Marketing 3 min read

New Data Reveals the Growing Cost Of Influencer Marketing

Want to partner with a social media influencer to help increase your brand awareness? Well, we suggest that you think twice before getting yourself into influencer marketing. Here's why.

Image Credit: Pixabay

Image Credit: Pixabay

Influencer marketing is an excellent way of getting your products or services to a new audience. Aside from increasing your reach and visibility, it also boosts your brand awareness.

So, it’s not surprising that 63 percent of brands plan to increase their budget for this form of marketing. Instagram’s influencer marketing has already grown to become a $1.7 billion industry.

But, if you have a modest budget, you may want to think twice before partnering with a social media influencer.

According to recent data, the sponsored content from influencers is getting pricier. The rising costs can become one of the major marketing challenges you need to face in influencer marketing.

Here’s a break down of how much brands are paying influencers.

How Much Brands Are Paying Influencers

Image Credit: eMarketer

Influencer marketing charges are determined by the number of followers an influencer has, as well as the platform.

For nano-influencers with 500 to 5,000 followers, the cost is about $315 per YouTube video. As you may have guessed, the price increases with the number of followers.

As a result, power influencers with 30,000 to 500,000 followers make an average of $782 per video.

Compared with YouTube, Instagram influencers are less pricey.

According to reports from eMarkerter, nano-influencers on the Facebook-owned platform make an average of $114 for a video post, $100 for an image, and $43 for a story.

As expected, power influencers, on the other hand, make significantly more on Instagram. They charge an average of $775 for an Instagram video, $507 for an image post, and $210 for a story.

Celebrities on Instagram with over 500,000 followers often charge thousands of dollars for any post.

Affordable Influencer Marketing: Podcast and Micro-Influencers

Instead of spending ad dollars on top-tier celebrities, marketers are starting to consider micro-influencer. These are individuals that could have between 1,000 and 1,000,000 followers but are experts in their niche.

Examples include a local fashionista, travel blogger, or food blogger. It’s a cost-effective way to reach a small but dedicated following.

The engagement of sponsored posts has been sliding downwards lately. Since Instagram stories cost less than all other types of sponsored contents, you may want to consider that too.

However, podcasts are fast becoming the next frontier for influencer marketing. Reports show that marketers spent $479 million on podcasts ads in 2018. And the spend is projected to reach over $1 billion in 2021.

Thanks to the rising cost of YouTube and Instagram influencers, micro-influencers, and podcasters are about to experience a windfall.

Read More: Why the Biggest Companies use Influencer Marketing

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Sumbo Bello

Sumbo Bello is a creative writer who enjoys creating data-driven content for news sites. In his spare time, he plays basketball and listens to Coldplay.

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