What Is Influencer Marketing ROI – A Guide to Measuring ROI of Crypto Influencer Marketing Campaigns

With millions of people using social media every day, influencer marketing stands as one of the undisputed advertising kings even in the cryptocurrency scene. According to Statista, the global influencer marketing value in 2023 ($21.1 billion) has increased more than three times since 2019.

This shows the value influencer endorsement brings to the crypto industry, and despite this, many cryptocurrency influencers don’t track ROI (Return on Investment). Influencer marketing ROI harbors insights that can make your marketing campaign twice as effective. There is a lot involved in tracking cryptocurrency influencer ROI, and this article will guide you on your path towards a greater return on investment.

What Is Influencer Marketing ROI?

Influencer marketing ROI is a metric (or benchmark) that shows how effective an influencer marketing campaign is by comparing the revenue to the costs incurred. Simply put, it’s a yardstick that evaluates whether or not an influencer campaign is profitable.

However, measuring regular ROI or cryptocurrency influencer ROI is not limited to the cash generated. It also involves engagement, sales, brand awareness, and other performance indicators.

Best Metrics to Measure Influencer Marketing ROI

Although conversion is a popular metric for measuring ROI, it’s not the only one. There are quite a few benchmarks that you can use in measuring ROI in the crypto scene.

Conversions

Conversions are the actions that a customer takes after engaging with an influencer’s content. This could be purchasing the merchandise or signing up on the platform that the influencer is advertising. Measuring conversion helps you determine how effective an influencer is, and there are quite a few ways to go about it.

Affiliate Links

These are links that take you to a website where you can purchase a product. Affiliate links make good influencer performance tracking metrics when you create a custom link for an influencer. This way you can monitor how many people click on that link and the resulting crypto conversion rates.

UTM Links

Urchin Tracking Module (UTM) Links are pieces of code that are embedded into URLs that allow you to track each link in detail. Placing a UTM link in your campaign ad will help you determine the visitors that use that link. It will also help you determine the areas or pages they visit on your site.

Personalized Referrals Codes

When you provide each influencer with a custom voucher code, you can track the number of conversions that come from that individual.

Brand Awareness

This refers to the extent to which customers can remember a product through the content shared by an influencer. That’s why crypto marketing campaigns always use influencers with an engaged following. This way, the influencer is guaranteed to create a lasting impression on the target audience, leading to a higher recall or recognition rate.

The crypto campaign KPIs (Key Performance Indicators) you should measure for brand awareness include:

• Number of impressions
• Follower growth
• Total reach
• Cost Per Mille (CPM)

Content

The content generated by crypto influencers when they partner with a brand is another great way of measuring ROI. Apart from the fact that the content costs less money, it is usually of high quality. As such, you can reuse the content in different promos on various social media sites to deliver high-quality marketing to the fans of that influencer.

Some ways in which the influencer content can be reused include:

• Using organic social media advertising.
• Displaying the content on the product website.
• Partnering with crypto bloggers for in-depth reviews.
• Using paid social media advertising.

Crypto content reuse strategies can be used in different types of promos in different ways, for example:

Partner with crypto bloggers and YouTube reviewers to provide in-depth reviews and tutorials. Highlight product specifications, features, and benefits through detailed blog posts and video content.

Interviews with project founders to build an audience and show the product that it is worthy of the trust and attention of all crypto investors and enthusiasts.

Engagements

Another crypto influencer marketing metric for measuring ROI is using the tangible actions that people take to engage with a brand. To put it simply, you’re measuring how active the influencer’s community is based on how they interact with social media posts.

Some KPIs you can use to measure engagement include:

• Likes
• Brand mentions
• Click-through rate – CTR 
• Comments
• Shares & saves

How to Calculate Influencer Marketing ROI

The crypto ROI calculation formula starts with determining how much you’ve invested and how much revenue you’ve gotten. The answer you get when you weigh the cost to the revenue is your ROI, and this is shown below:

Choose the Right Crypto Influencers

Now that you understand how to calculate your crypto ROI, the next step is to learn how to maximize it. The first step is to set your influencer marketing objectives, and after that, it’s the most important, and this is to choose your influencers.

The influencers you partner with will determine how successful the crypto marketing campaign will be. A rule of thumb is to always choose an influencer with a crypto audience and not just a wide reach. After all, the millions of followers behind an influencer won’t make any difference if only 2% purchase the product you’re advertising.

That’s why an ROI optimization technique for the crypto niche is to choose an influencer with the target audience. By offering products that resonate with this demographic, you can drive up engagement, conversions, and eventually sales.

Conclusion

Cryptocurrency influencers can have a significant impact on the success of your campaign. It’s important to find influencers whose audience matches your target clients and whose values align with those of your brand. Don’t just focus on vanity metrics like number of subscribers; brand alignment is far more important.

Discover more about our innovative solution to finding crypto influencers in our marketplace. Alternatively, get in touch with our account managers, who will be happy to assist you in choosing the most relevant and fitting influencers for your product.

FAQs about Influencer Marketing ROI

What Is Influencer Marketing ROI?

Influencer marketing ROI is the metric that evaluates how profitable an influencer campaign is. It does this by comparing the costs incurred in the marketing campaign to the revenue generated.

How Do You Calculate ROI in Influencer Marketing?

You can calculate ROI in influencer marketing by dividing revenue by costs and multiplying the result by 100. In mathematical terms: revenue/cost x 100.

Why Is It Important to Measure Influencer Marketing ROI?

Measuring influencer marketing ROI is important to determine an influencer’s profitability. It’s also useful when comparing different influencers and when deciding if influencer marketing is a good choice for a brand.

What Metrics and KPIs Are Used to Measure Influencer Marketing ROI?

The metrics you can use to measure influencer marketing ROI include brand awareness, conversions, influencer content, and engagement. The KPIs used to measure influencer marketing ROI include comments, likes, shares, saves, CTR, and brand mentions.