Brands love to engage with consumers through influencers. But are your clients using influencers properly? Do they use the best KPIs for influencer marketing? Here’s what they need to know.

Size of the Influencer Market

In 15,000 collaborations studied by collabster, the U.S. ranked first in use of influencers. Marketers are eager to reach socially engaged consumers. In 2024, Influencer Marketing Hub reported that brands, globally, paid influencers $32.55 billion.

Instagram (42%) and TikTok (41%) proved most popular. It’s on these platforms that marketers expect to connect with consumers, especially Gen Zers and millennials.

Not surprisingly, some industry verticals are more apt to use influencers. The top verticals include fashion, beauty and lifestyle. Analysts note that the overall buzz around AI and technology is another booming sector. And, it has “sparked a new generation of content creators.”

Cost of Influencers

Your accounts should analyze their budgets as part of their KPIs for influencer marketing. On average, last year, brands paid $200 to work with an influencer for a project. The price has been gradually decreasing because the number of available influencers is increasing.

However, there’s a difference between one-​time use and longer-​term usage rights. When the influencer gives up long-​term rights to their content, the average price paid is $307. Keep in mind that the cost varies widely between platforms.

Platform Differences

On average a YouTube influencer asks for $675. Brands actually paid $418 for influencer work on YouTube. Analysts note that is a 17% drop from previous years due to the increase in supply.

Pricing drops dramatically from there. On Instagram, influencers asked for $363 last year, and they settled for $212.

Pricing by Verticals and Gender

As you work with influencers for your clients, be aware that pricing varies by vertical. These price fluctuations correlate with the laws of supply and demand. More influencers competing for brand attention drive down price.

For example, the average influencer in the beauty category asks for $176. But brands are willing to pay $305 to comedy and entertainment niche influencers. Analysts point out the high levels of engagement and recall as reason for the higher valuation.

Keep in mind that 72% of all influencers are female. And they represent 78% of the influencers operating on TikTok and Instagram. On YouTube, only 65% are female.

Influencer Base

In the recent past, larger brands paid up to $500,000 for influencers. But there has been difficulty of proving return on investment, one of the KPIs for influencer marketing. This year, only 49% of brands will increase their influencer budgets.

They’ll also be shifting to small campaigns with niche influencers as a way to target specific audiences. These influencers typically have only a few thousand followers. They can also prove valuable for small and medium-​sized businesses.

User-​Generated Content

Another growing trend is for a brand to pay for user-​generated content. HootSuite likens this content to old school word-​of-​mouth. Brands are more frequently paying for UGC. They may connect with loyal users online and ask about using their content. Other times, users will pitch themselves to the brand.

In those cases, the brand pays about $198 for each use. “Consumers agree, with 6 in 10 believing UGC feels more authentic than any other form of marketing,” reports collabstr.

However 66% of influencers also develop UGC for brands. In doing so, they generate additional revenue. Keep these details in mind as you track your account’s KPIs for influencer marketing.

Influencer Base

In the recent past, larger brands paid up to $500,000 for influencers. But there has been difficulty of proving return on investment, one of the KPIs for influencer marketing. This year, only 49% of brands will increase their influencer budgets.

They’ll also be shifting to small campaigns with niche influencers as a way to target specific audiences. These influencers typically have only a few thousand followers. They can also prove valuable for small- and medium-​sized businesses.

To learn how influencers impact purchase consideration and intent, check out AudienceSCAN on AdMall.

Campaign Length

When developing a content program with an influencer, most brands are involved in a 14-​day process. Your accounts will want to secure specific details when using an influencer. These details might include:

• Number of deliverables
• Whether the influencer needs to receive a sample product
• Type of deliverables
• Total cost

AI in Influencer Campaigns

As brands focus on influencer marketing, they’re attempting to manage costs. For many, that means turning to generative AI. They’re using this technology to develop content and come up with new ideas.

Several brands are also paying for AI-​generated influencers. While this approach keeps costs down, consumers may be turned off by the lack of authenticity.

Your clients are committed to using influencer marketing. And consumers are clearly responding. As with any media format, ROI should be top of mind. Keep your clients focused on KPIs for influencer marketing to ensure success.

Photo by Liza Summer on Pexels.