Marketers are dedicating more time and resources to influencer marketing. In fact, Bloglovin found that 63 percent of marketers increased their budgets for influencer marketing in 2017. The trend of increasing budgets is likely to continue even in the coming years. But just because you increased your influencer marketing budget doesn't mean you're going to yield better results.
You need to have a fair idea how to properly distribute the budget for your campaign. You should allocate a suitable amount for each aspect of the campaign to ensure that you don't overspend. And you should make sure that whatever you're spending your money on is worth it.
All of this can prove to be challenging. But with thorough planning, you can budget accurately for your 2018 influencer marketing campaigns.
1. Understand the worth of influencers.
You may already have a few influencers in mind for your campaign. But before you can reach out to them or budget for your campaign, you need to first understand their worth. You should have some idea about how much the influencer might charge you. So you can draw up a rough draft of how to spend your test budget.
Use tools like the Instagram Money Calculator to find out the estimated earnings per post of different influencers. You just need to enter their Instagram username, such as songofstyle. The tool makes its calculations based on the number of followers and the engagement rate of their 12 most recent posts.
This information can give you a rough idea how much you will be spending for each influencer on your list. And based on this information and the number of influencers you wish to work with, you can come up with an allocation for your test budget.
2. Allocate your test budget.
Now that you have some idea about how much you will be paying your influencers, you can develop a plan to spend your test budget. The previously-cited Bloglovin report found that 36 percent of marketers are still devoting test budgets for their campaigns. These are budgets of less than $5,000.
You too can start with a test budget such as this and then carefully allocate funds to different aspects of the campaign. A majority of your budget will go to paying your influencers. Other than that, you may need to allocate funds for influencer marketing tools or contest prizes in case you're hosting one.
3. Choose a pricing model.
It can be a struggle for marketers to choose an influencer marketing pricing model. You don't want to overspend by paying them based on performance. Yet you don't want to run the risk of investing in influencers who deliver minimal results. It can be quite a dilemma especially if you're on a limited budget.
A pay-per-post pricing model may be the safest for beginners. So you can test it during the experimental stages of your campaign. But make sure you closely monitor the performance of each influencer using tools like Assembly. This will help you identify which of the influencers are yielding the best results.
If any of the influencers are underperforming, you can choose to exclude them from the next campaign. And you can further leverage the top-performing influencers by giving them an opportunity to earn more based on their performance.
Smaller businesses and startups may need to look for influencers who would accept free products and experiences in exchange for a promotion. This would be the most cost-effective option but it might be a bit challenging to win over influencers with the offer.
It doesn't matter how big your budget is. If you fail to distribute the funds effectively, you'll hardly yield a high return on investments. Use these three budgeting tips to help you plan your influencer marketing budget for 2018.