Complete Guide to ROI for influencer marketing in 2024

Businesses rely on crystal-clear data to understand their influencer marketing campaign performances, and there's pressure on marketers to show the value of influencer marketing strategies clearly.

Easy-to-gain metrics like engagement rates provide insights into campaign popularity, while click-through rates and conversions show the number of short-term sales. But even with these datapoints, a question remains: what is the overall campaign profit?

ROI, calculated by dividing a campaign's profits by its costs, serves to answer that question. It's the clearest representation of overall campaign success, acting as a handy guide rope through the sea of tangible and intangible key performance indicators.

However, ROI is difficult to obtain. The Kolsquare 2024 Report discovered that increasing sales is a goal for 68% of marketers. However, measuring ROI is their biggest pain point.

There, the Kolsquare ROI Guide was born! We developed this informative page to help you simplify the process and understand influencer marketing ROI more deeply.  Mastering ROI will empower you to craft more impactful campaigns and confidently prove the success of your IM strategies.

It dives deep into complex metrics like earned media value and how they help you assess campaign earnings. Plus, we've added case studies and examples that clearly explain the benefits of understanding ROI.

FAQ

Why are influencers good for marketing?

Influencers are a good choice for marketing because of the genuine connections they build with their audiences. When a social media user chooses to follow an influencer, it’s an active decision rooted in shared interests, authenticity, and emotional response. Whether it’s creative inspiration or shared interests, followers feel invested in influencers, and that relationship provides unique value to brands.

These bonds create a sense of trust that traditional advertising often fails to achieve. Studies show that 74% of consumers feel overwhelmed by ads and would rather skip them or not see them at all. For brands, this means adapting their approach to engage audiences.

Social media is still an essential channel for brands. The data speaks for itself: 44% of Gen Z complete product research on social media. Influencers offer a solution by integrating products and services into content that feels more like a recommendation from a friend than a pushy sales pitch. Additionally, 86% of consumers are more likely to trust a product recommended by a friend. This is why smaller influencers—who seem more like friends than celebrities—often boast more engaged audiences, making them a powerful tool for brands looking to connect on a deeper level.

Brands can tap into these connections by finding influencers who align with their target audiences and crafting campaigns that feel authentic and personal. The challenge lies in choosing influencers whose values and content style match the business, ensuring a partnership that feels authentic to followers and sparks genuine interest in new customers. This helps brands gain a high ROI.

What is a good ROI for marketing?

A "good" ROI varies depending on the industry, campaign goals, and measurement methods. Typically, a good ROI benchmark is around 400% or a 5:1 ratio—meaning you should earn £5 for every £1 spent. However, it’s important to note that this figure applies primarily to direct, trackable returns, such as sales or conversions.

Assessing ROI for influencer marketing is tricky. Campaigns often drive intangible benefits, such as brand awareness, share of voice, and long-term brand loyalty. While these outcomes might not show an immediate financial return, they pave the way for future sales and brand growth. To accurately measure ROI, using tracking tools like UTM links or unique promo codes can help connect revenue with an influencer. However, the metrics you track will depend heavily on your influencer marketing goals.

What is the average ROI for social media influencer marketing 2024?

The average ROI for social media influencer marketing in 2024 varies depending on industry and platform. Influencer Marketing Hub found that 84.7% of companies that launch influencer marketing strategies find their campaigns effective.

Calculating/Measuring Tactics: How to measure ROI for influencer marketing?

Measuring influencer marketing (IM) ROI can be tough. While you can use promo codes and unique links to track conversion and click-through rates, these don't give you the full picture. Other factors like share of voice and brand awareness also come into play. You must consider these metrics to assess your campaigns.

The best way to put yourself in a good position to track ROI is to set your influencer marketing goals from the first get-go. Ask yourself: What do you want to achieve through your influencer marketing campaign? What are the important KPIs? What does influencer marketing success look like?

Consider where in the marketing funnel you expect social media users to be. With that question answered, you can move on to tracking.

Businesses typically track these metrics for IM:

• Reach/Impressions: Measure the total number of people who see the influencer’s content. This metric provides an indication of your campaign’s visibility and potential to increase brand awareness. It is especially relevant for top-of-the-funnel goals like brand visibility.

• Engagement Rate: Calculate the percentage of the influencer’s audience that interacts with the content—through likes, comments, and shares—relative to the influencer’s total follower count. A high engagement rate signals that the audience finds the content relevant and valuable, enhancing the credibility of your brand.
• Click-Through Rate (CTR): CTR measures the effectiveness of the content in driving traffic to your website or landing page. This is a crucial metric for campaigns focused on conversions and sales, as it shows how many people clicked on the link shared by the influencer.
• Conversion Rate: To assess ROI based on conversions, track how many people take a desired action—such as making a purchase or signing up—after clicking through the influencer’s content. This metric directly ties to your bottom line and is essential for calculating overall campaign profitability.
• Sales: Measure the number of sales generated directly through the influencer’s promo codes or affiliate links. This is a tangible measure of campaign success, linking influencer activity to revenue.
• Earned Media Value (EMV): EMV estimates how much it would cost to achieve the same level of exposure through traditional media. It reflects the value of all interactions (likes, comments, shares) and impressions generated by the campaign.
• Cost per Mille (CPM): CPM, or the cost per 1,000 impressions, helps you understand how much you are paying to reach a specific audience size. It is particularly useful for comparing the cost-efficiency of different influencers or campaign strategies.
• Brand Sentiment: Use social listening tools and surveys to measure brand sentiment—how the audience perceives your brand after being exposed to the influencer’s content. This qualitative metric gives you insight into brand reputation and can indicate long-term brand value.
• Follower Increase: Track how your brand’s follower count changes during the campaign. A rise in followers suggests increased interest in your brand, which can lead to long-term customer growth.
• Traffic Increase: Measure the amount of traffic to your website generated from influencer links or promo codes. An increase in site visits during the campaign is a strong indicator of interest and intent from the influencer’s audience.

To learn more about these metrics, download our ROI report above!

Platforms and Tools: How to track influencer marketing ROI?

There are many, many metrics you can use to measure your influencer marketing efforts across platforms like TikTok and Instagram.

These include:

• Reach
• Engagement Rate
• Click-Through Rate (CTR)
• Conversion Rate
• Sales
• Earned Media Value (EMV)
• Cost per Mille (CPM)
• Brand Sentiment
• Follower Increase
• Traffic Increase

That’s ten metrics! Many brands struggle to keep track of all these data points, especially with limited resources or a small team. While a larger in-house team can handle the workload, many brands turn to specialised influencer marketing platforms for support.

These platforms offer a range of tools to help marketers track every aspect of their campaigns. From real-time data analysis and automated reporting to tracking sales with unique codes and measuring EMV, influencer marketing platforms simplify the process of gathering and interpreting data.

Popular influencer marketing platforms like Kolsquare provide detailed dashboards, easy-to-read reports, and even social listening features to measure brand sentiment.

• Real-Time Campaign Monitoring: Escape the drudge of spreadsheets and track campaign performance in real time, including metrics such as reach, engagement, and conversions. This allows brands to make quick adjustments and optimise strategies on the fly.
• Comprehensive ROI Analysis: Calculate ROI easily using detailed reports that break down costs, sales, and engagement, helping brands understand their true return on investment.
• Advanced Influencer Search and Selection: Access a vast database of influencers across multiple platforms, filtered by niche, audience demographics, and engagement levels. This ensures brands can identify the most relevant influencers for their campaigns.
• Earned Media Value (EMV) Calculation: Determine the monetary value of your campaign by calculating EMV, which estimates how much it would have cost to achieve the same exposure through traditional media. You can also learn the expected EMV from an influencer you are considering collaborating with.
• Content Performance Tracking: Measure the performance of influencer-generated content against your own branded content to see what resonates best with your audience.
• Social Listening and Brand Sentiment Analysis: Monitor brand sentiment and understand how audiences perceive your brand through social listening tools. Identify positive and negative mentions to refine messaging and boost brand reputation.
• Automated Reporting: Generate detailed, easy-to-read reports with just a few clicks, saving time on manual data collection and analysis. This feature streamlines communication with stakeholders and provides a clear view of campaign success.

Influencer marketing platforms help you to calculate revenue and campaign gains without any formulas. They're a useful tool for any influencer marketing strategy.

Book in for a free demo today!

How to Improve Your Influencer Marketing Return on Investment

Maximising your influencer marketing ROI requires a deep understanding of both your brand and your target audience. Thankfully, there are many ways you can improve your campaigns to hit your influencer marketing goals.

Here’s how to refine your strategy for higher conversions, better engagement, and long-term success:

1. Focus on Conversions: Tailor Influencer Selection to Match Brand Goals
Start by analysing your existing campaigns. Are your chosen influencers driving conversions, or are they only generating views and likes? Choose influencers whose content style and audience align with your brand’s objectives. For example, a fashion influencer who posts content in London will be more effective for a London-based brand targeting young professionals. An influencer program is more likely to succeed if the influencer’s audience matches the brand's to some degree.

2. Balance Follower Count with Engagement Rate
Brands often gravitate toward influencers with large followings, but sheer follower count doesn’t guarantee success. High engagement rates are just as valuable, especially in a saturated market where audiences have become selective and less responsive. Aim to strike a balance between follower count and engagement. The power of influencer marketing lies in the authentic connections between influencers and their audiences.

3. Choose Creators Over Reporters: Prioritise Original, Authentic Content
Seek influencers who produce genuine, creative content rather than those who simply review products. The best-performing influencers integrate brand messages into their personal narratives, making the content feel authentic and relatable. Rather than a glowing review like, “This skin cream is amazing!” choose influencers who can frame your product in the context of overcoming a challenge. For example, an influencer sharing their journey of managing acne and how your product helped them achieve healthier skin resonates far more powerfully with audiences.

4. Prioritise Authenticity and Relevance Over Reach
With influencer marketing now more mature and saturated, a larger reach doesn’t necessarily translate into higher ROI. Many social media users feel overwhelmed by repetitive content, causing engagement rates to drop. Instead, look to newer influencers with fresh, highly engaged followers. These creators often have an advantage in connecting with their audience in more meaningful ways and can help bring in new customers. Ethics and diversity are also important considerations for all marketing activities.

5. Use Data-Driven Tools to Find the Right Influencers
If finding the right influencer feels overwhelming, leverage specialised tools like Kolsquare. These platforms offer databases packed with detailed influencer profiles, audience demographics, and engagement metrics. Such tools enable you to filter for influencers whose followers match your target audience’s interests, helping you pinpoint those with the right follower-brand fit. They often help you make the most of your marketing budget and hit your main objectives.

6. Embrace a More Nuanced Approach to Content
Encourage influencers to be honest and real about their experiences with your brand. Consumers are savvy and can see through overly positive, scripted posts. Campaigns where influencers address real issues—such as skincare influencers discussing breakouts and how your product helped—build trust and resonate better with followers.

To learn more influencer marketing tips, discover three marketing hacks inspired by Emily in Paris!

Want more statistics (stats), analysis, and examples for influencer marketing?

Influencer marketing ROI is multifaceted, combining direct sales with intangible benefits like brand awareness, engagement, and positive sentiment.

Discover more insights into influencer marketing with The Kolsquare Influencer Marketing 2025 Trends Report here.

The Influencer Marketing Report provides a comprehensive analysis of the current state of influencer marketing, based on insights from over 380 senior European marketers across various industries. This report dives deep into key trends, such as the rise of nano-influencers, evolving engagement strategies, and the increasing role of AI in content creation. It explores how brands are selecting influencers, structuring campaigns, and measuring ROI to stay competitive in a maturing and highly saturated market.