How long is a piece of string? Twice as long as half its length, right? The reality is that the cost of influencer marketing is a somewhat nonsensical question. However, t’s not a question without an answer. So here, we’re going to explore what ten factors impact the cost of influencer marketing.
Influencer marketing – or influence marketing – is a rapidly growing form of marketing that leverages the power of social creators. However, what that actually entails varies significantly, which is why there’s no real answer to the real cost.
What TEN factors impact the cost of influencer marketing?
1) The number of posts required
The higher the volume of content that’s required the higher the cost, simple. However, many influencers will reduce their price per post for on-going promotion. Although a brand might spend more they might end up getting better value for money.
2) The expected reach of the posts (based on engagement metrics)
Let’s use Instagram as an example. If a creator has 1m followers, but their last 10 posts have reached fewer than 10k impressions then why should they charge more than somebody who has 50k followers who does the same? At the end of the day impressions are what count. The reason you don’t see ‘audience size’ on this list is because it is the most over hyped metric. Finding true reach using recent engagement metrics to work out expected impressions is what’s important.
3) The expected demographics (location, gender, age, interests etc)
If you’re a UK based brand looking to hit a UK male dominated audience in the 18-24 range that’s probably going to come at a premium, as that’s a popular set of metrics.
4) The campaign’s duration
Much like point number one the higher the volume of posts the more you’re going to pay. However, if a brand is willing to sign a 12 month contract for repeat posts that becomes guaranteed income for the creator, and as a result brands can sometimes use that as leverage in negotiations.
5) Industry type and or type of content being produced
If you work with niche creators on specific types of content this is going to have an impact on cost. Once again, supply and demand. There are also niches that impact cost; gambling, alcohol, Crypto and other ‘high risk’ items and industries come to mind.
6) The anticipated number of conversions
“Conversions” mean different things to different people and can mean anything from link clicks, to follows through to actual purchases. When estimating how many conversions an influencer campaign will generate it’s important that you look at a whole range of different metrics to get an accurate picture.
7) Usage rights
Can the brand use the content you produce on your channel about their product elsewhere on their channel, on paid promotions or even on other creators channels? If the answer is yes, then that can really push up the cost.
This often tends to be specific to direct competition if you’re booking a creator for a campaign, but once again expect to pay additional for that right. For example, if I hire a creator to promote my VPN company then I don’t want them to be promoting another competitor a few months (at least) either side. Or, if they’re promoting an energy drink on Twitch then if they go live the next stream after their sponsored stream drinking a direct rivals product just randomly then that significantly devalues their original promotion. Having this clause in contract is important, but it once again impacts bottom line.
9) The amount of time taken to promote
Regardless of how much promotion is actually worth to an audience, a brand and creator will have to factor in the time it takes to complete the work. For example, if a creator is promoting an energy drink, and they have to film on location for a day to get the shots required that cost has to be factored in.
10) Notice period
If I book a spot with a creator months in advance I may be able to secure a better deal. However, if I’m booking a spot in 2 weeks time, the likelihood is a creator will charge me a premium. Conversely, creators may have a spot that they did not expect to have, and in order to secure a brand quickly, they might lower their price to get that deal over the line.
The reality is, that a single campaign can vary in cost from a product all the way to 7 figures. From one influencer to multiple social creators. Youtube to Snapchat. From a single post to multiple posts over a long period of time across different platforms. These are all factors that need to be taken into account.
Sure, there are some guidelines that you can follow that will help you to work out what an influencer would be worth, but most of it is going to come down to experience, negotiation and educated judgement factoring in previous results.
One of the reasons influencer agencies can be so valuable is because they want to find the sweet price spot.
This is why, if you’re on this page and reading this article you should reach out to Colossal Influence today!Follow us on Social Media