Brands were once wary of digital marketing campaigns because they felt that it was difficult to track return on investment (ROI). In reality, as data platforms have evolved, online advertising and other digital marketing strategies have become among the easiest to quantify the results for dollars spent. One of the core metrics that has evolved is CPM or cost per mille. The idea is that advertisers are charged based on how many impressions their ads generate. Let’s take a closer look at why the market is shifting in favor of engagement based pricing, and is the future of influencer marketing campaigns.
Why Eyes on a Page is an Ineffective Metric
Most of today’s online advertising is priced in a specific way. As discussed above, CPM is all about measuring how many people saw an ad – essentially, how many eyes landed on a given page. However, “eyes on a page” doesn’t tell the advertisers how many people actually noticed or saw the ad, and most importantly whether they engaged with it or took action as a result.
CPM is typically generated by taking the number of people who saw the campaign and dividing by 1000. Instead of precise insights into whether content generated action, brands are left with vague metrics such as saying that they “exposed 3 million people to their brand name.” It’s unclear from CPM metrics whether the audience that may have seen your materials was even your target demographic.
Context And Relevance
No discussion of pricing structures is complete without looking at both context and relevance. One audience does not have, in truth, the same value as another to a specific brand. Think of a rough and tumble brand like Harley Davidson. Exposure to motorcycle loving adults with high disposable incomes is worthwhile for this brand; getting ads or branded content in front of thirteen year olds looking for music videos or moms of five shopping for diapers has far less tangible value. Likewise, a brand like Pampers clamors get in front of moms. But young urban professionals without kids or Baby Boomers that are well past the childrearing stage aren’t going to yield the same results in terms of sales, awareness, or other performance metrics. There are two ways to evaluate relevance and context when structuring campaigns:
- By doing in-depth, upfront research on the audience of a specific website, outlet, or influencer
- By measuring engagement with your content, as high engagement statistics suggest relevance and resonance
Engagement Metrics Are a Better Choice
As brands have learned that it’s nearly impossible to predict real ROI from CPM costs, the market has shifted to more of a “pay per click” model. Paying by the click (when click is used as a loose proxy for “action”) is more effective in traditional marketing. As our command of different types of content development and distribution becomes more sophisticated, so too does our need for effective engagement metrics. CPM isn’t associated with performance or results; it’s merely measuring an input into the process (how many people probably saw an ad) and an imprecise one at that!
Instead, brands are increasingly looking for signs of engagement, action, and conversation. Did the advertisement or content generate a click, a new follow on a social media account, a complete video watched from end-to-end or another relevant metric? In the best scenario, did it generate a download or a product sale? Metrics vary by platform and by content type. But it’s essential to think about how your campaign goals translate into action, and ensure that both your payment structure and your ability to measure efficacy tie out to that in a meaningful way.
At fullbottle, our team understands that engagement is the essential goal at the heart of every influencer marketing campaign. Influencer marketing campaigns are structured to maximize engagement and offer brands the opportunity to pay for engagement and results.
Are you ready to learn more about influencer marketing campaigns and how they can help you reach your brand goals in a cost effective way? Contact fullbottle today to learn more about our services and solutions.