KPI at a glance: This is what you learn here

Tip! Below you will find detailed explanation, formula and examples for all KPIs. This is what you learn here:

KPI calculators

Engagement rate

Formula: How to calculate the engagement rate?

• Engagement Rate = ( Engagement [Likes, Comments and Shares] / Followers ) x 100

Example

If a total of 120 engagements (such as video views, likes, comments, shares, etc.) are recorded on one of your social media channels and you have a total of 3,600 users following you, the engagement rate is about 3.23%.

Calculator

Calculate your engagement rate online for free:

• Engagement Rate Calculator

Return on Ad Spend (ROAS) / Return on Invest (ROI)

Formula: How to calculate Return on Ad Spend?

• ROAS = advertising revenues / advertising costs

Example

If you spent 20,000 euros on Facebook ads in January and generated a total profit of 80,000 euros, the return on ad spend is 4 euros. This means that every euro invested generated a profit of 4 euros.

The ROAS analysis shows whether an analyzed social media channel is profitable for you. After all, you certainly don’t want to spend more money on advertising in the long term than it brings in. So a higher ROAS is better.

Calculator

Calculate your return on ad spend online for free:

• Return on Ad Spend Calculator

Impressions vs. reach

We’ve included this metric separately because it’s important to not just look at impressions or reach individually, but to combine both metrics. In a nutshell:

• Impressions = number of ad views
• Reach = number of people who have seen the content

Cost per thousand contacts (CPM) / Cost per reach (CPR)

Formula: How to calculate the cost per thousand contacts?

• CPM = (advertising costs / reach) x 1,000

Example

Let’s say you spent 10,000 euros on an Instagram ad campaign that was seen by 400,000 users. The CPM is then 25 euros per 1,000 users reached.

Calculator

Calculate your cost per thousand contacts for free online:

• CPM / CPR Calculator

Click Through Rate

Formula: How to calculate the click through rate?

• Click Through Rate = Clicks / Total Reach x 100

Example

For example, if an ad is displayed 500 times and is clicked on 10 times, the click-through rate is 2%.

The click-through rate is another key figure in online marketing. It indicates the ratio of the number of clicks on an ad to the total reach. If the CTR of an ad is particularly low, you should check whether the targeting is addressing the right target group or whether changes need to be made to the image, text or call-to-action.

Calculator

Calculate your click through rate online for free:

• Click Through Rate Calculator

Conversion Rate

Formula: How to calculate the conversion rate?

• Conversion Rate = (Conversions / Interactions) x 100

Example

Conversion rate is calculated by dividing the number of conversions by the total number of interactions that resulted in a conversion in the same time period. Assuming you have 100 conversions from 2,000 interactions, the conversion rate is 5% because 100 / 2,000 = 5%.

Conversion rate is the percentage of users who perform a desired action. A typical example is the percentage of visitors to a website who make a purchase. The conversion rate can also be related to the respective marketing channels, e.g. to calculate the conversion rate of your social media ads.

Calculator

Calculate your conversion rate online for free:

• Conversion Rate Calculator

Lead-to-Deal Conversion Rate (LDCR)

How do you calculate the lead-to-deal conversion rate?

• Lead-to-Deal Conversion Rate = (Deals / Leads) x 100

Example

Let’s say you generated 2,000 new leads through your social media ads in October, which resulted in 40 deals. Then the lead-to-deal conversion rate is 2% because 40 is divided by 2,000 and multiplied by 100.

Calculator

Calculate your lead-to-deal conversion rate online for free:

• Lead to Deal Conversion Rate Calculator

Cost per lead

Formula: How to calculate the cost per lead?

• CPL = advertising costs / leads

Example

To calculate the cost per lead, you must first track your conversions to determine the number of leads generated. This tells you what happens after a user clicks on your ad. The cost per lead is calculated by dividing the cost of an ad or campaign by the conversions it generates.

Calculate your cost per lead for free online:

• Cost per lead calculator

Cost per click

Formula: How to calculate the cost per click?

• CPC = advertising costs / clicks

Example

To calculate the CPC, you divide the total cost of advertising by the total number of clicks on the ad. Let’s say you spent 400 euros on an ad that generated 100 clicks, then the CPC is 4 euros.

Calculate your cost per click for free online:

• Cost per click calculator

Customer Acquisition Cost (CAC)

Formula: How to calculate the cost per lead?

• CAC = ( marketing costs / sales )

Customer acquisition cost is undoubtedly one of the most important metrics for a growing business. CAC (Customer Acquisition Cost), as the name suggests, tells you the total cost of acquiring a new customer.

This metric is critical because it gives you a clear guideline to evaluate your marketing activities. If a marketing campaign doesn’t generate new customers at a lower price than your current customer acquisition costs and instead helps increase them, it’s probably not an activity that justifies your team’s valuable time.

Calculator

Calculate your cost per click for free online:

• Customer Acquisition Cost Calculator

Customer Lifetime Value (CLV)

Building customer trust and loyalty is a major challenge for companies. An important key figure in this area is the Customer Lifetime Value (CLV). This value reflects the average value that a customer has for a company over the entire duration of the customer relationship.

Share of Voice (SOV)

Formula: How to calculate the Share of Voice?

• Share of Voice = (Sum of own mentions / Sum of all relevant mentions of all competitors) x 100

Example

For example, if your company hashtags were mentioned 60 times and the other relevant hashtags were mentioned a total of 100 times, you would have a share of voice of 60%. This would mean that you have established yourself as a thought leader in your field.

Calculator

Calculate your Share of Voice online for free:

• Share of Voice Calculator

Social media channel and content

Followers / Fans

Nowadays, the sheer number of followers or fans doesn’t tell you much about a social media profile. Many users buy likes or followers to look better at first glance (read more in our post about fake influencers). Even if you don’t, it’s not advisable to rely only on the number of your followers as a metric. For example, if you serve a niche topic, you will have a smaller audience.

Much more important are the following questions:

• How has the number of your followers developed in the last few months?
• How often do your fans interact with your content?

Share / Repost

The number of shares or reposts shows how often your posts or content have been shared. When your posts are shared further, you benefit not only from your own reach, but also from the reach of other users and their networks. This allows your post to go viral and reach new audiences.

So if your goal is to generate more reach and increase your visibility, you should work on getting the an

increase the number of shares and retweets.

Comments

The number of comments is also an engagement metric. On Facebook, the number of comments can also increase reach, as your posts show up in the feeds of those users who have commented. However, it’s important to not only look at the number of comments as a metric, but also consider the quality of the comments. Comments are expressions of opinion, and it is important not to neglect the qualitative aspect.

Reactions / Likes

This is about the number of reactions to your posts on social media, not the likes for your accounts themselves. Of course, you always want users to like your content and give it likes or emoji reactions on LinkedIn, for example. You can monitor this KPI over time to see if the quality of your posts continues to improve.

Importance of the engagement rate

The engagement rate plays a particularly important role in social networks. The key figure can determine, for example, which content is particularly well received. This allows you to adapt your content to your followers in the best possible way and save costs in the long term. Furthermore, you can call the engagement rate a factor in e-commerce. Social networks are a huge market and advertising space. The more people see your posts on the social platforms, the more potential buyers you have.

Engagement rate quickly explained

Engagement Rate briefly explained:

• Measures the number of people engaging with your social media content

What does KPI mean? Quickly explained

Simply explained: The abbreviation KPI stands for “Key Performance Indicator”. This means that we are talking about a key performance indicator. KPIs are therefore key figures that can be used to measure, display and check the performance of various social media (marketing) activities.

Term:

KPIs = Key Performance Indicator

While success factors in the form of KPIs (Key Performance Indicator) are difficult to track for many classic measures (such as posters). Many measure success by these key performance indicators in particular: Clicks (redirection to the desired content), leads (pre-defined deals), shares (shared content), likes (likes).

Key KPI examples: CPM, CPC, PPC

Here are a few examples of important KPIs you’ll encounter more often in social media marketing.

ROI (Return of invest)

ROI indicates how profitable an individual campaign or an operational area is in relation to the investment made. In simple terms, ROI means: When will the expenditure (for advertising strategy XY, for example) be recouped?

• ROI (Return of invest)

CPM (Costs per mille)

Anyone who talks about CTR (Click Through Rate) should also know CPM, also Costs Per Thousand. It is indispensable in monitoring, for success control. What CPM is and what the difference between CPM and CPC is, you can learn here.

• CPM (Costs per mille)

CPC (Costs per click)

What does CPC mean? What is a good CPC? What is an average CPC? How much do you pay when a user clicks on the ad? After our great articles on the topic in Google Ads, we receive particularly frequent questions about the cost of advertising on search engines. Therefore, we want to enter this single article once again in detail on the cost systematics of paid reach in search engines.

• CPC (Costs per click)

Pay Per Click (PPC)

Pay Per Click (PPC) – What is PPC? The term PPC stands in full for “pay-per-click”. The whole thing is a model in the field of internet marketing. Here, advertisers pay money every time one of the ads you create is clicked. The big goal behind the campaigns is to attract visitors to their own website, e-commerce.

• Pay Per Click (PPC)

Tip. Perfect for evaluation, our software recommendations.

Making users measurable: Example UTM parameters

Among other things, KPIs can be measured using UTM parameters. These are small attachments that appear at the end of a URL (website). This is how visitor flows can be measured.

Example: Tracking users with ID

Let’Let’Let’s sayy visitor 153.963 gets the ID 153963, we attach this to his visit and so we see which visitor it is. Let’Let’s sayy our visitor jumps from ad A to offer A (online store). This is also marked, for example, by the ID Campaign_A. This way our online store (offer A) recognizes that a visitor has come from ad A.

• URL before: website.com
• URL after: website.com/?user=153963&?campaign=campaignA

More on the topic of UTM parameters:

• UTM parameters

• Analysis and comparison of individual company divisions and (as in our example) investment properties
• Determination and evaluation of the performance of an investment (in the example) for a past period
• Planning and control of future investments

Before you start a campaign, there is a lot to consider in advance. From the sound concept to the elaborated strategy to the proof of concept, the functioning model. Through optimization the profit increases and negative campaigns are deactivated. Someday it will be there, the return of invest. From now on the campaign can be profitable.

Concept and strategy

Depending on the goals pursued in social media marketing, the corresponding concepts and strategies know each other.

Whether influencer campaign on YouTube, or media budget for the advertisement, with re-targeting for your own online shop. In all cases, certain funds are invested in order to achieve a certain objective. The question now is, which campaign promises more profitability? Which campaign brings more profit, per invested Euro?

Costs are an extremely important factor right from the start, in terms of concept and strategy. Ultimately, the campaigns are limited to a certain period of time. Sometimes by a fixed budget, sometimes by seasonal characteristics (fashion), sometimes by the half-life of the product, e.g. with trend products, or also video games, whose platform is constantly technically accessible.

Now in social media marketing we have different possibilities on our desk. Community Management, Advertisements on Facebook, Advertisements on Instagram, Advertisements on YouTube, Organic Reach, we all video clips, the whole range of possibilities is open to you. In order to make a comparison, the key figures of the individual divisions are taken into account.

Calculation and example

You have a media budget of 50,000 €. With this budget you ideally want to implement as much as possible. As much reach as possible, as much sales and as much turnover as possible. If your expected turnover is then 70,000, your return of invest is 0.40

Formula for calculation

• Profit generated / capital employed = ROI
• 20.000 Euro / 50.000 Euro = 0.4

The return of invest now means that you will earn 40 cents for every euro you spend. If you now compare different campaigns with each other and compare their costs as well as the expected profits, you can make statements about which social media campaign you invest in and which not.

Not everyone can or will want to book agent services or extensive software. Particularly young brands and start-ups operate their own online marketing, so also Influencer Marketing. But also students at universities and colleges have to prepare their first calculations. We want to give you today a first, small help to assess the success of influencing campaigns before the booking. Our form collection with a few of the important formulas in simplified form.

Why calculate success factors for influencers?

Everyone can buy Likes and Follower. In search engines you only have to enter the search term “Fans buy Facebook” and hundreds of websites already come. Likes from abroad, Likes from Germany, comments and fans. Everything is possible.

Making a channel 100% fake and artificially keeping it authentic through likes over a long time is not so easy, but equally possible. At the beginning of the year there was a best practice of a US-American advertising agency. She has been pushing for months a complete channel invented. The pictures came from the Fotostudio, the blogger was a booked model. All fans, likes and comments were added in a targeted and coordinated manner. At some point, the first Werbedeals came. The agency wanted to prove to its customers with the action how easy it is to create successful fake channels.

This, however, requires constant planning and is difficult for private individuals to carry out for time and monetary reasons. Nevertheless, there are many who buy 1000 fans. With 70,000 fans 1,000 bought not at all. To identify such purchased likes, agencies use social media software.

In principle almost all users are honest. Also because bought fans press the interaction rate. They are bought and do not interact at all. They will never liken, never comment. Therefore the commitment rate gives a good indication of the quality of the influencer.

Engagement rate: Interaction rate as a quality feature

This formula can be refined by additional elements. For this, however, you need data that, in turn, require software that specifically deals with the social network and permanently records the data of all users. It’s simple and fast:

• Engagement rate = Number of followers / (Likes + Comments * 2)

Digression! Social bots influence commitment rate

Social bots also play a major role in the social networks. Through social bots like Instazood for Instagram or even qualitative alternatives like Combin. Why? Comments and Likes are not distributed by organic users, but by a program. Maybe you know Kommtare like “cool picture” or “awesome post”. With high probability this is by a Bot. Gefakte Likes are (against without software) only very, very difficult to register or recognize. You can not exclude them with a simple formula. But they do not make up the bulk of the interactions.

Engagement Rate: Distribution by followers

The larger the blogger becomes, the more people follow him or her for reasons of familiarity. Easily writable by stars, musicians or soccer players. The more familiar the person becomes, the lower the interaction rate is by nature. Here are some rough experience for you:

• Up to 50,000 fans of 8-20%, partly also 25, 30% with extreme tips, on average 8-12%
• 50,000 – 100,000 fans of 6-14%
• 100,000 – 500,000 fans of 5-11%
• 500,000 – 1,000,000 fans of 4-9%
• 1,000,000 – 5,000,000 fans of 2 -6%
• 5,000,000 – 10,000,000 fans of 1-4%

Influencer Prices: So much cost Youtuber and Instgrammer

Facebook has become little attractive for organic traffic. Facebook is good for ads. Organic traffic is generated on Youtube and Instagram. The prices and costs for influencers differ on the two social networks.

Costs and prices for influencer on Instagram

Instagram is cheaper in relation to Youtube. Why is that? Posting on Instagram are generally relevant for only 24 hours of relevance. The trendings show content 24 hours. The stream partially longer, but only if you follow relatively few people. The more new content comes (the more people you follow) the less content remains for old content. Also the stories have only a short holding time of 24 hours. In addition, stories are almost exclusively seen by their own fans.

Costs and prices for influencer on Instagram

Calculate impressions: reach of postings and stories

On Youtube, the clicks are easy to read, for everyone. Likes, comments, everything first relevant can be seen. It is quite different with Instagram, because here, for example, Stories are only issued to their own fans. Monitoring is thus very time-consuming. With the postings, you see no information on the range. Who wants to calculate the range nevertheless, for which we have here a few guideline values for the calculation of the range of Influencer campaigns on Instagram.

• Impressions of a posting = number of followers / 1.52
• Impressions of a story = number of followers / 27.46
• Classification of Influencers: PAM (People Attraction Method)

As we reported in the article Classification of Influencers in the middle of the year, there are different categories. They are hardly used in day-to-day agency work, but provide a good way of classification for scientific work or even offers.

Classification of Influencers by PAM (People Attraction Method)

There are three subcategories:

1. PAM | Extraterrestrial up from 300.000.00
2. PAM | Global up to 300.000.000< PAM | Standard up to 3.000.000
3. PAM | Special Interest up to 600.000

Pico, Nano and Micro Influencer

All the values can be taken exactly from the table. The classification is carried out in the classical classification of pico, micro and micro. As a formula is also used to calculate the costs and prices of campaigners.

ROI Success Measurement: Calculation of the Return of Invest

Now, after the campaign has been planned and thought through, the ROI is now going to the real success measurement. The return on investment (ROI) shows whether the investment is profitable. The ROI can also be calculated for inflation campaigns. The easiest way is to use short links or pixels. They all draw clicks and so you can quickly see if enough people have clicked.

• Sponsored Posting is purchased for 100 euros
• 50 people click on the link
• 10 people buy the product for 25 Euro
• 250 Euro sales were generated

Now you can calculate the ROI:

• ROI = Revenue / Investment for Sponsored Post
• 2.5 = 250/100

The ROI (2.5) is positive and therefore profitable for the company. If different campaigns are active for a campaign, the different ROIs can be compared with each other at the end of a campaign.

The ROI, however, works only with products and only if the derivation is valid. Links and pixels allow a conclusion. They must therefore be placed in the influemecer’s posting. In Instagram this is not possible (only once in the profile but not in the posting), so here are also used gladly codes like “shop my style and get 10% discount with #bloggerXY10”.

These practical tips will help you as a young social media manager to calculate and calculate first influencer campaigns. You can find more practical tips and help at our social media blog.

How much do Influencers actually earn? The Calculation Platform Influencerfee.com has now published figures showing the average, worldwide merit of Instagram, based on 1 million followers. Here is the infographic: Influencer income worldwide.

Pico, Nano and Mikro Influencer Formula PAM (People Attraction Method)

There are three subcategories:

1. PAM | Extraterrestrial up from 300.000.00
2. PAM | Global up to 300.000.000<
   PAM | Standard up to 3.000.000
3. PAM | Special Interest up to 600.000

Table of the formula: values and delineation

All the values can be taken exactly from the table. The classification is carried out in the classical classification of pico, micro and micro. As a formula, it is also used to calculate the costs and prices of campaigners.

Info graphic: Categorization of Influencers and Bloggers for Followers / Fans

Influencer Marketing: Your key to organic reach

You can find more on the subject in the blog, with constantly new and interesting articles.

• Influencer Agency
• Influencer Marketing
• Influencer Marketing Wiki