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Influencer Marketing Prices Rising in the UK

Celebrity posts are costliest

August 3, 2017

Influencer marketing costs are going up in the UK, according to research by Rakuten Marketing and Morar Consulting, but prices per post vary considerably depending on reach and platform.

In July 2017 polling of UK marketers working directly on influencer programs from sectors including fashion, beauty and travel, approximately two-thirds of respondents had seen the prices influencers charge for posts go up in the past 12 months.

Amount that UK Marketers Are Willing to Pay Influencers per Post, by Social Media Platform, July 2017 (in £)

Regardless, marketers were willing to play ball even as costs rose. Just 3% said they planned to cut back on influencer marketing in the coming year, vs. about 75% who anticipated spending even more on it.

Companies are paying the most for celebrity posts, especially on certain platforms. On average, posts by celebrities with at least 1 million followers cost nearly £65,000 each ($87,731), with Facebook posts demanding a leading rate of approximately £75,000 ($101,228).

In some industries, the costs were even higher, with some premium fashion brands, for example, paying celebrity influencers more than £160,000 ($215,954) per post.

Spending was much more modest for so-called microinfluencers—those with 10,000 or fewer followers. Prices averaged at close to £1,350 ($1,822) per post, with YouTube and Facebook commanding the highest prices—more than £1,500 ($2,025)—and Snapchat the lowest at just over £1,000 ($1,350).

Overall, respondents said they would devote an average of 24% of their marketing budgets to influencer marketing in the next 12 months. That figure’s higher than the share of budgets that the largest percentage of marketers in the UK and US said they devoted to influencer marketing in a March 2017 study by Econsultancy.

Percent of Their Overall Budget Currently Allocated to Influencer Marketing According to UK/US Luxury* vs. Nonluxury Beauty and Fashion Marketers, March 2017 (% of respondents)

In that study, between half and six in 10 luxury and nonluxury brand marketers said they invested less than 10% of their overall marketing budgets to influencer marketing. But the second largest shares of respondents were similar in their spending allotment to those in the Rakuten and Morar study.

The more modest investment levels seen by Econsultancy may be a consequence of something highlighted by Rakuten and Morar: 86% of marketers in the latter study admitted they weren’t entirely sure how influencer fees are calculated, and 38% couldn’t tell whether a campaign has driven sales.

—Cliff Annicelli


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