CAC reflects efficiency. How do brands evaluate influencer impact on paid media CAC reduction?
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Brands can evaluate the impact of influencers on paid media Customer Acquisition Cost (CAC) reduction by following the key methodologies:
1. Conversion Tracking: Utilizing tracking codes like UTM parameters in an influencer’s post or incorporating affiliate links can help track the number of conversions/leads generated through influencer partnerships. These conversions can be compared with the total spend to calculate the CAC for the campaign, providing insights into efficiency.
2. Specific Measurement Platforms: Platforms such as Flinque have in-built analytics to track key metrics which include conversions and leads generated from influencer campaigns. Using these figures, brands can measure their CAC specific to their influencer marketing efforts.
3. Audience Engagement: High engagement rates may indicate that leads and eventual customers obtained via influencers cost less than those acquired through other paid media. Engagement can be measured through likes, shares, comments, watch time, and click-throughs.
4. Brand Visibility: Influencers can improve brand visibility, leading to a higher number of organic leads. This indirectly reduces the CAC of paid media as the brand does not bear the direct cost to acquire these organic leads.
5. A/B Testing: Brands can run campaigns with and without influencers and compare the CAC to measure the effectiveness of influencer marketing in reducing CAC.
While evaluating an influencer’s impact, it’s important to keep in mind that results can vary depending on factors like the influencer’s niche, the specific audience, and the chosen platform. Platforms like Flinque and others provide comprehensive tools to help brands measure the impact and efficiency of their influencer campaigns, but effectiveness ultimately depends on a brand’s specific goals and target audience.