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- Instagram influencers and YouTube creators who earn money through sponsorships are facing a decline in business because of the coronavirus outbreak.
- In a recent report, Izea, a company that connects marketers with influencers, studied the impact the coronavirus pandemic could have on the influencer-marketing industry.
- The report found that despite increased social-media usage, the prices paid per post on all social media may fall dramatically in the short term and continue to drop, depending on the length of the coronavirus outbreak and its overall impact.
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Instagram influencers and YouTube creators who earn revenue through brand partnerships are facing a decline in business because of the coronavirus outbreak.
In a recent report, Izea, a company that connects marketers with influencers, studied the impact the coronavirus outbreak could have on the influencer-marketing industry.
Izea surveyed 949 US internet users on how consumer behaviors could change with social distancing and a likely economic downturn and turned the insights into a 68-page deck on how the industry might change in the next few months.
The report found that despite increased social-media usage, the prices paid per sponsored posts on all social-media platforms may fall dramatically in the short term and continue to drop, depending on the length of the coronavirus pandemic and its overall impact.
As brand deals get put on hold, influencers and marketers should consider mixed-compensation models and revised structures to manage costs and improve overall return on investment, Izea said.
Here are the five key takeaways:
A near term 15 to 25% decrease in cost per post is likely.
IZEA
Despite increased social-media usage, expect the price per sponsored post on all platforms, including Instagram and YouTube, to fall dramatically in the short term, and that may continue depending on the length of the coronavirus pandemic, Izea said.
Izea looked at the pricing impacts in a time of economic slowdown.
IZEA
Between December 2007 and June 2009, the cost per post fell by 45%, then another 42% from 2009 to 2010 before prices began to recover, according to the report.
Izea said this pullback was before influencer marketing became mainstream.
Average cost paid per blog post from 2006 to 2013:
- 2006: $7.39
- 2007: $9.22
- 2008: $9.67
- 2009: $5.27
- 2010: $3.60
- 2011: $5.33
- 2012: $11.78
- 2013: $35.72
Izea’s advice to influencers: “Be proactive and aggressive in pricing, be flexible and open on terms and incremental benefits.”
IZEA
Izea told influencers to:
- “Proactively lower marketplace rates.”
- “Reach out to contacts and let them know about pricing / model changes.”
- “Be open to a variety of mixed compensation models.”
- “Deliver value-added services.”
Izea also said: “Consider mixed influencer compensation models and revised structures to manage costs and improve overall ROI.”
IZEA
Izea said marketers should consider:
- “Cash plus free product.”
- “Affiliate links for joint upside.”
- “Longer commitments in exchange for lower cost per post.”
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