Understanding the Cost of Influencer Marketing
It is hard to imagine Nike without thinking about Lebron James or Tiger Woods. Now it’s difficult to see a Dunkin Donuts coffee and not think of Ice Spice. These celebrity endorsements help personify a brand's image. Brands capitalize on the emotions we have towards these individuals to build trust between themselves and us as consumers. But not every brand has the ability to work with Jennifer Aniston or Timothée Chalamet. That is where influencer marketing comes into play.
Through influencer marketing, brands can partner with content creators with different following sizes and engagement to fit any budget. Over the last few years content creators have continued to increase their sponsored content rates, as they become the most popular avenue for brands to partner with to promote their brand or service.
What factors impact the costs of an influencer marketing campaign?
The cost of partnering with an influencer is dependent on several factors. Some of the factors Foodie Tribe considers when looking at different influencer rates are: social media reach, campaign exclusivity, usage rights, engagement rate, and/or creator interest. From a brand's perspective, it is important to outline your campaign requirements, goals, and budget prior to reaching out to any creators. This will help you determine who is the best creator to work with depending on the KPIs and goals you are looking to hit with our influencer marketing campaign. Let’s talk about each of these individually!
Social Reach
When we’re talking about influencer marketing, social reach typically refers to the combined total number of followers that an individual has across their social media accounts. Creators with larger followings on a specific social media platform often charge more for campaign activations utilizing even their smaller accounts because of their overall social reach. Most macro and mega creators have a social reach that is greater than their total follower count. Think of content creators like Ninja or Khaby Lame, their recognition extends beyond the followers they have on social media. Brands should be cognizant of this when determining which social media platforms they want to target.
Campaign Exclusivity
Having a period of exclusivity for creators working on your campaign often results in additional fees for their contracted content. At the end of the day, the duration of the exclusivity will put the influencer out of the game on other campaigns with similar brands, so they will charge to make up for those potential missed opportunities.
Usage Rights
How will you be utilizing the content the influencer creates? How long will you be using it? These are two very important questions brands need to ask prior to running an influencer campaign. It is common for influencers to charge additional fees for brands to use their content in any paid promotion. This includes strategies like whitelisting, boosting, amplification, and even repurposing content for other marketing channels.
Engagements
A creator’s engagement or overall engagement rate will often have an impact on the total cost of partnering with an influencer. Creators with high engagement rates have an audience that is interactive and responsive. This provides additional value to the sponsored content they create and as a result it will cost more.
Each of these factors plays a role when understanding the total cost of an influencer marketing campaign. However, relationships can be one of the most valuable elements to consider. At Foodie Tribe, we pride ourselves on the relationships we’ve built with our influencers over the countless successful influencer marketing campaigns we’ve run for our clients.
If you are a brand, and you are ready to incorporate influencer marketing into your strategy then reach out to us, and we can work together to find the perfect creators for your brand and put together a successful influencer campaign!