James, CEO of a small start-up, invested in influencer marketing to promote his new product line. He sent free products to social media influencers in exchange for promotion. The influencers generated plenty of likes, comments, and followers. James realized that measuring only engagement was a facade, It did not show the true measurement of his marketing effort. He then researched and found earned media value (EMV). He used it to analyze the reach, engagement, and other factors associated with the influencers’ content to determine the actual value of the campaign. By doing so, James was able to make informed decisions about his marketing strategy moving forward.
In today’s digital landscape, social media has become a popular platform for word-of-mouth recommendations. To keep up with this trend, digital marketers have developed a new metric for measuring campaigns. This advanced metric is aimed at measuring the effectiveness of influencer partnerships.
Familiarizing oneself with an influencer’s EMV can be beneficial in identifying the most genuine influencers for a campaign, negotiating equitable contracts, and making well-informed decisions for future strategies. It is essential to have a thorough understanding of this metric to make the most of influencer partnerships.
What is Earned Media Value?
Earned media has traditionally referred to press coverage in traditional media outlets such as newspapers, magazines, and television. However, with the rise of social media, influencer product-gifting has become a popular strategy to generate similar coverage. By providing influencers with products to try and share about on their social media accounts, brands can generate digital mentions which are considered earned media. This is in contrast to paid influencer mentions, which are classified as paid media.
EMV, or Earned Media Value, is a metric used to quantify the value of an influencer’s content if the brand had invested in promoting their own products through traditional means or paid for user testimonials, reviews or insights through a market research firm. Essentially, EMV represents the worth of an influencer’s content without any direct cash payment.
Why is EMV Important for Influencer Marketing?
EMV is essential for influencer marketing for several reasons. First, it provides a tangible way to measure the impact of an influencer’s content on a brand’s bottom line. EMV is a key metric that helps influencer marketers understand the value of their campaigns in terms of engagement, reach, and sales.
Second, EMV is a useful tool for calculating the return on investment (ROI) of influencer campaigns. ROI is the ratio of the profit or loss made on an investment relative to the amount of money invested. Influencer marketing calculates ROI by dividing the revenue generated from a campaign by the cost of the campaign.nBy using EMV to measure the value of influencer content, marketers can more accurately calculate the ROI of their campaigns.
Third, EMV allows brands to benchmark their campaigns against industry standards. By comparing their EMV to that of competitors or industry benchmarks, brands can determine whether their campaigns are performing well or falling short. This information is valuable in optimizing future campaigns and making data-driven decisions.
How Influencer Marketers are Using Earned Media Value
Influencer marketers are using EMV in a variety of ways to measure the success of their campaigns. Here are a few examples:
- Setting Campaign Objectives: Influencer marketers use EMV to set campaign objectives and determine the desired outcomes of a campaign. By setting a target EMV, marketers can track the progress of their campaigns and adjust their strategy if necessary.
- Evaluating Influencer Performance: EMV allows marketers to evaluate the performance of individual influencers and determine which ones are driving the most value for their brand. You can use this information to adjust compensation, build relationships with high-performing influencers, and optimize future campaigns.
- Measuring ROI: EMV is a crucial metric for calculating the ROI of influencer campaigns. By comparing the EMV of a campaign to its cost, marketers can determine whether a campaign is profitable and make data-driven decisions about future investments.
- Benchmarking: By comparing their EMV to industry benchmarks, marketers can determine whether their campaigns are performing well or falling short. This information is valuable in optimizing future campaigns and making data-driven decisions.
How to Calculate Influencer Earned Media Value
EMV is calculated by measuring the exposure of earned media and then multiplying it by the corresponding advertising rate. The result of this calculation is a dollar value that represents the monetary value of the earned media.
Here are the steps to calculate Earned Media Value:
Step 1: Determine the media coverage
The first step in calculating EMV is to determine the media coverage. This includes any media coverage or mentions that your brand has received, such as social media mentions, online reviews, blog posts, news articles, or interviews. To do this, you can use a media monitoring tool, which can help you track all the mentions and coverage of your brand or product.
Step 2: Measure the exposure
Once you have identified the media coverage, the next step is to measure the exposure of the coverage. Exposure refers to the number of people who have seen or interacted with the media coverage. You can use various tools such as Google Analytics, social media analytics, or media monitoring tools to determine the exposure.
Step 3: Determine the advertising rate
After measuring the exposure, the next step is to determine the advertising rate for the type of media coverage. The advertising rate is the cost of advertising in the same media outlet as the earned media coverage. This rate can be obtained from the advertising department of the media outlet or through online advertising rate databases.
Step 4: Calculate the Earned Media Value
Once you have measured the exposure and determined the advertising rate, you can now calculate the Earned Media Value by multiplying the exposure by the advertising rate. The formula for calculating EMV is as follows:
EMV = Exposure x Advertising rate
For example, if your brand received 500 mentions on social media with an average reach of 100,000 followers, and the advertising rate for social media is $5 per 1,000 impressions, then the EMV would be calculated as follows:
Exposure = 500 x 100,000 = 50,000,000
Advertising rate = $5 per 1,000 impressions = $0.005 per impression
EMV = 50,000,000 x $0.005 = $250,000
Therefore, the Earned Media Value for the social media coverage is $250,000.
Conclusion
Earned media value (EMV) is a critical metric in influencer marketing. It provides a tangible way to measure the impact of an influencer’s content on a brand’s bottom line, calculate the ROI of campaigns, and benchmark against industry standards. As influencer marketing continues to grow in importance, it’s essential for marketers to understand and use EMV to drive success in their campaigns. By leveraging the power of EMV, brands can optimize their influencer marketing strategies, drive engagement and sales, and achieve their marketing objectives.
