Influencer Rates on TikTok in 2023
- TikTok is growing at a rocket pace as experts predict 1.5bn active users by the end of 2022.
- To achieve faster success on TikTok, brands can partner with influencers to run conversion-boosting ads.
- The cost of working with TikTok influencers and advertising on the platform varies based on audience size and engagement rate.
TikTok has become an important platform for influencers to reach their audience and gain popularity, so marketers should definitely consider how to work with influencers on the platform.
Read more about influencer marketing on TikTok here.
Creators on TikTok can earn money through sponsored posts, brand partnerships and endorsements. Brands can also choose from different types of TikTok ads so far, including in-feed ads, top view ads, brand takeover ads and hashtag challenge ads. The cost of these ads can be expensive, and the platform’s focus is on direct/authentic content, making collaborations with influencers even more appealing. This allows brands to be creative and keep post-production costs low. In terms of costs, today’s topic is of course the rates for influencers on TikTok in 2023. Note that TikTok influencer rates may change in the future, especially if the profiles and the platform continue to grow.
How Can You Budget Rates for Your Influencers in 2023?
Influencer marketing has become an important tool for many companies and brands to increase their reach and appeal to the (younger) generation and internet-savvy target group that is fed up with overproduced and inauthentic advertising as Influencers enjoy consumer trust. While e-commerce brands prefer TikTok for advertising in 2023, and 85% plan to budget more for advertising on the network, one-third (31%) of brands plan to spend less on advertising on Meta.
As always, to set the budget for influencer marketing, brands need to define their strategic goals. Do you want to increase brand awareness, sales or followers? Working with content creators can be critical to achieving these goals. So your key performance indicators (KPIs) should align with that, which in turn can have a significant impact on the budget. Kolsquare note: Strategic goals for influencer marketing may differ depending on a brand’s maturity, affecting the budgets allocated for future campaigns, the channels used and the types of KOLs involved.
What prices should or can be paid for influencers is often a topic of debate. A rule of thumb in the slowly maturing industry is that the prices can be based on the number of followers and engagement rate. Other factors that can affect the price include talent and access to a niche audience. Meanwhile, many influencers have price lists that they use for the content they produce. On Instagram, the average cost per post in 2021 is $1,170 and $906 for a story. According to Influencer Marketing Hub, the standard rate for Instagram influencers is as follows, depending on their reach:
Nano influencers (1,000 – 10,000 followers): $10 – $100 per post.
Micro influencers (10,000 – 50,000 followers): $100 – $500 per post.
Medium influencers (50,000 – 500,000 followers): $500 – $5,000 per post.
Macro influencers (500,000 – 1,000,000 followers): $5,000 – $10,000 per post.
Mega influencers (1,000,000+ followers): $10,000+ per post.
The Cost of Influencer Marketing on TikTok in 2023
As the popularity of TikTok continues to grow, more and more brands are using the platform to reach new younger audiences and increase sales. In the process, the average cost of a sponsored TikTok post is already a staggering $3,514, according to IZEA. According to forecasts, 41.4m Generation Z users can be reached via TikTok this year (37.3m on Instagram).
The TikTok algorithm allows for a higher level of engagement, making it easier to go viral than on other platforms. Nevertheless, these statistics should also be taken with a grain of salt. TikTok is a new platform, so the numbers can vary widely and are obviously not set in stone.
According to IZEA, the average cost per TikTok, depending on the influencer level, is as follows:
- Nano influencers (1,000 – 10,000 followers): $800 per post.
- Micro influencers (10,000 – 50,000 followers): $1,500 per post.
- Medium influencers (50,000 – 500,000 followers): $3,000 per post.
- Macro influencers (500,000 – 1,000,000 followers): $5,000 per post.
- Mega influencers (1,000,000+ followers): $7,000+ per post.
Companies also need to consider production costs when working with influencers, including travel, studio rental and equipment needed. Also, keep the time factor in mind: You should also factor in how long it will take creators to produce the content and allow a few extra weeks for negotiations and final agreements.
Types of Influencer Partnerships on TikTok
Each type of influencer brand partnership has its benefits and costs, so it’s important to choose wisely to build lasting and effective partnerships with brand-focused influencers. Data-driven influencer marketing in particular can help save time and resources. Why not request a free demo of Kolsquare’s complete solution here today?
1. Affiliate marketing: This type of partnership is a commission-based model where influencers promote a brand’s products or services and receive a commission for each sale that results from their recommendation. Commission rates can vary and usually range from 5% to 50%, depending on the influencer and the brand.
2. Brand ambassadors: This is a long-term partnership where influencers regularly share content about the brand and its products. KOLs will be associated with the brand sooner or later, so it’s important to choose them wisely. The three ways to turn influencers into your brand ambassadors are:
3. Sponsored content: Typically, influencers create a photo or video and mention the brand or product, either in the post or in the description.
4. Gifting: Some brands send influencers products in hopes of a positive post. Gifting is a cost-effective way to engage with nano- and micro-influencers, but may not appeal to larger influencers. Read the basics of free gifting for influencers.
5. Channel takeover: This is when an influencer creates content for a brand’s account for a certain period. Brands should carefully consider the different types of posts associated with the takeover, the KOL’s hourly rate for scheduling and the potential number of new followers through the partnership. Influencer Contract: Tips and Tricks.
Kolsquare, a data-driven Influencer Marketing platform, helps brands to optimize each step of their Influencer Marketing campaign with help of data and Machine Learning. The solution facilitates the identification of the right profiles for a campaign amongst a catalog of over 3 million KOLs (Key Opinion Leaders), and enables the measurement and performance analysis of each campaign. Kolsquare is a team of thirty experts who accompany you throughout the year in the implementation of your influencer strategies, to help you build effective campaigns and increase your knowledge of the Influencer sector through studies, barometers and enriching insights.