How to Estimate the Costs of an Influencer Marketing Campaign?

Influencer marketing has replaced other forms of digital marketing. Many businesses seek to promote their brands through social media influencers. Industries are utilising Influencer marketing and its possibilities are virtually endless. As the customer's decisions are likely to be counted on influencers’ advice, brands have a great chance to navigate the customer journey and tell the story in their way.

As you begin your influencer marketing campaign, it is important to determine the cost of the campaign and for that, you must look at the factors that determine the pricing!

Pricing Model

The pricing model is one of the most essential factors in deducing the overall budget of the campaign. The influencers are paid according to the following pricing models.

Pay per post: ?Pay per cost is assessed based on the number of posts created by influencers that satisfy the needs of the marketers. Some influencers might set a certain price range based on the trending formats.

Pay Per Click: It is a performance-based pricing model which is driven by the number of clicks on a particular post. It also depends on the CTA ( call to action)? of an influencer, following which the user visits the site of the brand.?

Pay per acquisition: It is a performance-based model where the price range depends on the conversion rate. The conversion rate depends on users who subscribe to your email list or purchase your goods and services.?

Pay per subscriber: This price model includes compensation according to the influencer's followers count. The followers must be organic. Fake followers become evident and do not help in the long run.?

Pay per view: It is one of the considerable methods of payment by brands as it is much more result-driven and is desirable for both brands and influencers.

Pay per post, pay per view, and pay per subscription is still the most common and most cost-effective models for influencer marketing campaigns.

Platform

The cost of an influencer marketing campaign depends on the preferred platform. For instance, The cost of the campaign on YouTube is more compared to the influencer marketing campaign on Twitter whereas on Instagram and Snapchat it is almost the same.

Research the target audience and their preferred platform to maximise the chances of a successful campaign.

Post Format

Influencers can help you formulate various posts based on the platform you use. However, some posts will cost more than others. For example, if you're associating with influencers on Instagram, they may charge a higher rate for the video post as compared to an Instagram story post, particularly if they're following the pay-per-post pricing model.

Product and services

The price and target audience may differ depending on the type of product and services you offer. Suppose you want to promote a luxury brand watch with an average price of $1000. You would need an influencer who is likeable and trustable among your target audience.? The influencers who have a high-earning audience reach tend to charge extra for their services.?

Cross Promotion

• Influencers generally have a strong social media presence on all platforms including Instagram, Facebook, YouTube and Snapchat. If the audience uses more than one social domain, it is better to have an influencer marketing strategy that includes more than one platform.?
• The cross-promotions can hold additional costs.

Imagine you want an influencer to create a post on Instagram but also want to share it on Facebook. The influencer might view this as two separate posts which means an extra charge.

• You can pay different rates for these posts depending on the number of followers of the influencer on different social media platforms.?

Exclusive Promotions

If you have a big brand, you can partner with influencers who can exclusively represent your brand message and who have a wider audience and have a personal connection with them. An exclusive agreement delivers more value and hence comes with a higher cost. To offer an exclusive partnership, an influencer might have to turn down the other sources of revenue during the duration of the contract.

In conclusion

Along with the constant development of social media, which compels quick adaptation from businesses, consumers today expect brands to communicate with them more authentically.?

Influencer marketing has become a valuable tool for brands.? It has never been simpler for brands to connect with customers, raise brand awareness, and boost conversions quickly and cost-effectively.

By identifying the right influencer who fits your business, you will boost your reach among potential customers, and achieve crucial partnerships and connections with both influencers and audiences. Freeskout lets you discover, chat and collaborate hassle-free with influencers. And to know more about influencer marketing don't forget to follow us!