Nowadays, if there’s a single Instagram marketing strategy gaining momentum then that surely is influencer marketing.
If there’s anything troublesome about influencer marketing, it’s that there is definitely a bunch of marketers trying to determine Instagram influencer pricing.
Yet, with the influencer marketing industry expected to be worth up to $15 billion by 2022, it seems marketers are left with no other option but to find their way around it.
Тhis can cause a lot of headaches, but when you see the ROI come in from your influencer marketing efforts, it’ll make going through the trouble of pricing and budgeting for an influencer campaign worth it.
Still, there are many factors contributing to the overall influencer marketing pricing that can prove to be helpful in the long-run.
From understanding the different types of influencer campaigns you can plan, to the different types of influencers you can collaborate with – once you wrap your head around it, it all becomes more pragmatic and manageable.
And that’s precisely what we’re aiming at in this text, so read on if Instagram influencer pricing intimidates you or if you’re not sure how to set pricing.
Table of Contents
- What Are Influencers and Why Are They Important?
- Types of Instagram Influencer Campaigns
- Different Instagram Influencer Tiers
- Instagram Influencer Pricing Factors
- Final Thoughts
What Are Influencers and Why Are They Important?
If you look up the definition of the term influencer on Google, here’s what you’ll find:
In general, an influencer is a person or thing that influences another.
In a marketing context, an influencer is described as a person with the ability to influence potential buyers of a product or service by promoting or recommending the product/service on social media.
So, influencers are people who usually have a large number of social media followers, create engaging content and are in a position to influence others with their suggestions and recommendations.
And when marketers decide to collaborate with influencers, that marketing strategy is known as influencer marketing strategy.
Way back in 2016, Forbes called influencers celebrity endorsements. Though influencer marketing may not be a dream job from childhood but it does pay heavily.
In fact, it seems influencers are so highly regarded, that their social media importance surpasses that of actual celebrities.
And if you still have some doubts about the power of influencer marketing, consider the following 2020 influencer statistics:
- 70% of teens trust influencers more than traditional celebrities
- 86% of women use social media for purchasing advice
- Influencer marketing campaigns earn $6.50 for every dollar spent
- Influencer marketing Is the fastest-growing online customer-acquisition method
- 67% of marketers promote content with the help of influencers
- 60% of consumers have been influenced by social media or blog while shopping at a store
As much as statistics and research data might be reliable, they aren’t helpful with certain practical aspects such as answering the question of how much does an Instagram influencer cost?
Types of Instagram Influencer Campaigns
The purpose of every influencer campaign is to raise brand awareness, reach new customers and generate more revenue.
And social media is the perfect format to do so!
In fact, when it comes to influencer marketing, Instagram is the leading social media channel. And, as such, it allows you several options to choose from for your campaign.
You may not have organized giveaways (yet), but one thing’s for sure – if you have an Instagram profile, you have definitely seen one at some point.
Although giveaways are short-term, they’re quite popular and at the same time they’re a great way of raising brand awareness.
Giveaways are orchestrated by giving an influencer your product/service to offer to their followers.
Entering and engaging with the giveaway involves followers tagging their friends, new users following the influencer’s Instagram profile as well as the brand’s profile. There are many different ways to enter giveaways.
Giveaways are significant, as they involve a lot of comments and likes; they increase the engagement rate and leave everybody satisfied.
The followers get a chance to win a free product, the influencer increases their engagement rate and following and the brand promotes its product/service, plus potentially gains more followers on Instagram.
Takeovers are becoming increasingly popular, but they’re usually not the first part of an influencer campaign.
Oftentimes, after a brand has gained confidence in a particular influencer, they would offer them access to their Instagram profile so that the influencer creates content for the brand.
This can be a one-off engagement, or it can last for a longer period of time – it’s a mutual decision made by the brand and the influencer.
Sponsored Instagram Content
Sponsored Instagram content is one of the most frequently used approaches when it comes to influencer marketing.
The success of influencer campaigns isn’t random. In fact, there’s a higher digital hierarchy when it comes to how well certain content formats are accepted.
Based on the results presented in this graph, we can conclude that Instagram posts are the most influential content format (78%), followed by Instagram stories (73%). Instagram videos are fourth place (54%).
All you have to do is come up with your campaign details, and get things moving.
And if you want to check the success of your influencer marketing campaign afterwards, you can use some third-party tools to help you.
For example, here at Keyhole, we assist marketers in finding potential influencers to partner with as well as measuring the impact of social media and influencer campaigns.
Instagram stories allow you to post and view visual and video content for 24 hours. Insta stories are great, because they allow you to… well, to really tell a story.
Influencers can get creative, engage in visual storytelling and bring your brand closer to their following.
Oh, and once you settle on how much the influencer collaboration will cost you, expect to get a higher price if you want your website’s link to be included in the stories.
Instagram posts can include a photo or a video. Instagram also allows you to post a photo carousel, with a combination of photos / videos, and more than one photo or video per post.
There are also post captions that allow you to express yourself below what’s being posted.
In general, slideshow posts will cost you more than a single photo, and a video costs more than an image (it might cost up to 40-50% more).
Instagram live is another popular Instagram feature because it allows influencers to connect with their followers in real time.
It makes the digital relationship stronger because followers can ask questions and get their answers right away, as well as request to get access in the live stream (depending on what format the influencer decides on prior to hosting the live event).
Instagram live is also awesome because it puts both the influencer and the followers on the same level of communication, and it makes their interaction much more engaging and amusing.
IGTV is a video feature on Instagram that allows users to upload vertical videos up to ten minutes long (or up to 60 minutes if you’re a verified user, but they have to be uploaded from a computer).
This is a great feature if you want to talk about something in greater depth and open up a longer discussion.
For example, if an influencer wants to talk about the brand’s latest clothing collection, they can post several photos and a couple of stories, but if they want to review each outfit and promote actual clothing pieces they have more freedom, time, and space to do so in an IGTV.
Gifting is pretty much self-explanatory.
Usually, a brand would send a specific product to an influencer (oftentimes accompanied by a personalized message) and hope they’ll post the product and publicly thank the brand.
This is called product seeding, and it’s done with the intention of getting brand recognition, proper exposure as well as getting clients willing to make a purchase.
It’s also great for getting feedback – the comment section on Instagram is a great place to see if your product is yay or nay!
Being a brand ambassador sounds like having a very formal title, but it’s again a straightforward collaboration, only meant to last a bit longer.
Brand ambassadors usually share photos, images, videos and stories about your product for a certain amount of time, and they’re meant to be seen as those who use your product the MOST.
For example, if you want to promote leggings, then a brand ambassador would post images of themselves frequently wearing those leggings while in the gym, riding a bike, exercising at home, and so on.
If the purpose of your campaign is to drive sales and stimulate users to make a purchase, then discount codes come into play. This is done with a so-called “unique” discount code.
Let’s say the influencer’s name is Stephanie, and her account name is fashion_with_Steph. The discount code can be something like Stephanie10.
So, the influencer can share the product that’s supposed to be purchased (or it could be more items, a whole collection, and so on), and share the discount code with their following.
The results of this campaign (based on the number of purchases) can show if this was a successful campaign as well as assist you in deciding on the Instagram influencer pricing.
This approach also lowers the difficulties in calculating your influencer marketing ROI.
Different Instagram Influencer Tiers
No one could undermine the importance of influencers, as according to Bernard Clive, every growing brand thrives on brand influencers and advocates. So, influencers can be the key factor when it comes to reaching the clients you’re targeting.
However, the way you manage that is going to depend on the type of influencer you’re collaborating with.
Believe it or not, there’s some digital hierarchy even within the influencers’ world!
Let’s dive into the specifics of it and see what each influencer tier entails!
Mega Influencers (1m+ followers)
Mega instagram influencers hold a celebrity status and have a following most Instagrammers can only dream of.
They’re well-known in their niche, post high-quality photos, and shape popular culture. They’re the movers and shakers on Instagram.
Partnering with a mega influencer might make your sales skyrocket, but it will require a huge initial investment on your part too. That’s why usually large brands tend to collaborate with them.
They cost hundreds of thousands of dollars per post.
A great example of a mega-influencer is Chiara Ferragni, the most-followed Italian influencer, who, as of April 2020, has 19.4 million followers on Instagram.
She has been known to collaborate with brands such as Pantene, Calzedonia and even Lancome. She’s a leader in the fashion industry and even even has her own store.
Macro Influencers (500k – 1m followers)
Macro-influencers have a sizable following on Instagram, and they’re very appealing to brands because they don’t cost as much as mega-influencers do, yet they hold very similar social media importance as them.
In other words, working with macro-influencers allows you to reach a huge audience without breaking the bank (which is highly likely to happen if you decide to collaborate with a mega-influencer, for example).
They’ll usually request thousands of dollars per post.
A well-known travel influencer is Kiersten Rich better known as The Blonde Abroad, who basically changed the way travelers see travel.
She organically grew her audience, has 564K Instagram followers, worked on producing high-quality website content as well as creating her own photo presets.
She’s been known to collaborate with Murad Skincare, Pura Vida Bracelets, and Backcountry, to name a few.
Mid-Tier Influencers (50k – 500k followers)
Mid-tier Influencers are capable of securing expensive sponsorships, yet, they can’t reach the same amount as mega or macro-influencers can.
Brands love them because they’re much more accessible than the higher influencer categories, yet they can deliver the same quality promotion.
If you want to collaborate with a mid-tier influencer, expect to have to pay them anywhere from hundreds to thousands of dollars per post.
Our mid-tier example is Alice Catherine, a UK based blog writer, very recognizable for her appreciation for vintage style in all shapes and forms. She has 207K Instagram followers. Alice has written extensively about fashion, skincare and has engaged in paid sponsorships as well as affiliate marketing.
Micro Influencers (10-50k followers)
According to some, micro-influencers are the gatekeepers of social media.
They manage niche-specific communities, whereas larger influencers attract a broader audience (which again has its benefits too).
Although micro influencers don’t have what you might consider a huge following (when compared to other influencer tiers), usually they have a very loyal and engaged following.
Micro-influencers are considered useful in raising awareness about new items and have been perceived as more credible than other groups.
In 2016, Bloglovin’ asked 2500 micro-influencers how much they typically charge per post on various platforms. The survey showed that 84% charged less than $250 and 97% charged less than $500 per branded post on Instagram.
These numbers show why micro-influencer collaborations have become so frequent – micro influencers provide great results at an affordable price.
Suggested Read: How to Find Micro Influencers on Instagram to Boost Sales
Take Jenn from Hello Rigby, for example. She has 25.4K Instagram followers.
Both her blog and Instagram profile revolve around fashion, dogs and lifestyle in general. Her profile is full of images with her dog, colourful outfits, and engaging in fun activities, and she has worked with brands such as Target, Freshpet and Cold Stone Creamery.
Nano Influencers (1-10k followers)
According to a New York Times article, the best way to describe nano-influencers is the following: “everyone who’s on Instagram has that friend who is just really popular and is racking up ‘likes’ and comments and has great content”. So “that friend” would be a nano-influencer.
Nano-influencers tend to be open for collaborations and usually they ask for a minimal amount of money or a free product (sometimes maybe both) and that’s it.
These are known as in-kind influencer partnerships.
A good example of a nano-influencer is Bricely Liriano. She’s a lifestyle influencer and a fashion creator, as she likes to call herself. Bricely has advertised products from Aussie Hair USA, The Seaweed Bath Co., rue21, and so on. She has 9.618 followers on Instagram.
Instagram Influencer Pricing Factors
As you might have noticed, we have not given you exact numbers so far.
That’s because of two reasons:
- Most influencers don’t share their fees publicly online.
- The price you pay is very individual and heavily depends on a couple of factors.
Number of Followers
Usually, the more followers an influencer has, the higher the price. This is the case because the more followers one has, the larger audience the audience he/she can reach.
However, keep in mind that many influencers have fake followers and that’s something to look out for in order not to be manipulated.
Besides the number of followers, another key factor to determine Instagram influencer pricing is the level of engagement. There’s a quick formula to calculate the engagement rate of a particular Instagrammer:
Usually, an engagement rate on Instagram between 1% and 3% is considered to be pretty good. In general, you’d consider the following questions: how often does the influencer posts on Instagram? Do they interact with their followers? If yes, how do they do it? Do they reply to questions, answer comments, engage in discussions?
Knowing this is more important than you might initially think because it can determine if the post aimed at promoting your business will be seen by the influencers’ followers or not.
Type of Post
The influencer collaboration cost also depends on the type of content you want the influencer to create.
Is it a single Instagram post? Are they doing a giveaway? Should they record a video?
Think about which approach works best for your brand. Also take into account what the specific influencer you’re interested in has to offer and what kind of content has worked well for them in the past. Consider the influencer’s affinity with the brand too.
Type of Product
The type of product also affects influencer pricing.
For example, promoting a motorbike is definitely going to cost more than promoting yogurt.
The first one asks for more logistics, open space, more in-depth planning, and so on.
Direct Partnership vs. Through an Agency Partnership
Are you directly contacting the influencer or you’re working with an agency? Both have pros and cons.
For instance, if you decide to contact an agency, then you’ll have to pay both for the agency and the influencer (plus agencies usually offer fixed packages), but if you collaborate with an influencer only, then the terms of the contract are up to you and the influencer. Plus, you have greater freedom to negotiate.
Suggested Read: Instagram Influencer Marketing: A Start-to-Finish Guide
Instagram influencer pricing is indeed puzzling, and there’s always something to be added, mentioned or calculated.
Granted, influencer marketing comes with its own set of challenges, but at the same time it’s a chance for marketers to show they are capable of overcoming them.
After all, no influencer campaign ever came out without a dose of uncertainty, spontaneity and a deep trust in the marketing unknown. That’s how most collaborations are born anyway.
Hence, Pantene has collaborated with Chiara Ferragni. Daniel Wellington has collaborated with Kendall Jenner. Morphe has collaborated with James Charles.
What about you?
Who’s the next Instagram influencer you’re collaborating with?
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