The foundation of every influencer marketing campaign is a well-defined budget. In 2022, around 75 per cent of marketers give part of their budget to influencer partnerships. The amount of money brands use for influencer marketing varies greatly. The number of influencers a company works with and the type of online marketing campaign have a high impact on the budget a company expects to spend. Most brands spend less than $50,000. Regardless of whether the budget varies between $5,000 and $50,000, specific information will be offered to help companies plan their budget.
The right value proposition
A company’s offer should attract a large number of people, without costing much. It is profitable to give non-pecuniary incentives and rewards that will allow a company to secure collaborations with influencers that have been previously selected. For example, free products or event passes have a higher value for influencers and the real cost for the brand is low. Influencers prefer collaborations that allow them to offer value to their followers, e.g. discount codes, which help them achieve high engagement with their target audience.
Th influencer’s remuneration
If a company wants to get results, it has to pay influencers for their time, their efforts and for a job well done. Marketers try to find the right middle ground between offering a fair payment, risk management and a high return on investment. Organisations, when determining their budget for influencer marketing, should consider which of the following payment models is best for their campaign:
1 Gift of products: offering free subscriptions in exchange for advertising on social platforms is a good method that might work with brand ambassadors or influencers because they are fans of a company’s brand.
2 One-off commission: a company can accept a fee based on the content given by influencers. This makes budget forecasting much easier.
3 Performance-based pricing: it allows marketers to better study post-campaign data and compensates influencers for the conversions they have contributed to.
4 Revenue sharing: allows you to pay influencers by giving them a percentage of the earnings from each sale they manage to generate. This allows brands to monitor the performance of influencers, but also minimises the risk of low ROI.
Cost of influencer marketing
The payment of an influencer varies according to the individual influencer’s posts. Working with macro-influencers or celebrities will result in a higher payment. Data from the Influencer Marketing Hub shows how influencer prices change according to different categories:
Nano-Influencer: $ 10-$ 100 per post
Micro-Influencer: $ 100-$ 500 per post
Macro-Influencer: $ 5.000-$ 10.000 per post
Mega- Influencer: più di $ 10.000
Cost of influencer marketing on different social platforms
Some social platforms and different types of content take a long time to create. Data provided by the Influencer Marketing Hub says that YouTube is the most expensive social media for influencer marketing, followed by Instagram and TikTok
Average price ranges for average influencers on the different platforms:
YouTube: $ 1.000- $ 10.000 per video
Instagram: $ 500- $ 5.000 per post
TikTok: $ 125- $ 1.250 per post
Compliance commissions
Compliance fees include legal or administrative costs associated with creating contracts with influencers, non-disclosure agreements, or exclusivity. If a company wants to work with an influencer for a long time, it will need to ensure that the contract and brief have appropriate legal and marketing features. This will protect the company and the influencer and avoid non-compliance by making the expectation of the campaign clear to both. Brands could also pay extra fees for the influencer and for exclusivity, because influencers would give up collaborations with other brands, which would have a decisive effect on their revenue. If a brand wants to have the rights to use content generated by an influencer on its social channels, it will have to pay a ‘premium’.
Marketing software for influencers
The use of software such as Upfluence helps companies make online marketing campaigns that have a big impact on their target audience and also offers tools for campaign management, such as finding the right influencer, sending out briefs or making payments.
This will save a company’s marketing team a lot of time, even if they incur monthly or upfront costs.
The multimedia space
Companies can increase the reach of their online marketing campaign by paying for social media ads, website ads or newsletter sponsorships. By combining influencer marketing with campaigns on social platforms, organisations ensure that the content created by influencers can increase across all marketing mediums and deliver more results for a company’s brand. The company should not forget additional costs such as hosting events, sending product samples or hosting its website, etc.
