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Cost of Influencer Marketing
Influencer marketing cost is a constantly evolving business, so naturally costs fluctuate quite a bit. There are many factors that affect the cost of any marketing on social media, but even more when it comes to influencer marketing cost. Whether the agreement is to pay per post or for an entire campaign, there is not a set price you can expect to pay.
What You Need to Know about the State of the Influencer Marketing Industry
The marketing industry for influencers is still relatively new. This means that influencer marketing is not as stable as other, more established platforms that are often used in a successful marketing strategy.
Given the volatile nature of social media in general, the demand for any particular influencer can change almost hourly. This can cause influencer marketing pricing to fluxuate wildly, and there is an inherent risk that the influencer a brand chooses to partner with ends up getting “cancelled” down the line.
However, despite these issues, influencer marketing has shown to be incredibly effective. When done correctly, it creates an unprecedented level of brand loyalty, increases sales and brand awareness, and builds (or transforms) a brand’s reputation.
How much is the influencer marketing industry worth?
The global market size of influencer marketing was an estimated 6 billion USD last year. It has been experiencing explosive growth since its inception, and is expected to exceed 24 billion USD by 2025.
Digital marketing is becoming more and more competitive and companies must reach out to their target audience on a personal level as people get better at tuning out online advertisements.
How much money was spent in 2020 on influencer marketing?
Approximately 6 billion USD was spent on influencer marketing in 2020, and that number is expected to more than double by 2022.
While companies were spending less on advertising and marketing in 2020, in the future the industry is expected to experience immense growth, reaching an estimated 15 billion USD by 2022.
Are brands spending their marketing budgets on influencer marketing?
While most brands are not marketing exclusively with an influencer, they are spending a significant amount of their budget on influencer marketing. The industry standard is 25% of an overall marketing budget gets spent on influencer marketing.
How much is the influencer marketing agency expected to grow in 2021?
The influencer marketing industry will reach an estimated 15 billion by 2022, which is a huge increase in market value, especially as businesses are still recovering from the COVID-19 pandemic.
While the social media platforms may change, influencer marketing is only going to continue to grow, since it is such an effective way to increase brand recognition, build brand image, and appeal to specific audiences.
What kind of return on investment do brands see when they invest in influencer marketing?
It is more difficult to track the return on investment of influencer marketing compared to other types of marketing. This can be frustrating for businesses who want to be able to closely track costs. While certain methods, such as giving their followers a specific discount code, can help, the total impact is difficult to put a number on.
Influencer marketing not only creates direct conversions, it increases brand awareness, and helps to build a brand’s reputation. Since the benefits are quantitative and qualitative, even when the results are obvious, they are often hard to measure.
How much does influencer marketing cost?
Influencer marketing pricing varies and is dependent on many variables, including which social media platform they are posting to, the follow count of the influencer, the target audience, and whether businesses are paying for a short or long term campaign.
Influencer marketing pricing will understandably be partly determined by the number of followers an influencer has. Macro influencers, with over a million followers, are going to be much more expensive than a micro influencer, who may have between 1,000 followers and 100,000 followers.
When it comes to influencer rates, macro influencers can essentially set their own rates. With micro influencers, things become a little bit more flexible, as the influencer rates are not a set number as with other types of social media marketing.
Influencer marketing costs can be as much or as little as a brand can afford; they just need to find the right influencer, who creates a high engagement rate with the target audience.
Influencer Marketing is a Rapidly Growing Industry
Influencer marketing is growing at an unbelievable rate. While some companies still shy away from advertising with an influencer, due to the difficulty in tracking returns, the businesses that have utilized social media influencers to promote their brands have seen enough success to continue to increase their budgets.
For Brands: What You Should Know About the Cost of Influencer Marketing – Your Questions Answered
Brands often have questions about the cost of influencer marketing, and for good reason. Without standardized pricing, and because of the difficulties involved in tracking conversions and the return on investment of a campaign, influencer marketing cost can be confusing.
How much does the typical influencer marketing campaign cost?
Many people want to know, how much does influencer marketing cost? It is understandable that they would want to know how much to expect to pay. But with so many variables, it is impossible to put a number on a “typical” cost per digital marketing campaign.
An influencer marketing agency would be a good place to reach out to to find out what different types of campaigns for a specific target audience may cost.
What are the standard influencer rates?
Because there is such a wide variety of influencer marketing, the cost per campaign is going to vary quite a bit. There is no “standard” rate, but it may go up or down based on the influencers follower count, niche, the type of campaign, the platform (are they a facebook influencer or a youtube influencer, etc.), what the business expects to pay, and how large the partnering brand is.
To find out how much a specific type of campaign would cost, brands typically reach out to an influencer marketing agency.
Do micro influencers cost less than a macro Instagram influencer?
Macro influencers tend to have set rates (for instance, they might charge a certain amount per instagram post, but they may charge less on another social media platform). Micro influencers, on the other hand, are much more flexible about how much they charge.
Variables to keep in mind that may impact influencer pricing include engagement rates, follower count, the social media platform they use, and what similar influencers charge.
Instagram influencers are some of the most popular, so if businesses are trying to get the best ROI on a campaign with a micro influencer who may have a lower number of followers, Instagram is a great choice. Brands just need to make sure that their target audience is actively engaged with the influencer they want to run a campaign with.
Should I Invest in Instagram influencer marketing?
If businesses can afford it, influencer marketing is a great way to increase brand awareness, and build a brand’s reputation. Instagram is now a 1 billion dollar company with an immense reach, and instagram influencers are some of the most effective avenues for social media marketing.
As far as social media platforms goes, if the target audience is on the younger side, or if the campaign is going for general appeal, Instagram is one of the best. For older audiences, a facebook influencer would probably have the most impact. On the other hand, TikTok or Snapchat influencer would be good platforms for younger audiences, with TikTok having a tendency to go viral more often.
What should I factor into my Instagram Influencer marketing costs?
The influencer marketing costs for an instagram campaign include the cost per post, the cost of the product, any concurrent promotions that are running (exclusive discount codes or links), and depending on the arrangement, a brand may pay influencers an additional amount per click, or for a certain amount of views (for instance, an additional amount for every 1,000 views).
If a brand is running a larger campaign, they may need to factor in cost of things like photo or video shoots, wardrobe, or hair and makeup.
How can I avoid influencer marketing fraud?
With any social media marketing that involves an influencer marketing campaign, brands should do their due diligence in finding out about the background of the social media influencer. Brands should also be aware that there can be copycats, such as someone impersonating an Instagram influencer.
Beware of any social media influencer who quotes an unbelievably low rate. Influencer rates can fluxuate, but a very low quote or an offer for a large campaign without mention of a contract should raise eyebrows.
How can I find the best social media influencer for my campaign?
The best way to find an influencer who is the right fit for a campaign is to focus on the target audience. If a brand is unsure of which influencers would appeal the most to the group they’re marketing to, they should reach out to an influencer marketing agency, and find out who they would suggest for the stated budget, marketing goals, niche, and brand image.
Influencer marketing agencies can take a lot of the guesswork out of how to approach influencers, and how much influencer marketing should cost.
Is social media the only place influencers promote brands?
Influencers don’t just promote brands on social media, but it is definitely their “bread and butter.” Influencers also promote brands at meet and greets, festivals, conventions, business engagements, and on their personal websites.
Brands can also have an influencer promote them on their company’s website, the same way they would plan a more traditional marketing campaign, with a celebrity. This type of campaign is often utilized by makeup and beauty brands.
Should I negotiate a price per post with an influencer?
If a brand is going through an influencer marketing agency or working with an influencer who has 1 million or more followers, chances are they won’t be able to negotiate. However, micro influencers may have some wiggle room, or they could be willing to negotiate getting paid on the views per video or post. Pricing is one of the most difficult components of influencer marketing.
For Influences: What You Need to Know About the Price of Influencer Marketing
How much does an influencer get paid?
One of the driving factors in how much an influencer gets paid is the size of the audience they have. Influencers with 500,000 followers are typically paid much more than an influencer with 100,000 followers, because their audience is five times larger, so they get more views per video or blog post. However, a larger audience doesn’t always mean a larger audience in a specific niche, so someone with less followers is often a much better fit for a brand trying to reach a certain demographic.
While influencers aren’t paid per follower, companies do look at the overall size of their audience, and what percentage of that audience fits the demographics they’re looking for. Another thing to keep in mind is that pricing will change depending on the niche.
How do you know if you are getting a fair rate for influencer marketing campaign?
It is difficult to know whether the cost of a campaign is a standard rate for the type of influencer a brand has chosen.
- Some ways to ensure fair pricing include:
- Getting quotes from multiple influencers
- Asking companies who are running similar campaigns (in industries they don’t compete with) what they are paying
- Working with influencers who have are represented by a marketing agency and/or have professional management.
This gets even harder if a brand is working with a small budget and seeking out very small micro influencers. While it can be a great strategy to use multiple micro influencers, rather than a single influencer with more followers (especially if the brand has a limited budget), the pricing can be touch and go.
It is recommended that if influencers are inexperienced when it comes to marketing campaigns, that the payment is arranged to be per post, rather than paid upfront for the entire campaign. This is a much more flexible option for small businesses, as well as micro incluencers.
Can an influencer charge more for planning the influencer campaign?
Absolutely! Influencer marketing cost does not typically include this service, but an influencer may (understandably) want more control over their image. If influencers are not just participating in the campaign, but actually planning it, the pricing will change and the cost will increase.
If planning a campaign is not in their wheelhouse, but they have been approached by a brand or brands, it may be a good idea for them to reach out to an influencer marketing agency so that they can get help from a team of professionals. This allows influencers to keep doing what they’re best at – creating engaging content – while the marketing agency handles the rest.
What should an influencer charge per post?
There is not an established average price per post, so influencers should consider their niche and how much money they expect to bring back to the brand they are promoting. Sometimes, an influencer with 100,000 followers can make more than influencers with more than a million followers, simply because they are in a niche with a high ROI.
While an influencer may have a large following, brands are aware of the percentage of that following that is the target audience they are looking for. If influencers know that their audience is nearly entirely made up of a certain demographic, they should use this to their advantage when pricing potential marketing campaigns.
As an influencer, should you charge per social media channel?
It depends. If they have popular accounts across multiple social media platforms, they should charge per channel. If they have one main account, and are known as only a youtube influencer, or only a facebook influencer, for instance, but they happen to have other accounts with significantly fewer followers, they may want to consider using marketing campaigns as a way to grow their less popular social media accounts.
Another option influencers could use is to offer to charge a brand per post, regardless of the social media platform it is posted on. Since influencers typically have different audiences on different platforms, brands are often willing to pay for multiple campaigns that target specific demographics on each platform.
How can an Influencer connect with brands looking to invest in influencer marketing campaigns?
If influencers have a significant following, they can reach out to influencer marketing agencies to see if the agency has any brands they work with that may be a good fit to run a campaign with. Influencers can also reach out personally to smaller companies, indie brands, or local businesses to see if they would be interested in collaborating.
If influencers have a particular brand that they’re a fan of, using that brand often and mentioning to their fans that they would love to do a collaboration can sometimes lead to a marketing campaign as well.
How long is the typical social media influencer marketing campaign?
There is no set length for a typical influencer marketing campaign. It can be a single instagram post or blog post, or an ongoing segment with a snapchat influencer. Because there are so many niches, strategies, and marketing goals, each campaign is different.
Often, when an influencer teams up with a brand, they may pay per post to see what kind of results to expect before committing to a longer campaign. This can be a gamble, however, since if the marketing campaign is very successful, the influencer is able to charge much more for future campaigns.
What big brands pay for influencer marketing?
Most (if not all) big brands utilize influencer marketing. The larger the brand is, the more likely it is that they will use an influencer marketing agency in order to team up with an influencer. This is because it is much easier for large brands to track costs, work with multiple influencers, negotiate pricing, and get in touch with more powerful influencers when they are working with an influencer marketing agency.
It is not unheard of for large brands to team up with smaller influencers, either, but this is more likely to include swag bags, free products, or an all-inclusive trip, rather than a long-term marketing campaign.
What influencers make the most money?
Macro influencers, with more than a million followers, tend to make the most money, since they can average over 1 million views per video or post. A micro influencer may make more than one would think, however, depending on their niche, engagement rate, and type of campaign.
For instance, an influencer with a commanding following in a high paying niche like traveling or a specific type of business, may make more per campaign than an influencer with more followers who may not have such a specific audience.
The more distinct an influencer’s audience is, the more desirable they are from a marketing perspective, since it will result in a much higher percentage of conversions for the right brand.
What happens if an influencer feels like the brand has changed the scope of the campaign?
If a brand changes the scope of an ongoing campaign, it will probably cause the cost per post to increase, as they increase the amount of time they spend creating content for the brand. Typically, agreements are renegotiated when a brand wants to change the scope of the campaign, but there are cases when an influencer gets taken advantage of.
Influencers should speak up whenever they feel like a brand is asking them to do something outside of the scope of their agreement. They should also make sure the terms of the campaign are clearly laid out in a legal contract, so it can be referred back to.
How can influencers connect with high paying brands?
If an influencer has a significant follower count, they may be able to get the attention of a high paying brand. For instance, if they have between 100,000 followers and 500,000 followers, with a marketable niche and engaged audience, large brands will start to reach out to them.
At this point, they should definitely consider reaching out to an influencer marketing agency and/or getting a manager (if they don’t already have one) in order to make sure they are charging an appropriate amount, and so they can connect with the higher paying brands they are looking for.
Do influencer marketing agencies take a cut of the influencer marketing budget?
If a brand goes through an influencer marketing agency, part of the influencer marketing pricing that they are quoted will go to the agency. This is sometimes a flat fee, but more often it is a percentage of the overall budget.
Influencer marketing agencies make it much more straightforward to work with influencers, and they act as a single point of contact between the brand and one or more influencers they are working with.
Marketing agencies also take the confusion out of pricing, and will usually give a brand a quote for an entire campaign, or they may give the option to pay per post, per 1,000 views, or per 1,000 followers, depending on the type of campaign.
How do influencer marketing agencies connect the right influencers to the right brands?
Influencer marketing agencies take into consideration a brand’s products and services, along with their marketing goals and marketing budget, to find an influencer who has the correct engagement rate, media value, and number of followers.
Influencer marketing agencies also have in-depth knowledge about the audiences of each of their clients, so they are able to quickly discern which influencer has the right audience for a particular brand.
Influencer Marketing Agencies: Streamline Your Process, Increase Your Profits
While influencer marketing agencies may take a percentage of the overall budget for a campaign, they can quickly and easily find a brand the right influencers for their project, saving them time and money. They also make it much easier to run simultaneous campaigns with multiple influencers, since brands will only need to have one point of contact.