a middle-funnel view of campaign performance, bridging brand awareness and conversions.
- Key Metrics: Likes, comments, shares, saves, and brand mentions.
- Why It Matters: High engagement indicates audience interest and potential future sales.
How Can a Business Assess the ROI from Influencer Marketing: Advanced Metrics
1. Earned Media Value (EMV)
EMV estimates the value of media exposure gained from influencer campaigns, comparing it to equivalent costs in paid advertising. Calculate EMV using metrics such as cost per engagement, impression, and click.
2. Content Value
Influencer-generated content (IGC) provides authentic, reusable assets that add long-term value.
- Use Cases: Repurpose IGC for paid ads, newsletters, and organic social media posts to maximize ROI.
- Example: Brands like Glossier and Doritos amplify their campaigns by leveraging user-generated content (UGC) across platforms.
3. Unit Economics and Performance Distribution
In influencer marketing, the 80/20 rule often applies—around 5-10% of influencers generate 80% of revenue.
- Strategy: Test multiple influencers with affiliate programs to identify high performers before investing in long-term collaborations.
Strategies to Maximize Influencer Marketing ROI
1. Define Strategic Objectives
Align campaign goals (e.g., driving sales, boosting traffic, or enhancing brand recognition) with measurable KPIs. Clear objectives ensure campaigns are focused and results are trackable.
2. Select the Right Influencers
Relevance trumps reach when choosing influencers. Analyze engagement metrics, audience demographics, and content alignment to ensure a strong fit.
Example: Gymshark partners with fitness influencers who share the brand’s active lifestyle ethos, driving authentic engagement and conversions.
3. Activate Paid Ad Campaigns with Influencer-Generated Content
Run paid ads using influencer-generated content for higher engagement and conversions. Influencer content adds authenticity to ads, which often perform better than brand-created assets.
4. Invest in High-Performing Influencers
After identifying top-performing influencers, build long-term relationships through ambassador programs. Use these partnerships for seasonal campaigns to drive consistent results.
5. Reuse Content Across Platforms
Maximize the value of IGC by reusing it across paid and organic channels, newsletters, and even websites.
Example: Doritos encourages users to create branded content, which the company shares across its platforms to drive engagement and reinforce brand identity.
Tools for Measuring Influencer Marketing ROI
- Influencer Hero: An all-in-one platform for influencer discovery, campaign tracking, and performance analytics.
- Traackr: Ideal for managing influencer relationships and tracking success through robust analytics.
- GRIN: A comprehensive tool for discovering influencers, analyzing performance, and optimizing campaigns.
Conclusion
Understanding “how can a business assess the ROI from influencer marketing” is no longer optional. Influencer marketing offers substantial growth opportunities, with an average ROI of $5.20 for every dollar spent. Success depends on precise measurement and optimization.
By tracking metrics such as conversions, engagement, brand awareness, and content value, businesses can evaluate the full impact of their campaigns. Use tools like affiliate links, personalized codes, and advanced analytics platforms to simplify ROI measurement and make data-driven decisions.
Focus on building authentic relationships with high-performing influencers, reusing content creatively, and continuously refining strategies. These best practices will help your influencer marketing efforts deliver measurable, long-term value.
