You’re not alone in wondering what is the answer to this question. It’s one of the most frequent questions we get asked at Foodie Tribe. The best answer to that question is asking yourself, “What goals do you have for your campaign, and what metrics will you be tracking against?”
When you can answer those two questions, you are right on track to identify the right influencer marketing budget for your campaign.
Budget is a difficult to calculate when it comes to assigning to an influencer campaign. But, it doesn’t have to be. Historically, we are used to understanding what we need to invest in digital marketing, or allot for traditional TV radio spots, but the market is now shifting. More than ever brands are realizing that if they want to be heard, and increase sales they need to increase word-of-mouth recommendations and raise awareness with the power held in in collaborating with market-leading influencers..
So, how much should you be spending on a campaign? Here are some factors to consider when putting together your campaign budget:
Following and engagement: Many brands come to Foodie Tribe requesting to collaborate only with influencers who have more than 100k in following, but when you take a deep look into their metrics, their content is only receiving an average engagement of 1-2%. There are influencers who have accumulated a follower base in the 20k-50k range, and are pulling in engagement rates of higher than 5%.
Following and engagement are both taken into account when an influencer suggests their rate card. Someone who has lesser following, but extremely high engagement may charge the same as someone with higher following, but less engagement.
It’s reported that influencers with 50K to 250K followers deliver a 30% better ROI per dollar spent than macro-influencers, and 20% better than influencers with 1+ million followers.
The reason why? The higher the follower base, the higher the amount of casual followers. That’s why you can’t rely on follower count to tell you the value the influencer can bring to your campaign goals.
Content Request: Another big factor you need to take into consideration is how much content you are requesting from the influencer. As you add in more content, usage rights, additional imagery to use on your social platforms - the price point goes up.
After analyzing more than 2,000 influencer campaigns, Neoreach calculated a total earned media value (EMV) averaging 5.2x per $1 spent. This means that every dollar spent on influencer marketing results in five times as many interactions compared to the same marketing dollars spent on paid advertising.
Deadlines: Many campaigns have long flight dates, which gives influencers more time to send in content. But, there are campaigns where the influencer needs to receive the product, or head out to the restaurant, and submit content for approval within 2-3 days. That’s a lot of work in a short period of time. You can expect a higher rate for these campaigns because of the quick turnaround, as well as to ensure you get placed favorably on that influencers editorial calendar.
Overall, you could spend as little as a few thousand dollars on a campaign to upwards of over $1 million. According to influencer marketing company Linqia reports in 2019:
39% of marketers surveyed with a digital marketing budget above $500,000 plan to increase their influencer marketing budget
54% are planning to spend more than $250,000 annually on influencer marketing
And 17% are going to spend more than $1 million
Here at Foodie Tribe we can work with you on sculpting the right budget for your campaign. No two campaigns are alike, as we take into consideration all factors, and more. It’s our priority to help guide you through this and guarantee a smooth experience and moreover, a successful campaign.
Want to take it to the next level already? Read “What Goals You Can Achieve With Influencer Marketing” to see what you can accomplish with an influencer campaign.
Katy Coffield is the CEO at Foodie Tribe. When she isn’t eating or talking about food, Katy also loves to hang out with her husband and two kids, drink PepsiMax, and workout.