Today’s influencer payments CHAPTER 3
Cost and value
11-25% of marketers planned to spend over 40% of their digital marketing budgets on influencer marketing in 2020, while almost 20% said that they would devote 26-50% of their digital marketing spend.¹ 74% of US marketers surveyed in May 2020 said they planned to use influencer marketing the same amount or more once quarantines were lifted.²
In 2021, influencer marketing can still cost $100 to $1 million per post. Pay-per-post dominates, and engagement is by far the most common metric used for measuring influencer marketing success, measured by 75% of influencer marketers. The pressure is on to prove ROI, so influencers are increasingly paid a fixed rate with a performance bonus, and even performance-only payments have become more popular. These types of payments also offset issues from those with paid followers or low quality engagement, which can be difficult for brands to detect and lead to lower impact and ROI.
¹ Julian Zeng, “Influencer marketing budgets grow up in 2020,” American Marketing Association, February 25, 2020. https://www.ama.org/marketing-news/influencer-marketing-grows-up-in-2020/ ² Jasmine Enberg, “Influencer marketing in the age of COVID-19: How brands and creators are adapting to a ‘new normal.” Insider Intelligence, August 24, 2020. https://content-na2.emarketer.com/influencer-marketing-in-the-age-of-covid-19
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