How to Make an Influencer Marketing Budget
Advertising and marketing will always be a permanent investment for brands and companies, although they will always try to lower costs as much as possible. And a fairly profitable form of marketing is influencer marketing, which has proven to be very efficient for brands of all types.
However, if you are not familiar with this type of marketing, do not worry. Here are some ways to budget for influencer marketing campaigns.
Calculate view conversion
Influencer marketing is based on promoting a brand’s message through social media personalities, thus achieving a more authentic connection. Therefore, the level of audience and connection that an influencer generates is important to you, as a brand.
This means that each visualization and follower has a monetary value, so you have to look for an influencer who has good visibility. In this sense, you must calculate the unique monthly views or UMV, which is the number of people who could see the promoted post.
If an influencer has 1,000,000 UMV, it is assumed that at least 1% should see the post, which is 10,000 visitors or potential customers. And if 1% of those visitors buy the product, it would be 100 sales for every 1,000,000 UMV, being a good base to count your budget.
Calculate the customer’s value and its cost
Another way to calculate your budget is by using a customer’s lifetime value (LTV) and the cost of acquiring them (CAC). In this sense, the LTV is the amount attributed to the client for its membership, and the CAC is the amount spent to acquire a new client.
Budget and earnings
You can use the two previous methods to calculate a more accurate budget. The first thing to do is to multiply the CAC by the number of estimated view conversions, and then multiply the LTV by the conversion number.
You must subtract both results to obtain the profit that you will obtain for the bell, and it will be the base for your budget.
Using an influencer marketing agency
All of the above seems complicated if you do not know what we are talking about, but you do not have to suffer too much with this. There are always professionals who will do the heavy lifting for your brand, and it almost always results in a profitable investment.
In this case, influencer marketing agencies are the best option, since they do all these calculations for you. But the best thing is that they deliver results attached to your goals, so you will not be walking alone at any time.
They can provide you with an adequate budget for you, but also an efficient campaign with which you will have the best results you can hope for. Therefore, you should not rule out this option for the world at the moment when using influencer marketing.
Of course, you can always use a method yourself, but make sure you have all the numbers to get the proper results that allow you to achieve your goals.