How Much Does an Influencer Campaign Cost
Probably the most commonly used question in Influencer Marketing is about budgets: how much does an influencer campaign cost?
Do you know that moment when you see a new product, you like the way it is presented, it has everything you dreamed of, but you don’t know what the price is?
The same happens in Influencer Marketing!
Influencers are the flavour, the content they make online is quality and gathers a lot of likes and comments. For this reason different brands want to associate with these influencers.
But the cost of collaboration is often unknown. Therefore, the question “How much does an influencer campaign cost?” it has been and still is on the lips of many.
The short answer is that… there is no cost to be the same for all influencers.
The complex answer will be developed in this article, because it involves several variables that are good to keep in mind when we want to collaborate with an influencer.
Vital variables to calculate the cost of an influencer campaign
The first variable is affinity.
Specifically, the affinity of the influencer to the brand. If the influencer likes and even uses the brand he wants to collaborate with, the whole campaign will be much easier to achieve.
Promoting the product or service will be more natural by default. The influencer already knows the brand, has used it, trusts it and can present it to his community much more easily.
Example: MARILU x adidas Originals
The second variable is reach.
If the first variable is related to brand and influencer values, the second refers to statistics.
The reach an influencer has includes the number of likes, comments, and shares he or she normally gets when he or she posts a new picture on Instagram, a new video on YouTube, and more.
We have always been fascinated by numbers, which is why they are also very important in the collaboration between an influencer and a brand.
The reach of an influencer can be higher the higher his notoriety. Here we can also include the frequency with which they post content online.
Example: Bianca Adam x footshop
The third variable is audiences.
For a campaign to be effective, it must reach brand-relevant audiences via the influencers.
Relevant audiences are those that fit into the characteristics of the target audience of the brand and the potential customers the brand aims through the influencer campaign.
Reaching relevant audiences also means choosing the right influencer or influencers in the campaign.
Example: ALUZIVA x IKEA
Conclusion: There is no magic calculation or fixed price to define the cost of an influencer campaign. Not even a nailed table, as we find in stores.
If we were to define a “formula”, it could not be considered a final answer but rather a guide to help you consider several criteria.
Florin Grozea (founder of MOCAPP) proposed the following algorithm which includes the above mentioned variables and other new variables such as Image Association, Deliverables and Conversions:
CAMPAIGN COST = Image Association / Affinity + Product * Deliverables + Audiences * Relevant Reach % [+/- Conversions]
Even knowing this algorithm, customers who are interested in working with influencers will need to turn to Digital Marketing professionals to make sure they choose the right content creators for their business needs and budget. Influencer Marketing platforms (such as MOCAPP) help professionals quickly and correctly evaluate the above variables and correctly estimate the cost of an influencer campaign.
See the presentation of this algorithm at Digital Marketing Forum 2019, on Florin Grozea’s personal blog.
For more information regarding the Influencer Marketing industry, see our series of articles HERE.