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Below are some of the most important KPIs which can make or break your influencer program.
Lets start with one of the most important bottom of the funnel (BOF) KPI which is return on ad spend. ROAS is calculated by dividing the revenue you generated by the cost of advertising and will provide you with a better understanding of your ROI. With influencer marketing your cost consist of influencer compensation (fixed & affiliate payments), Cost of Goods Sold for product gifting and shipping costs.
Another frequently used BOF KPI is customer acquisition cost. This metric is frequently used by recurring business models such as cosmetics or other subscription businesses as it provides are better understanding on how much you could spend to acquire a new customer whilst ROAS looks as a single conversion.
One very obvious but often underrated top of funnel (TOF) KPI is impressions. Don't only look at conversions to understand the true impact of your influencer marketing efforts. You need to nurture your top of funnel in order to continue to convert people into paying customers. Make sure to value impressions and the number of people you reach in order to get a holistic and complete view of your marketing impact.
Earned media value is a frequently used metric to analyse your influencer marketing impact and is calculated by multiplying your impressions by a certain CPM (cost per mille). We often use a CPM of around $15 - $20 and justify this by explaining that the average CPM on Meta for paid social is around $10. Compared to a paid ad an influencer endorsement typically gets higher view rates and engagement hence the higher CPM.
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An influencer report is a document that provides insights and analytics on the performance of influencer marketing campaigns. It typically includes data such as reach, engagement, impressions, conversions, and ROI generated by influencers.
To track your influencer's performance effectively, start by assigning unique tracking links or affiliate codes specific to each influencer's promotions. This makes it easier to monitor the direct traffic and conversions they generate. Additionally, incorporate UTM parameters into your URLs, which will allow you to track campaign performance meticulously within Google Analytics, giving you insights into various metrics such as click-through rates and conversion rates. For a more comprehensive analysis, consider using influencer tracking tools or software like Influencer Hero. These platforms provide real-time analytics and performance metrics, enabling you to assess the impact of your influencer collaborations accurately and make data-driven decisions for future campaigns.
To measure the success of your influencer marketing efforts, it's crucial to track key performance indicators (KPIs) including reach, engagement rate, the volume of conversions, and overall return on investment (ROI). These quantitative metrics offer a clear picture of how well your campaign is performing against its objectives. Additionally, don't overlook qualitative metrics such as changes in brand sentiment, audience feedback, and the quality of the content being produced. These insights can provide depth to your understanding of the campaign's impact. Finally, compare the campaign's performance against your predefined goals and industry benchmarks. This comparison will help you determine the campaign's relative success and identify areas for improvement in future initiatives.
The best influencer reporting tools on the market that can help you track the success of your influencer marketing campaigns include Influencer Hero, AspireIQ, CreatorIQ, and Traackr. These platforms are renowned for their comprehensive analytics and reporting features, offering detailed insights into campaign performance, influencer effectiveness, and audience engagement. Additionally, tools like Hootsuite and Socialbakers also provide valuable metrics and reporting capabilities, allowing for effective monitoring of social media campaigns and influencer activities. By utilizing these tools, brands can make data-driven decisions to optimize their influencer marketing strategies.
To determine if an influencer has fake followers, start by examining their follower growth for any irregular patterns, including unexplained spikes or drops, which may indicate the purchase of followers. Next, scrutinize their engagement metrics — likes, comments, and shares — in relation to their follower count. A low engagement rate compared to a high number of followers could suggest a lack of genuine interaction. Additionally, consider using dedicated influencer auditing tools or services. These platforms are designed to assess the authenticity of an influencer’s audience and can help identify potential fake followers, offering a clearer insight into the influencer's genuine reach and impact.