A Influencer ROI Calculator is a tool designed to help you assess the effectiveness of your influencer marketing campaigns. With just five inputs, it provides you with an easy-to-understand metric that quantifies your return on investment (ROI).
Inputs required:
Total campaign cost ($): The overall expenses associated with the campaign, including influencer fees, product giveaways, and production costs.
Audience Reached: The total number of people exposed to the influencer's content during the campaign.
Engagement rate (%): The percentage of engaged users (who visit the destination landing page, click to receive product giveaway) out of the total audience reached.
Conversion rate (%): The percentage of users who completed a desired action (e.g., sign-up to the product, making a purchase) out of the total audience reached.
Average order value ($): The average revenue generated per completed sale.
How to Calculate ROI:
Calculate Leads: Audience Reached x Engagement rate
Calculate Conversions: Leads x Conversion rate
Calculate Revenue Generated: Conversions x Average order value
Calculate ROI(%): (Revenue Generated - Total campaign cost) / Total campaign cost
Practical Example:
Total campaign cost: $10,000
Audience Reached: 100,000
Engagement rate: 5%
Conversion rate: 10%
Average order value: $120
Calculating ROI:
Leads: 100,000 x 5% = 5,000
Conversions: 5,000 x 10% = 500
Total Revenue: 500 x $120 = $60,000
ROI: ($60,000 - $10,000) / $10,000 = 5
In this example, the Influencer ROI Calculator reveals an ROI of 5, which means that for every dollar spent on the campaign, $5 was generated in revenue. A negative ROI means that each dollar spent on the campaign generated less than one dollar of revenue.
