How to Decide on Your Campaign Budget
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When planning an influencer marketing campaign, one of the first things you need to think about is how much you’re willing to spend.
This will determine the types of activities you can and cannot do so that you can strategise accordingly and get the most bang for your buck. If you’re not sure where to start, use one of the approaches below as a guideline for creating your budget.
First, ask these questions to yourself as a starting point:
How much money are you willing to invest into this campaign? Or another way to consider this is, how much money are you realistically willing to pay to achieve the results you want?
How many products can you afford to gift to influencers or give away contra?
Is this a one-off collaboration or a longer term partnership?
Do you have a budget to further sponsor their content if it performs well?
Then, Reverse Engineer Your Objectives:
If you have very clear goals or numbers that you’re looking to achieve, consider working backwards from that goal to figure out how much you will need to spend on a campaign and the level of reach that you need from an influencer or group of influencers. If you need a little help setting your objectives, head to our goal setting article here.
For example, if you want to drive 1,000 new visits to your site, figure out how much reach you will need, and what percentage of that reach you anticipate will convert into site visits.
Keep in mind that this method is probably only suitable for brands that already have some sales on the board, a good grasp of their site conversation stats, and have potentially worked with influencers before. And remember, include the cash you’re willing to spend, in addition to your cost of goods for any ‘product only’ collaborations.