When looking into Instagram marketing, you’ve no doubt heard that influencer campaigns are by far the most successful. The facts don’t lie. Influencer marketing is basically a form of word-of-mouth marketing, which is the most effective form we know. Since 86 percent of consumers said that they used the advice of an influencer when making a purchasing decision last year, we know it’s working.
It’s particularly effective on teens, according to research gathered by The Digital Marketing Institute. About 70 percent of teens say they value the advice of influencers more than they value that of celebrities. Influencers get three times as many views from teens, twice as many actions, and 12 times as many comments on videos compared to that of videos posted by celebrities.
Furthermore, influencer marketing is the fastest-growing method of online customer acquisition. It’s accessible and cost-effective, especially considering the ROI. This year, 67 percent of marketers say they’re going to increase their influencer spending as a result.
But just how much will they be spending to see such an improvement in their Instagram analytics dashboards? Is influencer marketing accessible to all businesses, even those without a huge marketing budget? While the cost for every campaign will vary, here are some insights into the true cost of influencer marketing.
Average Charge Per Post
There’s a generally accepted standard across Instagram that influencers charge about $1,000 per 100,000 followers. So, if you’re asking someone with 10,000 followers to make a single Instagram post endorsing your products, you’re probably looking at an investment of $100. Not too bad when you consider the potential ROI.
Of course, the standard does not apply to all influencers. Some have a more dedicated following with a clear influencer strategy that makes their value clearly higher than others. For example, Kim Kardashian, one of the most trend-setting influencers on the internet, charges more than $250,000 for an Instagram photo, far more than the standard rate. Those who can afford her rates and pass her requirements report that the ROI is worth the expense, but it’s not something all businesses can manage.
An influencer may change their standard pricing based on a few key factors, including:
- Amount of Generated Engagement: You can take a look at the engagement numbers for each influencer to determine the potential ROI. Some will have significantly higher ROI for products similar to your own, making them a higher-priced target. Make sure to review their Instagram analytics too to make sure the engagement is genuine.
- The Fit: You want to find an influencer that stands to mutually benefit from the connection, but that’s going to cost extra. The more valuable the connection is, the higher the price tag will be.
- Bundling: Most companies don’t do just one influencer post. They want several endorsements, which may come in a bundle deal. Many influencers will charge less per post if you buy a series rather than just one.
- Post Type: There are multiple kinds of content, including text, graphs, podcasts, webinars, videos, memes, etc. You’ll be charged based on the predicted rate of engagement. Videos, for example, typically see the most engagement on social media, so they will likely be the highest priced items.
- Hourly Rates: After discussing your vision with an influencer, if they feel that they’ll be required to put in extra time and effort to develop a post, they’ll likely charge you an hourly rate on top of their standard fee to compensate.
- Ad Location: There may be different pricing for an ad that takes place in Instagram Stories vs. in your feed. If the influencer tends to receive more engagement in a certain location, it will likely be priced higher than others based on the value.
Finding A Mutual Fit
Since you’re paying a premium for an influencer endorsement, try to get the best fit possible. Find an influencer who stands to benefit from a partnership with you almost as much as you will. Part of this fit is the money—any influencer will benefit from the payout. But remember that influencers have a brand to maintain as well. They don’t want to endorse something that’s off-brand, so finding someone in your niche is best.
For example, if you sell a specially formulated protein powder and other wellness products, a fitness guru who likes your products is the perfect influencer for you. They have the same target audience, and the endorsement will be mutually beneficial.
Starting With 10,000 Followers
About 84 percent of influencer partnerships in 2018 were with micro influencers, or those with around 10,000 followers, give or take a few thousand. Part of the reason businesses choose micro-influencers is the more affordable price tag, but there’s also the super-targeted niche that’s ready for your products and services.
Micro-influencers typically have a smaller, but more targeted audience to work with. Think about it this way: Kim Kardashian has millions of followers with millions of different interests. Your products won’t be appealing to all of her audience, but you’re paying an incredible price to reach all of them. If you go with a smaller influencer with, say, 15,000 followers, however, you’ll spend less and reach 15,000 people who have expressed a real interest in the products you’re selling.
If you’re looking to increase sales, collect more leads, or get more followers on your own Instagram page, micro-influencers offer the best bang for your buck. Their endorsements are affordable and deliver excellent results every time.
Saving Up For The Big Leagues
Partnering with an influencer with more than 100,000 followers (also called mega influencers) is a huge investment, and it can pay off if you play your cards right. You won’t be reaching as closely targeted of an audience as you would with a micro-influencer, but it’s excellent for raising brand awareness.
If you’ve surpassed the startup stage and are looking to become one of the biggest competitors in the industry, you need an endorsement from a mega influencer. The costs for these endorsements vary, but you could be paying between $1,000 and $5,000 for the average endorsement. If you’re targeting a celebrity, expect a five or six-figure payout. Make sure you find a good fit, and your money should be well-spent.
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