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Jesse Leimgruber - The True ROI of Influencer Marketing

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Jesse Leimgruber - The True ROI of Influencer Marketing
Presentation for Under The Influence by Influencer Marketing Hub (https://influencermarketinghub.com)

Published in: Business
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Jesse Leimgruber - The True ROI of Influencer Marketing

  1. 1. The True ROI of Influencer Marketing @JesseRank on Twitter
  2. 2. The Problem For most campaigns, true ROI cannot TRULY be determined.
  3. 3. 6:1 ROI??
  4. 4. 6:1 ROI??
  5. 5. This is what $50,000 looks like
  6. 6. This is what $50,000 on fire looks like
  7. 7. This is what $50,000 on fire looks like
  8. 8. The Problem For most campaigns, true ROI cannot TRULY be determined.
  9. 9. Part 2: Landscape Part 3: Data Part 4: Reality Part 1: Background
  10. 10. Landscape Data Reality Background
  11. 11. The Problem Problems with tracking: • Can I even measure real (actual) impressions? • What even counts as an “impression” • Are these views spam/fake? • How do I know the influencer/agency didn’t buy additional views?
  12. 12. The Problem Problems with understanding value: • Are these views actually worth anything? • How many of these viewers actually bought the product? • What is the value of an impression? • Was influencer marketing worth the hassle versus paid? • What is the brand / engagement value of this influencer worth?
  13. 13. This Isn’t Unique to Influencer Marketing…
  14. 14. True Cost != Actual Cost “I always get an ROI because we don’t pay influencers, they promote us for free” - A lot of people
  15. 15. True Cost != Actual Cost Cost of TIME Cost of PRODUCT Cost of LEGAL Cost of PROMOTION OPPORTUNITY Cost
  16. 16. Landscape: What do brands currently say their ROI is? Data: What does an analysis of the data show? Reality: How can a marketer determine their real ROI? So then… What am I going to talk about?
  17. 17. Landscape Data Reality Background
  18. 18. Who Am I? ▸ Grew Up in Florida, Studied at Stanford in CA and live there now. ▸ 2011 - Bootstrapped an e-Commerce startup, RageHats, to $50k/month ▸ 2012 - Co-Founded a boutique digital marketing/SEO firm, Rank Executives ▸ 2013 - Co-Founded, NeoReach and Raised $4M in VC dollars.
  19. 19. Who Am I?
  20. 20. Part 2: Landscape Data Reality Background
  21. 21. Landscape: Budget Allocation 7% 7% 8% 48% 20% 10%
  22. 22. Do you pay your influencers? (Asked to managers that reported running at least 1 influencer campaign in the past 12 months) “Have you ever compensated an influencer with any of the following in the last year: cash, free product, trip/experience” 89%
  23. 23. Select all that apply: Which campaigns yield a positive ROI 1. Direct Response - CPA / CPI 2. Direct Response - Indirect (Lead Funnel) 3. Giveaway / Promotion 4. Blogger Outreach 5. Cost per Click 6. Long Term Channel Sponsorship 7. Product Review 8. Branding 9. Organic Brand Advocacy 10. Event / Live Activation 11. Twitter “Party” 12. End-cap (End of Video)
  24. 24. Survey: Reported ROI 2.1x “Looking at all campaigns in the past 12 months, what is your overall ROI as determined by results / cost”
  25. 25. What Percent of Campaigns Are Successful? 65% “On a scale of 0 - 100%, what percent of your influencer marketing campaigns were successful, as measured by ROI”
  26. 26. Survey Responses This is what people say… But why are they saying this?
  27. 27. Survey Responses Most important metric for ROI? 56% - CLIENT / MANAGER HAPPINESS
  28. 28. DATA DATA DATA How to Determine ROI?
  29. 29. Landscape Part 3: Data Reality Background
  30. 30. What Data Are We Looking At? Meta Analysis of $50M+ in influencer campaigns facilitated through NeoReach Data and Analytics from over 1 Billion social media posts across all platforms. Responses from over 200 brand managers who participated in our survey.
  31. 31. How Big Is The Space? $1.2B Spent on Sponsored Posts
  32. 32. 6:1 ROI? Data does not support this…
  33. 33. 6:1 ROI? Far from it…
  34. 34. 6:1 ROI? Too low? Too high? Something else?
  35. 35. 6:1 ROI?
  36. 36. Based on NeoReach Data 27% of Influencers are Profitable based on data (But what does this “data” mean?!)
  37. 37. How Many Are There to Pick From?
  38. 38. How Many Are There to Pick From? Over 1M Subscribers?
  39. 39. How Many Are There to Pick From? 5,198 YouTubers with over 1M subscribers
  40. 40. How Many Are There to Pick From? Over 100k Subscribers?
  41. 41. How Many Are There to Pick From? 57,620 YouTubers with over 100k subscribers
  42. 42. How Many Are There to Pick From? Over 10k Subscribers?
  43. 43. How Many Are There to Pick From? 395,832 YouTubers with over 10k subscribers
  44. 44. How Many Are There to Pick From? Over 1M Total Views?
  45. 45. How Many Are There to Pick From? 1,290,900 YouTubers with over 1M views
  46. 46. How Many Are There to Pick From?
  47. 47. So HOW MANY are there? 3 Million+ Influencers that are relevant to a brand activation
  48. 48. Based on marketers surveyed 37% of campaigns are Profitable based on our “data”
  49. 49. Landscape Data Part 4: Reality Background
  50. 50. It’s meaningless unless you agree on a standard. So What is the ROI of influencer marketing?
  51. 51. Influencer Media Value Paid = Easy to measure ROI Influencer marketing = Not easy to measure ROI So how can we make influencer marketing data more like paid? How can we make an apples to apples comparison between influencer marketing and paid?
  52. 52. Influencer Media Value What is Influencer Media Value?
  53. 53. Influencer Media Value Apples to apple comparison to paid & other channels
  54. 54. 6:1 ROI?
  55. 55. Determine your ROI: Influencer Media Value Step 1: Establish your values
  56. 56. Influencer Media Value Value of a Like Value of a Comment Value of a Share Value of an Impression (for each channel)
  57. 57. Influencer Media Value Twitter Facebook Instagram Like $0.75 $0.25 $0.30 Comment $1 $0.50 $0.40 Share $4 $2 N/A CPM $10 $18 $15 Generally, look to paid channels for benchmarks.
  58. 58. Influencer Media Value Likes on Twitter * Value for Twitter Likes on Facebook * Value for Facebook Likes on Instagram * Value for Instagram (repeat for each metric)
  59. 59. Influencer Media Value
  60. 60. Should You Pay an Influencer to get an ROI? How Much? Medium Sized Influencers! 25k-125k Followers have the best IMV
  61. 61. It’s meaningless unless you agree on a standard. So What is the ROI of influencer marketing?
  62. 62. NeoReach’s influencer media value technology drives ROI in a way no one can, for a cost no one can match. - Ryan Faber, Digital Marketing Director at FanDuel
  63. 63. Subject: Run My Report Please Free IMV Report on ANY Video or Link Team@NeoReach.com @JesseRank on Twitter
  64. 64. Thank You.

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