Influencer marketing spend was expected to reach as much as $15 billion (GBP £11.9bn) by 2022. But, as budgets are drastically reduced due to the global pandemic, marketers are under intense pressure to accurately track spend, optimise budgets, and properly measure return on their investments. Traackr, a leading influencer marketing platform, announced the release of a Budget Optimisation toolset for marketers to better analyse spend and increase ROI.
Traackr’s new capabilities enable brands to take control of their influencer marketing budgets by tracking spend, not just per campaign, but across all influencer campaigns, surfacing the highest performing strategies and realigning influencer incentives with business impact.
“At a time when all marketers are seeking efficiencies in their marketing dollars, influencer marketing needs to bring more discipline to the tracking and optimisation of its spend” said Pierre-Loïc Assayag, CEO and co-founder of Traackr. “We developed these tools so marketers can analyse spend across influencer programs, helping to redefine their approach to influencer collaborations with better outcomes for the brand, influencers and consumers.”
Traackr’s Budget Optimisation tools address the issue of inefficiencies in traditional measurement models. In looking at sponsored content from 1,000 influencers, Traackr found that using a traditional CPM model provides an average cost of $2,158 (£1,700) per post. However, if the brands had been using a CPME model (the amount a brand would pay to generate 1,000 engagements), paying based on content performance, the average cost per post (CPP) would have been $643 (£506). Hence, on average, brands paying based on CPM versus CPME are overpaying by 262%.
Traackr’s Budget Optimisation tools help marketers identify the influencers and strategies that achieve the highest ROI by tracking spend across all campaigns and analyzing performance. The toolset includes the following:
- Budget calculator enables marketers to allocate campaign budgets and negotiate influencer compensation confidently with suggested fees based on past performance.
- Global influencer payments allow marketers to avoid hefty agency fees by providing an integrated and secure solution that streamlines the payment process.
- Spend tracking helps marketers track program spend over time and across markets, brands, campaigns, and influencer tiers.
- Multi-currency support means marketers can manage campaigns at the local level and analyze performance at the global level.
- ROI reporting enables marketers to analyze the performance and efficiency of their investments to guide future budget allocations.
“Traackr’s Budget Optimisation tools have provided our team with a comprehensive view of our influencer program spend and helped us chart exactly how those investments tie to the performance metrics we care about” said Stephan Garandet, Global Chief Digital Marketing Officer & Deputy Chief Digital Officer at L’Oréal. “Traackr has taken the subjectivity out of influencer partnership negotiations, and instead provides data-driven and performance-based insights specific to our brands.”
In tandem with the release of its Budget Optimisation tools, Traackr has also launched a new report analysing the most common costly influencer investment mistakes. The report addresses inefficiencies resulting from relying on incomplete data and outdated vanity metrics that result in influencer fraud, one of the industry’s most challenging problems. The report can be downloaded by clicking here.