Congratulations! If you’re reading this, you’ve likely gone through the process of setting up and launching an influencer marketing campaign.
Now the next step, once any campaign has launched, is to track how “well” that campaign performed. You’ll likely want to quantify the reach, impressions, and engagements/video views that each post has received. However, these performance metrics don’t always provide a crystal-clear picture of how optimal the campaign was. It won’t answer questions like: did we spend our money wisely, and can we do better next time?
Enter… spend efficiency metrics. Don’t know what those are or how to use them? Below we share why spend efficiency metrics are so important for your influencer program and how to use them to improve your influencer marketing ROI.
What are Spend Efficiency Metrics?
Spend efficiency metrics are a way of objectively measuring and evaluating the way you are budgeting and spending money on your campaigns. Ultimately they can help you make smart, data-driven decisions and lead to improved influencer marketing ROI. More specifically, spend efficiency metrics can help you answer questions like:
- Which influencer performs best in a campaign?
- Which campaigns drive the best return on investment?
- Which social media platforms should I invest in?
- What is the overall efficiency of Influencer Marketing for my brand?
While performance metrics like engagements, impressions, and reach are important to measure, spend efficiency metrics help you evaluate the efficiency of your influencer marketing program and ensure you’re investing in the right people. Spend efficiency metrics include:
- Cost per Post (CPP)
- Cost per Video (CPVID)
- Cost per Engagement (CPE)
- Cost per Video View (CPV)
- Cost per Story View (CPSV)
- Cost per Click (CPC)
It’s important to compare cost per impression, cost per engagement, and cost per view because this gives you an objective sense of how much impact each partner, platform, and campaign drives for your investment.
Why Does Spend Efficiency Matter?
So let’s put this new knowledge to the test! Let’s say you had $25K more to invest into a campaign. What would be the best way to spend it? On influencer A? Or Influencer B?
At first glance, you might be inclined to go with Influencer A because they have a larger potential reach and drove a greater number of views. However, Influencer B will be able to provide you 7 more video deliverables, and the sum of those videos likely drive half a million more video views for the same $25K investment. The way to reiterate this in spend efficiency terms would be:
- Influencer A = a cost per view (CPV) of $0.025
- Influencer B = a cost per view (CPV) of $0.016
Knowing the cost behind an impression, engagement, or video view gives you the ability to allocate the appropriate budget and compensation making your influencer program that much more efficient.
If you’re looking to take your influencer marketing strategy to the next level, Traackr is here to help! Our influencer marketing platform provides a robust budget optimization framework that helps leading brands get a better ROI on their influencer investments.