Worried about Influencer Marketing Budget? Here’s All You Need to Know
Influencer marketing is a field that very few digital marketers really understand procedurally. Despite this lack of procedural knowledge, everyone understands the impact of influencer marketing as a practice.
Some of the brands we recognize today have been driven by influencer marketing. Think of Dream 11, a fantasy mobile game that is not a part of the mainstream. Why do cricket fans know so much about such a game? Because every time a cricket match is played, we see MS Dhoni endorsing the brand. This inadvertently leads to a point when even people who in no way or shape understand the concept of fantasy sport know what Dream 11 is.
This is the power of influencer marketing.
In digital marketing institutes, influencer marketing is taught on a conceptual level, but not practically. This is because there is no established way of studying influencer marketing. Brands use a variety of ways to bring influencers on board.
Despite there being obscurity on how influencers are supposed to be approached and onboarded, they remain a key cog in the modern digital marketing machine.
Many small businesses don’t even think about influencer marketing because it seems too expensive. In this article, we try to understand how different payment structures work in influencer marketing.
Pay Per View
Many influencers on video supporting platforms like Instagram, TikTok, YouTube, and more, charge brands a certain amount per view. TalentX Entertainment, an agency that handles over 32 influencers, stated in a report in Business Insider that its influencers charge 3-8 cents per view.
Depending on your budget and the general reach of the influencer, you can create a budget to bring the influencer on board.
Pay per Action
Some influencers charge brands based on the action they can influence people into making. If the goal of the brand is to sell T-shirts or get app installs, the influencer charges a fixed amount for every action he/she can people do.
This payment model is especially good for small businesses that are afraid of investing in influencer marketing fearing a negative ROI. Since the influencer is only cashing in if he/she can actually bring value to the brand, the risk of negative ROI reduces considerably.
Finally, there are influencers who charge a flat fee for their contribution to a marketing campaign. This amount has to be paid irrespective of how the influencer’s contribution turns out to be. The fixed amount of payment structure should be chosen only for proven influencers who have a wide appeal.
How Should Brands Analyse Influencers?
Before investing money in influencers, brands should first learn how to analyze an influencer.
Typically, brands measure influencers based on the number of followers they have. This is a classic mistake that often backfires. Since brands want to get direct results from an influencer marketing campaign, they should be looking at the engagement an influencer tends to generate.
The more engagement an influencer is able to get from his/her following, the more valuable the personality can be for the brand.
In conclusion, this article covers three ways influencer marketing payments works. In some cases, a combination of these structures is used.
About the Author – Saurabh Singh is a digital marketing expert and entrepreneur currently serving as a guest author for DelhiCourses, an institute known for its digital marketing training in Delhi.