Influencer marketing is all the rage these days. The benefits from it can be incredibly beneficial. However, since it is still a fairly new medium, marketers are still navigating its uncertainties. One of the many questions surrounding this medium is how to quantify it. How much is influencer marketing actually worth?
HASHTAG PAY ME QUANTIFIES.
This is where Hashtag Pay Me comes in. Hashtag Pay Me is a business that provides rate calculators for influencer deals. Last June, Hashtag Pay Me rolled out its first product, a free “base” calculator that puts a price on what a creator’s content is worth at minimum. Its co-founder and CEO, Cynthia Ruff, previously worked in the executive compensation pricing space for Cox. Influencers, brands and eight different agencies use the calculator to help determine compensation. They recently released a report that provides insight into how Instagram and TikTok creators were compensated over the past two years.
Here’s what they found:
Instagram influencers make more money.
Even though TikTok is the platform to be on these days, Instagram influencers still out-earn their TikTok peers on the average deal. For instance, the report states that, on average, mega influencers on Instagram make about $15,000 per deal, whereas mega influencers on TikTok make closer to $10,000 per deal. Hashtag Pay Me defines mega influencers as those with more than 1 million followers. Influencers across the two platforms with similar follower counts earn an average of up to 200% more on a typical Instagram brand collaboration than they do on a typical TikTok deal.
Additionally, Instagram creators typically charge 236% more to post content on TikTok channels; whereas the average TikTok creator charges just 40% more to post content on Instagram.
Creator marketplaces brings in less money.
The creator marketplaces run by TikTok and Instagram provides brands with their pick of creators. As more people get involved in a deal, the creator’s pay decreases. The report says that creators get paid “significantly less” when brokering a deal through a marketplace than they would working directly with a brand contact.
For instance, the report claims that creators working directly with brands earn an average of $2,952 per deal, whereas those brokering deals on the Instagram or TikTok creator marketplaces earn an average of $1,000 per deal. “The more outsourced creator sponsorships are, the less the creator has an opportunity to advocate for their worth,” the report explains.
Carolina Macedo, the author, is Project Coordinator of Marketing Keys.