Over the past decade, the popularity of influencer marketing has skyrocketed. It is becoming one of the most effective marketing tactics available to businesses. It allows them to improve reach, brand awareness, and – of course – sales. To maximize this incredible asset, however, you need to know how to calculate influencer reach. This can be done using our influencer reach calculator.
Nowadays, consumers don’t have the same trust in traditional marketing methods. They tend to value word-of-mouth marketing by other consumers. Also, they trust promotion by influencers, whom they see as advisors, rather than advertisers.
This is because influencers’ followers admire them and their lifestyles. As a result, their followers trust and value their opinions. So, if someone sees their favourite influencer promoting or using a certain product, they’re likely to buy it.
Even if they don’t make a purchase, these followers are likely to remember the brands. This is resulting in brand awareness and increasing trust in the brand. Consequently, it will encourage purchases in the future.
However, finding the right influencer to promote your product or service is about more than looking at the number of followers an influencer has: you need to consider several factors, including the reach efficiency of these influencers, and you can do this when you know how to calculate influencer reach, and use an influencer reach calculator.
It is important to measure influencers’ performance based on reliable metrics and in-depth data.
What is Reach Efficiency?
One of the most important factors in figuring out which influencer to use to promote a product for your business is the reach that these influencers have: this is the number of unique, active viewers whose content is seen.
Influencer reach efficiency is a measure of how many unique individuals will see an advertisement, post, or piece of content.
You can measure the ‘average reach’ of an influencer by looking at their engagement data – for example, the average number of likes or comments that an influencer has received per post in recent history since engagement is a key indicator of reach and whether their audience is taking notice of their content.
How to calculate Reach Efficiency Rate?
To calculate the reach efficiency rate of a particular influencer, use the following equation:
Reach Efficiency Rate = (AVG. Reach /# of followers) x 100
Calculating the reach efficiency rate will allow you to maximize your business’ ROI as – usually – the more followers an influencer has, the more you will have to spend to get them to promote your product or service.
However, some influencers may have a huge following but a low reach efficiency rate, meaning that a business may pay a premium for their product to reach a certain sized audience – which they estimate based on the number of followers a particular influencer has – but may receive far less engagement, and make a smaller impression on their target audience, due to a smaller average reach.
On the other hand, businesses are more likely to maximize their ROI by opting for influencers whose social media accounts have a high reach efficiency rate.
One example of Efficiency rate
For example, choosing an influencer with a smaller number of followers – but a high reach efficiency rate and a high level of engagement on their content – is likely to improve a business’ Return of Investment, as the cost to enter into a business partnership with the influencer will be lower. However, the reach may be the same as the influencer with more followers.
Having said this, the number of followers an influencer has is important in determining their value as a promotional asset, and likewise, to the potential reach they are likely to have. The reach efficiency rate allows businesses to make the best possible decision about the true worth of the influencers they’re considering to promote their products.
More than this, two influencers with the same number of followers can reach vastly different groups of people – a concept that is critical to be aware of to ensure the best possible ROI for your business.
First, you should ask the question: who is my target audience? Where do they come from? Are they men or women? Are they in their teens or their forties?
The graphs below illustrate the demographics of two influencers with the same number of followers.
Now, imagine your target group is women from the age of 25 to 34 who lived in Denmark. The second influencer will offer a more relevant reach than the first influencer, which will result in a higher number of sales based on the promotion that the influencer provides, compared to if you were to choose the first influencer.
So, what should you keep in mind when choosing an influencer to promote your product?
- While influencer marketing is one of the most effective advertising methods today, the choice of influencer makes a huge difference to the resultant sales, ROI, and brand awareness achieved as a result of these partnerships.
- While taking into account vanity metrics – such as the number of followers an influencer has – is a part of the influencer selection process, evaluating more in-depth data allows businesses to ensure that an influencer has the right kind of reach to appeal to as much of the target market as possible.
- One of the crucial metrics to measure – to ensure the greatest ROI for your business – is the reach efficiency rate, which illustrates how great a reach an influencer actually has, how this compares to the number of followers they have, and, consequently, how good an investment the influencer is likely to be.
Predict Influencer Marketing ROI
If you want to be able to pick the best possible influencer to promote your product – and gain insight into the world of influencer marketing as a whole – make sure to download our free E-book, where you’ll be able to access all the information you need to maximize your ROI via this highly effective marketing method.