It is nearly impossible to predict the precise results that a future campaign could produce with traditional influencer marketing. But if done properly with the CPA model could help brands to make 15 dollars per every cent of spending reports Blogging X.
Influencer marketing will be worth 13.8 billion dollars in 2021, as per reports from Influencer Marketing Hub.
Because of its word-of-mouth effect is highly effective, though it is a new marketing method for customers to trust it over brand advertisements. But the advertiser can only pay the influencer and hope that the marketing campaign yields some sales and profits in traditional influencer marketing because of all the power vested only with the publisher who is the influencer.
CPA model is changing it to enable for paying only for the results and not for the influencer popularity It is first essential to understand the working of the traditional influencer marketing model. Advertisers search for influencers in the same field depending on their popularity which is measurable by their number of followers and quote a price. They also show stats that prove their importance with previous campaigns’ success for other brands to the advertisers to promote their products or services.
Influencer Marketing Hub confirms that 38.5% of brands are having success with influencer marketing through conversions and sales campaigns. It is even though many brands never measure the success of these campaigns.
Predicting the exact results of what a traditional future influencer marketing could produce is almost impossible. However, only some metrics and the previous campaigns’ reach may help to estimate its effectiveness that includes.
Rate of engagement –The ratio of the interactions between the post to the number of subscribers and the number of likes and comments Accessibility to the audience –The number of people seeing the post among the vast posts on the social media Composition of the audience –The subscribers to the blogger like mass followers, fakes, commercial accounts, and others Gender, geo & age –All these are demographic factors. All the above are only forecasts, and there is no guarantee.
What and how CPA model is transforming the influencer marketing market?
The CPA or cost-per-action model is where advertisers do not get paid by advertisers for their popularity but only for their results. It generates nearly 15 percent of the overall digital media revenue in the US, where about 80 percent of the brands use this type of influencer marketing.
The advertisers set an action that they want their audience to perform is the way it works. The audience gets this action promoted by influencers agreeing to the advertisers’ remuneration. Every customer brought by the bloggers gets the said amount, and trackable links track their performance.
In this way, only for the audience that the influencers can convert, they get paid.
Most of the influencers stay away from this model, which suits best for the brands. Because influencers know that if they cannot produce results, they may never get their remuneration at all. From the time of coming to know of this CPA model, there is an increase in brands that stopped working with influencers on the traditional model. As per the Blogging X report, every dollar spent on correct influencer marketing with the CPA model generates 15 dollars.
The influencer agreeing to work in this CPA model increases their efforts for their audience to take the targeted action wanted by the advertisers having the power now. Since leading influencers are more accessible because of the CPA model, it enables even smaller brands to work with them as they need to pay only for the results rather than their popularity.
Influencers earning scope from CPA
Influencers also benefit from the CPA model as it increases their earning potential to get higher remuneration for higher results than that of the traditional model. With customers coming in even after six months from the post, the influencers continuously earn money.
The following stats establish how bloggers can earn through the CPA model:
As per Perfluence, the average earning is 264000 for 30 of the best bloggers having an average of 100,000 subscribers For three advertisement publications, micro-bloggers with 12000 subscribers earned 9,125 every month 78000 is the maximum earning for one financial product advertising post by December end for influencers with 50000 subscribers An influencer with 10000 subscribers got 180500 for a blog on profitable purchases, and another with 150000 subscribers earned 394000 for a mom blog.
Since the above stats of the CPA model earnings are not of the most popular accounts, only those with limited subscribers establish that even they can earn a lot of money. It also includes bloggers accepting to share their income. Therefore, anyone can make a comparison between the amount influencers earned with the total number of subscribers.
It is enough proof that both bloggers and marketers profit from the CPA model.
Marketers can get an assurance sign from the CPA model. Only if the influencers have a relevant brand target audience and are confident enough to generate results take up the CPA model offer of the marketer.
Advertisers can have the assurance of paying for the actual results and not on thin air only by the CPA model. By understanding the earning potential soon, the influencers will not go back to the traditional model, which will become obsolete with time, and the mainstream will be the CPA model.