Influencer Marketing Pricing: How Much Should You Pay?
Are you looking to launch an influencer marketing campaign but aren’t sure of the cost? Here’s a guide on influencer marketing pricing to help you get started.
Are you curious about influencer marketing pricing in 2023? If so, you’re not alone! It’s no secret that influencer marketing is growing in popularity and is now integral to many brands’ marketing strategies.
But how much can you expect to pay for influencer marketing? It’s a common question and one that many marketers struggle with.
In this blog post, we’ll dig deep into influencer marketing pricing and how much you can expect to pay in 2023.
We’ll also look at how various social media channels compare, factors affecting influencer marketing pricing, and how to get started with your influencer campaigns.
Let’s get started.
What is Influencer Marketing?
Influencer marketing is a type of social media marketing that involves working with individuals with a large social media following.
These individuals, known as “influencers,” can help promote your product or service to their followers.
In return, you usually give them some form of compensation, which can be money, free products, or discounts.
The ultimate goal of influencer marketing is to reach a larger audience and generate more sales. It’s a way to tap into the influence that these social media users have over their followers. And yes, it works.
Today, customers trust people more than brands. This is supported by a 2020 study which showed that 61% of consumers are likely to trust product recommendations from a friend, family member or influencer on social platforms.
In contrast, only 38% of consumers are likely to trust recommendations from a brand on social media platforms.
This trust is what makes influencer marketing so effective. When influencers recommend a product or service to their followers, they’re more likely to listen because of the bond they share with their followers.
Factors Affecting Influencer Marketing Pricing
While influencer marketing pricing can vary from one influencer to another, several factors play a role in determining how much you’ll spend on your campaigns.
Here are some of the critical factors that affect influencer marketing pricing:
1. Size of the Influencer’s Following
The most crucial factor that affects influencer marketing pricing is the type of influencer and their following.
Based on their follower count, social media influencers fall into specific categories such as:
- Nano-influencers: Those with 1,000 to 10,000 followers
- Micro-influencers: 10,000 to 50,000 followers
- Mid-tier influencers: 50,000 to 500,000 followers
- Macro-influencers: 500,000 to 1 million followers
- Mega/celebrity influencers: Those with 1 million or more followers
In 2021, most marketers preferred to work with micro-influencers, as shown by a Linqia report. This is probably because they have niche audiences and high engagement levels.
Note: Linqia grouped influencers with 5,000 to 100,000 followers as micro-influencers. Various marketers have different categorizations.
As you can imagine, the prices charged by nano-influencers will be lower than those charged by macro or mega influencers.
The logic is simple: the more people an influencer has following them, the more expensive they’ll be to work with.
Why?
Because a larger following means that the influencer has a greater reach. It also means that the influencer will have more influence over their followers.
The brands they promote, therefore, have a better chance of being seen. This could lead to better conversions and increased sales.
2. Influencer Engagement Rates
The engagement rate is the percentage of an influencer’s followers who engage with their posts.
Engagement can include things like likes, comments, shares, and clicks.
You might be thinking, “Why does engagement matter? Shouldn’t the size of the influencer’s following be the only thing that matters?”
Well, yes and no.
A larger following does not necessarily mean a greater reach for your product. But, if the influencer’s posts have a low engagement rate, that reach may not matter as much.
Let’s say, for example, that an influencer has 1 million followers, but their posts only receive 10,000 likes on average.
Their engagement rate would be 1%.
Now, let’s say another influencer has 100,000 followers, but their posts receive 10,000 likes on average.
Their engagement rate would be 10%.
Even though the second influencer has a smaller following, their posts receive ten times the engagement.
This scenario is better explained by the image below from a 2021 report on Instagram engagement rates by interest:
Now, how does the engagement rate affect influencer marketing pricing?
Well, influencers with higher engagement rates tend to be more influential than those with lower engagement rates.
This means that influencers with higher engagement rates will be able to better persuade their followers to take action, whether it’s buying a product or signing up for an email list.
This entitles them to charge higher rates and that’s why engagement rates are a factor that affects influencer marketing pricing.
3. The Social Media Platform They’re Using
The social media platform influencers use can also affect influencer marketing pricing.
This is because different platforms have different levels of reach and engagement. For example, Instagram has a better engagement rate than Facebook or Twitter.
According to the 2022 Social Media Industry Benchmark Report by Rival IQ, Instagram engagement rate stood at 0.67% per post across all industries. This is compared to Facebook’s 0.064% and Twitter’s 0.037% engagement rate per post.
As mentioned earlier, influencers with better engagement rates will likely charge more, thus raising your influencer marketing pricing. Since Instagram has better engagement rates, you can expect to pay more for working with influencers on the platform.
It is also worth noting that certain platforms are better suited for certain types of influencer campaigns. For example, YouTube is better for long video campaigns than Instagram, which is ideal for short videos, carousel ads, and reels.
Creating a YouTube video lasting 10 minutes takes more time and effort than creating and posting an Instagram reel. As a result, an influencer will typically adapt their pricing to match the content format they produce and the resources needed to accomplish the task.
Overall, different social media platforms have their own advantages and disadvantages, but you can expect to pay more for platforms with larger reach and engagement.
4. The Niche They’re In
An influencer’s niche refers to their specialization or the industry they focus on, and it is an important factor to consider when estimating influencer marketing pricing.
The most popular influencer niches are lifestyle, beauty, and fashion. Your influencer marketing pricing will likely be lower, with more influencers to pick from in those niches.
To give you an example, a fashion post costs $440, while an entertainment post would be closer to $715.
As you can see in the image, influencer marketing pricing gradually rises as we move down the list of the most popular niches.
This is to be expected since fewer content creators are vying for work in less saturated markets. Since advertisers have fewer people to choose from in these areas, they are willing to pay more for quality content.
For example, finding a technical influencer to work with for content on web development or coding is difficult compared to finding a fashion influencer. This is because technical content takes more time to produce and requires influencers to understand the topic more deeply.
As a result, influencer marketing pricing for technical influencers will be higher than those in the fashion niche.
5. The Number of Posts or Content-Type
The number of posts an influencer makes and the type of content they produce will also affect their price.
Influencers typically base their rates on how many posts or content pieces they would need to deliver to help meet your marketing goals. But it is generally understood that if you want more posts, depending on their type, you’re likely to pay more.
The content type will also affect your campaign costs. Content with more visual elements, such as videos, GIFs, and images, will cost more than a simple text-based post.
In short, influencer marketing pricing for videos will be higher because creating a video takes more time and effort than crafting a simple tweet.
The same goes for influencers who produce long-form content, such as blog posts or product reviews.
These influencers usually charge more than those who produce short-form content. Again, the reason is that writing a blog post takes more time than posting an Instagram photo.
The cost will likely be less if you provide the content or resources used in the process.
6. Other Factors
Some other factors affecting your influencer marketing pricing include:
- Usage rights — If you repurpose the influencer’s content, they’ll likely charge you more.
- Exclusivity — If you choose to have an influencer sign an exclusivity clause to prevent them from promoting your competitor’s products, you’re likely to pay more. This also costs you more since you are basically telling them to abandon other sources of income.
- Brand preference — If you specifically want to work with an influencer because of their personal brand recognition, you’re likely to pay more. This is especially true if you’re looking for influencers with a lot of engagement on their profiles.
- Influencer Marketing Agency — If you choose to work with influencer marketing agencies, you might pay more since they often charge an extra fee on top of influencers’ fees. However, agencies also provide expert services and are usually worth the investment.
Common Pricing Models for Influencer Marketing Campaigns
Now that you know what influencer marketing pricing is based on, let’s talk about the different influencer pricing models.
The most common influencer pricing models include:
- Flat-Rate Pricing — influencers charge a fixed amount for their services. This is usually the most preferred influencer pricing model as it is easy to track and account for influencer marketing costs.
- Cost-per-Click/Acquisition (CPC/CPA) — Influencers are paid based on the number of clicks or acquisitions their content generates. This is a great pricing model for influencers who want to be rewarded for the success of their marketing campaigns.
- Cost-Per-Mile (CPM) — influencers are paid for every 1000 impressions their content receives. This influencer pricing model is best suited for influencers with a large follower count.
- Freebies/Gifts — influencers receive free products or services as payment for their influencer marketing efforts. This is a great way to incentivize influencers and make them feel valued.
- Affiliate marketing — Influencers are paid a commission for every sale made through their influencer marketing campaigns. This influencer pricing model is best suited for influencers with a large following and producing content that leads to sales.
Pro Tip: When deciding on influencer marketing pricing models, consider the influencers’ engagement rates and audience demographics to ensure that they are the ideal influencers for your campaign.
Influencer Marketing Cost By Platform
So, now that you know what might affect your influencer marketing costs, here are what you can expect to part with for each social media platform.
Of course, these marketing prices are not cast in stone. They are, instead, the most commonly quoted prices by influencers.
The figures are ballpark costs; some influencers may charge way below these rates, and others might quote higher prices.
Instagram Influencer Marketing Pricing
With over 1.4 billion users across the globe, Instagram is one of the top channels for influencer marketing.
It is also a cost-effective social platform regarding influencer costs. Instagram influencer pricing is as shown in the table below:
Newbie influencers, or those with less than 10k followers, will often offer to promote your business in exchange for a free gift.
Now, these influencer marketing pricing estimates may seem favorable. However, it is wise to remember that the cost of other types of promotions such as Instagram stories, reels, Instagram takeovers, or IGTV videos will vary significantly.
TikTok Influencer Marketing Pricing
TikTok is one of the fastest-growing social media apps today.
In only two years, it has become a worthy opponent of Instagram and YouTube regarding video marketing and content sharing.
Being a relatively new platform, there isn’t much data on influencer marketing costs.
However, according to Statista, TikTok influencer pricing per post is as follows:
Comparing TikTok influencer marketing pricing with Instagram’s, you can tell that the latter is less expensive.
YouTube Influencer Marketing Costs
The cost of YouTube influencer marketing is usually higher than other platforms. This is especially so because of the time and effort spent creating a video.
With the capacity to reach over 2.8 billion users yearly, YouTube makes a perfect place to put your brand in front of a massive audience. The benefits are even more significant if you choose the right influencer.
But with the high price tag, choosing who to work with can be challenging. To help you get started, Influencer Marketing Hub puts the average YouTube influencer rates as follows:
You can use these rates to budget for your influencer marketing campaign. But remember, an influencer may charge you depending on the viewership your video will receive.
Twitter Influencer Rates
Compared to Facebook and Instagram, and TikTok, Twitter doesn’t have a large audience, but it’s still ideal for meeting potential consumers where they are.
It has a monthly user base of over 540 million people — which means there are plenty of influencers as well you can work with.
But how much do Twitter influencers cost?
Well, Twitter influencer marketing pricing based on the number of followers each influencer has is as shown by the table below:
Originally published at Attrock.com.
About The Author
Gaurav Sharma is the Founder and CEO of Attrock, a results-driven digital marketing company. Grew an agency from 5-figure to 7-figure revenue in just two years.
