[July 19, 2016] |
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TapInfluence Surpasses $1M in Monthly Influencer Payouts; Releases Influencer Marketing Benchmarks on Cost Per Engagement
TapInfluence,
the only influencer marketing SaaS (News - Alert) platform uniquely combined with a
high-performing marketplace and a services offering, today announced
that it has surpassed $1M in monthly payouts to influencers in its
marketplace for their work helping Fortune 1000 brands get heard by
consumers across the web. The volume of influencer marketing campaigns
being run via the SaaS platform each month enables unprecedented insight
into Cost Per Engagement (CPE) and variability across individual
influencers, verticals and digital channels. For more information on
success metrics for influencer marketing download The Three Minute Guide
to Influencer Marketing here.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160719005928/en/
Top Five Verticals Investing in Influencer Marketing Automation (Graphic: Business Wire)
Top Five Verticals Investing in Influencer Marketing Automation
Within TapInfluence's platform, the top verticals investing in
influencer marketing campaigns and the correlating channels, listed by
popularity within contract agreements, are:
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CPG: Blog, Pinterest, Facebook (News - Alert)
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Food: Blog, Instagram, Pinterest
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Fashion: Instagram, YouTube, Blog
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Technology: Blog, YouTube, Twitter
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Travel: Instagram, Blog, Facebook
Average Influencer Marketing Investments and Volume of Influencers
Per Campaign
Investments in influencer marketing campaigns vary greatly, ranging from
as little as $90 to as much as $56,000 with an average campaign cost of
$5,500. Campaigns, on average, involve 21 influencers, with the smallest
campaign working with a single influencer and the largest campaign
including 748 individual influencers.
TapInfluence's data proves just how unique each brand's influencer
marketing program can be with the right software, marketplace and
services support. Important variables for every campaign include number
of assignments as well as the length of a given campaign.
Within TapInfluence, brands are able to search the marketplace for
influencers by CPE and sort from low to high with ease. Influencers ar
also exposed to their own CPE within the platform so that they get a
clear picture of whether they're undervaluing their work, asking a
premium or have their rate set just right in order to maximize the
number of brand opportunities they receive. This transparency breeds a
self-policing environment within the influencer community that drives
greater satisfaction for both parties.
Defining Influencer Engagement
TapInfluence is a channel-agnostic influencer marketing SaaS platform,
enabling its analytics to track any engagement taken on influencer
content as it's distributed across the web. In TapInfluence's
benchmarking data, no passive action, such as a video view, is counted
as an engagement. Engagements are classified purely as active responses
to content such as a like, comment, share, download, or click.
"The days of buying celebrity endorsements across social channels are
quickly coming to an end. Reach and views are merely indicators of
awareness, their true business impact is insignificant. Influencer
marketing has evolved and the rise of micro-influencers means that
brands can now truly understand the value of their influencer marketing
activities down to the CPE level," said Promise Phelon, CEO,
TapInfluence. "By benchmarking CPE for the industry, we're helping
marketers become more sophisticated as they continue to move budget from
traditional advertising to influencer marketing. These are marketers who
demand to know what they'll get before they invest tens of thousands of
dollars in any campaign, and TapInfluence is uniquely capable of
providing that level of reliability, transparency and value."
Managing Dynamic Cost Per Engagement Data
TapInfluence's big data platform is able to calculate dynamically
changing CPEs, which vary based on influencers' rates that the platform
suggests, but that they control. As mentioned, within the platform, CPE
is visible on every influencer profile and is a searchable criteria in
the influencer discovery and selection process (i.e. if a brand only
wants to consider influencers with a CPE lower than X). Relative to the
median CPE, displayed in black, a high CPE is denoted in red and a lower
CPE is shown in green. This visual cue helps brands understand where
influencers stack up relative to the rest of the marketplace.
TapInfluence's CPE calculations are based across all verticals; however,
in completing thousands of influencer marketing programs for hundreds of
Fortune 1000 brands, it's clear that premium verticals in which there
are fewer powerful influencers can expect to pay a higher CPE.
"For years, marketers have been using reach as a primary indicator of
campaign performance. This is counterintuitive when the ultimate goal is
to have consumers actually take action, not to mention the pursuit of
reach has actually caused some bad behaviors," said Francesca Cruz, VP,
Account Management and Revenue Operations, TapInfluence. "The cost per
engagement metric in our platform allows marketers to identify the
influencers who will truly engage their audiences to get involved in the
conversation and progress them through the buyer journey."
Engagement Directly Correlates to Sales and Vertical Distribution of
CPE
As brands become more sophisticated with influencer marketing, they are
ceasing to buy celebrity content as the brand awareness, engagement and
ROI per dollar spent is low, meaning the increase in sales isn't
significant enough to warrant further investment.
With TapInfluence, engagement directly correlates to sales. To that end,
different verticals have higher CPE ranges. The verticals with highest
CPEs include: Pets, Automotive, and Sports and Entertainment. Verticals
with the lowest CPEs include: Fashion, Food and Recipe, and Crafts.
These make sense as CPEs are variable based on: influencer rates,
saturation of influencers in a given category, and engagement trends by
vertical (i.e. is something particularly engagement-friendly like a Pin
of a recipe or a Like of an outfit). Understanding CPE by vertical is an
essential skill marketers today must master to be successful with
influencer marketing.
"Brands constantly ask us what they should pay influencers, but the
truth is the metric that matters is not outright cost, it's cost per
engagement. This is another example of practitioners' sophistication
lagging behind the solutions available to them. It propagates
unwarranted confusion and reticence," continued Phelon. "As we analyze
hundreds of campaigns and millions of engagements each month, our own
algorithms are constantly improving. By presenting influencers based on
color-coded CPE we're encouraging a true, self-policing market whereby
influencers can change their own rate, which impacts their CPE and makes
them more attractive to different brands."
About TapInfluence
TapInfluence's complete SaaS platform, coupled with an engaged
influencer marketplace and strategic services, is the leading solution
facilitating real conversations between consumers and brands. The
company enables Fortune 1000 brands to tap into the power of digital
influencers and their authentic, trusted voices. With its influencer
marketing automation platform, TapInfluence customers increase market
share and amplify revenue growth through scalable reach and optimized
engagement to achieve unprecedented ROI. In a recent independent study,
TapInfluence proved that influencer marketing drives 11x the return on
investment annually versus any other form of digital media.
TapInfluence's Fortune 1000 customers include Kraft, Horizon Organic,
Silk, and P&G, as well as top agencies such as Golin, RhythmOne and AMP.
TapInfluence is privately held, with headquarters in Boulder, Colo. and
Mountain View, Calif. The company is backed by leading venture capital
firms Noro-Moseley Partners, Grotech Ventures, Access Venture Partners
and Knollwood Investment Advisory. For more information, visit www.tapinfluence.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160719005928/en/
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