Every day, more businesses are turning to influencer marketing to help them establish their brands, promote their products, and engage with their target audiences. However, because this is a new and expanding sector, rates for influencer marketing campaigns can vary substantially.
Businesses who want to run an effective campaign must understand how different price options affect the return on investment (ROI). Today, let’s look at different parts of influencer marketing pricing that help brands plan their campaigns better and predict influencer marketing costs more effectively.
8 Factors Influencing Influencer Costs
A variety of factors might determine how much an influencer charges for their services, and it's uncommon to find an influencer who charges a set amount. Influencer marketing is a viable business, and influencers base their pricing on what brands are willing to pay.
This list does not include all of the criteria that go into determining how much an influencer might charge, however, these are the ones that you can expect to have an impact:
The reach and engagement of influencers.
The medium by which they communicate.
How many postings do you want and whether or not they feature photographs, videos, or audio?
How much work the influencer will have to put in.
Where the advertisement will be promoted/cross-posted.
Let's take a deeper look at these parameters and others to have a better understanding of what it is that you are making the payment for and what could be your influencer marketing cost.
1. The platform for social media
Some influencers may charge the same amount for the same type of post regardless of the channel, but the rates are much more likely to vary. After all, each social media site has a different audience type, and creative resources vary as well.
2. Influencer Reach
Reach refers to how many individuals the influencer can reach through their platform. This is mostly determined by the number of followers or subscribers the influencer has and the number of people they have the potential to reach. Generally, the more followers an influencer has, the higher their fees will be.
Millions of followers may mean a huge reach but that does not guarantee an equal amount of engagement. Engagement is an important metric for most brands as they want the audience to interact and engage with that content ultimately proving beneficial for the brand, product, or service being endorsed or promoted.
People’s reaction to the content builds the campaign. Well, the fact is, it is considered more important than reach. Engagement means, comments, shares, and other aspects than just views.
4. Industry or Area of Specialization
You'll want to discover an influencer that is knowledgeable about your sector. Would you believe a fitness influencer who abruptly began discussing financial services, especially if they've never even mentioned that finance is an interest of theirs? Popular niches (such as beauty and fitness) will have more influencers available, and the pricing will most likely be lower than in niches with fewer accessible influencers.
The type of material you request from an influencer will also have an impact on the fee. Since influencers will have to commit time, energy, and resources into creating content. Different types of content require different things.
Determine how much content the influencer will need to create and whether they or you will supply the assets. The more effort it takes to develop the stuff you're requesting, the more it will cost.
6. Demand from Influencers
If you request a seasonal social media campaign, you should expect to pay a premium for it. This is standard economics: higher rates result from increased demand. You may encounter this problem outside of seasonal promotions if you are interested in a highly famous influencer.
7. Rights of Use
Outline the terms in the influencer contract if you plan to reuse content. Some influencers will ask for a higher fee for content that will be reused. Consider each use as a separate product—once you've exhausted the product by having the influencer post a video promoting your brand to their Instagram account, you won't have any more to utilize in your Facebook advertisements.
Influencers generate money by advocating various brands. You may pick an influencer that your opponent also wants to use. In this case, you may wish to request that the influencer sign a non-compete agreement or exclusivity provision as part of their influencer contract, which prohibits them from supporting a competitor for a set amount of time. However, you must be prepared to pay. Quite a bunch, too, because you're essentially asking them to forego other potential sources of income.
The 6 influencer marketing cost models to know
Pay per post — A pay per post model is one of the most common ways to pay influencers for their contributions.
Pay per campaign - A flat campaign charge is another option to pay for influencer marketing. Agencies often use pay-per-campaign models, however, MCNs may also use this pricing method.
Pay-per-click (PPC) or cost-per-click (CPC) – In a pay-per-click (PPC) or cost-per-click (CPC) model, an influencer is charged each time a user/follower "clicks" on a link provided by the business.
Pay-per-acquisition – This is also known as cost-per-acquisition (CPA). Here, marketers pay influencers when their efforts result in a new customer and are usually through an affiliate link.
Membership - Usually connected with influencer marketing platforms. Businesses are charged subscription fees to gain access to online influencer marketing solutions.
Non-monetary compensation – Influencers may be compensated in the form of products, services, travel, or other experiences in addition to monetary compensation (i.e. dinners, events, etc). Micro-influencers are often the only ones who get paid in this way.
Influencer marketing cost is determined on the social media platform.
Instagram, Facebook, YouTube, and Snapchat are all prominent influencer marketing platforms. Each platform caters to a different audience by providing specific content and online media options (e.g., live streaming, Stories, posts, etc.), which can have an impact on price.
More prominent and effective influencers on each platform, on the other hand, will often charge a larger fee for their services.
Instagram - has a cost per impression (CPM) ranging from $5 to $10, depending on the engagement.
YouTube — $15-30 CPM based on average views and interaction.
Blogs — Pricing is frequently determined by PageRank, but estimates vary from $10-100 per 1,000 unique monthly visitors to $10 per 1,000 page views per month.
Snapchat charges between $30 and $50 per 1,000 views.
Facebook — $4-8 CPM, according to on engagement.
How to Find a Budget-Friendly Influencer
Finding the ideal influencer for your brand requires a delicate balance between your budget and influencer prices. As a result, it's critical to consider your budget before beginning your search for influencers. It'll be far harder to figure out whether the influencer you like can fit into your budget for as long as you need them if you don't understand how much you can invest.
When putting together your budget, think about your influencer marketing plan and whether you'll be using influencer marketing strategies or hiring an influencer marketing agency.
Marketing Objectives for Influencers
The amount of money you should set aside for influencer marketing is primarily determined by the objectives you want to attain and the strategies you'll employ to get there. Improving brand exposure, enhancing social interaction, and increasing sales are all frequent objectives. You'll be better able to locate influencers who can match your demands within your budget once you've set goals and devised a strategy.
Platforms for Influencer Marketing
You may find influencers for your brand through a variety of influencer marketing tools. There are also numerous free influencer marketing tools available that assist brands in locating influencers using filters and search parameters.
Influencer Marketing Agencies
There are also influencer management agencies that connect influencers with brands looking to hire them, but their services don't end there. These firms will assist clients in developing an influencer marketing strategy, influencer marketing cost, putting it into action, and managing their influencer marketing campaigns. Because they work so closely with influencers, they have a thorough understanding of influencer fees and can assist clients in finding a fantastic influencer while staying within their budget.
Influencer marketing cost vs ROI
An influencer marketing campaign's efficacy is determined by its strategy, creative planning, influencer and platform selection, content creation, management, execution, and optimization.
Brands must ensure that these characteristics have been adequately examined and budgeted for when pricing a campaign. Measuring the ROI of your influencer marketing campaign is one of the greatest ways to figure out if you're paying the proper amount for an influencer (return on investment). The return on investment (ROI) is the percentage or dollar amount that your brand receives from your investment. A competent influencer marketing agency may provide campaign guidance, oversight, and implementation, as well as cost-bundling services to help you get the most bang for your buck.
While being able to glance at ROI is helpful when selecting whether or not to continue working with an influencer, plenty of the time you'll need to decide whether or not to hire an influencer first. You'll need to look at what your targeted influencers have done for businesses similar to yours in these circumstances.
Average earnings will give you an idea of what should be your influencer marketing cost. However, keep in mind that expenses vary depending on your sector, content requirements, social media platform, reach, engagement, and other factors.