How Much Do You Need To Pay For Influencer Marketing?
Social Media Influencer Marketing is a kind of marketing employed by brands that collaborate with social media influencers to promote their products or services. These influencers are usually people with a large following on major social media platforms. They may be A-list celebrities such as actors or professional athletes, or they may even be popular figures of a particular social media platform such as YouTube stars or Instagram models.
Influencer marketing is no longer a foreign word and has gained immense popularity in the recent years. This method of marketing isn’t a new principle. Brands have long been using celebrity as endorsers because they’re an effective way of directing public affection towards the brand and its products.
What do businesses expect from social media influencer marketing?
Posting blindly and expecting to achieve massive amounts of new sales is simply illogical. Any marketing activity requires strategic thinking and goal setting for your business. The AIDA model for marketing is important for any marketing campaign.
AIDA describes a buyer’s journey and it stands for Attention, Interest, Desire, and Action. Using social media can help take potential customers from Attention stage to Action stage much quicker as compared to traditional methods.
The following are major outcomes of influencer marketing:
- Increased brand awareness
Brand awareness is all about making your brand relevant enough to buyers. By using social media influencers, there is a greater chance for your brand to be highlighted amongst users. These influencers may use their social media platform to post about the brand, its products, and services as well as positive feedback, sparking interest and discussions amongst people. This is further helpful in the case of celebrities who have fans that wish to mimic everything there ideal does. When they see their favorite person using products of a particular brand, they are tempted to get themselves a similar piece.
- Increased Interactions
Collaborating with the celebrity or blogger, you can ask them to add tag links to images and description text on their social content. This makes your product just a click or a swipe away from being discovered by new customers. The celebrity may also share the brand Facebook page or Instagram profile on their profile which gains an increased number of people willing to see what the brand offers.
- Better customer insight and data
Social media is a great way to gain customer feedback. You can learn what people are saying about your brand and what further improvements they require. This may be done with the help of reviews, comments, ratings, polls posted by the influencer on their profiles. People can post their opinion and thoughts and rate the product, giving you an overview of what people like and dislike. Furthermore, you can also use this to address customer complaints in a timely fashion. This allows the brand to stay ahead of large-scale complaints and create brand loyalty. According to studies, prompt response to customer service requests leads to the customer ends up spending 20-40% more.
- Wider community of advocates
Brand loyalty is a key feature in the growth of any brand. Brand loyalty means a customer to be extremely satisfied with a company’s product and recommending it to others as well. Unlike the traditional ways or spreading worth of mouth, social media allows people to share their experiences with thousands of people online. Be it a picture or a brief status posted by your chosen influencer; it will reach all of their followers who will learn about the product resulting in the brand gaining mass exposure.
How much should you actually pay for an influencer?
Not everyone has millions of dollars to spend on promoting their products neither does spending big bucks ensure success. This can only be ensured by the correct tactics to engage the customer and lure them into spending on the brand. However, you still need to pay a decent amount around $5000 to $12,000 provided you are making use of an agency such as NoxInfluencer.
Factors affecting the cost of influencer marketing
It is important to know that the cost of influencer marketing tends to vary from influencer to influencer. Mentioned below are factors to be considered when deciding rates that are suitable for both you and the influencer.
- Social media platform
A key factor influencing costs is the social media platform chosen for the marketing. There are a few preferred platforms for social media influencer marketing while the others are not as quite used for this purpose. This is discussed further later in the article.
- Following
The reach of the advertising channel is very important to determine the rates. The greater the number of followers, more likely it is for that influencer to charger higher. This is simply because, with more followers, a brand is able to reach a wider audience and the influencer charges more for doing so.
- Product
The product the brand wants to sell highly affects rates. To put it simply, the more expensive your product is, the higher the influencer will charge for promoting it on their social media.
- Campaign
The kind of campaign you wish to employ is also an important factor in determining costs. It all depends on the number of posts the brand requires from the influencer, whether the posts need to be made by the influencer themselves or will they be provided by the brand, does the brand require the influencer to keep the posts permanently on their social media profiles as most of them tend to delete sponsored posts once the campaign is over.
Social media platforms
The social media chosen for the promotion of a brand is extremely important. Mentioned below are social media platforms ranked according to preferred platforms for influencer marketing.
Instagram is the top choice for social media influencer marketing. It is the most-used social media platforms these days. You can find people belonging to many different kinds of fields of interests, all of them having a large fan following that means a wider audience to be targeted. According to research, on average 66% of businesses pay below $250 per post on Instagram while 27% reported being paying between $250 and $1000. This still leaves 7% that pays over $1000 for a single Instagram post.
- YouTube
YouTube may be easily considered as the modern day television. It caters a wide variety of audience ranging from kids and toddlers to teens as well as adults and older people. The suggested amount of YouTube content is about $50 to $100 per every 1,000 video views. You can also say that on average $20 is charged per 1,000 subscribers.
- Snapchat
Although Snapchat is not a widely used option for influencer marketing, it is one of the most used social media platforms especially among teens and young adults. Big Snapchat influencers may charge around $11 to $25 per 1,000 followers while the smaller ones may cost $2 to $20 per 1,000.
Influencer calculating tools
Some social media make use of calculating tools to help suggest costs per post based on the engagement and reach of the social media influencer.
Instagram Money Calculator tool allows you to add the username of the influencer you wish to use, and the calculator will estimate the earnings per post.
Similarly, with YouTube Money Calculator you can copy a YouTube video URL of your chosen influencer, and you will be shown estimated video earnings based on views.
Conclusion
Social media influencer marketing has been and will continue to be popular among brands. It is a great way to improve brand advocacy and increase brand exposure by targeting potential new customers. It all depends on choosing the right influencer who can use the correct tactics to promote the brand to have increased revenues and gradual success.
