The main trend of influencer marketing in 2020: where and how to launch ads with bloggers with pay per result?
Due to the pandemic, quarantine and economic problems, many brands have cut their promotion budgets in 2020. The most relevant way to spend money on advertising among bloggers is to pay by the result, that is, by the CPA model (cost per action, or pay for action). We will tell you how and where you can use the model in this article.
How does the CPA model work and why is it beneficial?
To put it simply, the CPA model operates on a pay-per-performance basis. The blogger publishes advertising, the advertiser receives certain targeted actions and, as a result, pays for them.
If you look further, there are several variations of the CPA model:
– Payment for the final action:
- CPS – per sale;
- CPL – for a lead (call, registration, request);
- CPI – for application installation.
– And payment for intermediate target action:
- CPC – per click / tap by mention;
- CPM – per 1000 impressions.
The first model seems to be profitable for the advertiser, but is not liked by bloggers and exchanges. Bloggers avoid this model because it involves actions that they cannot directly influence. Few bloggers understand the purchasing power of their audience, which is why they find themselves in a situation when an advertisement is published, but no money came for it at all.
Blogger exchanges rarely offer such a model. it is difficult to control who did the final action. We have already observed a situation when a small blogger himself registered in the advertiser’s service, and then registered his friends and received money for this. As a result, the advertiser has neither money nor results.
The second, more promising option is payment for intermediate targeted actions that bloggers are able to influence. Since the final cost of advertising will depend on the number of clicks on the advertiser’s link or ad views, the blogger is interested in motivating subscribers to these actions.
For clarity, we will analyze the service, which was among the first to implement the function of payment by result – Storiesgain.
How the CPA model works in Storiesgain
The second model is implemented in the service, payment for intermediate target actions:
- Link clicks;
- Tapes on account tag;
- Story views
We ran 2 campaigns with the same creatives and targeting to compare the results.
Launch starts with ad builder:
Storiesgain’s ad builder simulates story creation. The format is quite convenient: familiar and simple. After the creation of the creative, we go to the definition of the type of advertising purchase. The CPA model in the service is called “Ads”:
Next, we go to the page for configuring targeting filters. This is where we choose the target action and the amount we are willing to pay for it:
In both campaigns, we used ads from micro and nano bloggers. This is another distinctive feature of Storiesgain – we can run mass advertising for users with an audience of 100 subscribers. But we will tell you about the features and benefits of such a launch later.
Let’s go back to the filters: we specify the campaign lifetime – that is, the time bloggers will have to publish their ads and get a result. And we also limit the budget of the advertising campaign.
Even before launching, under the filter, we see a number of bloggers matching the selected settings. Here we do not choose to whom we will send the job for advertising. All eligible bloggers will see our offer. Some bloggers will take ads for publication, and some will not. This way we don’t have to waste time choosing bloggers.
After installing filters, the cost of the target action and the budget of the campaign, we can launch an advertisement.
Result of CPA work: what if the indicators have been increased?
To make the comparison with pay-per-post and pay-per-result campaigns fair, we ran ads for 24 hours. This is how long the standard RK in the service lasts.
Upon completion of both campaigns, we received launch statistics:
Statistics for the campaign launched with pay-per-placement
Campaign statistics launched by CPA model
As you can see, the cost of touching an account tag in the case of launching using the CPA model has been reduced by almost 5 times.
“Bloggers get paid for their actions, what if they cheat them?” – you ask. We thought about it and, apparently, the guys from Storiesgain too. Therefore, the service has certain limits and rules.
Blogger Anya registered in Storiesgain and the system set a price for her at 10 rubles. But Anya wanted to earn 12 rubles, so she set the advertising price at 12 rubles. The average number of clicks on stories in Ani’s blog is 15. The system records these numbers in the analysis of Ani’s blog and indicates it in the blogger’s card. Anya takes ads with a CPA model, where the target action is a click. A click costs 5 rubles. Advertising on Anya’s blog gets 20 clicks, which is more than her average result, but Anya gets 10 rubles. Why is that?
Because the system sets a limit equal to the minimum price of Ani’s publication. This is insurance against cheating, on the one hand, and the blogger’s confidence that, with proper work, he will receive at least his legal minimum.
What if Anya got only 5 clicks? Then the system would recalculate the payment proportionally and the advertiser would pay less for Anya’s work.
This is the most reliable system so far. it is still not profitable for a blogger to wind up indicators. The risk of blocking his Storiesgain account is too high, and there will be no more money.
Briefly about the results
Payment for advertising placement has long been a source of doubt among bloggers – without tests it is impossible to determine the price of a targeted action, and in conditions of budget cuts, the cost of an error increases. The pay-for-performance format of working with bloggers is becoming the most reasonable option for implementing a promotion strategy through influencers.
Our test revealed several important points:
- The main thing is that launching with a CPA model will reduce advertising costs. We have reduced it by 5 times.
- CPA work automation is very convenient. You don’t have to contact the blogger directly and negotiate payment terms with him. Your advertising is taken by those who are already ready to work for the result.
- Getting statistics on results in tabular form is a thrill. This greatly simplifies the work and the analysis of results.
From the controversial points:
- I would also like to be able to select bloggers so that we can predict the result.
- While the service works only with Instagram Stories. But we hope that soon it will take over other formats and social networks. After all, advertising automation is very convenient.
If you have already promoted your business through bloggers or are just thinking about it, we recommend testing the CPA model in the Storiesgain service. The service will help you launch ads quickly and pay only for the launch result. Happy advertising!