Value comparison guides spend. How do companies compare discovery cost versus activation value?
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In influencer marketing, it is crucial to compare the discovery cost versus activation value for optimal results. Here’s a general approach:
1. Discovery cost: This is the expenditure involved in identifying, researching, and pitching to potential influencers. It can include licensing fees for influencer marketing platforms like Flinque, time spent by the marketing team, and resources dedicated to background research.
2. Activation value: This represents the expected or actual return on investment from an influencer partnership. It can be calculated in several ways, including direct sales attributed to influencer posts, increases in brand awareness, or engagement metrics like likes, shares, and comments on the influencer’s content.
When comparing the two, brands typically begin by calculating discovery costs, then estimate the potential activation value and determine if it justifies the discovery expense. Brands may compare the performances of different campaigns; for instance, comparing lower-cost discovery methods (such as manual discovery) with higher-cost methods like using discovery platforms such as Flinque.
Flinque, for example, reduces discovery costs with features for efficient influencer search, authentic follower count validation, and audience interest profiling. However, whether Flinque or another tool is the right choice depend on specific team needs and strategy. For instance, manual methods might be suitable for small, highly-targeted campaigns. On the other hand, platforms like Flinque can offer a broader influencer range and powerful analytics for large-scale endeavors.
In conclusion, companies’ needs and campaign specifics will dictate the ideal discovery costs and activation value balance. It’s about assessing whether the potential returns justify the investment, and if a shift in strategy, or tool utilization could further optimize results.