Is the price of influencer content just a shot in the dark? 😶🌫️
We have now come across several examples where the difference in the price of influencer rights has been enormous. One example was a campaign where two influencers, with roughly the same number of followers and content that performed equally well, offered a price for rights for a year of DKK 15,000 and DKK 300,000 respectively.
That is a gigantic difference...
We are curious about what rights should cost. At the moment it doesn't seem like there are any real standards and everyone is a bit confused. Both on the brand side about what is fair and on the influencer side about what their content is actually worth.
Some of the lessons we have learned from the campaigns that have been run through Sheer is that it often has a big impact on where content is displayed. Should content be presented exclusively online or are there some offline elements involved (e.g. in the form of printed marketing, etc.)
- We see a tendency for the price to be higher for content that needs to be used across multiple channels, especially if it also needs to be used offline, such as in stores, but there is also a difference in how far the content needs to go (i.e. how much money is spent on advertising). Of course, it cannot be ruled out that the combination of online and offline can contribute to the price of rights skyrocketing 🚀 It is interesting, however, that in the Nordics we have decided that the more money the brand chooses to spend on pushing the influencer, the more expensive the rights become. Whereas - as a potential customer told us today - it is almost the opposite in southern Europe, because the influencers see it as free promotion of themselves 🤷♂️
- A wild card when it comes to buying rights are well-known TV personalities. These people can typically afford to charge a higher price for rights, as the content is often also better suited to the purpose, as they are used to presenting something to other people through their TV jobs. In addition, they are “real” famous, in the sense that those at the brand who may not follow influencers themselves are more likely to know the TV personalities. 📺
- A third factor is of course the length of the rights (3 months or 2 years?). It is crucial to have control over it. ⏱
We must honestly admit that we do not have the answer to how to price rights.
But if we were to come up with our best guess on how a classic influencer should price rights, our experience is that a fair price is at least 50% of the total price for the campaign. Sometimes it will of course be higher or lower, depending on where the content is to be displayed, but that could be a good starting point for pricing.
It is important to mention, however, that we have seen examples of content rights exceeding the campaign price by 3x. So it is definitely very context-dependent.
One thing is ABSOLUTELY certain, though. It is standard that you have to pay - the question is just how much.
We are very interested in hearing about your experiences with rights pricing 📣
