Influencer marketing, expensive or not? This
question is something that should be considered before promoting the brand. In
fact, the actual cost of online celebrity marketing can be greatly considered
in terms of influencers, promotion forms, and promotion platforms. This article
explains the true cost of influencer marketing, let's take a look.
Now, influencer marketing is one of the most
successful forms of promotion. According to a 2019 study by The Influencer
Marketing Hub, businesses can expect an estimated 600% return on every $1 spent
on influencer marketing.
But why are people still "rejecting"
this high-return marketing method? Because many people have a "gut
feeling", internet influencer marketing is too expensive.
In fact, there are many factors that affect the
cost of online celebrity marketing. Using the word "expensive" to add
up to the cost of online celebrity marketing is really inappropriate.
As a professional influencer marketing company,
FameNet will calculate the cost of influencer marketing for everyone. First, it
needs to be clear that there is no one-size-fits-all answer to influencer
marketing costs. While we haven't covered all the factors that affect
influencer fees, here are the main ones you can mention.
The size of followers of different influencers
affects the final offer. Influencer types can be divided into:
1. Mega-influencers: 1,000,000+
Advantages: Wider coverage of fans, greater
exposure, higher professionalism of the influencer himself, and less contact
Cons: High cost, usually between $2,000 and
$5,0000, high investment risk.
Advantages: Effectiveness, comprehensive
coverage, high degree of professionalism;
Cons: Although macro-influencers are cheaper than
mega-influencers, their security costs are still high.
3. Mid-tier influencers:
Pros: loyal and segmented fan base, relatively
affordable (about $2,500 per post, according to the FX website);
Cons: Relatively limited coverage.
Advantages: Content reliability is high, costs
are low, and fan loyalty is believed to be strong;
Cons: Limited coverage, quality cannot be
guaranteed, micro-influencers looking for more flexibility rather than strict
shooting scripts, long contact times.
Advantages: High fan participation, high
stickiness, low cost, more tangible, high conversion rate;
Disadvantages: Limited coverage, lack of
experience, no quality assurance, long contact time.
And the internet celebrities with high quotations
that you see on major forums are mainly from the heads of different platforms.
In fact, a large number of followers is not the only determinant of influencer
According to the 2020 Talking Influencers survey
of 359 marketing professionals, 76% of respondents have worked with
nano-influencers in the past 12 months. One of them is Gett Taxi, Gett Taxi is
very active in using nano-influencers and they get huge benefits using minimal
money. By partnering with MNFST, they received personalized ads from thousands
of people, which greatly increased their visibility.
Some brands will choose to work with influencers
with large followings. But some others prefer to research the influencer's
likes, comments, and overall engagement to see potential future results.
If a content creator has high user stickiness, it
means that the content they promote has more influence and the brand can earn
more from advertising. This is why there are different situations where
influencers charge differently for the same number of followers.
cooperation or long-term cooperation?
When working with influencers, brands use two
types of campaigns: long-term partnerships and brand ambassadors or one-time
collaborations. Of course, both have their advantages, but which one you choose
also depends on cost.
Most brands and influencers gravitate toward
long-term partnerships or even brand ambassador status. The reason is that due
to the long-term nature of partnerships, they are generally well-received by
audiences, resulting in authenticity. Long-term partnerships also help build
trust among customers. But long-term partnerships and brand ambassadors cost
more because of the ROI they get.
Costs are generally lower for one-time events.
However, this is not to say that they are not effective. Brands can opt for
one-off campaigns or collaborations to see immediate results and try to achieve
their goals in a faster time frame.
Brands may choose to work with one macro
influencer and drain their entire budget. While other brands may prefer to
split their budget and work with multiple, slightly smaller influencers.
Although each platform has a "base"
price for influencers of varying degrees, the way it is promoted affects the
Within each platform, the format of the content
affects the cost. For example, on the same Instagram platform, the same
nano-level influencer costs $100 for Post, $114 for Video, and $43 for Story.
Influencers often share posts across multiple
social media channels for an additional fee.
3. Title and Description
Mentioning the product name in the title or video
description, tagging brands, or adding campaign tags and CTAs are all factors
that affect the price.
4. Products or services
The price of an advertised product can also
change an influencer's marketing spend. If it's something expensive, like a car
or luxury accessory, it will cost more to advertise than advertising cosmetics
or casual wear.
Also, if your product is in a specific vertical
and segmented category, you will have fewer content creators in your industry.
This means you will pay more.
the pricing model of influencer marketing?
The value of collaboration between companies and
influencers is influenced by various factors mentioned above. Thus, the value
of working with influencers is also highly personalized.
CPM (Cost Per Thousand)
CPM is a "pay-per-impression" model. It
refers to the total ad spend per thousand people who hear or see an ad in the
Calculation formula: price per thousand =
(advertising cost/number of arrivals) × 1000
CPE (Cost Per Participation)
Apart from CPM, an influencer's user engagement
is also an important factor in influencer marketing. After all, a large
community is pointless if those users don't interact with the content.
Affiliate marketing is especially effective for
micro-influencers. Because their target group is small but very specific and
the connection to the community is very high.
In affiliate marketing, influencers earn
commissions based on the sales of products sold through their social media
accounts. Track the number of products sold and campaign success based on
personalized links in YouTube direct posts, profiles, or video descriptions.
Most of the time, the commission is between 10-15%.
In a purchase agreement, all rights to a product,
meaning the influencer creates content in influencer marketing (such as a
post), will be assigned to a third party for a flat fee.
Acquisition prices vary widely due to time
periods and geography. Usually 100-200% of the price of the original material.
Some influencers also prefer to make non-monetary
payments in the form of barter transactions. For example, companies send free
samples to influencers, who then refer or introduce those samples to their
platform. By exchanging products and advertising channels, in the best case,
both parties benefit equally from the transaction.
Note: Influencers are only obligated to display
products on their social media channels if they are contracted in advance.
effectively reduce your influencer marketing costs?
Finding the right influencers for your brand or
business is the way to balance your reach with their influence rate. So it
helps to think about your budget before you start looking for influencers. If
you don't know how much you can spend, it's hard to tell if your favorite
influencer fits your budget.
There are a few things you need to consider when
creating your budget, such as your influencer marketing goals and whether you
will use an influencer marketing tool or an influencer marketing agency.
1. Set goals
The amount of your influencer marketing budget
will largely depend on what you want to achieve with your influencer marketing
campaign and the tactics you will use to achieve your goals. The main goals of
using influencer marketing are to increase brand awareness, increase social
engagement and increase sales. Once you've set your goals and created a plan,
you'll be better able to find influencers that can meet your needs within your
2. Use an influencer marketing
There are tons of influencer marketing platforms
you can use to find influencers for your brand. There are even plenty of free
influencer marketing tools that can help you find influencers with simple
filters and parameters.
3. Find an agency
There are professional influencer marketing
agencies that will help you find the right influencers. They can help brands
create an influencer marketing strategy, execute that strategy and manage their
influencer marketing campaigns. They work closely with influencers and have a
deep understanding of influencer value. So they help brands find a good
influencer within the brand budget and achieve the brand's marketing goals.