How to measure influencer marketing ROI

Measuring ROI when it comes to influencer marketing can be a slippery slope and justifying the spending in a quarterly review can be a nightmare for a marketer. So, to discuss the issue of measuring ROI on influencer marketing, panellists gathered at the India Digital Summit to find a solution

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Vishesh Sharma
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Influencer marketing IAMAI

New Delhi: It was the second day of the India Digital Summit, and panellists from the industry sat to discuss “influencers.” Their agenda? Setting the standards for measurement and impact.

Moderating the session was Arnab Mitra, Founder of Liqvd Asia, who started the question by asking a simple question “What defines ROI when it comes to influencer marketing?”

Mayank Prabhakar, General Manager, and Head of Media and Digital Marketing at Vivo India, said, “People often discuss ROI in terms of awareness, likes, engagements, and views, which are very quantitative metrics. However, when evaluating the impact, it's important to consider the numbers and whether people acknowledge the brand in the comments. 

In the short term, there can be an ROI in terms of likes, comments, shares, and views. But the long-term ROI, what matters is if the brand becomes a part of people's lives, measuring that remains a challenge. Measuring people’s trust is a challenge.”

There are no metrics to measure people’s trust in a brand, so how do you measure it? Weighing in on the discussion, Digvijay Singh, Founder of Digvijay Lifestyle, who creates content about health, said, “How I see ROI is by transforming a normal product into a happy, fun product. When a brand approaches me, I ask, "What are you trying to achieve with this campaign?" I then integrate their products into my content seamlessly. 

Over time, whether it's a protein powder or a zero-calorie sweetener, I use the product for an extended period to build trust. Trust takes time to establish, but a few authentic videos can make a significant impact. Authenticity is the key to building trust. Whatever the brand is selling, it must make sense for me and my community. Also, I analyse data and incorporate it into my content to get a good sense of what my consumers want.”

Moving ahead, Mitra (the moderator) asked Prabhakar (Vivo) if there exists a playbook for influencer marketing. Prabhakar replied, “There’s no playbook; you have to go local. While there is slight saturation and bias in tier-1 cities, this is not the case in tier-2 and tier-3 cities, where the market is very emotional, and that’s where the next wave is emerging from. Communication needs to be simple yet diverse, incorporating different languages and tonalities. 

We must speak to their perspective, which means diversifying our strategy, communications, and targeting to resonate with their unique characteristics. In Tier-1 and Tier-2 cities, there’s no global formula. Providing influencers with a script dilutes their trust because it blurs the line between traditional TV commercials and influencer marketing. Influencers have their own style, and people want to be communicated with in that style, not the brand’s style.”

After to-and-fro discussions about building trust, the question that came up was, “What’s the ultimate ROI?”

And, Samridhi Katyal, Founder of Influns, replied to the question by saying, “As a brand, it's important to understand that judging an influencer as a candidate is my authority. If you don't consistently pursue this, everything will become purely mathematical if you don’t constantly focus on finding the right people. Influencer marketing cannot be categorised solely by numbers. 

Everyone talks about ROI, but there's a persistent element that goes beyond that. You can't just put out one digital ad and expect to change the brand name. It's the same principle: you need to make your brand so appealing that I, as an influencer, will advocate for it without being paid. The ultimate ROI is to have a brand advocate.”

Finally, generating ROI also depends on choosing the right influencers. So, how do you choose the right influencers?

Hear it from an influencer himself, “When working with micro and macro creators, those with 10,000 to 30,000 followers sometimes yield a higher ROI than those with 1 million followers. For example, spending 1 lakh on a macro creator might be less effective than working with 10 nano creators, as you can produce 10 videos, and if two of them go viral, the raw and relatable content resonates more with people. 

Microcreators often have a strong community, leading to better ROI. While multi-videos with one creator can be effective for awareness and views, building trust and identity requires long-term collaboration with selective creators. This approach fosters authentic relationships and increases sales. However, if an influencer promotes multiple similar events from different brands, it can confuse the audience. Therefore, brands should focus on long-term partnerships to benefit both the brand and the creator, providing security and consistency.”

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