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

1. The True ROI of Influencer Marketing
@JesseRank on Twitter

2. The Problem
For most campaigns, true ROI
cannot TRULY be determined.

3. 6:1
ROI??

4. 6:1 ROI??

5. This is what $50,000 looks like

6. This is what $50,000 on fire looks like

7. This is what $50,000 on fire looks like

8. The Problem
For most campaigns, true ROI
cannot TRULY be determined.

9. Part 2: Landscape
Part 3: Data
Part 4: Reality
Part 1: Background

10. Landscape
Data
Reality
Background

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. 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. This Isn’t Unique to Influencer Marketing…

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. True Cost != Actual Cost
Cost of TIME
Cost of PRODUCT
Cost of LEGAL
Cost of PROMOTION
OPPORTUNITY Cost

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. Landscape
Data
Reality
Background

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. Who Am I?

20. Part 2: Landscape
Data
Reality
Background

21. Landscape: Budget Allocation
7%
7%
8%
48%
20%
10%

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. 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. 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. 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. Survey Responses
This is what people say…
But why are they
saying this?

27. Survey Responses
Most important metric for ROI?
56% - CLIENT / MANAGER
HAPPINESS

28. DATA
DATA
DATA
How to Determine ROI?

29. Landscape
Part 3: Data
Reality
Background

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. How Big Is The Space?
$1.2B Spent on Sponsored Posts

32. 6:1 ROI?
Data does not support this…

33. 6:1 ROI?
Far from it…

34. 6:1 ROI?
Too low?
Too high?
Something else?

35. 6:1 ROI?

36. Based on NeoReach Data
27% of Influencers are
Profitable based on data
(But what does this “data” mean?!)

37. How Many Are There to Pick From?

38. How Many Are There to Pick From?
Over 1M Subscribers?

39. How Many Are There to Pick From?
5,198
YouTubers with over 1M subscribers

40. How Many Are There to Pick From?
Over 100k Subscribers?

41. How Many Are There to Pick From?
57,620
YouTubers with over 100k subscribers

42. How Many Are There to Pick From?
Over 10k Subscribers?

43. How Many Are There to Pick From?
395,832
YouTubers with over 10k subscribers

44. How Many Are There to Pick From?
Over 1M Total Views?

45. How Many Are There to Pick From?
1,290,900
YouTubers with over 1M views

46. How Many Are There to Pick From?

47. So HOW MANY are there?
3 Million+
Influencers that are relevant to a brand activation

48. Based on marketers surveyed
37% of campaigns are
Profitable based on our
“data”

49. Landscape
Data
Part 4: Reality
Background

50. It’s meaningless
unless you
agree on a
standard.
So What is the ROI of influencer marketing?

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. Influencer Media Value
What is Influencer Media Value?

53. Influencer Media Value
Apples to apple comparison to
paid & other channels

54. 6:1 ROI?

55. Determine your ROI: Influencer Media Value
Step 1: Establish your values

56. Influencer Media Value
Value of a Like
Value of a Comment
Value of a Share
Value of an Impression
(for each channel)

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. 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. Influencer Media Value

60. Should You Pay an Influencer to get an ROI? How Much?
Medium Sized Influencers!
25k-125k Followers have the best IMV

61. It’s meaningless
unless you
agree on a
standard.
So What is the ROI of influencer marketing?

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. Subject: Run My
Report Please
Free IMV Report on ANY Video or Link
Team@NeoReach.com
@JesseRank on Twitter

64. Thank You.