Influencer Budget Optimisation

How do you optimise influencer budget allocation to maximise ROI?

Influencer budget allocation has been described as the “wild west” of media planning, with budgets being allocated based on subjective beliefs rather than quantitative performance data. But are the biggest Influences the best from an ecommerce point of view, and do more followers or likes really generate more sales? How do you forecast performance and how do you ensure that your budget it optimally allocated across a portfolio of influencers to maximise ROI?

Problem: Planning and investing in an influencer campaign raises significant questions about budget optimisation.

1. How do you select which influencers to invest in after an initial test?

2. Which influencers do you keep in your campaign and which do you consider renegotiating with, or even dropping?

3. How do you distribute a total budget across a portfolio of potential influencer accounts to maximise campaign ROI?

Solution: we have developed a methodology to measure multiple influencer variables simultaneously to identify the Influencers that:

• Are delivering the best ROI

• Have headroom for further investment without reducing ROI

• Require targeted price renegotiation to maintain ROI

Methodology:

1. Gather campaign performance metrics – spend, sales, revenue, CPA, ROI etc by influencer

2. Gather characteristics of each influencer – account age, followers, likes, costs etc

3. Model and segment the relationship between these drivers and the performance delivered

4. Use portfolio optimisation techniques to provide the optimal budget allocation across multiple influencer partners

You can find out more about our influencer measurement and optimisation capabilities here.