A Quick Guide To Influencer Marketing Pricing
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Influencer Marketing Pricing: Industry Averages, Pricing Models, Factors To Consider & More
Every day, more and more businesses are using influencer marketing to build their brands, promote their products, and engage with their target audiences. However, as a new and growing industry, prices associated with influencer marketing campaigns can vary greatly.
For businesses looking to execute an effective campaign, it’s important to understand how different pricing options can affect return on investment (ROI). In the following piece, we’ll take a look at various aspects of influencer marketing pricing to help brands better plan their campaigns and anticipate influencer marketing costs.
The 4 Primary Ways To Pay Influencers
1. Direct - Some influencers are happy to negotiate directly with brands. However, the biggest influencers (as well as in-demand micro influencers), are often represented by professionals (e.g. talent agencies, managers, networks) who handle their business relationships.
2. Agency - A qualified influencer marketing agency can work with any influencer, whether associated with a talent manager, network, or platform. Furthermore, many agencies have existing relationships and negotiated rates with high profile/performing influencers that may be otherwise hard to reach.
3. Multi-channel networks - Multi-channel networks (MCNs) represent a roster of select influencers available for collaboration with brands. MCNs only work with influencers within their network (limited influencer options) and may require media fees in addition to their intermediary service fees.
4. Platform - Similar to MCNs, influencer marketing platforms are also limited to influencers registered on a specific software platform. Platforms charge monthly subscription fees (can range into the $1,000s per month) just for access and/or take a percentage of each campaign executed via the platform.
The 6 Influencer Marketing Pricing Models To Know
1. Pay per post - One of the most popular ways to pay for influencer marketing campaigns is through a pay per post (PPP) model. PPP agreements allow brands to pay influencers (or their management company) a flat fee for a single post or a series of posts.
2. Pay per campaign - Another way to pay for an influencer marketing is through a flat campaign fee. Agencies typically work through a pay per campaign models, while MCNs sometimes adopt the pricing method as well. Both agencies and MCNs charge fees/margins for their services on campaigns.
3. Pay-per-click - Pay per click (PPC), or cost per click (CPC), models are when an influencer is paid each time a user/follower “clicks” on a link specified by the brand. CPC models are primarily used in conjunction with an affiliate marketing program.
4. Pay-per-acquisition - Most often referred to as cost-per-acquisition (CPA), brands render payment when an influencer’s efforts result in a new customer — often through an affiliate link. The term “customer” can be defined as an individual who purchases a product or service, downloads an app, signs up for a newsletter, or takes some other type of action meaningful to a business.
5. Subscription - Most often associated with influencer marketing platforms, brands are charged subscription fees for access to online influencer marketing solutions.
6. Non-monetary - Influencers are sometimes compensated with products, services, travel, or other experiences (i.e. dinners, events, etc). This method of payment is often limited to micro influencers.
Influencer Marketing Pricing By Social Media Platform
Instagram, Facebook, YouTube, and Snapchat are among some of the most popular influencer marketing spaces. Each platform offers a different audience with specific content and online media options (e.g. live streaming, Stories, post, etc.), which can affect pricing.
Within each platform, however, more popular and effective influencers will generally charge a higher fee for their services.
Instagram - Cost per impression (CPM) of $5-10, depending on engagement.
YouTube - $15-30 CPM, depending on average views and engagement.
Snapchat - $30-50 per 1,000 views.
Facebook - $4-8 CPM, depending on engagement.
The 7 Other Major Factors That Affect The Price Of Sponsored Influencer Content
1. Format - Inside of each platform, the format of the content can affect costs. On Facebook, for example, pricing can vary markedly across standard posts, video, or live promotion for the same call to action (CTA).
2. Cross-promotion - Influencers will often share a post across multiple social media channels for an additional fee.
3. Caption and description - Mentioning a product by name, tagging a brand, and/or adding a campaign hashtag and CTAs within captions or video descriptions are all factors that can affect pricing.
4. Campaign type - In addition to the popularity of an influencer, creative and logistical demands of the campaign are often proportional to overall costs. Video productions can cost more than still photos, while influencers will often charge more to attend and post throughout an event (event activation) than to simply plug a product in a post (product placement).
5. Industry - There are a wide variety of interests online, and each will have different influencers, audiences, and competition that can affect costs. For example, CPM for YouTube gamers is typically lower than for fashion or beauty videos on the platform.
6. Exclusivity - If a brand wants to work exclusively with an influencer, it will need to factor in compensation for limiting other potential income opportunities.
7. Reuse/Licensing - If a brand plans to repost or own sponsored content created by an influencer to other channels or repurpose it for display ads, pre-roll, or traditional forms of marketing, licensing fees may apply.
Related Post: The Top 5 Types Of Influencer Marketing Campaigns
Influencer Marketing Pricing and ROI
The effectiveness of an influencer marketing campaign is dependent on strategy, proper creative planning, influencer and platform selection, content production, management, execution, and optimization.
When pricing a campaign, it’s important for brands to ensure that these parameters have been considered and budgeted for properly. A qualified influencer marketing agency can offer campaign advice, oversight, and execution services, as well as cost-bundling efforts to help maximize ROI.
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December 14, 2017 By Mediakix Team