There are far too many sets of data available that prove convincingly that consumers, especially among Millennials and Generation Z, are moving away from traditional and becoming more invested in social media and the influencers found on these platforms. We have put together all the important influencer marketing spend data which doesn’t only prove that influencer marketing cannot be ignored today, but can also help you plan your own influencer marketing campaigns across different platforms.
Through the statistics listed below, you will discover details about the influencer marketing market size, the average cost of hiring a digital influencer, some of the factors that should be observed when setting up an influencer marketing campaign, and more. You will note that a large number of the points below are related to Instagram. This is because the platform is by far the most popular for influencer marketing and an integral part of 9 out of 10 campaigns already. However, there’s sufficient useful information for other social media as well, ensuring that you get all the data you need, no matter what social media influencer marketing campaign you opt for in 2021.
Although a relatively young phenomenon, the rapid influencer marketing growth rate and the popularity of social media influencers aren’t going to cease anytime soon. From being worth $1.7 billion in 2016, it has grown more than three times to reach the value of $5.6 billion in 2019. Expect many more social media celebrities flooding your feeds in the coming months.
Another 11% have their influencer marketing budget between $100000 and $500000, with only 2% of the campaigns going above $500000. For those of you wondering how much should you spend on influencer marketing; research from Entrepreneur.com shows between 1% and 25% of your overall marketing budget is a good rule of thumb. While $100000 for one campaign isn’t a small amount, especially for small or even medium-sized business owners, it looks very affordable compared to the cost of advertising through traditional media like print and TV. Plus, the ROI is also supposed to be a lot better with influencer marketing.
Of course, the engagement rates vary across platforms and depend on several other factors, but this is a reasonable target to aim for when designing an influencer marketing campaign. Social media influencer marketing is also the most cost-effective channel for customer acquisition, returning $6.85 in earned media value for every dollar of paid media.
Marketers see positive results from their investments in influencer marketing and plan to increase their budget allotment to this channel in large numbers. 54% of those surveyed were planning to spend more than $250000 on influencer marketing in 2019, while 17% were planning to go beyond $1 million.
Influencer marketing is a new endeavor for many marketers. The variety of options to run campaigns, as well as the different ways in which an influencer marketing campaign can affect a brand’s presence in the market, make it challenging to choose the right KPIs to measure the success of the campaign. Even when you have selected a set of KPIs, measuring them can prove a difficult task on its own.
The first step in determining your influencer marketing budget is to have a plan to track the influencer ROI. According to a survey of US marketers in 2018, engagement was considered a more important metric to measure the success of an influencer campaign than it was in 2017, with 90% of the respondents mentioning it. In descending order, the other metrics were traffic/clicks, reach, conversions, product sales, audience sentiment, and others.
As a starting point, it helps to know about some of the more common influencer marketing pricing models: pay-per-post (flat fee for every piece of branded content posted on social media); pay-per-click (a fixed amount for every time someone clicks on a brand link); pay-per-acquisition (fee for every new customer brought in by the influencer—affiliate programs can be considered one form of pay-per-acquisition); pay-per-engagement (price for every like, comment, share, retweet, or reaction from users); and free products (merchandise, exclusive events, unique experiences in return for advertising).
According to the same study, 45% of influencers receive about four proposals for paid influencer marketing campaigns every month. While four doesn’t sound like much, the time and effort that go into an average campaign cause influencers to be selective about what brand they choose to endorse. Monetary income is a prominent factor that guides the decision, but influencers are also looking for the right value—if your brand can offer them a value stronger than money, you might be able to build a strong, long-lasting relationship with the right influencer.
According to data from Influencer Marketing Hub, the average engagement rate across all social media networks is just 1.5%. While other channels like YouTube and Facebook also work well as influencer marketing platforms, Instagram’s photo- and video-sharing format makes it ideal for brands to engage with users with the help of influencers. Instagram’s features have made it nearly synonymous with influencer marketing, and 93% of influencer marketing campaigns now make use of the platform.
That brings the cost per follower on Instagram to 1 cent. An important thing to understand is that there’s no one-size-fits-all pricing in the world of influencer marketing. While the above rate is a good rule of thumb to get an idea of how much a marketing campaign will cost, factors like client budget, engagement rate, campaign length, and other details can alter the exact cost.
According to research by Digiday, depending on the number of followers, the per-post amount charged by influencers on Instagram can vary quite a lot. Standard Instagram influencer rates are: 2,000 to 10000 followers: $75 to $250 per post; 10000 to 50000 followers: $250 to $500 per post; 50000 to 100000 followers: $500 to $1000 per post. Influencers with a small group of followers often see a higher engagement rate for their posts compared to those with hundreds of thousands of followers. So, brands should put some effort into understanding which type of influencer best serves their purpose.
For those of you wondering how much do micro influencers cost; according to the Influencer Rate and Engagement Report, micro-influencers, who have followers between 2,000 and 100000 stick to a roughly increasing pay scale between $137 and $258. Since the study averages the fee charged by 2,885 influencers, the graph isn’t uniform and throws up a slightly strange figure of influencers with 5,000 to 25000 followers charging less than those with 2,000 to 5,000 influencers. However, this still gives a rough image of marketers’ potential marketing costs.
How much to charge per Instagram post depends on your engagement rate more than anything else. A study of over 800,000 Instagram users, with a majority having more than 1000 followers, found that those with about 1000 followers generally received likes on their posts 8% of the time. On the other end of the spectrum, users with 10 million-plus followers received likes only 1.6% of the time. The engagement rate dropped both for users who had less than 1000 followers and for those who had over 1000 followers. This drop in engagement was particularly steep in the 1000-10000 follower range. Comments on the platform showed a similar trend.
Engagement rate, a critical factor in deciding influencer marketing pricing, is essentially the likes and comments an influencer gets for each post on Instagram. To calculate the average engagement rate, collect information on at least 15 Instagram posts made by the influencer over the previous two months. Do not include viral content as these are outliers and can skew your data. Plug the information into this formula: Average engagement rate = (A + B + C + …)/Number of images, where A, B, C, etc. are engagement rates for individual posts and are calculated using the formula A = (Number of likes + Number of comments)/Number of followers.
Still wondering how much does influencer marketing cost? We know by now that there are too many factors involved for there to be a one-figure answer to this. But the average fee paid by companies should provide a good idea. According to a survey of businesses on the average cost they pay for sponsored Instagram posts, a vast majority seem to opt for influencers with moderate following, as reflected in the per post fee. While 66% paid between $0 and $250, 27% paid between $250 and $1000. Only 4% paid between $1000 and $3,000, with 1% each falling in the higher bands of $3,000-$5,000, $5,000-10000, and $10000-$20,000.
Kylie Jenner is the highest-paid influencer on Instagram, even though there are other celebrities with a higher number of followers. Her 110 million followers in 2018 were about 28 million short of Selena Gomez, who charges $800,000 for each post. Cristiano Ronaldo, with 133 million followers, charges $750000. It is, again, evident that the fee is not always directly proportional to the number of followers and involves several other factors too.
The average rate per sponsored post also varies based on the vertical the post/influencer is related to. This variation can be quite substantial, with travel ($220 per post), entertainment ($209 per post), and home & lifestyle ($204 per post) at the top. Further down the list are beauty ($160 per post), art & design (148 per post), and business ($134 per post).
Here’s another example of how the Instagram influencers cost and the engagement rate aren’t always in sync. Photography influencers typically charge $171 per post but have the highest engagement rate at 7.7%. Art & design, which is near the bottom in the per-post fee ranking, has the second-highest engagement rate. And while entertainment and home & lifestyle influencers typically charge high fees, their engagement rates are among the lowest.
The location of the influencers and their followers also has a bearing on the average cost of influencer marketing. Thanks to a recent surge in Instagram users who also show higher engagement with sponsored content on social media, UAE influencers charge $274 per post on average. This is 25% higher than the average rate in the US, which has the most significant percentage of Instagram accounts globally. While the cost of living and average salaries may come into play with how much influencers in different countries charge for sponsored posts, that’s not always the case. For example, Singapore, despite being one of the world’s most expensive cities, is on the 13th spot in terms of influencer marketing cost, behind countries like Colombia, Brazil, and Malaysia.
This one’s easier to understand. The age of the influencer, generally, reflects the age of their follower base. The higher the purchasing power of the audience, the higher the worth of its engagement with your brand. Other factors like the influencer’s celebrity status, number of platforms they have a presence on, the campaign structure, etc. also affect the pricing.
Though prominent brands typically look for influencers with at least 5,000 followers, some businesses would be fine working with influencers with significantly lower following, too, as long as it serves their purpose. The key here is to convince the company that the profile of your followers exactly matches that of the business’s target audience. For influencers with a small following, the payment may not always be in cash but kind. Using an Instagram influencer calculator, multiple versions of which are readily available online is a simple way to get an idea of what your Instagram account can earn through influencer marketing.
YouTube is a slightly pricier option for advertising than Instagram because the effort involved in creating content is generally higher. Advertising on YouTube is through the Google AdWords network, which involves bidding for ad placement. This makes it difficult to arrive at a definitive price. Based on the above average cost, sponsors typically pay about $20,000 to reach 100000 viewers.
For those of you wondering how much do sponsors pay YouTubers; on average, this goes up to $1000 to $3,000 per video for 100000 to 500000 channel subscribers, and $3,000 to $5,000+ per video for more than 500000 subscribers. As with other platforms, other factors have a bearing on the pricing, including the kind of engagement the influencer can offer, the manner of advertising, the vertical, the demographics of the subscribers, etc.
Advertising revenue is the most common source of income for YouTube influencers, and it is earned through the YouTube AdSense partnership programs. Ads are embedded on a YouTube channel page and generate revenue from the channel viewership. YouTube keeps 45% of the generated ad revenue. Even on other platforms, influencers do not always get to keep every dollar paid by the brand they work with. Very often, the amount that reaches them after paying the platform, taxes, and the production expenses is a fraction of what the campaign costs.
However, it turns out that there’s a lot more to this question. A “view” from an advertiser’s perspective is when someone clicks the ad or watches for 30 seconds. So, a YouTuber’s video might get millions of views, but if none of the viewers watch or click on the ads, there won’t be any advertising revenue generated. Earnings also depend on the cost-per-click or cost-per-view rates, which can vary substantially.
How much do social media influencers make on YouTube? Ryan ToysReview, a channel featuring 7-year-old Ryan (last name undisclosed), has 17 million subscribers and over 25 billion views in total. The earnings of this channel, on which Ryan reviews different toys, jumped from $11 million in 2017 to $22 million in 2018. The influencer with the highest number of subscribers—95 million by mid-2019—made $15.5 million in 2018, earning him the 9th spot among top-earning influencers.
How much do influencers charge per post on Snapchat? Considering that posts on Snapchat disappear in 24 hours, one would think that the advertising cost would be lower. However, a view is a view. Plus, Snapchat followers are considered to be the most engaged among any of the top social media platforms, and a lot of effort goes into building a following here. Thus, the rates are comparable to, and sometimes even higher than the ones on other platforms.
The typical compensation for influencer marketing on Snapchat is as follows: $500 for 1000 to 5,000 views; $1000 to $3,000 for 5,000 to 10000 views; $3,000 to $5,000 for 10000 to 20,000 views; $5,000 to $10000 for 20,000 to 50000 views; and $10000 to $30,000 for 50000 to 100000 views.
These three are generally not the primary platforms in an influencer marketing campaign. A common method to make use of these platforms is to hire social media influencers on Instagram or YouTube and then getting them to make a post mentioning you or linking to your account on these platforms for a nominal fee per post. Influencers also do not have their largest following on these platforms.
The cost of influencer marketing for mention in a blog post is roughly $0.005 for every person reached. Blogs are also a very effective way to advertise your brand. While a blog post might not get your brand hundreds of thousands of views immediately as it would on Instagram, sometimes a well-written article is just what you need to get the best points of your brand across. Truly useful articles also get shared and forwarded across the internet, eventually getting you a lot for a small investment.
The average rates for influencer marketing campaigns are about 1 cent per follower on Instagram and 10 to 30 cents per view on YouTube. However, target influencer marketing spend depends on multiple factors like the engagement rate of the influencer, audience demographics, type of advertising, platform, industry, etc. While deciding on the influencer they should hire, brands should take into consideration if working with a micro-influencer, who promises lower average rates and higher engagement with a nice audience better serves the purpose.