Prices paid for influencer campaigns has soared as marketers place more value on digital stars
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- Brands are set to spend up to $15 billion on influencer marketing by 2022, according to Business Insider Intelligence research, and the average cost of sponsored content on social media continues to increase, a new report found.
- For a recent report, IZEA, a company that connects marketers with influencers, looked at 13 years of prices paid for sponsored blog posts, Instagram posts, Facebook posts, Tweets, and YouTube videos.
- The average price of a sponsored video on YouTube, which commands the highest rates, increased from $420 in 2014 to $6,700 in 2019, according to the report.
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The influencer marketing industry is projected to be worth up to $15 billion by 2022, and as influencers become more valuable to brands the average cost of sponsored content on social media continues to increase.
In a recent report, influencer marketing company IZEA, which connects marketers with content creators, looked at prices paid for sponsored blog posts, Instagram posts, Facebook posts, Tweets, and YouTube videos going back to 2006.
"Marketers continue to place more value on the content and distribution provided by influencers," said Ted Murphy, Founder and CEO of IZEA. "We believe content produced by influencers is competing with, and in many cases replacing, creative that was traditionally produced by agencies."
Keith Bielory, a digital agent at Abrams Artists Agency, which helps Instagram and YouTube influencers with business opportunities like brand sponsorships, said prices have increased as influencers get better educated about their value in the marketplace and hire representatives like him.
The average cost per sponsored post has risen
IZEA studied negotiated rates between a marketer and creators from microinfluencers (generally considered to be someone with fewer than 100,000 followers) to celebrities, from 2014 to 2019, and found the average cost of sponsored content on the top social media platforms where host sponsored content exists (Facebook, blogs, YouTube and Instagram) has increased every year.
Here's the breakdown of average sponsored social media post price increases from 2014 to 2019, according to IZEA:
- Facebook status update: from $8 to $395.
- YouTube video: from $420 to $6,700.
- Twitter status update: from $29 to $422.
- Instagram photo: from $134 to $1,643.
- Blog post: from $407 to $1,442.
Sponsored content on YouTube is an important revenue stream for top creators and is the highest-priced form of sponsored content in 2019, according to IZEA.
Product promotion on YouTube has grown
The highest prices are commanded by YouTube, where rates have risen sharply. The average price of a sponsored YouTube video has increased from $420 in 2014 to $6,700 in 2019, per the IZEA report. YouTube creators earn money online by promoting products in videos through timed mentions (like 30- to 60- second mentions).
Of course, rates vary widely. Second-year Harvard student Sienna Santer previously spoke to Business Insider about how she grew a popular YouTube channel by sharing videos on topics like how to get into the prestigious university and what a day in her life is like. Santer has 265,000 subscribers and started her channel in mid-2018.
Santer said in a previous interview that she charges between $1,000 and $4,000 for a YouTube sponsorship, and her management group takes a 20% cut of all sponsorships they bring her.
Instagram prices have also soared
On Instagram, the average price of a sponsored photo has soared from $134.04 in 2014 to $1,642.77 in 2019, according to IZEA.
Several Instagram influencers interviewed by Business Insider said creators who are starting out typically charge brands $100 per 10,000 followers.
Instagram influencer Caitlin Patton, who has 24,900 followers, previously broke down how she determines her rates as a microinfluencers for Business Insider, and said on average she earns about $2,000 for a "sponsored bundle" on Instagram, and her rate starts at about $1,000. A bundle typically includes a blog post, Instagram post and a few Instagram Stories.
For more on the business of influencers, according to YouTube and Instagram stars, check out these Business Insider Prime posts:
- An Instagram star who has sold $35 million of her own products explains how she built her fashion line and turned followers into customers: Social-media star Julia Engel spoke to Business Insider about leveraging her presence online by creating her own line of products, like her clothing collection.
- Beauty mogul Huda Kattan, who built a $610 million fortune from online fame, shares 3 business tips for influencers starting their careers: The beauty influencer and self-made millionaire behind the cosmetics line Huda Beauty, and her sister Mona spoke with Business Insider about their advice for aspiring influencers.
- An Instagram influencer with 166,000 followers breaks down how much money she earns from a sponsored post: Katy Bellotte, a YouTube creator and Instagram influencer, broke down how much she earns per sponsored Instagram post.
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