How to predict the cost of influencer marketing

The cost of influencer marketing is a popular topic among marketers. Through influencer marketing, brands can promote their products and services in the most natural and organic way. It’s why this source of leads is not going to lose its hype. But creators’ fees vary a lot and making sure your brand gets a high ROI is top of mind.

So, let’s dive in and find out what impacts influencer marketing prices.

Factors that Determine Influencer Marketing Costs

Unfortunately, unlike the traditional marketing channels and advertisement formats, influencer marketing cost is pretty hard to forecast. The reason is simple: there are a lot of factors that affect the price and in most cases, it depends on your goal and desired outcome. 

There are a lot of factors that affect the price and in most cases, it depends on your goal and desired outcome. 

But in this article, we will cover the key factors that affect the influencer marketing cost the most and build up the campaign price.

Social Media Platform

An influencer’s fee will differ depending on the platform you choose to promote your brand on. 

It takes time to write a script, film, and edit a video! That’s what makes YouTube influencers so expensive. And the fact that YouTube content is “evergreen” and stays there forever with all the links and brand information makes it even more valuable for brands in the long-term. Whereas Instagram and TikTok take less time and are based on a quick short-term hype that allows influencers to offer you a lower price on those platforms. 

…the fact that YouTube content is “evergreen” and stays there forever with all the links and brand information makes it even more valuable for brands in the long-term.

Industry/ Niche 

The category you’re looking for to promote your product in means a lot for two reasons.

• The more popular the niche, the more influencers are in it, the less expensive their fees are. Simply because they have strong competition and if a brand is not satisfied with a fee an influencer charges they can easily find another cheaper option. For example, you can find millions of creators in fashion, food, lifestyle, and tech niches yet you might struggle promoting your brand or products in education, real estate or any B2B niches.
   
• Some niches are riskier than others. For example, if you’re promoting a financial product keep in mind that influencers you’re planning to work with take a risk promoting it and therefore they might be more expensive than, for example, fashion influencers who sometimes might even agree to a product exchange and you don’t have to pay them anything extra. 

There is another important factor to consider. Each social media platform has its key metric the influencer collab cost is built around. We’ll take a closer look in our next blog. Stay tuned!