The price of using an influencer to hit marketing goals will vary due to a variety of factors.
There are a lot of benefits that can come from working alongside a celebrity to promote your brand. But how much does it really cost? 1851 connected with Veronique Conus of IZEA and Jack Bachinsky of Hand & Stone Massage and Facial Spa to gather insight into the cost of celebrity endorsements.
It is important to note that specific pricing will be dependent on many different factors. According to Conus, small details such as the time of day that you’d like the influencer to post can influence the overall cost of the endorsement. Pricing is not set in stone.
1. The definition of celebrity is changing
Influencers are no longer limited to rock stars and athletes. In the digital age, many social media stars are drawing in waves of consumer attention, and brands are taking notice. These new celebrities are being approached by companies to serve as endorsers in the same way traditional stars have historically been used.
Hand & Stone has recently started working with Lindsay Arnold of Dancing With the Stars. Arnold reaches a massive audience on a daily basis, with over a million followers across her social channels. Bachinsky explained that the partnership offers Hand & Stone a great opportunity to explore the social media aspect of the marketing mix.
While the definition of what qualifies as a celebrity is evolving, the expectations for reimbursement remain similar. Traditional and social influencers stand on even ground in terms of pricing.
“Everyday people can have a level of celebrity without being in one of the more traditional public-facing entertainment industries. The cost does not differ,” said Conus. “There are plenty of celebrities who have found social media fame charging just as much as traditional stars for social media posts.”
She explained that this is in part due to the influence of talent agencies, management firms and social media management boutiques. By establishing a relationship with these influencers and marketing them the same way they do with more traditional clients, they have been able to assign similar pricing.
2. Pricing is not always set in stone
“Celebrities can be very flexible–especially if the fit is right and they want to do it,” said Conus. “When the fit is right, I have definitely experienced celebrities get really excited about initiatives, which is evident to the brand. I've seen simple one-offs turn into monthly initiatives and much larger partnerships!”
Approaching a celebrity who is likely to be passionate about your brand could potentially lead to a lower cost. Since you are providing something of value from a messaging standpoint, an influencer may be willing to accept a lower offer because he or she is passionate about your company’s story.
3. There is a hierarchy to post categories
The cost of a celebrity endorsement will depend largely on the type of post that you are asking to receive. While the message may remain the same, the medium influences the price.
Conus noted that “an appearance will cost more than a photo, which will cost more than a text post. To that end, the higher range of content types includes featuring the celebrity themselves versus cheaper options such as posting an image provided by the brand.”
4. You are paying for reach
For brands looking to use a social media influencer to spread awareness of their product or service, seeking out a celebrity with a high follower count is a necessity. Conus said that this often means searching for someone with strong face and name recognition, which can cost a pretty penny.
“It's not uncommon to get pricing back for one Instagram post for $25,000.00 when looking at potential options,” she said.
Brands will need to evaluate whether this splurge can be justified in order to meet marketing objectives.
5. The influencer’s impact can be priceless for hitting marketing goals
“It is important to determine what the marketing goals are for the franchise,” said Bachinsky. “You need to think through what ROI the celebrity will bring in for your brand. Sometimes, you can't really put a price tag on the allocation that they are able to provide.”
Bachinsky recommends making sure the contract is written in a way that will maximize opportunities. When working with a social media influencer, he says it is important to ensure there is a level of contractual and monetary flexibility in order to make the most of the partnership.