Join us Dec. 1-3 in Nashville for the Digiday Programmatic Marketing Summit
Any creator asking for media dollars better have the reporting to back up the request. Advertisers aren’t cutting checks just on follower count and virality anymore.
To ink a creator deal, advertisers are asking for cost per lead, cost per conversion, earned media value and other performance metrics. In some cases, some brands are asking for Instagram link clicks and engaged YouTube views up front to determine if a creator is worth the ad spend.
“They want to see if there’s actual traffic being driven. We’re seeing a stronger emphasis on accountability for sales for each creator,” said Kimberly Duman, a managing partner at Glossary Artist creator management firm.
Another sign of creators going programmatic
Creator campaigns are more often being judged against traditional performance marketing math: cost per conversion, cost per lead and return on ad spend.
Consider it yet another signal of the creator economy mirroring programmatic advertising.
As the tech has gotten better, creator platforms and agencies alike have spent the last year rolling out AI-powered dashboards with years of historical performance data. These souped up control panels allow brands to see a creator’s engagement rate, follower count, conversion rate and other performance stats before a deal is ever made.
Now, follower count becomes a vanity metric as brands look for metrics that prove purchasing behavior.
“Cost per lead or cost per conversion. Simple as that,” said Joseph Perello, founder and CEO of Props, a performance-based creator marketing platform, later adding, “Every client has a cost per conversion benchmark.”
Naturally, that benchmark looks different for every client. But as the tech improves, advertisers are retooling their scorecard to determine how good of a salesperson a creator is, he said.
Or as Stefani Stamatiou, CEO of Americas at HYDP, sees it: “The way that we work with a lot of our creators is to look at the performance of their content before we contract them.”
Before signing the contract
Before deal talks start, the global creator and influencer agency HYDP evaluates a creator’s content within a 30-day window, including view counts, but excludes any viral content to set reasonable expectations, Stamatiou said.
View counts has its own set of challenges. YouTube overhauled its view count in August. Rather than a count metric starting at several seconds in, a video view is registered the moment a video starts to play.
Now, advertiseres want “engaged views” — at least Blue Hour influencer agency is asking for those stats up front, Matt Higgins, svp and head of strategy at Blue Hour told Digiday.
“The bigger point is what we should focus on when finding and negotiating with creators,” Higgins said of the YouTube changes. “We negotiate around audience fit, shares, and expected performance, with views as one input.”
Influencer art and science
Brands like direct-to-consumer darling Rothy’s have a more lax approach. “We’re not super subscribed to hard, hard metrics, and don’t use it necessarily as a bible for who we work with or will come back to,” said Anna Doré, vp of brand and communications at Rothy’s.
The brand tracks clicks and sales, but places greater emphasis on creator-brand alignment. “Great content will always win,” Glossary’s Duman said.
More in Marketing
ChatGPT is about to show brands their mention count
The AI platform is testing an analytics dashboard that counts how often a business shows up in ChatGPT’s answers.
Future of Marketing Briefing: Creators had a big year. Christmas still went to the celebrities
Despite leaning on creators for most of the year, marketers aren’t doing it for the holiday crunch. That job still belongs to celebrities.
In graphic detail: Six thousand brands later, ChatGPT ads still have a conversion problem
OpenAI has ambitious ad revenue targets, which depend on advertiser demand, measurement and monetisation.