Influencer marketing has been all the rage lately. Companies and brands of all sizes are throwing a ton of money on kids, adults, pets, and crazy people of all kinds in hopes of reaching new audiences through social media updates, profile pictures, status updates, and super-short videos.
It seems like all of this just came out of nowhere, but it's a growing trend that we're all not only witnessing, but witnessing. Every time you like, share, or upgrade a status, you are essentially part of the influencer marketing madness.
For the average person, everything is just normal social media engagement as usual. For the content creator and influencer, this is just another little statistic they can provide brands and advertisers to ask for more money for new opportunities.
Yes, my friends, we live in the age of influencer marketing.
What is influencer marketing and where does it take place?
Influencer marketing is exactly what it sounds like. Someone joins a social networking platform and starts creating content (whether it is text, images or video) and starts building their own following. As the following and "impact" increase, so too does the likelihood that brands and advertisers will pay that person to write about, showcase, and promote a product or service.
This has always been done in the entertainment and film worlds, usually through paid internships. In this way, it's also pretty similar for advertising and television advertising to work. Brands want to choose a great voice over artist for their commercials and air them at peak times and to a relevant audience. With the decline in television viewership and social media now providing a platform for everyone and the ability to reach millions of users instantly, the influencer marketing business is born and thriving more than ever.
In terms of where we see a vast majority of influencers getting paid for such deals, paid placements, and sponsorship – fashion, beauty, and travel are the main players.
Check out the latest Trends in the cosmetics marketing industryand you will see a lot of money pouring into the ecommerce and online buying space for these markets. Not only that, but where and how the money is being spent. Much of that comes through social media and the influencers and users who continue to share and promote such products.
This can be further backed up by the latest news about Kylie Jenner and building a $ 900 million empire thanks to her massive reach on social media and her cosmetics business. According to Business Insider, "Jenner has made her millions from Kylie Cosmetics to TV appearances to product advertising“Which, for the most part, are all part of the influencer marketing process.
This is just one example of many where influencer marketing is now changing rapidly, just how customers find, review and buy products online, but also how companies and brands are now having to adapt to appeal to potential customers and target new audiences to reach.
How Much Do Influencers Really Make?
When it comes to the actual amount of money spent on influencer marketing we know it's included in the bills, but when it comes to how much each influencer actually makes, this is often a guess.
There are many online advertising platforms that you can use to connect with various influencers who also display their rates, but there are also many different factors. These factors include how much the ad platform is taking per store, how many deals have been closed, how many private campaigns are being negotiated, and what industry the influencer is in.
Just like websites, companies, and blogs, influencers come in many different shapes and sizes. Some may have a following of a few thousand followers while others can access millions across multiple platforms.
There are also plenty of resources and case studies online to answer this question as there really is no set price or answer. Later.com came out with its own resource and in a section they refer to Shane McCloskey, Director of Sales at Influencer Platform, who further said:
"An influencer with one million followers on Instagram might charge $ 100 for a post, while an influencer with ten thousand followers on Instagram might charge $ 100 for the exact same post on their feed."
In addition, they relate to prices and promotional packages offered by different influencers in different niche markets. One lifestyle influencer noted: "She also sticks to the $ 100 per 10,000 follower rule to calculate her rate.”
However, after doing a little research of your own, you will also find that costs vary a lot depending on the niche market, who you ask and what type of content you want to publish.
As a result recent article on Fox News "According to media news website Mic.com, the cost of sponsored posts can range from $ 50 to over $ 50,000.”. The article also highlights that Kyle Jenner "can earn more than $ 1 million per sponsored post shared with her 164 million followers on Instagram”- which further underpins our indication of how powerful influencer marketing can be in cosmetics and beauty.
For advertisers and brands, this means that there are ample opportunities to move into influencer marketing without using up a budget in just a few posts. This can best be achieved by looking for smaller and niche influencers rather than just looking for celebrities or influencers with millions of followers.
On the influencer side, however, it's still a pretty successful and financially beneficial business model. The same article goes on to say: "Nano influencers, or users with just a few thousand followers, can make anywhere from $ 30,000 to $ 60,000 a year, according to the report.”
How companies and brands can start influencer marketing
Regardless of your business model or the product or service you offer, an influencer is likely waiting to introduce your brand to the audience – for a price, of course!
However, it can be confusing for new businesses and brands looking to enter this space how best to reach out to influencers, know what to say, and how much to spend. After all that, how are you supposed to track the ROI of your campaigns and know whether or not it's successful?
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 get the most success from influencer marketing.
- Identify your main influencer marketing goal
- Define a suitable influencer profile
- Discover potential influencing factors
- Provide rewards for the influencer
Whether you're excited about the idea of growing your business or brand through influencer marketing, or disgusted with the idea, it is now one of the most effective ways to get clicks, views, fans, and customers back to your brand.