Influence Rates: Metrics You Should Know

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Influencer marketing has become one of the most important strategies in the advertising industry. But while everyone agrees on this, things get murky when it comes to the industry's pricing. Producing content requires time, work, creativity and skill, as well as production costs, but how much should companies pay for it? Kolsquare has some insights into influencer rates in 2022.


With an annual increase of 18.8% from the value of $13.8 billion in 2021, the influencer marketing industry is estimated to reach $16.4 billion by 2022. Although the growth rate has slowed down compared to last year, the industry growth is still impressive since 2016. Back then, the market size was one-tenth of what it is today, i.e. $1.7 billion.


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It is therefore logical that the number of companies that want to work with influencers will also increase, which means that influencer marketing should be an integral part of any conventional branding strategy. In general, then, one could speak of a synergy of conventional advertising with celebrities and content-based marketing strategies.

Although the importance of influencer marketing is already undeniable, many companies still don't know what percentage of influencers they have , because there is something that is less talked about: money. That's why Kolsquare now offers you information about the pricing models and influencer metrics that you should know before planning your next campaign.

The hardest part is that there are no standard rates for influencer marketing. Kylie Jenner, for example, who is part of the popular Jenner-Kardashian clan, receives $600,000 per post and promotes mostly luxury fashion and beauty brands. But while the highest-paid stars do get paid up to a horrendous amount per post, that's obviously not the average.

Five metrics to help math
So, while it is impossible to give a universally valid answer to the question of influencer prices, there are definitely indicators that help with the calculation.

1. Campaign objective
First of all, you need to know what the goal of your campaign is. Do you want to increas canadian cfo email database brand awareness? Then you need influencers with a large reach. Do you want to achieve a particularly high conversion rate and thus a large number of deals? Then you need influencers with a high engagement rate.

Prices are therefore generally based on the number of followers and engagement rates (read on to find out more). One should also not neglect the coverage of production costs, which influencers may have and which of course vary depending on the content.

Most of the time, the calculation starts with this basic formula (also called cost per action, or CPM for short), with the unspoken industry standard of $100 per 10,000 followers: