Now that you understand the operations behind influencer marketing, another aspect of my blog looks at the cost of this promotion and how it its priced. These influencer costs can range from a couple of hundred to millions of dollars across various networks. Although there’s no exact science to configure how much brands pay these influencers, throughout my blog I have broken down four factors that contribute to the cost of this marketing. These guidelines might not always apply to a particular influencer or marketing campaign, but understanding these factors can allow businesses and brands to adjust their rates accordingly so that they can find a price that works for both parties.
What Social Platform?
- The choice of what platform for the campaign is one of the key factors that influences cost, As they varies across channels.
- Instagram usually tends to be the top choice for for this marketing, followed by YouTube and Snapchat. Generally, influencer marketing is less common on Facebook and Twitter.
- Brands look at the potential reach of a channel to decide how much to pay for an advertisement. The idea is that the more followers an influencer has, the more potential people the brand could reach, thus influencers with a larger following will usually charge more.
- However recently the ‘micro influencer’ (which are individuals with a smaller following) are proving to be quite popular with brands as they are shown to make closer connections with their audiences.
Does the product fit the influencer?
- When hiring an influencer to promote a product, brands need to ensure that product fits the infucleners audience. For example hiring beauty influencer to promote skin care or cosmetics will look to engage audiences as her following interested in this content.
- Looking at the extent of the campaign will also affect the cost. This involves the number of posts, the creation of the content, what platform they want the content held and if it will be a permanent post on their page (as some influencers delete their sponsored posts after the campaign.)
- Simply put, the more work the influencer has to do, the more expensive the campaign will be.
Example: Bella Thorne (@bellathorne)
Bella Thorne is an American actress and singer bringing in a total of 17.5 million instagram followers. Being one of the top influencers on most social platforms, Throne appeared in a mini-documentary produced by Vogue entitled ‘ Inside the life of Bella Thorne’ where she discusses her money-making strategies on apps like Instagram and Snapchat. Bella is well known for sharing videos of her skin struggles and even speaking up about issues like the #MeToo movement. As discussed previously, these individuals look to be the most popular over these platforms as their use of open sharing with their audiences creates strong connections.
“I put myself out there the way I do on social media because I want people to see who I am. I was raised to think that social media is everything”.
Bella breaks down exactly how much she gets paid for content. When looking at these prices per post I was definitely surprised to see how much goes into this strategy. She states that for her Instagram posting “it’s $65,000 a post and for story it’s anywhere from $10K to $20K,”. She also elaborates on sponsored posts for Snapchat, which operates the same as Instagram Stories, and Facebook, for which payments can vary.
The documentary showcases how these endorsements act as jobs for these influencers. Highlighting the success from her pages, Bella talks on her progress from branded content stating;
“I started out 18 with literally $200 in my bank account and I bought this house a year later, and that’s all from social media.”
- En.wikipedia.org. (2018). Bella Thorne. [online] Available at: https://en.wikipedia.org/wiki/Bella_Thorne [Accessed 17 Apr. 2018].
- Henderson, G. (2017). How Much Does Influencer Marketing Cost?. [online] Digitalmarketing.org. Available at: http://www.digitalmarketing.org/blog/how-much-does-influencer-marketing-cost [Accessed 17 Apr. 2018].
- Shamsian, J. (2017). A 20-year-old star makes $65,000 for each Instagram post and bought a mansion with her earnings. [online] Business Insider. Available at: http://uk.businessinsider.com/bella-thorne-instagram-money-mansion-2018-4/?r=AU&IR=T [Accessed 9 May 2018].
- YouTube. (2018). Inside the Life of Bella Thorne | Vogue. [online] Available at: https://www.youtube.com/watch?v=RzUpJd9DZbM [Accessed 17 Apr. 2018].