Influencer marketing is all of the craze lately. Businesses and brands of all sizes are throwing tons of money at kids, adults, pets and craziness of all types, in hope to reach new audiences through the use of social media updates, profile pics, status updates and super short videos.
It seems like all of this just came out of nowhere, but it’s been a growing trend that we’ve all not only been witnessing, but also a part of. Every time you like, share or upvote a status, you are essentially part of the influencer marketing madness.
For the average person, it’s all just normal social media engagement as usual. For the content creator and influencer, it’s just another little statistic that they can provide to brands and advertisers to demand more money for whatever new opportunities come their way.
Yes my friends, we are living in the age of influencer marketing.
What is Influencer Marketing and Where is it Taking Place?
Influencer marketing is just like what it sounds like. Someone joins a social networking platform and starts creating content (whether that be text, images or video) and starts to build a following of their own. As that following and ‘influence’ grows, so does the likelihood that brands and advertisers would pay that individual to write about, showcase and profile a product or service.
This has been happening in the world of entertainment and movies forever, usually through the method of paid placements. It’s also quite similar in that way that commercials and television advertising work. Brands want to choose a great spokesperson for their commercials, and for them to air during peak viewing times and to relevant audiences. However, with television viewership in decline and social media now giving everyone a platform and the ability to reach millions of users instantly, the business of influencer marketing is born and now thriving more than ever.
In terms of where we are seeing a great majority of influencers getting paid for such deals, paid placements and sponsorships — fashion, beauty and travel are the heavy hitters.
Take a look at any of the latest cosmetics marketing industry trends, and you will see there is a ton of money pouring into the ecommerce and online buying space for these markets. Not only that, but also where and how that money is being spent. A great majority of it is coming through social media and the influencers and users that continue to share and promote such products.
This can be backed up even more with the latest news about Kylie Jenner and how she’s built a $900 million empire thanks to her massive social media reach and cosmetics business. According to Business Insider, “Jenner has made her millions, from Kylie Cosmetics to TV appearances to product endorsements”, which are mostly all part of the influencer marketing process.
This is just one example of many, in where influencer marketing is quickly changing now only how customers find, review and buy products online, but also how businesses and brands must now adapt to targeting potential customers and reaching new audiences.
How Much Do Influencers Really Make?
When it comes to the actual amount of money being spent on influencer marketing, we know it’s in the billings, but when it comes to how much each influencer is actually making… it’s often a guess.
There are plenty of advertising platforms online to help you connect with different influencers, which also showcase their rates, but there are also many different factors in place as well. Such factors include how much the ad platform is taking per deal, the amount of deals in place, how many private campaigns are negotiated, and of course what industry the influencer is in.
Just like websites, businesses and blogs… influencers come in many different shapes and sizes. Some might have a following of a few thousand followers, while others may have access to millions across multiple platforms.
There are also plenty of resources and case studies online to help answer this question as well, as there really is no set price or answer. Later.com came out with a resource of their own, and in one section they reference Shane McCloskey, Director of Sales at influencer platform, who went on to say:
“An influencer with a million followers on Instagram may charge $100 for a post, while an influencer with ten thousand followers on Instagram also charges $100 for the exact same post on their feed,”
And further into the resource they also reference rates and advertising packages being offered by different influencers in various niche markets. One lifestyle influencer noted “She also adheres to the rule of $100 per 10,000 followers to calculate her rate.”
But after doing some quick research of your own, you will also find that rates heavily swing in costs depending on your niche market, who you ask and what type of content you would like to publish.
According to this recent article on Fox News “Sponsored posts can range in cost from anywhere between $50 to more than $50,000, according to media news website Mic.com.”. The article also highlights that Kyle Jenner “can make more than $1 million per sponsored post shared with her 164 million followers on Instagram” — which further backs up our reference to how powerful influencer marketing can be in the cosmetics and beauty space.
What this means for advertisers and brands alike, is that there is ample opportunity for transitioning into influencer marketing without the need to blow through a budget in just a few posts. This can be best accomplished by going after smaller and niche specific influencers, versus just going after celebrity names or those influencers with millions of followers.
However, on the influencer side, it’s still a pretty successful and financially beneficial business model. The same article goes on to note that “Nano-influencers, or users with only a few thousand followers, can make anywhere between $30,000-$60,000 per year, according to the report.”
How Businesses and Brands Can Get Started with Influencer Marketing
No matter what your business model is, or the product or service you offer, there is likely an influencer out there just waiting to showcase your brand to their audience–for a price, of course!
However, for new businesses and brands looking to enter this space, it can be quite confusing on how to best approach influencers, knowing what to say and also how much to spend. Even after all of that is done, how are you supposed to track the ROI from your campaigns and know if it’s a success or not?
This is all part of the research and planning process. Social Media Week has a great reference guide that points out the following five-step process to find the most success with influencer marketing.
- Identify your main goal for influencer marketing
- Define a suitable influencer profile
- Discovering potential influencers
- Providing rewards for the influencer
- Measuring results
Whether you are excited about the idea of growing your business or brand through influencer marketing, or disgusted by the idea… it’s now one of the most effective ways to drive clicks, views, fans and customers back to your brand.