Knowing the ROI of your marketing strategy is important, but not always easy, especially for influencer marketing. I will update several posts regarding how I calculate influencer ROI, because I’m really passionate about analytic.
Without further due, let’s start with one of the most valuable number — Earned media value for Weibo influencers
What exactly is EMV?
Most media campaigns fall into three categories: paid, owned and earned media.
Paid media includes placements that you can buy based on certain metrics like CPM (cost per thousand impressions) and CPE (cost per engagement). This includes posts on social networks, mobile popups and offline media like TV spots.
Owned media has no placement cost since this is content placed on your own channels. Owned media has value based on the cost of buying an ad on your network or channel.
Earned media is the extended value of paid or organic social or influencer activity. Organic social is not owned media because one cannot buy a banner or ad placement on your social channel. There is no paid media behind organic social, therefore it is 100 percent earned media.
Calculate channel specific EMV
The general measurement for EMV is
EMV = The impression influencer’s post generated * Industry average CPM
Step 1. Impression per post
Since different social media channels has different CPM, it is important to figure out the equation for specific channels.
For example, many Instagram third party analytic tools provides impression for influencers posts, make it easy to calculate how much you will need to pay to get this much amount of impression through sponsored ads.
Unfortunately it is impossible to know the impression of other accounts on Weibo. Therefore we need to do a bit of detour, work with what we got. If you have a verified Business Weibo account, you will get impression of all your post for certain period, thus making it possible to calculate the average impression generated from each post.
Impression for the past 30 days = Impression per post
The total number of posts in the past 30 days
Step 2. Percentage of followers who saw your post
Weibo feed has 2 Algorithms: Time and relevancy. Unless users manually change the setting to Time, the default feed is show according to users browsing behaviour and history. Which is to say that only part of your followers can see your posts, similar to Instagram and Facebook.
With impression per post, it is possible to calculate the percentage of your followers that can see your post
Impression per post / Followers = Followers who see the post %
Step 3. Impression generated by the influencer post
Influencers’ followers number is always public, with the percentage of how many followers can see their posts, we can easily calculate the impression generated from the post.
Influencer’s total Followers * Followers who see the post % = Impression influencer’s post
Step 4. EMV
There are so many variables that influence CPM: Different industry, type of content, the time of the year, etc. The best way for you is to check your past FENSI TONG campaigns for the average CPM.
Otherwise, Weibo’s average CPM is 15 RMB. The number is confirmed by multiple reliable sources, but it is nowhere near accurate to your case.
EMV = Weibo average CPM * Impression from influencer’s post
Calculate ROI of influencer marketing has been challenging to brands and companies. Especially when it come to Weibo and Wechat, where official data is missing and not many third party analytic tool is available.
This post gives a general idea of how to calculate Weibo influencers EMV, it is by no means accurate, but it is the closet you can get to know how much brand awareness value your influencer strategy is creating for you!