Influencer marketing has become a crucial part of the marketing strategy for many businesses. With social media platforms continuing to grow in popularity, businesses have realized the power of collaborating with influencers to reach a wider audience.
But how much does it actually cost to run influencer marketing campaigns? How much do you need to budget for paying your influencers? It’s a common question. In fact, one of the biggest challenges that businesses face is setting a budget for their influencer marketing campaigns. In this article, we will provide a comprehensive guide to setting your influencer marketing budget using specific stats and examples.
Why Set a Budget for Influencer Marketing?
Setting a budget for your influencer marketing campaign is important for several reasons:
Ensuring ROI: By setting a budget, businesses can ensure that they are spending their money wisely and getting a return on their investment.
Scalability: Setting a budget enables businesses to scale their influencer marketing campaigns and reach a wider audience.
Aligning with Business Goals: Setting a budget ensures that influencer marketing campaigns align with the overall business goals and marketing strategy.
Factors to Consider When Setting Your Budget
Several factors can influence the cost of an influencer marketing campaign. Here are some of the key factors to consider when setting your budget:
Influencer Reach: The reach of the influencer is a crucial factor in determining the cost of the campaign. Influencers with a larger following will typically charge more for their services.
Platform: The platform that the influencer is using can also influence the cost of the campaign. For example, Instagram influencers typically charge more than TikTok influencers.
Type of Content: The type of content that the influencer will be creating can also influence the cost of the campaign. For example, creating a video or a blog post may cost more than creating an Instagram post.
Campaign Duration: The duration of the campaign can also influence the cost. Longer campaigns will typically cost more than shorter campaigns.
How To Set Your Budget
When setting your influencer marketing budget, it’s important to consider the factors mentioned above. However, there are also some industry standards and guidelines that can help you determine your budget.
Cost per Post: According to a survey by Mediakix, the average cost per Instagram post from an influencer with 100,000 followers is $1,000. However, this can vary widely depending on the influencer’s reach and the type of content being created.
Cost per Follower: Another way to determine the cost of an influencer marketing campaign is to calculate the cost per follower. According to a report by Digiday, the average cost per follower on Instagram is $0.10.
Influencer Marketing Platforms: Using influencer marketing platforms can also help businesses set their budgets. These platforms provide businesses with access to influencers and enable them to set their budgets based on the influencer’s reach and the type of content being created.
Here are some examples of influencer marketing budgets for different types of campaigns:
Micro-Influencer Campaign: A micro-influencer campaign typically involves working with influencers with less than 10,000 followers. The cost per post for these campaigns can range from $50 to $500.
Macro-Influencer Campaign: A macro-influencer campaign typically involves working with influencers with over 100,000 followers. The cost per post for these campaigns can range from $1,000 to $10,000.
Product Launch Campaign: A product launch campaign typically involves working with a mix of micro and macro influencers. The cost for these campaigns can range from $5,000 to $50,000.
Long-Term Campaign: A long-term campaign typically involves working with a select group of influencers over an extended period of time. The cost for these campaigns can range from $50,000 to $500,000.
Real-World Examples of Influencer Marketing Budgets
Daniel Wellington, a Swedish watch and accessories brand, allocated a significant portion of their marketing budget to influencer marketing. They worked with influencers across different tiers, including micro-influencers and celebrities like Kendall Jenner. The company reportedly spent over $200,000 per month on influencer marketing, which contributed to their rapid growth and increased brand awareness.
Glossier, a beauty and skincare brand, has heavily invested in influencer marketing since its inception. They have focused on working with micro-influencers, allocating a considerable part of their marketing budget to influencer collaborations. Glossier’s focus on micro-influencers has helped them build an authentic connection with their target audience and achieve a loyal customer base.
HelloFresh, a meal-kit delivery service, has allocated a substantial portion of its marketing budget to influencer marketing campaigns. They have worked with a mix of micro and macro influencers across different platforms, including Instagram, YouTube, and podcasts. By investing in influencer marketing, HelloFresh has increased its new customer acquisitions and reduced its cost per acquisition (CPA).
Gymshark, a fitness apparel brand, has invested heavily in influencer marketing to drive growth. They have worked with fitness influencers and athletes to showcase their products in authentic, engaging content. Gymshark’s influencer marketing budget has contributed to their rapid growth, with annual sales reportedly increasing by 200% during their influencer marketing campaigns.
Audible, an audiobook and podcast platform, has allocated a significant part of its marketing budget to influencer marketing. They have collaborated with influencers across different platforms, including YouTube, Instagram, and podcasts, to promote their platform and encourage sign-ups. By investing in influencer marketing, Audible has successfully increased brand awareness and user acquisitions.
Setting a budget for your influencer marketing campaign is an essential part of executing a successful campaign. By considering the factors that influence the cost of influencer marketing and industry standards, businesses can determine their budget and ensure they are spending their money wisely. Additionally, strategically choosing the right influencer marketing platform can provide you with access to influencers, analytics, and campaign management tools that make it easier to execute a successful campaign.
Remember, the key to influencer marketing is not just about finding the right influencers, but creating authentic and engaging content that resonates with their audience. With the proper budget (and strategy) businesses can leverage the power of influencer marketing to achieve their marketing goals and reach their target audience.
Let us show you how you can grow your business exponentially with influencer marketing through our free demo!