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BizReport : Blogs & Content archives : September 05, 2016

Talent agency reveals the cost of influencer endorsement

Internet influencers, celebrities and YouTube personalities are raking in almost $200,000 per sponsored video, according to a talent agency.

by Helen Leggatt

Celebrities, and popular influencers on social media, are raking in the cash endorsing products and services across the likes of YouTube, Facebook, Instagram and Twitter.

Sharing data with The New York Times, San-Francisco talent agency Captiv8 revealed that Internet "influencers" - those with a following of three to seven million people - could command $75,000, on average, for a promotional post on Instagram. Meanwhile, YouTube personalities charge an average of $187,500 for each sponsored video and get around $30,000 for a Twitter post.

Even those celebrities with smaller followings can bring in some pocket money. Those with 50,000 to 500,000 followers on social platforms can expect to bring in an average of $400 to $2,500.

Of course, as per advertising regulations, those endorsements do need to be labelled as advertisements.

"If a social media user has been paid to post something and does not have editorial control over the post, then it becomes an ad," an ASA official told the BBC. "In this instance, they need to label the post appropriately and clearly state it is an ad. This label must be immediately obvious to the reader before they engage in watching or reading the post."

Earlier this year, research from shopper-focused influence marketing firm Collective Bias found that people prefer non-celebrity endorsements to celebrity endorsements. Overall, 30% of shoppers said they were more likely to purchase a product endorsed by a non-celebrity blogger than a celebrity, with Millennials favoring peer endorsement more than most. Just 3% of respondents to Collective Bias' survey said they would consider buying a product in-store if it was endorsed online by a celebrity.

"With little data available on the current state of influencer marketing, the findings of this report strongly indicate that consumers are less engaged with advertisements and seemingly disingenuous celebrity endorsements," said Bill Sussman, CEO of Collective Bias. "As ad blocking continues to grow, it only further threatens the effectiveness of traditional ad techniques to deliver ROI, meaning brand marketers will need to turn to more effective alternatives such as influencer content."

Tags: advertising, celebrity endorsement, influencer marketing, social media

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