Influencer Marketing Pricing: Determine the Cost of Influencers
Influencer Marketing Pricing: Determine the Cost of Influencers
Influencer marketing and its pricing will always be essential as long as there’s marketing and advertising. Brands will always be looking for the next big name or the next famous face that will sell their products. If buyers see those who aspire to use a specific product or service, they want to use it too. The buyers want to relate to the influencers’ experiences and see how the products they use may fit into their lives and budget.
If you’re a business owner wanting to expand your reach and improve your target market’s engagement, adding influencers to your existing marketing efforts is necessary. Your brand can significantly benefit from these influencers’ fan bases. You don’t have to start from scratch to get customers on board.
Knowing the Price is Essential
Influencer marketing cost matters because it could make or break your bottom line. If you don’t include expenses in your plan, you might exceed your budget and get unsatisfactory results. On the other hand, you might also get caught off guard in the middle of your campaign when you find out that it costs this much.
When your costing is well-researched, well-defined, and precise, you won’t have to sacrifice a specific aspect of your plan to ensure you achieve the target results.
Do you want to know what our influencer marketing pricing ranges are? Check below:
Each campaign is unique, so costs could vary significantly. However, you can still project its cost. Here are several factors you should consider when determining marketing costs.
Influencer’s Following Size
There are five kinds of influencers depending on the size of their follower count. Your chosen influencer may fall into one of the following specific categories:
Over one million followers: Celebrity or mega influencers
500,000 to 1 million social media followers: Macro-influencers
50,000 to 500,00 followers: Mid-tier influencers
10,000 to 50,000 followers: Micro-influencers
1,000 to 10,000 followers: Nano-influencers
Among these influencer types, influencer marketing agencies and marketers prefer collaborating with micro and nano influencers. These content creators are often unpaid, and product exchanges and brand partnerships pay for their endorsements. They are chosen now because they have engaged audiences.
Smaller influencers can connect better with the community, giving them more influencing power. Their followers are more likelier to trust them because of their service recommendations, product reviews, and expertise. If brands collaborate with them at scale, these influencers can boost sales, drive awareness, and target niche audiences.
The average cost of influencer marketing involving nano and micro-influencers will be lower than mega and macro influencers. Why? Simply because the more extensive the following of an influencer, the more expensive their service would be because of their massive reach. And it means increased sales and better conversion.
This rate refers to the percentage of a specific influencer’s followers engaging with their posts. Engagement may include clicks, shares, comments, and likes. You may ask any influencer marketing agency if engagement matters. The answer to this question is yes, it does.
An influencer with a more extensive following isn’t always the best for your product. However, if an influencer’s post has a low engagement rate, its reach may be negligible. Suppose someone with a million followers has a post that only gets an average of 10,000 likes. It means the post’s engagement rate is only one percent.
On the other, another influencer with only 100,000 followers on an influencer marketing platform has a post receiving 10,000 likes on average. It means their engagement rate is 10%. Though the latter has a smaller following, their social media posts get ten times more engagement.
Engagement rate matters when figuring the price simply because influencers with fewer followers but higher engagement rates are more influential than those with more followers. They can better persuade their followers to act positively by subscribing to an email list or buying a product.
Types of Influencer Marketing Platforms
The type of social media platform an influencer uses affects their service’s price. It is because each one has varying engagement and reach levels. Between Twitter, Facebook, and Instagram, the first two platforms have better engagement than the latter.
According to Social Insider, Instagram’s engagement rate is 0.60% for any post, regardless of industry. On the other hand, Facebook has 0.15% per post engagement rate, and Twitter has 0.05%.
You learned earlier that influencers with posts having engagement rates charge more. Since Instagram offers better engagement, the cost of influencer marketing on the platform is also higher.
Since creating a video that lasts ten minutes or more takes more effort than creating an Instagram reel, pricing may also adapt and change based on this fact.
Influencer’s Specific Niche
A niche refers to the industry or specialization focused on by an influencer. It’s an essential factor a marketer should consider when figuring out the influencer marketing pricing. Fashion, beauty, and lifestyle are the most famous and in-demand niches. The price will likely be lower if you pick influencers from these niches.
To illustrate this point better, look at a fashion and entertainment post. The former may cost $400, while the latter will cost $700. The pricing gradually increases as you move down the list of popular niches.
Aside from the factors above, here are other considerations you should look into the determine how much influencer marketing strategy may cost.
Content with the most visual elements, like GIFs and videos, will always cost more than text-based content.
Frequency of posts
The number of posts an influencer would need to make to meet your goals will also determine the cost of the campaign.
Using an influencer’s content for specific purposes may cost you more than asking them for a generic post.
If you want an influencer only to promote your products and not your competitors, you’ll pay a higher price. It is because choosing one brand may limit their income sources.
Influencer marketing agency
Collaborating with marketing agencies could also mean higher costs, but they offer specialized services that will be worth it.
Working with popular influencers with a solid personal brand might be more expensive, especially for those with high-profile engagement.
Partner With Clicta Digital for Your Campaigns
Regardless of your chosen social media platform and influencer type, you must have a marketing expert to run your campaigns. You can tackle this task in-house, but work with the pro if you want the best results and fair influencer marketing pricing.