NEW YORK, March 15, 2018 /PRNewswire/ -- The research by Sydney data analytics company Lumio found that on average only 40 percent of Influencers' Instagram followings are valuable to a business.
It did so by calculating the number of 'Valuable Followers' an Influencer attracts using a revolutionary new algorithm that weights Instagram followings by the quality of the profiles and the quality of their engagement. The 'Lumio Quality Score' then compares and ranks the 'Valuable Followers' in an Influencer's following against each other.
"We all know that the right influencers at the right time can 'make' a product or business," says Lumio co-founder Jack Alpe. "The problem is not all Influencers are created equal."
"Some Influencers have built a real following organically over time, others have bought their way to the top – and the difference only really becomes apparent after you do a campaign with them, which can be both disappointing and costly," says Lumio co-founder Dan Anisse.
Lumio was founded to take the guesswork out of Influencer marketing and to capitalise on the invaluable lessons learned in an earlier venture, Foenix, which specialises in delivering a brand ROI on their Influencer Campaigns. Interesting, 81 percent sales came from certain profile types which Lumio allows you to identify.
"We became fascinated by the inconsistency of the Influencer market and the lack of really sophisticated predictive metrics and data," Anisse says. "We were trying to work out how and why some campaigns were working and others weren't."
Lumio looks beyond popular indicators like the number of followers and the engagement rate to find out who really is engaging with an Influencer and how valuable they are to a brand.
"The goal at Lumio is to help brands to accurately distinguish between the real Influencers and the pretenders using our Lumio Quality Score. It is an increasingly crowded market that is increasingly mature. The time is right," Alpe says.