Set a budget per influencer marketing channel
1. Record average user engagement, conversion rate, and referral rate and calculate potential conversions, customer acquisition costs, customer lifetime value (LTV), and profits for each influencer channel you use.
2. List your influencer channels in order of the metric that most aligns with your business and marketing goals.
For example, if improving returns is a primary business goal, order channels by profits or average customer lifetime value.
3. Portion out your influencer marketing budget to influencer channels, with the highest on the list getting the larger amount.
4. Develop specific, measurable, achievable, relevant, and time-bound (SMART) budget goals for each influencer channel. Connect influencer marketing goals to the overall company vision.
For example: Increase sales by 10% in 6 months with the help of Facebook influencers. Expand your market share by 20% through a two-year Twitter campaign. Improve YouTube conversion rates by 5% in 1 month. If the vision is to expand the reach of your brand, your influencer marketing goals for each channel should reflect this.
5. Determine how much money you will need to pay influencers, test new channels, and assess the performance of each.
Costs are mostly determined by the type of channel and the persuasive capacity of the influencer. YouTube and Facebook influencers charge more than influencers using other channels. As a rough guide: An influencer with 10,000 followers may charge $10 per post An influencer with 100,000 followers may charge $1000 per post An influencer with 1,000,000 followers may charge $10000 per post Develop a common standard for paying your influencers across all channels. Relying on various payment models can create confusion and lead to the misapplication of resources. Consider: Level of engagement measured through shares, likes, or comments Increase in website traffic due to the direct actions of the influencer Higher conversions via sign-ups or sales resulting from an influencer’s campaign ROI from an entire campaign
6. Allocate money for influencer marketing tools and managing leads across channels.
Establish a budget for influencer management tools to allow you to track the performance of influencers across multiple channels. For example, you’d want a simple way of comparing conversion rates on Facebook, Twitter, Instagram, and YouTube.
7. In Google Analytics, navigate to Report and analyze > Acquisition reports > Collect campaign data with custom URLs to create custom URLs to track your traffic by channel and campaign.
Add parameters to URLs to identify the campaigns that refer traffic: utm_source: Identify the channel and influencer that’s sending traffic to your channel. utm_medium: Identify the advertising or marketing medium, such as CPC, banners, email newsletters, discounts, or giveaways. utm_campaign: Identify the individual campaign name, slogan, or promo code for the product your influencer is promoting. utm_term: Identify paid search keywords. Use Campaign URL Builder to link to websites and Google Play URL Builder to link to Android apps. Use the iOS Campaign Tracking URL Builder for iOS apps.
8. In Google Analytics, navigate to View > Reports > Acquisition > Campaigns. Identify high-performing campaigns on each channel and determine if you can replicate their performance across other channels.
9. Evaluate the performance of each channel. Increase investments for channels that are meeting your business objectives, and reduce investments for channels with lackluster results.
For each week: Analyze the number of comments, shares, or likes. Identify if there is an increase or decrease in engagement levels. Monitor lead generation from all sites and identify which leads are a result of influencer marketing. Calculate the impact of each influencer campaign on sales or website traffic. Determine if the results are worth the money. Are engagement levels, lead generation, and revenues worth the money spent? Do these calculations monthly or quarterly to know if you’re optimizing your investments. Automate the process of calculating your influencer spending per channel using a tool like Google Analytics, Keyhole, or Snovio.