Setting up the budget calculator
First, you'll need to set up a couple of things. The admin on your account will be able to enter the Budget Calculator Settings under “Manage Account Settings” in the top right menu. You’ll need to enter your brand(s) keywords, as well as any partner hashtags used for sponsored campaigns. This is how we'll identify past sponsored content for your brand. There's no need to enter in the usual sponsored keywords like #sp #ad as we have these all covered already. The partner keywords are just any brand-specific hashtags you may have influencers use as well.
You’ll also see our suggested CPME costs here, which is the foundation on how the calculator and the suggested costs work.
The CPME cost takes the familiar CPM format (the amount a brand would pay to reach 1,000 people) but makes this more impact focused, by making it the cost to generate 1,000 engagements. The aim behind using CPME in our calculator vs traditional CPMs is to reward impact (engagements) from influencers rather than just their size.
We’ve set suggested CPMEs already in your account based on recent average CPMs and target engagement rates for your influencers, but these can be customized based on your experience and influencer feedback.
In our default example, we're taking a CPM of $6 for Instagram, and a target engagement rate that we'd like influencers publishing content on that platform to achieve of 4%. This equates to a CPME of $150 (6/0.04). So this is the amount we are suggesting to pay to generate 1,000 engagements on a piece of content.
Your CSM can explain this in more detail and also help customize the settings for your brand.
Notes on the Suggested Fees
The CPME should be a live metric and be updated regularly. The calculator will provide the best results if the CPME is adjusted on a regular basis to take into account influencer feedback as you start to use it. As an example, if you start with an initial CPME of $150, as suggested above for Instagram, but consistently find influencers asking higher prices, that means you are likely under market value and should increase the CPME so that future suggested prices are higher across the board.
It is important to keep in mind that there are many external factors that can come into play when agreeing on a fee with an influencer. For example, when working with influencers you know, suggesting a higher price than for someone you’ve never worked with could make sense. The quality of the content is also critical: in theory, higher engagement rates are signs of quality, but two influencers with the same engagement rate may have content quality differences, or even content alignment differences with your brand values.
The goal of the calculator is to provide you with the best support tool, at scale and in data-driven way, to support your negotiation efforts.