How to calculate Earned Media Value (EMV)?

Introduction

Welcome to the world of influencer marketing! If you’re running an influencer marketing campaign for the first time, you might be wondering how to measure its success. One key metric you'll want to understand is Earned Media Value (EMV). EMV helps you estimate the monetary value of the exposure your brand receives through influencer collaborations without having to spend directly on advertising. This guide will walk you through the concept of EMV, why it matters, and how to calculate it step-by-step.

For more information on how to measure ROI, check out this article!

What is Earned Media Value (EMV)?

Earned Media Value (EMV) is a metric that estimates how much the media exposure your brand gains through influencers would cost if you had to pay for it. In simple terms, it’s a way to put a dollar amount on the organic buzz and visibility your brand receives from influencers.

Key Concepts to Understand

1. Earned Media: This is publicity or exposure that you gain without paying for it. It includes mentions, shares, reviews, and any other form of media that happens organically because of influencer activity.
2. Influencer Marketing: This strategy involves working with influencers—individuals with significant social media followings or authority in a specific niche—to promote your products or services. The influencer might share posts, write reviews, or create content that highlights your brand.
3. Media Value: This represents the cost of obtaining the same level of exposure through traditional paid media channels, like online ads or TV spots.

Why Calculate Earned Media Value?

Calculating EMV allows you to:

• Measure Campaign Effectiveness: Determine if your investment in influencer marketing is generating substantial exposure and engagement.
• Compare with Paid Media: Understand how the organic reach and engagement compare to what you might achieve with paid advertising.
• Justify Your Budget: Demonstrate the value of influencer marketing to stakeholders and justify your marketing expenditures.

How to Calculate Earned Media Value

Step 1: Collect Data

1. Identify Influencer Content: Gather all the content where your brand has been mentioned by influencers. This includes social media posts, blog entries, videos, and reviews.

2. Measure Key Metrics: For each piece of content, you need to record:

   • Reach: The number of unique individuals who have seen the content.
   • Impressions: The total number of times the content has been displayed, including multiple views by the same person.
   • Engagement: Interactions with the content such as likes, shares, comments, and retweets.

Step 2: Choose a Calculation Method

There are several ways to estimate EMV. Here are the most common methods:

Method 1: CPM (Cost Per Thousand Impressions)

1. Find the CPM Rate: Research the average CPM (Cost Per Thousand Impressions) rate for paid advertising in your industry. For instance, CPM rates on Instagram can vary from $5 to $15, depending on the niche and audience.

Method 2: CPL (Cost Per Like/Engagement)

1. Find the CPL Rate: Determine the average cost for each engagement (like, share, comment) in your industry. For example, the CPL rate on Facebook might be $0.40.

Method 3: AVE (Advertising Value Equivalent)

1. Find the AVE Rate: Look up the cost of similar advertising in traditional media. For example, if a full-page magazine ad costs $2,500, this might be your AVE rate for comparable content.

Step 3: Analyze Your Results

1. Compare Different Methods: Using multiple methods will give you a more rounded view of your campaign's value. Each method offers different insights, so reviewing them together will provide a clearer picture.

2. Consider Quality Over Quantity: Not all media value is created equal. A high-profile influencer or a post with highly engaged followers might be worth more, even if the numbers suggest otherwise.

Practical Example

Imagine you’ve run an influencer marketing campaign where an influencer posted about your product on Instagram. Here are the details:

• Total Impressions: 80,000
• Total Engagements (Likes + Comments): 2,000

Assume:

• CPM Rate: $10
• CPL Rate: $0.35

Conclusion

Calculating Earned Media Value (EMV) helps you measure the impact of your influencer marketing campaign in financial terms. By using methods such as CPM, CPL, and AVE, you can estimate how much the media exposure and engagement would have cost if purchased through traditional channels. As you gain experience in influencer marketing, you'll refine these calculations and better understand how to leverage influencers to maximize your brand’s visibility and engagement.

For first-time influencer marketers, regularly applying these calculations and analyzing various campaigns will enhance your ability to effectively evaluate and optimize your influencer marketing efforts.