26 Jan How Can You Estimate the Costs of a YouTube Influencer Marketing Campaign?
The short answer is that unlike banner advertising where you are following a reasonably fixed CPM model, there is no cut and dry answer to how influencer marketing campaigns are priced out. While this can make budget planning hard, if you start with a budget in mind you can apply some simple principles to get an idea of what your return will be.
Even though there are no fixed pricing models like CPM with influencer marketing, there is one industry average on the YouTube side of the biz. For the most part, YouTube integrations are priced effectively on a cost-per-view or CPV model. Influencers then tally up how many views they project their video will deliver within 30 days of being live and multiply this by the standard CPV. Seems simple to calculate? In theory, sure. However, there’s several variables at play that may complicate things.
For example, influencers often have a WIDE range of what they deem to be a “fair” CPV. What is “fair” or even considered generous by one influencer, may be seen as insultingly low by another. A lot of this varies based on what niche the influencers are in and how large of a name they have made of themselves. If they are in niche with a small supply of influencers, they can likely command higher rates and there isn’t massive competition. The same goes for if they have made a name of themselves online – they can charge a premium for being part of their brand (which is up to the advertiser to decide if it’s worth it or not.)
Another challenge that arises with the CPV pricing model is that while rates may be quoted based on a view projection multiplied by the CPV rate, if there is no guarantee that the video will deliver this number of views there is a chance for the effective cost to vary. For example, if a channel typically delivers a mean average of 100,000 video views within 30 days of the video being live, they may feel good charging a $6,000 fee for a mention in this video. However, it is up to you to research how their videos have historically performed to get a clearer picture. If the channel outperforms the 100,000 view benchmark, the effective cost per view comes down – which is great! However, with no guarantee in place the opposite could happen and the video could under deliver. Imagine having to pay the same $6,000 for only 50,000 views. Yikes!
Considering these variables, it’s easy to see that there is no real clear path to projecting the cost of an influencer marketing campaign. The only way to truly project the cost of the campaign would be to round up the contact information of all of the influencers you want to partner with and email them to inquire about their specific rate. Getting this right is crucial to a profitable campaign versus a loser. While that can be a daunting task, you can always try our InfluenceSTARS tool to speed up that process!