According to a new report by IZEA, the average cost per sponsored post on all platforms has risen dramatically over the past five years. On Instagram, the average cost for a sponsored post has risen 44% from 2018 to 2019 alone, whilst the 2019 YouTube videos command a premium of four times more than that of the highest-priced form of sponsored content – up from $420 in 2014 to $6,700 in 2019. The report also found that the average cost for a blog post also soared from $7.39 in 2006 tp $1,442 in 2019.
In addition, a Facebook status update has risen from $8 in 2014 to $395 in 2019, and a Twitter post has risen from $29 in 2014 to $422 in 2019.
The report looked at creator price points observed in its online marketplace, analysing negotiated rates from 2014 to 2019. From micro-influencer to celebrities, it found that brands were willing to pay nicely for sponsored content.
“We believe content produced by influencers is competing with and in many cases replacing creative that was traditionally produced by agencies. Despite the dramatic price increases up to this point, influencers are generally able to produce content much more cost-effectively than agencies – and provide the additional benefit of distribution to their followers. The hourly price to concept a shoot, hire a model, hire a photographer, find a location, and retouch an image is still far more expensive in the traditional agency world,” said Ted Murphy, CEO of IZEA.
As marketers continue to put more value on the content and distribution provided by influencers, Socialbakers has predicted that brands will increase the spend on influencer marketing in 2020, making it a $10 billion industry. What will be interesting is how users will engage on Instagram now it has announced that it is testing hiding likes on the platform.