The average NeoReach customer is investing millions per year in influencer marketing. They require accurate, verifiable methods to measure ROI.
(PRWEB) March 25, 2017
NeoReach, the leading SaaS influencer marketing platform for Fortune 500 brands and their agencies, announced today the release of their new Influencer Media Value (IMV) analytics to measure the return on investment of influencer marketing programs.
Measuring the success of influencer marketing has historically presented challenges for CMO’s, brands, and their agencies. Large spends, disparate mediums and lack of standardization has made standard measurement a challenge. Much like traditional press or TV ads, there have previously been few concrete metrics to track the ROI of influencer marketing campaigns.
As a result, some brands continue to invest in costly and antiquated paid methods campaigns which offer tracking of CPM, media engagements and cost. However, this means that many brands are unable to properly determine if their influencer marketing campaigns are a success.
To tackle this mounting problem, faced by every brand and agency running influencer marketing campaigns, NeoReach today is announcing an automated addition to their platform to measure the Influencer Media Value of a campaign, a critical indicator of campaign success.
What is Influencer Media Value and how does it differ from Earned Media Value? Earned media value is a method to calculate the value from media. This is used for press, social, and various endorsement campaigns. Influencer media value is a specific type of earned media value that focuses on influencer marketing. To calculate influencer media value, the reach of sponsored posts is tabulated and summarized, reviewed for quality, and compared to established benchmarks from traditional advertising channels.
Most brands know there is value to a Facebook Like, YouTube Video or social engagement. Even so, it’s difficult to quantify and make a direct comparison since all media is not created equally.
The first step in calculating earned media value is asses the standard benchmarks. Once these benchmarks are evaluated and confirmed, this provides a benchmark on how much it would cost to create the same level of engagement using paid media.
NeoReach’s software automatically finds and scores these benchmarks based on paid data, past campaign performance, industry surveys, and performance analytics.
"Our customers are investing millions of dollars each year into influencer campaigns. Given the large scale of their spends, customers of this scale need an accurate and verifiable ways to track ROI. This is what NeoReach IMV solves," said NeoReach CEO, Jesse Leimgruber.
How is earned media value traditionally calculated? For each known metric of a sponsored post, an industry benchmark is set based on the cost to purchase equivalent media via traditional channels. If different industry benchmarks are available, then an average of all known prices can be used. Most brands choose to use their actual cost if they are actively purchasing traditional media. It is recommended that a brand includes exposure from secondary reach (retweets, shares) in the calculation. Each known metric from a channel must be scored and summarized individually. Depending on the depth of the calculation, brands may choose to weight stronger endorsements or better impressions as more valuable and vice-versa.
How does Earned Media Value Translate to ROI: Similar how it is difficult to measure the ROI from a TV commercial, press placement, or radio ad, the same challenge occurs with influencer marketing. However, on a large scale, it is possible measure the total impact of all advertising. Many brands measure the ROI of their marketing in this way. Earned Media Value is a way to equate influencer marketing to traditional channels a means of standardizing the expense of influencer marketing with a brand's existing channels.
NeoReach software powers influencer marketing for brands including Walmart, Amazon, and NBC Universal.
To get started and schedule a demo of NeoReach’s Influencer Media Value tool, please visit their website at NeoReach.com