Costs of Teaming With Social Media Influencers on the Rise

Recent reports from influencer marketing services indicate that brands and marketers are concerned with the growing costs of working with social influencers. According to a Mediakix survey, more than one-third of marketers in the U.S. explained that the rising cost in this space has become a significant challenge to marketing. A report from Klear points out that nano-influencers on YouTube (with 500 to 5,000 followers) earn an average of $315 per video, and power-influencers (with 30,000 to 500,000 followers) charge an average of $782 per video.

“Brands are willing to pay a premium for video posts on Instagram, too,” reports eMarketer. “Nano-influencers make an average of $114 per video post on Instagram, compared with $100 for an image post and $43 for a story. Power users make an average of $775 for an Instagram video, $507 for an image post and $210 for a story.”

Some social influencers still accept access to events, free products and related swag as payment for their online endorsements and campaigns, but the increasing dollar amounts charged by power-influencers is steering some brands in a different direction.

“Many marketers have shown significant interest in Instagram Stories and are focusing on working with micro-influencers, who have smaller but dedicated followings,” eMarketer notes. A 2018 survey from London-based Econsultancy indicated that 56 percent of marketers in the U.K. and U.S. were opting for more cost-effective micro-influencers.

Marketers are also turning to podcasts. “Brands are eyeing podcasts as the next frontier of influencer marketing,” said eMarketer analyst Lauren Fisher. “They’re seeing great performance and value from host-read ads, which allows brands to tap into the trust and influence that many of these podcast hosts have with their listeners.”