Sponsored posts are a form of social media advertising where a brand/company pays an influencer or content creator to promote their product or service through posts on their social media accounts. This type of marketing has become extremely popular on platforms like TikTok, where influencers have cultivated large, engaged followings.
On TikTok specifically, sponsored posts have exploded in popularity in recent years. According to Statista, in Q3 2021, 39% of TikTok users worldwide reported clicking on a sponsored post, the highest of any social platform surveyed (Statista). TikTok’s short video format lends itself well to sponsored content, allowing influencers to creatively promote brands in an organic, entertaining way. The app’s powerful algorithm can also help sponsored content reach huge new audiences. Overall, the combination of influencer marketing and TikTok’s unique features has made sponsored posts an extremely effective and popular marketing approach on the platform.
Typical Pricing
Sponsored posts on TikTok typically range from $100 to $3,000 per post, with an average cost of around $500 according to Tubefilter. However, prices can vary dramatically based on the size and engagement rate of the influencer’s audience.
Nano-influencers with 5,000 to 20,000 followers generally charge $100 to $250 per post. Micro-influencers with 20,000 to 100,000 followers charge $200 to $500. For influencers with 100,000 to 500,000 followers, sponsored posts range from $500 to $1,500. Macro-influencers (500,000 to 1 million followers) average $1,000 to $3,000 per post.
Celebrities and mega-influencers with over 1 million followers can charge $10,000 or more per sponsored TikTok post. Rates for top TikTok stars often exceed $100,000 per post.
Influencer Tiers
On TikTok, influencers are typically grouped into tiers based on the number of followers they have. The tiers and typical pricing are:
- Nano influencers (1,000 – 10,000 followers): $10 – $100 per post
- Micro influencers (10,000 – 50,000 followers): $50 – $500 per post
- Mid-tier influencers (50,000 – 500,000 followers): $500 – $5,000 per post
- Macro influencers (500,000 – 1 million followers): $5,000 – $10,000 per post
- Mega influencers (1 million+ followers): $10,000+ per post
As a general rule, as an influencer’s follower count rises into the next tier, their cost per post increases as well. Brands are willing to pay more for influencers with larger, more engaged audiences. However, engagement metrics like likes, comments, and views per follower are also factored in when determining cost per post.
Source: https://www.tiktok.com/discover/tiktok-influencer-tiers
Metrics that Determine Cost
Several key metrics factor into how much a brand will pay for a sponsored TikTok post. The most important is an influencer’s follower count. Nano-influencers with 1,000 to 10,000 followers generally charge $10 to $100 per post. Micro-influencers with 10,000 to 50,000 followers charge around $100 to $250. Mid-tier influencers with 50,000 to 500,000 followers charge $250 to $2,500, while macro-influencers with over 500,000 followers can charge $2,500 to $10,000 or more.
However, brands care about more than just raw follower count. Engagement metrics like likes, comments, and shares also impact pricing. An influencer with 100,000 highly engaged followers may charge more than one with 500,000 inactive followers. Typical engagement rates on TikTok are around 4-8%, so influencers will assess this when setting prices. Watch time is also factored in, as longer videos tend to perform better.
Niche relevance is considered as well. An influencer whose audience matches the brand’s target demographic can warrant a pricing premium. Overall, rates are negotiated based on an assessment of follower count, typical engagement, niche, and other factors like production quality and exclusivity.
Negotiating Price
When negotiating pricing with influencers on TikTok, brands have a few strategies they can use to try to get better rates:
- Offer packages or bundles of multiple videos/posts over a period of time. Influencers may provide discounts for guaranteed recurring work.
- Promise the potential for the partnership to lead to a long-term ambassador deal with the brand if the initial campaigns perform well.
- Propose that the influencer create TikTok videos featuring the brand’s products that are highly on-brand, optimizing the chance of going viral.
- Leverage influencers with smaller follower counts who are eager to partner with brands. Their rates tend to be more affordable.
- Negotiate prices during off-peak seasons when influencers may have fewer active deals.
- See if the influencer is open to receiving free product samples instead of their full asking price, in exchange for guaranteed posts.
Setting clear expectations upfront and emphasizing the potential value for both parties can allow brands to negotiate win-win influencer partnerships on TikTok.
Additional Fees
Beyond the base cost for a sponsored post, there are often additional fees involved in an influencer marketing campaign on TikTok. Here are some of the other costs to keep in mind:
Production Fees: If the brand wants the influencer to create unique content like a branded video, the influencer will often charge a production fee. This covers their time and costs for creating customized content. Production fees often range from $250-$500 or more depending on the influencer’s rates and content involved [1].
Usage Fees: Influencers may charge usage fees if the brand wants to reuse or repurpose the content across other platforms like Instagram or YouTube. These fees allow the influencer to earn additional compensation when the brand gets more value from the content. Usage fees can range from 20-50% of the original post fee [2].
Exclusivity Fees: If a brand wants an exclusive partnership with the influencer for a set period of time, the influencer may charge an additional exclusivity fee. This compensates them for not working with competing brands during that timeframe. Exclusivity fees vary greatly based on the influencer and duration, often starting around 25% of the total campaign fees.
Agency Fees: For influencer campaigns handled through an agency, there is usually an agency management fee charged on top of the influencer’s rates. This extra fee, typically around 20-30%, covers the agency’s services for campaign management, reporting and optimization [3].
Ad Campaigns vs. Influencer Posts
When deciding how to best promote your brand on TikTok, two main options are paid ad campaigns and influencer marketing posts. There are some key differences between these strategies:
Paid ads give brands more control over targeting specific demographics, placements, budgets, and performance metrics. You craft the creative and messaging. TikTok’s self-serve ad platform makes launching and optimizing campaigns relatively straightforward. However, ads face more consumer skepticism and can seem overly promotional.
Influencer posts embed your brand authentically within popular, engaging content creators’ channels. Their established trust and rapport with followers leads to high credibility and brand lift. But brands cede control over the exact creative, reach, and costs. Negotiating and managing many influencer relationships takes more effort than running ad campaigns.
When using influencer marketing, focus on brand suitability, content quality, audience match, and reasonable pricing. With ads, structure campaigns around clear KPIs and robust testing. Weigh your branding goals, target audience, and resources to choose the right TikTok promotion mix.
Sources:
https://www.aspire.io/blog/tiktok-influencer-marketing-what-is-it-and-how-brands-can-get-started
https://digitalagencynetwork.com/tiktok-influencer-marketing-vs-traditional-marketing-which-is-better-for-your-brand/
Measuring ROI
When engaging influencers on TikTok, it’s important to track your return on investment to determine the effectiveness of the partnership. There are a few key metrics brands can use to measure ROI:
Sales revenue – Track direct sales driven by the influencer’s promo code or trackable link. Calculate revenue generated minus the cost of the campaign.
Engagement rate – Measure likes, comments, shares, views etc. and divide by follower count. Strong engagement signals an invested audience.
Conversion rate – Calculate conversions like email signups or downloads divided by total views or impressions.
Brand awareness lift – Compare brand search volume, site traffic, and social followers before and after the campaign.
Using these metrics, brands can accurately track the ROI of a TikTok influencer program and determine future budget and strategy.
Key Takeaways
The cost of a sponsored TikTok post can vary greatly depending on the influencer’s audience size and engagement metrics. While nano and micro influencers may charge a few hundred dollars, macro and mega influencers can charge tens of thousands of dollars per post.
When determining pricing, key factors include the influencer’s follower count, average views and engagement on their content, and overall brand affinity. Unique video views, likes, comments, and shares give a strong indication of how much engagement an influencer drives.
Brands should thoroughly vet potential influencers and negotiate pricing based on expected ROI and campaign goals. While high follower counts may seem appealing, engagement rates matter more. Marketers must also consider additional fees for content production, ads, and reporting requirements.
With strategic partner choices and reasonable rates, sponsored influencer marketing on TikTok can be an effective way to expand reach and resonate with Gen Z audiences. But marketers must analyze performance and measure tangible business impact to determine true ROI.
Conclusion
When considering the cost of a sponsored TikTok post, it’s important to take a few key factors into account. The influencer’s follower count and engagement rates will impact pricing, as will video views and niche. Negotiating based on your campaign goals and metrics can help get the best deal. While prices may seem high, measuring ROI and results is crucial.
In conclusion, TikTok influencer marketing can be very effective when done right. Partner with creators that truly resonate with your target audience. Set clear objectives and track performance carefully. Conduct test campaigns first to gauge results before committing to larger deals. With strategic use of influencer posts, brands can expand reach and engagement on TikTok.
