Influencer marketing has existed since the late 1800s, but it has only lately emerged as an important tactic in crypto marketing. Previously, we would have simply referred to it as “word of mouth.”
Influencer marketing is one of the most rapidly expanding crypto marketing strategies. One of the most difficult challenges crypto brands have when implementing an influencer marketing plan is determining their return on investment (ROI).
Brands are predicted to spend $15 billion on influencers by 2022, nearly twice as much as the estimated $8 billion in 2019. According to Rakuten Advertising, 84% of marketers who have utilized influencer marketing feel it is a successful and profitable technique that can generate 11 times the ROI of a typical marketing campaign.
However, there are a few essential indicators crypto marketers must consider when working with influencers in order to build a successful crypto influencer marketing strategy. To achieve a high ROI and a successful campaign, more than simply attractive aesthetics and a huge following is required.
As marketers increasingly deal with crypto influencers, it is critical that they have a full grasp of the many key performance indicators or metrics that will determine the success of an influencer campaign.
Crypto marketers use different metrics to measure their influencer marketing strategies, and those indicators might vary depending on the aims of each campaign. However, there are five basic criteria that crypto marketers must examine when measuring the efficiency of each influencer and how each contributes to the overall campaign performance.
Table of Contents
If you’re starting out with crypto influencer marketing, site traffic is a good place to start because it’s straightforward to measure and can eventually lead to conversions. If your site is set up to gather their information, site visitors can assist you to obtain leads for your brand. Email signups, abandoned purchase initiatives, and other marketing activities on your site can assist these leads in progressing down the funnel.
Crypto influencers can lead their fans to your website by mentioning your social handle on whichever platform they post on, or by explicitly listing it (UTM Tags recommended for tracking). Tracked links and promo codes can help you determine where the traffic came from and attribute it to the influencer who directed the user to your site.
Rather than relying on direct conversions from visitors who may not be familiar with your brand, boosting site traffic allows the influencer to feed the top of your conversion funnel, allowing you to continue to nurture each lead.
You should be able to notice some site traffic from an influencer’s efforts by the first or second campaign. Their fans should be interested in what your website has to offer.
You may utilize tools like Google Analytics to track the rise in traffic. You may configure it to track metrics such as those listed below for certain date ranges.
- New Users – Count the number of new users that come to your site for the first time. This might assist you to establish whether or not your brand’s recognition is increasing.
- Total Sessions – The total number of sessions logged on the site during the specified time period.
- Time on Site – The average amount of time people spend on your website. This assists you in determining your bounce rates.
- Total Pageviews — This is a count of the number of pages seen during the specified time period. In this manner, you can see where your users spend the majority of their time.
- Referral Visits – This allows you to see which of your influencers are sending traffic to your site.
The engagement rate (ER) is a measurement that takes into account the overall number of engagements, such as likes and comments, on a social media marketing post. It is the simplest approach to assess the influencer’s quality since it is a clear sign of whether the post reached the intended audience and the sort of relationship the influencer has with their followers.
As a result, a high ER is more likely to result in a high conversion rate or, at the very least, strong brand recognition.
Do you want to know how to calculate the rate of engagement?
Keep track of the following indicators to determine your influencer engagement rates:
- Clicks – Clicks are a means to determine your audience’s degree of interest. However, having a nice mix of clicks, likes, and shares is also vital.
- Likes – The easiest approach to gauge content enjoyment is through likes. They also let you quantify, to some extent, the buzz generated by your influencer material.
- Shares – Another sign of content quality is the number of shares. People are more inclined to suggest your items if they recommend your content to their social media networks.
- Reactions – Facebook’s algorithm weights post reactions more heavily than simply likes. They are a better indication of content emotion since they demand more effort.
- Comments – You can assess whether or not your audience loves your material based on the amount and kind of comments.
- Social Mentions: Measuring brand mentions allows you to see where your content is being discussed and promoted.
Cost per Engagement
Cost per engagement is a measure that shows how much businesses spend for each like or comment on sponsored content that displays their brand. Ideally, businesses want to have the lowest cost per interaction feasible, which means that the influencer marketing strategy produced the most return.
To calculate CPE, just divide the overall cost of the post, i.e. what brands are paying the influencer for that specific post, by the total engagement units – likes and comments.
As a rule of thumb, $0.20 per engagement or less is considered fair value, while anything more than $0.30 is considered a high CPE, resulting in a negative ROI.
Reach & Impressions
Reach is frequently regarded as one of the most significant metrics for comprehending an influencer campaign since it provides insight into the amount of exposure of the influencer-sponsored posts.
Another factor that makes reach an important indicator is that all other metrics are approximated depending on the campaign’s reach. Simply said, reach is the number of Unique Impressions. It is the total number of views for the influencer’s social media posts, blog entries, and social media stories combined.
The reach calculation takes into consideration the number of followers, audience categories, and average likes and comments.
If you want to assess brand awareness, you must first quantify impressions. This is the number of individuals who have watched your influencer’s work, resulting in brand exposure. The more views each post receives, the more people your brand reaches. Most of the time, these figures are only visible if your influencers share them with you.
The easiest way to get a good idea of which influencers can be best for your crypto brand would be to reach out to an Influencer Marketing agency like Blockwiz, where they have proven ROIs of Influencers’ marketing strategies and campaigns.
Earned Media Values (EMVs)
Earned Media Value (EMV) is the industry standard for assessing press releases and influencer marketing efforts. It is a statistic that illustrates how much it would have cost to obtain the same reach through sponsored social among a similar demographic audience by giving a monetary value to every interaction made with a social media post or account and calculating the total worth of their “earned” interactions.
That is, each like and remark is assigned a value and then put together to form a single, plainly recognizable value. Not all social media interactions are created equal, yet they all have some value.
Knowing the EMV of the crypto influencers with whom you collaborate might help you better assess how effective your influencer marketing efforts have been.
Long story short
It’s no surprise that influencer marketing is growing more essential in the digital era. People have always trusted word-of-mouth advertising, and influencer marketing is just a more sophisticated form of this that uses the pull and popularity of specific people to help spread the word about your business.
But it’s also crucial to be able to precisely assess the performance of your influencer marketing, and KPIs like conversions, traffic, reach, engagement, and audience growth may assist. Focusing on these five KPIs will provide you with a comprehensive picture of how effective your campaign was in accomplishing your objectives, which might include generating traffic, increasing sales, reaching new demographics, re-engaging old prospects, and building brand recognition.
The most critical step in accurately measuring the performance of any influencer marketing campaign is clearly outlining goals and KPIs.
Influencer marketing is a continuous activity, not a one-time campaign. KPIs should be established and monitored for each influencer and campaign. Conversions, reach, ER, comment sentiment, and comment volume is examples of KPIs.
Building expertise by keeping a record of prior influencer marketing campaign results is helpful in determining which sorts of articles, platforms, and influencers perform best. Having the insights and expertise will guarantee that marketers’ influencer marketing strategies are stronger and more effective in the future.
It is critical to accurately assess your data, KPIs, and ROI at the end of each influencer campaign. These figures are critical in assessing your options and improving future campaigns based on actual facts. As a crypto marketer, one thing is critical: keep learning and extending your expertise while reacting to market technology and behavioral changes.