Influencer marketing is a highly effective way for businesses to partner with influential people who can increase the reach and exposure of a business to it's targeted audience. This follows on the concept of word of mouth marketing in the modern age. The influencer industry is estimated to be worth $15 billion in the next 2 years underlining its importance in the modern marketing mix.
With more and more businesses considering the use of social media influencers, we're often asked the question, "how much do social media influencers cost to hire?". This article aims to help those looking to budget for the use of social media influencers.
The thing is, there is no standard formula in terms of the hiring cost. The most we can do is give average figures that you can base your calculations and estimates on. Then we’re going to delve into all of the contributing factors that ultimately determine the cost involved in working with a social media influencer.
The above are standard rates that are used to help determine cost. In addition to these standard rates, there are also additional fees which may need to be worked into the equation. This includes travel expenses, agency fees and production costs.
Most influencers do not publically share their rates. Independent influencers will have rate cards and media kits which they share with potential clients. More established influencers work with agencies who handle the admin on their behalf and in many cases, the only way you'll establish any rates will be to directly approach the influencer or engage an agency to perform this often timestaking task on your behalf.
The cost of working with an agency for your influencer marketing can be determined by whether you engage with the agency on an ongoing, regular basis or if the engagement is for a one-off project. Agencies often have a strong network of connections and can reach smaller, micro-influencers (see below), who may charge little or no money to work with a brand, as well as famous celebrities. Celebrity influencers obviously charge a premium and it's estimated that the likes of Kim Kardashian and Cristiano Ronaldo, for instance, charge around $750,000 per post.
When considering using a Social Media Influencer for the first time, it's important to understand what type of influencer they are as well as the potential impact they can have on your business. The following are types of influencers can you can engage.
Once your budget for influencer marketing is established, you’ll be able to determine who and what you can afford. This will inevitably inform your approach and the kinds of partnerships you'll develop. While the costs involved can seem high, it is important to consider exactly what it is that these fees are exchanged for. These include:
You can determine specific rates in various ways. This will be determined by the campaign itself and the types of content as detailed below, as well as your campaign objectives. This includes paying per: post / acquisition / click / subscriber / view
Based on the above, it is clear to see that the cost of influencer marketing is incredibly varied. It depends on the market average as well as the type of influencer(s) you work with, the content you’d like them to create and share and the kind of results they can produce.
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