In 2021 63% of brands increased their influencer budget. What caused the brands to upgrade their budget? Are they investing more in influencer marketing or have the prices of individual influencers risen?
In this post, we will discuss these questions, as well as ways you can determine what a fair price is to pay influencers.
Influencer marketing has seen a boom this past year, more and more small-medium brands are investing more into influencer marketing as they see it can be a great growth driver to their business. If anything, there has been a slight decrease in individual influencer's prices as the number of new micro-influencers popping up has risen with the sudden growth in the industry.
Key Factors That Drive Content Creators Pricing and How Your Brand Can Plan for It?
- Followers: As a general rule, the more followers an influencer has the more they will charge for a sponsored post. Although the engagement of these followers also plays an important role.
- Content Quality: If the creator creates high-quality content that has a unique style then you should expect to pay more compared to ones that do not.
- Niche: The niche of a creator also plays a role in how much you should expect to pay. Niches like fashion are saturated with many influencers, so you can expect to pay less than you would for a creator who creates content around something like woodworking.
How Can Brands Determine Fair Prices?
One way is to identify a few creators you want to work with, ideally with similar followings and niches. Next, reach out with your campaign pitch and request their pricing info for what you are wanting. You should be able to get a sense of the going rate across those few creators you've reached out to. Another option is to use something called an influencer price calculator, which will use many data points to get you a more accurate depiction of what influencers are charging.
What Is an Influencer Price Calculator and How Can You Use it for Your Next Influencer Partnership?
An influencer price calculator helps estimate what you should pay an influencer, based on factors like follower count and engagement rate. Most calculators aren't accurate as they are only looking at those 2 factors. Collabstr's influencer rate calculator takes into account over 10,000 real rates from influencers based on similar followers, platforms and niches.
You should always use a price calculator to get a sense of the going rate for influencers similar to the ones you want to work with to make sure you are getting a fair deal.
3 Main Differences Between TikTok and Instagram Influencer Budget and How Your Brand Can Plan for it
- More bang for your buck on TikTok: TikTok videos can go viral and blow up, while others can flop. Given this, the rates reflect this "gamble" you are taking when working with creators on TikTok. So, you can usually get a good deal even from a larger creator.
- Instagram rates are more standardized: Since Instagram has been around longer, and has a more stable algorithm. The rates you can expect to pay for a creator with a certain amount of followers will be much more similar in comparison to TikTok, where the variation is much larger.
- TikTok Influencers sometimes charge differently: Given the uncertainty of a video going viral versus being buried amongst others, some influencers charge based on how many views a video receives.