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With the introduction of influencer marketing over the past few years, pricing points have become a subject of interest for many brands. Many brands have started shifting their marketing techniques from traditional methods to those online by using influencers to promote their products. And with the ever-changing market that is influencer marketing, influencers have started charging more and more over time since they have realized how effective they are at product promotions. They know they’re worth the cost of influencer marketing.
Follow below for the different types of promotions that brands run, an example price breakdown, different types of influencers, how to run an effective campaign, and another example of how smaller influencers can be an effective strategy in your brand’s campaign.
Different Types of Promotions
When it comes to paying influencers to promote your brand’s product they can charge based on three different types of promotions. The first type of promotion that influencers can run is for brand awareness. Brand awareness is a term used to describe the degree of consumer recognition of a product by its name. For example, popular examples of brand awareness used in influencer marketing are Honey, Hello Fresh, Adam & Eve, and many more. These brands spend lots of money on influencers to get the name of their product out in the world. Oftentimes, brand awareness is one of the most common types of promotions that you see on social media.
Another type of promotion that is commonly used in influencer marketing is product launch. A product launch is a planned effort by brands used to spread the word about the release of their new product or service. The goal is to make sure that the target audience, everyone inside the company, and your partners all know about the product! It is just as important to have a successful product launch as it is to have a successful product. Influencers can play a role in this by helping spread the word about the launch of these new products.
The last type of promotion that is used in the influencer marketing industry is app installation. Oftentimes app installation is used for new games or social media sites that are starting up. This will occur on social media sites like Instagram or YouTube, where influencers provide users with a link that directly takes them to the app store.
The pricing for each of these promotions differs depending on the influencer, number of posts (in-feed, stories, IGTV, platform, etc), etc. Find the cost of influencer marketing per promotion in the table below. (For the sake of simplicity, we will be using a micro influencer for our pricing platform.)
$10 per 1000 followers
$25 per 1000 followers
Snapchat $10 per 1000 followers
YouTube $20 per 1000 followers
Looking to run an epic influencer marketing campaign? NeoReach has the best experience in creating viral campaigns that convert on social media. Sign up here!
Different Types of Influencers
In recent months, brands have started to stray away from using mega influencers to those with less of a following, finding it has been more successful! The cost of influencer marketing varies with the size of the influencers:
- Nano Influencers: <10K
- Micro Influencers: 10K – 50K
- Macro Influencers: 50K – 1M
- Mega Influnencers : 1M+
As one would expect, nano influencers would charge just a fraction of the price that mega influencers would charge for brand deals. Oftentimes, you would even get less content for more money with mega influencers! In recent years, brands have started turning to nano and micro influencers to help run their online campaigns where they have started to see greater successes.
Although mega influencers can boast millions of followers, oftentimes they would not be the ones buying a promoted product This is where nano and micro influencers come into play. Even though these influencers have a much smaller following, these followers are often more loyal. They feel a connection with the influencer and would even be willing to try out a product that they are promoting since it is within the category that they like.
These smaller influencers even make it a lot easier for brands to promote their product. The smaller followed accounts have followers that obviously enjoy their content, hence the reason they are following them. For example, if a fishing brand reached out to a fishing influencer, the majority of their followers would like to see the promoted product since they are in the fishing space. On the other hand, if you were to market a fishing brand using big named influencers such as David Dobrik, he would probably not turn a high ROI (return on investment), since the majority of his followers would probably enjoy fishing.
Different social media platforms have different pricing guides. Check out TikTok’s influencer pricing platform here.
An Agency POV
As a brand, it might be difficult to start up and effectively run an influencer marketing campaign, especially if you are new to this industry. This is where NeoReach can become handy. We offer two main services depending on what you and your brand are looking for currently. First, we have our SaaS platform which allows your brand to search our database of over 2 million influencers to find specific influencers right for your campaign. From here you can create lists, organize notes, and effectively run your campaign all through our website. So what’s the cost? NeoReach charges $1,500 a month with a minimum 12-month contract for a brand to use this platform.
On the other front, NeoReach offers agency services that allow the brand’s team to step back and allow the influencer marketing professionals to take over. They handpick specific influencers, reach out and negotiate contacts, track analytics, all with you and your team by our side. The cost of influencer marketing from this POV is a minimum of $50,000 for an all-in campaign. NeoReach has partnered with some of the best brands such as DraftKings, Netflix, TikTok, AirBnB, and many more.
Influencer Marketing Is For Everyone
We have our own example of using nano and micro influencers with one of our recent clients, Quevos egg chips (link to our article found here). This brand wanted to partner with nano and micro influencers in the health and wellness space in order to promote brand awareness for their new high-protein, low-calorie egg chips. The influencers were all sent free samples and were instructed that they would receive a commission for any sales they had using their unique discount code. Now onto the cost of the influencer marketing for Quevos and their incredible return.
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Quevos wanted to spend a total of $1,500 per month for three months (a total of $4,500). At the end of the campaign, website traffic increased by 15,000 users, Quevos’s Instagram followers doubled, and they were able to obtain a revenue of around $25,000! This brings their ROI for this campaign to around 550%!
This goes to show that using influencers with less of a following can really make an impact for your brand, no matter big or small.
For more pricing information on influencer marketing, click here to visit NeoReach’s website if you or your brand would like help to start a campaign.