A new report from eMarketer has revealed how much some brands would be willing to pay for promotion on social media through social influencers.
Seeing sponsored posts on the accounts of celebrities and social media influencers is nothing new, and is now pretty common, with many businesses using influencers to promote their brand and products. However, the eMarketer report has suggested that this sponsored content is now becoming more expensive, posing a challenge to marketers.
What is a social media influencer?
An influencer is a social media user with established credibility on a specific platform. They tend to have large audiences and are able to persuade, or influence, others because of this reach.
According to the eMarketer report, there are four different types of influencer, and these are defined simply by the number of followers/subscribers the account has.
A nano-influencer is the bottom level of the pyramid, and is someone who has between 500 and 5,000 followers. Once this has been surpassed, the influencer becomes a micro-influencer, with a follower base of between 5,000 and 30,000. Next is the power influencer who has an audience ranging between 30,000 and half a million followers. Finally, a celebrity influencer is someone with an excess of 500,000 followers.
How much do influencers earn?
The study shows that even nano-influencers can make money from their trade. At this level, it ranges from $31 US dollars for a Facebook post to $315 for a YouTube video. A post on Instagram can bring in $100, whilst an Instagram video would cost a little more at $114.
For a micro-influencer, the price of a Facebook post would go up to $318, with an Instagram post costing $172 and a YouTube video $908. However, the research suggested that a micro-influencer would cost more than a power influencer for both Facebook and YouTube promotions, which would be unexpected considering that the reach of a power influencer can be more than 10 times that of a micro-influencer. However, any kind of Instagram post would cost more for a power influencer to promote.
Should a brand wish to utilise the social reach of a celebrity, it will have to pay big money. An Instagram story post, which only lasts for up to 24 hours, would cost $721, with an Instagram post costing considerably more at $2,085. A YouTube campaign with a celebrity influencer would cost close to $4,000.
With the cost of using a influencer increasing, many brands are now turning towards micro-influencers, as they are more likely to come within their budgets in comparison to celebrity and power influencers. The report showed that 38% of respondents said that they were concerned by the rising costs of using a social media influencer.
Trends suggests that as a result, marketers are now looking at focusing this type of campaign at Instagram stories, as they tend to be the cheapest type of sponsored content.
This data can give a company’s marketing department a headache as they would need to ensure they stay within budget, while reaching the largest number of people possible.
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