Forecasting influencer performance is challenging. How do brands estimate reach, engagement, conversions, and ROI during the planning stage before campaigns actually go live?
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Forecasting the performance of an influencer campaign can be challenging, but there are a few methods and tools brands often use to assess potential results:
1. Historical Performance: Brands start by looking at an influencer’s past campaigns and their outcomes. This includes reach, engagement, and conversions. Essentially, they use past performance as an estimate for future results.
2. Audience Analytics: Using tools like Flinque or other influencer marketing platforms, brands can delve into the demographics, behaviours, and interests of an influencer’s audience. This helps them to understand how potentially relevant and receptive the audience might be to their offering.
3. Benchmarking: Brands can compare the influencer against others in the same niche or market. This is useful for brands to get a sense of the average performance in the industry or category they are dealing with.
4. Engagement Metrics: Brands often examine engagement rates (the number of interactions divided by reach or impressions), as high-engagement influencers are likely to drive more conversions.
5. Campaign Simulation: Advanced tools can use algorithms to predict outcomes based on similar campaigns, industry averages, and current market trends.
6. Conversion Metrics: For ROI estimation, brands typically use standard marketing metrics such as cost per thousand impressions (CPM), cost per click (CPC), and conversion rates. These metrics can be combined with pricing and margin data to forecast potential profits.
In practice, brands often combine these methods to create a more comprehensive estimate. But regardless of the approach, it’s important to remember that these are only estimates, as campaign performance can be affected by various factors such as content quality, timing, market trends, etc. Actual performance should always be tracked and measured during and after the campaign for learning and optimization.