To understand return on investment of an initiative, whether it is influencer marketing or any other, you need to anchor it against what you were trying to achieve.
Then you can compare, what you got against that. Often media agencies and brands are seeking cut through, that is reaching the unique audiences and contexts that influencers have created.
Option 1: Contrast return against the alternatives
To establish ROI, they want to compare against, what is the next best use of my dollar. So they need to quantify reach and engagement. To enable them to compare against other media opportunities.
For example, if I can reach 100,000 people who stay for 15 seconds on Facebook, what did I get from my influencer?
That is one mechanism, that helps provide context on how influencer activations worked against the competition in your marketing mix.
Option 2: Contrast return against other influencers
The alternative is comparing against other influencer initiatives, to see what the average performance is and how each individual influencer yields against others in your campaign. This is valuable intel, as you are building up an idea of what is working for you and your strategy.
You can also look up influencer benchmarks at the start, to see if your programs are doing well against the industry.
This is part of our Guide to Influencer Content Marketing.