[Report] How To Budget For An Influencer Marketing Campaign
How much reach can your budget buy? How many influencers will you get and should you look for micro or macro influencers? Creating a realistic campaign budget and KPI’s can be tricky, there are lots of moving parts and unknowns. In the end it all comes down to CPM – or in relation to Instagram, the cost per thousand followers for an influencer.
Unfortunately, there is no single CPM for all Influencers, prices and relative prices vary based on a number of factors. The most dominant one is reach, the higher the reach the lower the CPM and vice versa. But in addition to that, you will see variations due to the vertical the influencer is in, location, time of the year and your creative guidelines for the campaign.
But even without knowing the exact and correct CPM for your specific influencer criteria, there are a few formulas an influencer marketer should know by heart:
With these three formulas you will be able to work out your total budget, total reach, number of influencers, average reach, CPM and average influencer fee for a campaign. With CPM being a predominant variable across all calculations, understanding what drives CPM and where to start as a benchmark is key. But even without knowing the precise CPM, setting a CPM target will help you manage your campaign and negotiations with influencers more effectively. A target CPM allows campaign managers to keep track of their finances vs KPIs throughout without having to constantly add up absolute fees.
On a CPM comparison, you will find that micro influencers are more expensive than macro influencers. On a small budget you might find it more compelling to work with several smaller influencers who charge a lower fee, rather than spending your budget on one large influencer. You are overall likely to get less reach for your money, however there are many benefits to using micro influencers still.
In our in-depth report on how to budget campaigns, we explore the pros and cons of micro and macro influencers regarding cost, define and explain the key drivers of influencer fees and campaign budgets and provide some useful tips on how to approach budgeting an influencer marketing campaign of any scale.
Download your copy of “How To Budget For An Influencer Marketing Campaign” and figure out how much you should be spending on influencers to reach your campaign goals.
I’m founder & CEO of ZINE. When I am not crusading to make influencer marketing more profitable and transparent, I am travelling the world one country at a time!