Atul Jindal is a Digital Marketer and Web Design Engineer who has an interest in doing marketing strategies with a focus on conversion optimization. He creates web experiences that bring conversations and transform site visitors into paying customers or leads. For more information, you can visit his personal blog.
Nearly 90% of marketers believe influencer marketing can help to generate significant ROI. The revenue-generating potential of this new marketing channel makes it a lucrative opportunity for startups to invest in.
However, most startups run on a tight budget and don’t have the margin to experiment with new marketing avenues resulting in draining their savings down. These businesses need a way to know if their efforts are yielding profitable results.
That’s where influencer marketing attributions come into play.
In this article, I will discuss what influencer marketing attribution is, why it is important, and how it can help you save costs.
So, without further delays, let’s answer your first question.
What is Influencer Marketing Attribution?
Influencer marketing attribution is a way to determine the value of each influencer account. It helps marketers understand how each influencer has contributed to generating the highest ROI or bringing them closer to their marketing campaign goals.
For example, your goal is to generate more revenue for your small startup. You hire a few influencers and ask them to post content promoting your products. For this campaign, you offer a fixed dollar amount to each influencer, which is your investment.
Once the posts go live, you pay the influencers, and your investment is made. Now, you need to know if this investment was profitable.
To validate the profitability of each investment, you must be able to trace each conversion back to the influencers.
By doing this you’ll be able to discover the influencer who managed to direct most prospects towards conversions, which will be a valuable investment as they brought you closer to your original marketing goal.
You can continue using these influencers for your next campaigns while letting go of less valuable accounts and save your startup costs from being spent on low-value influencers.
The Importance of Tracking Influencer Marketing Attributions
Tracking influencer marketing attribution means knowing which influencer channel is bringing in the most revenue.
Flat Tummy Co, a small startup selling detox teas, drove a successful influencer marketing campaign that helped bring them closer to their marketing goals. How do they know they were successful? With their well-tuned Influencer outreach process they found with the investment of $232K and 388 influencers, they managed to reach a whopping 10.9 million people with their brand.
Analyzing the efficiency of your marketing campaigns is critically important helping you better understand what should be optimized. Marketers have a simple rule of thumb, which is based on practice rather than mere facts meaning that you should do what proved to be good.
Here’s why all startups need to track their influencer marketing attributions:
- The marketers’ ability to track influencer marketing attributions has uplifted the entire industry.
- Influencer marketing attributions help you identify how your marketing efforts are affecting your bottom line. Are they contributing to increased revenue or pushing you towards bankruptcy?
- By attributing metrics to influencers and the content they used to drive them, you can see what marketing content strategy works well and which doesn’t. Hence, tracking attributions helps streamline marketing efforts.
- Influencer marketing attributions associate key parameters to track the portion of revenue to the influencer marketing campaign you ran, making it easier to see how closely this campaign brought you to your initial goals and gauge its success.
Key Metrics to Consider for Influencer Marketing Attribution Tracking
Every successful marketing project has these four major elements: tracking, measuring, analyzing, and optimizing. And we can use UTM parameters to track and measure meaningful information that could bring valuable insights. The same is true for influencer marketing.
Here are a few key metrics you must consider when attributing your influencer channels:
Reach and Impression
Reach and impressions are two critical metrics to track, especially if your campaign goal is to drive brand awareness. These two metrics can quickly tell you how many people saw your branded post and how receptive the audience is to a specific influencer’s content, which can guide future partnership decisions.
Engagement rate influences the reach. The higher the engagement, the better the reach. Therefore, to ensure that your influencer marketing campaign yields the results you’re aiming for, you must have granular insights about the engagement rate of each post.
Traffic from Social
If your end goal is to drive traffic and convert traffic into profits, you must track the traffic coming from social media where your influencers are marketing your brand. If the web traffic from social media is good, the influencer campaign is working well and vice versa.
Lead Generation from Social
The number of leads your business generates could also be a helpful indicator of how effective your influencer campaign is. If a particular influencer is helping you generate good leads, you know where to focus your marketing efforts.
Conversions from Social
The ultimate goal of every marketing effort is to grow revenue, and conversion is the metric that helps you track your sales and calculate the revenue.
Tracking conversions from your social channels is a direct indicator of how profitable your influencer channels are.
The importance of these metrics depends on your marketing objective. But knowing and tracking them can help you when attributing your marketing channels.
What Are the Advantages of Influencer Marketing Attribution?
Now that we know the basics about tracking influencer marketing attributes, it’s time to figure out how you can use it to grow your business.
Personalize Your Marketing Campaign
Today personalization is a necessity for brands and not just a matter of choice. Clients expect customized experiences tailored to their preferences. The personalization of marketing campaigns has become the need of the hour.
90% of US consumers believe personalized marketing content is somewhat or very appealing.
Tracking influencer marketing attributes will help you personalize your marketing campaign based on the preferences of your prospects.
Capturing the granular insights into a post’s engagement rate, reach, and impression helps to explain how the content impacted customers. High positive engagement could indicate they liked it, high negative engagement or low engagement would indicate they would prefer a more personalized approach.
Once you know what kind of content your audience prefers, you can divide them into cohorts based on that and then personalize your efforts across other marketing channels, like tailored Instagram story ads, targeted Facebook feed ads, etc.
Measure Your ROI and Grow Your Revenue
There are numerous benefits of tracking the ROI of influencer marketing campaigns. A startup that cannot optimize its cost-saving finds it hard to survive and then comes to understanding why 67% of marketers measure the ROI of their influencer campaigns.
In simple words, I can say that marketers should attribute their revenue more diligently to understand if their current influencer marketing efforts are profitable or if they need to change their tactics.
It provides a clear picture of profitable and non-profitable marketing channels enabling you to build upon the profitable ones and snip off the non-profitable ones.
Quantify Your ROI
You need to have a clear, visible, and sharp picture of what your return on investment with influencers looks like.
Tracking influencer marketing helps you to get a granular view of how much each influencer contributes to revenue. This allows you to avoid draining your money with low-quality influencers.
You will know which influencer is bringing in the most return on investment and which one is just a hoax with nothing to show except for vanity metrics.
Discover Your Buyer’s Journey
Tracking your influencer marketing attributions will map out a neat buyer’s journey after they have had an interaction with your brand. Did the prospect view your social media page before moving ahead, or did they visit your website to buy directly after interacting with your brand through the influencer?
Having such control over your buyer’s journey helps you focus your marketing efforts where they have a better impact.
Let’s say the prospect visited the page after interacting with your brand on an influencer’s profile. This prospect can be retargeted with branded ads to nurture them further down the conversion funnel.
Optimize Ad Spend
Marketing is often the first department to go whenever a startup inches closer to the losses. Therefore, to ensure your marketing team continues to be a part of your business, you have to ensure that the marketing spend is properly optimized and the overall budget is being allocated effectively to the most profitable digital channels.
Influencer marketing attributions help you optimize your ad spend by uncovering the most profitable and least profitable channels and cut off the non-viable marketing channels. This helps you optimize your marketing budget and save costs.
Influencer marketing holds immense marketing potential, especially for startups. However, if you cannot track the attributions of your influencer marketing campaign, this can quickly become a money-sucking hound for your small business.
Tracking influencer marketing attributions offer the granular control and deep insights required to identify how many sales a particular account drives and how profitable it is.
Therefore, by tracking their influencer marketing attributions like a hawk, startups can generate massive cost savings simply by identifying and building upon marketing channels that deliver, closing non-profitable accounts, and streamlining their marketing efforts.
One of our experts will get back in touch with you soon.