On average, how much does influencer marketing cost? And what is the minimum that your brand will have to spend to see results? Five full-service influencer agencies share their prices.
Influencer marketing has become a key part of the marketer’s toolkit, used to integrate more organically above the lines in the social sphere, or to target specific cohorts with an authentic voice. But, despite improvements in the way the impact of influencer campaigns are measured, the industry is often viewed as a black box by the rest of the marketing industry. Costs, in particular, are a dark area.
So, to find out what influencer campaigns could actually cost a marketer in pounds, cents, and dollars, we asked a group of influencer marketing agencies to tell us about pricing. While many declined to discuss the recorded numbers, five agencies – The Goat Agency, Digital Voices, Komodo, Disrupt and Tailify – were ready to share.
So how much does influencer marketing cost?
Several global influencer marketing agencies have shared with us their minimum campaign spend requirements, which is the minimum amount you would need to shell out to access their services.
At The Goat Agency, co-founder Harry Hugo tells The Drum the figure is £ 40,000 a month. Komodo, an agency with offices in the UK, US and Australia, typically sets its minimum spend at £ 30,000, although lower prices are available for clients who keep the agency on a mandate.
For the Digital Voices agency, the figure is £ 30,000. Managing Director and Founder Jenny Quigley-Jones said spending in the sector had “grown rapidly” over the past two years. “Spending on influencer marketing has grown rapidly over the past two years. The industry is growing at a CAGR of 43.2%. Influencers have become an established media channel to drive campaign ROI, ”she notes.
“The other thing that has changed is the variety of creators, as millions of designers started their careers under global lockdowns. This means that brands are taking their investments further by partnering with a wide variety of rising star micro-creators to drive long-term results, rather than partnering with a few big names. These diversified expenses strengthen and support the economy of creators.
She says every pound spent on influencer marketing goes beyond the one spent on TV. “Creator content tends to outperform brand-produced advertising and is often less expensive; on average, brands see a 50% reduction in costs when working with creators in a video production studio. Instead of ordering video content, smart brands pay the usage rights to creators and serve them as paid ads.
According to Stevie Johnson, chief executive of Disturb, the minimum expenditure is between £ 15,000 and £ 20,000. He says, “Anything less than that, it’s pretty hard to move the needle for an influencer campaign and see real results.
But, he notes, that level of spending will typically only sustain a campaign for about eight weeks. “The more you spread it out, the less a campaign can really get,” he explains. As a result, most of his clients run campaigns that involve spending between £ 40,000 and £ 60,000.
Meanwhile, Tailify maintains its minimum spend at £ 50,000 per month. “Each solution is tailor-made,” says Esme Rice, the company’s marketing director. “Some clients want a week long program, others want a longer one. This corresponds to the needs of each brand.
Goat, Digital Voices, Komodo, Disrupt, and Tailify are all full-service agencies, which means they help clients plan and discover the right partners, execute content, and manage relationships.
However, there are many specialized players within the influencer marketing umbrella, including Koalifyed, a SaaS provider that serves the creator space. According to Tina Scala, senior vice president of sales and marketing, the company has no minimum spend, but advises customers to only use the platform if they are frequent activators.
“There is no minimum expense, but there is a place where it makes sense to create efficiency. For example, just one campaign every few months doesn’t justify using a platform, but 100 influencers running multiple campaigns would, ”she says. The company’s platform is used by both brands and agencies, although the consultancy work typically comes from its sister agencies in the Stagwell Group.
And not all businesses have minimum spending. Maira Genovese, Founder and President of MG Empower, tells The Drum: “We don’t think imposing minimum spending is relevant in our world today. We operate in a changing and evolving space at a pace that demands a flexible approach, so we do evolve over time. “
The upper limit on campaign spending, our sources tell us, is much more variable. Komodo co-founder Freddie Strange says the agency works with brands spending millions of dollars; the agency generally works with clients in the travel and fashion industries.
It’s a similar story at Goat. “We have a wide range,” Hugo explains to The Drum. “Some of our brands spend over $ 10-15 million a year.” The agency typically works with 10 to 100 influencers on a given campaign, with the average work reaching 50.
How is influencer activity taken into account in larger campaigns?
While some brand marketers may choose to reach audiences only through influencer activity, this is an atypical choice. In 2021, most clients are using influencer marketing as part of a mix, alongside other activations above or below the line.
For example, Hugo tells The Drum that Goat typically advises clients to set aside between 20% and 70% of their media budget for influencer marketing, depending on their goals and the campaign itself.
“We’ve been in business for six and a half years and have gone from the biggest budget of £ 5,000 a month to millions. It’s not just the growth of our business, it’s because the market has grown so fast. Investing in this channel is now a prerequisite for launching a new product. For our level one brands … it has to be 20%. This is what we think it should be at a minimum.
Johnson of Disrupt says his clients typically use around 25% of their budget for influencer activity, while at Digital Voices Quigley-Jones says that figure “varies by campaign,” but that “an average media plan could see brands spend 25-40% of campaign spend on organic content, 15% on usage rights, and then the remaining 45-60% on paid spend. “
Rice says Tailify typically advises clients to set aside 50% of their media budget for influencer work, but points out the variation between clients. “We don’t go in and ask for a specific amount of their media budget… we’re talking about the results they want as a business… and then what influencer marketing can provide for that. “
And for Komodo, whose fashion customers are particularly dependent on the chain, Strange says it’s “impossible” to name an average proportion of spend. “There is a huge proportion [of spend] on influencers because it’s the cheapest way to advertise and reach a mass market for e-commerce brands. “