Today the craze of social media is growing widely. Social media influencers have grown significantly over the years. Instagram is one of them, which is the fastest growing social media channel in terms of popularity, engagement and earning platform for influencers for the last few years.
It is surprising that influencer marketing is less than a decade old.
Yes, it’s completely changed the way brands advertise.
Gone are the days when people spend thousands or even millions of dollars on giant billboards and magazine spreads. Instead, brands can now find a very specific community of people that they know will love their product.
Vito Glazers, a successful brand influencer, said, “My prediction is that micro-influencers that have small, but very targeted, valuable audiences, will be the celebrities of the future, and I think that is a good thing.”
He said, “Instead of a few people making billions from content, there will be thousands, maybe even millions of people making five, six and seven-figure incomes from their content and audiences.”
The brands appear on social media willing to pay handsomely for sponsored posts, stories, videos, and blogs.
According to a report by Later, 79% of businesses rank engagement as the most important factor when evaluating influencers. The quality of followers and industry or niche is a close second (70%) and third (67%).
It’s no secret that the larger your following, the higher your rates, but what exactly are top tier influencers charging?
From small influencers – those with less than 100,000 followers – to celebrities, it founds that there was good money to be made.
According to the Financial Times, if you have an audience of 100,000 followers, you can charge brands $2,700 USD per post.
Influencers with four to 20 million followers typically make a cool $6,000 to $17,500 USD every time they upload a sponsored post.
2014-2019 Average Sponsored Posts Price Increases by Platform:
According to the report of the marketing firm, Izea found the average price of a sponsored photo on Instagram has risen 44% from 2018 to 2019.
Data Source: Izea, Average Sponsored Post Price.
The average sponsored post price of Instagram has jumped 12.3x from $134 (£104) in 2014 to $1,642 (£1,276) in 2019, while, the Facebook status updates have risen 49.4x from $8 to $395, the Youtube video post has risen 16x from $420 to $6700, Twitter status update 14.6x from $29 to $422, and a blog post has risen 3.54x from $407 to $1442 on average.
The above research suggests that influencer-sponsored posts increase by 150% in the last year, with the use of the hashtag #ad more than doubled.
It predicts that the total spends on influencer marketing in 2020, making it a $10bn industry.
Annual budget for influencer marketing in 2019:
The most common influencer budget is $1,001 – $10,000 per year followed by $100,001 – 500,000 per year.
Data source: Bigcommerce, Influencer Marketing Statistic.
About 19% of the marketer spends $1,001 – 10,000 on influencer marketing in 2019, while 18% of marketer spends $1,00,001 – 500,00.
This suggests that influencer marketing is leveraged by a range of companies, from smaller organizations to much larger brands.
About 17% of companies plan to spend over half of their marketing budget on influencer marketing this year.
Instagram is currently experimenting with hiding “likes” on posts but social media expert Kenny Bost (Co-founder of Truenorthsocial.com) does not think this will have an impact on the influencer industry.
“Influencers will still be able to see what engagement they have and it is common practice to grant permission to brands so that they can see that too,” he said.
Moving into 2020?
Instagram has become a social media powerhouse with 1 billion users and the fastest-growing network for influencers.
“However, the bigger question will be whether consumers will continue to engage when they can’t see ‘likes’.”
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