Earned Media Value (EMV) is your brand’s social recognition. It’s what your brand has earned in social media in the form of recommendations, reviews, user-generated content, and shares. Maybe you would have seen the Starbucks page with a lot of people enjoying their coffee. That’s their EMV.
You can also refer it to as uncontrolled media as a lot of times you do not control what others are conversing about you on social media. Influencer marketing is an attempt to control earned media value and make it more lucrative.
When brands hire influencers to share their products, they are partially controlling the earned media value and creating a positive brand experience online. Influencers can make their followers like the brand, engage it, and even try their products. These users then promote the brand on their social media or share their experience thus amplifying the earned media value of a brand via influencers.
In this article, we will focus on how influencer marketing affects your brand’s EMV and how to calculate the EMV earned from influencers.
How Earned Media Value and Influencer Marketing Go Hand-in-Hand:
The basic concept of earned media is what you earn from your results of owned media and paid media. In owned media, it’s a brand posting content about themselves, like their social media posts. In paid media, it’s a brand promoting their content, like sponsored posts. And, then, earned media is what your social earnings are as a result of your marketing efforts.
When businesses work with influencers, they amplify their brand’s reach beyond owned media and paid media. Influencer marketing helps brands in connecting with social media users by generating more impressions and getting more conversions. Here are some of the benefits of influencer collaboration to increase EMV:
- Break the barrier: Influencer marketing helps break the barrier between brands and social media users. When an influencer posts about a brand, it has better chances of users sharing or mentioning it than when a brand promotes itself.
- Change negative sentiments to positive: Influencers can help change the sentiment associated with a brand. For example, if there are users who are not happy with your brand, an influencer post can motivate them to trust your brand again and share a positive experience then.
- Get more engagement: Influencer posts get many likes, video views, comments, and shares than a brand might get for sharing the same post. If you’re hiring influencers that resonate with your brand, you are gaining quality social engagement.
Some of the reasons above have motivated brands to collaborate with influencers and improve their Earned Media Value. Let’s also calculate how to measure the EMV attained from influencer marketing.
How to Calculate Influencer’s Earned Media Value:
In a research that analyzed more than 5.5 million posts and 20 retailers, it was found that retailers spent $172 million in influencer marketing and received $3 billion in EMV. Calculating EMV can help you know how fruitful your influencer efforts have been.
There’s no definite formula specified in books that can tell you how to exactly calculate EMV. But, there are ways that can help you determine how you can evaluate your earned media value.
Method 1: Based on Impressions:
In this method, we calculate EMV based on organic (non-paid) impressions and viral impressions that the influencer has received. You can calculate CPM based on what you would pay for other media.
Impressions could be anything ranging from reach, views, story taps, and story views.
EMV : Impressions over last 30 days x Average CPM of Ads
Marketers should use this method when their primary goal of hiring influencers is generating brand awareness. The EMV calculated using impressions will help them understand how influencer’s reach has amplified brand awareness in monetary value.
Method 2: Based on Engagement:
Engagement on social media could be anything including likes, comments, shares, replies, messages, story replays, story mentions, and more. For an accurate calculation, you need to make sure you get accurate engagement data from your influencer.
EMV: Engagement over last 30 days x Average CPM of Ads
Using this model to measure EMV is helpful when the primary objective of the campaign is to increase the brand’s social recognition. Tracking every form of engagement helps in learning what you have earned from audience engagement.
Method 3: Based on Customer Value:
If you want a more quantitative result of your influencers campaigns and understand how EMV helped gain customers, follow this method.
EMV: (Impressions over last 30 days x Average CPM of Ads) x Customer Lifetime Value
For brands looking at the long-term picture of how well the campaign converts to customer retention and lifetime value, this method should be used.
Method 4: Based on Conversions:
To directly relate sales with influencer campaigns, you need to know what’s your EMV for the conversions received.
EMV: Reached Users x CPM x Conversion Factor
This is the most important formula to calculate EMV as this relates EMV to the sales or conversions that the campaign brings. Marketers should use this method when their primary goal to measure EMV is to increase conversions.
The Key Takeaway:
Use a reliable influencer tool like HypeAuditor to make sure that you find the right influencers who can generate desired EMV. To measure EMV, you can create your own formula too that encompasses all the essential metrics. Make sure to invest in influencers who can considerably improve your Earned Media Value in social media.