Have you ever caught yourself wondering how much money do influencers make? Or, is your brand interested to work with influencers but you’re unsure how much an influencer marketing campaign typically costs? Let’s get your questions answered!
An effective budget is part and parcel of every marketing campaign. While every company’s budget differs, it is important to justify marketing spend by looking at the return of investment of your marketing campaign (Marketing ROI). In other words, what you really want is to get more bang for your buck. The good news is - Influencer marketing content delivers 11X higher ROI than traditional forms of digital marketing. As consumers rely more on influencers as a source of information, working with influencers is one of the best ways to generate high conversion rates for your brand.
However, influencer rates are not all that transparent and brands often struggle with finding the right influencer to work with. To run a cost-effective campaign, it is important to not only find the right influencer to maximise your marketing spend, but one that falls within your budget. More importantly, you’d want to make sure that you are not charged unfairly and paying above the market rate.
Without further ado, let’s take a peek at how much influencers earn and how much influencer marketing campaigns actually cost!
The first thing you should know is how to get the conversation started on price. Similar to traditional advertisers, most influencers have a rate card to indicate what services they offer and how much they charge.
Prices usually vary depending on the number of followers influencers have as well as the type of content they are expected to produce. The basic rate is $100 for every 10,000 followers worldwide and this naturally increases as we go up the influencer tiers.
Rates are also generally higher and when more time and effort is needed to create quality content, as well as the actual length of the content. Hence, while videos generate impressive results on social media, they inevitably come with a heftier price tag too.
Niche influencers as well as influencers with high engagement rates also command more bargaining power as they have a unique and engaged community of followers. For example, prices for tech and gaming influencers tend to be lower as there are fewer available influencers.
In spite of the figures shown above, brands have to keep in mind that there is no “one size fits all” rate for influencer marketing. The beauty of influencer marketing lies in the diverse content formats and channels for brands to choose from. With the rise of multi-channel influencers, brands can also choose to promote their brand on more than one channel at the same time. Besides multiple platforms, it is also worth considering multiple types of content to create a holistic influencer marketing campaign for better engagement rates.
Our survey with 2,851 influencers reveals that 94.5% of them offer package rates for Instagram. The most popular combination is Instagram Posts together with Stories, while some custom packages also include Instagram Videos.
So, should brands consider package rates? Definitely!
With the rising popularity of Instagram Stories, brands who can engage consumers via Instagram Stories will stand to have additional touchpoints. Not only so, package rates are just slightly more, or even comparable to individual posts. A Singaporean lifestyle influencer, with around 19k followers on her Instagram, shared her rates with Affable which includes different package options:
IGPost: $151 - $200
IGStory: $51 - $100
IGPost + IGStory: $151 - $200
FB Post: $151 - $200
IGPost + FB Post: $151 - $200
While it may come as a surprise, the price range doesn’t alter significantly with additional services for some influencers. After all, sharing the same content on other channels just takes a simple click! Hence, brands can try to negotiate a better deal by leveraging on other channels offered by an influencer and reach a wider target audience at the same time.
The rule of thumb according to Neoreach is that “The lower the influencer tier, the higher your marketing ROI.” When it comes to the size of the influencer you should approach, micro-influencers are a dominant force driving influencer marketing and serve as key opinion leaders in their community.
But nano-influencers are slowly taking over the scene.
According to the State of Influencer Marketing 2019 report by HypeAuditor, the average Instagram engagement rate for influencers with over a million followers is 1.97%, while nano-influencers earn a surprisingly high engagement rate of 5.60%! Nano-influencers are the most popular tier of influencers and have the highest engagement rate. With a well-defined niche and real influence in their community, they are a great option to work despite lower follower counts.
Moreover, they are also more likely to accept in-kind influencer campaigns which can help to increase your brand awareness by offering your products or services to them for free. For smaller businesses, working with nano-influencers can help to save costs and reach your target audience more effectively.
Bogged down by all the details? Well, Affable.ai can help you to simplify things! Get a price estimate for influencers around the world and determine your campaign’s effectiveness by knowing the earned media value.
More importantly, we all know how important it is to work with the right influencers who can deliver results. With an AI-driven Instagram analytics platform, you can now choose the right influencers based on audience demographics, engagement rate and the percentage of fake followers. Reach out to us for a quick demo and maximise your marketing budget today!
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