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Influencer marketing is a new practice. As for anything new, things go wrong more often than they go right. And too often, one can tell from the onset whether an influencer marketing program will succeed or fail based on the level and type of resources allocated to it.
Over the last 7 years, we have learned a thing or two about influencer programs set up for success and, well, those that aren’t. We’ve made that knowledge available to our clients and today we’ll start exposing it to all, starting with the budget.
Budgeting is a great catalyst for marketing executives to think through their influencer marketing plans. And because it’s budgeting season, we decided to create a framework to help you build your budget for your 2017 influencer marketing program and answer these questions in the process:
To help marketing executives set sail with a successful influencer marketing program, we developed an Influencer Marketing Budget and ROI Model. For the first time, CMOs will have the ability to budget for their initial influencer marketing efforts. This includes accounting for growth, understanding which activities and expenses need to be accounted for, and estimating the return on influencer marketing efforts.
The budget model is built around three core expense categories:
To project an estimated revenue opportunity, the model includes three core ROI drivers around lead generation, social shares by influencers, and estimated impressions. The assumptions behind this framework are by nature generic and you will have an opportunity to validate or modify them while talking to a Traackr specialist. In any case, these assumptions won’t affect the logic of the model.
Running your program or aspirations through this framework is fascinating. Even at a high-level, here are some of the things you can learn about influencer marketing budgeting.