How much to charge for advertising on Instagram

How much to charge for advertising on Instagram

Today, in the accounts of Instagram bloggers, you can find advertisements for both start-up startups and large corporations. The price tag for a single ad post can range from a few hundred to several million dollars. Such a huge price range challenges all influencers in assessing the fair value of their services. We propose to figure out how much to charge for advertising on Instagram, and what factors the cost depends on.

Why you can take money on Instagram

Influencer marketing continues to gain traction. About 7 out of 10 users rely on the opinion of bloggers when making a decision. Influencers allow you to establish closer contact with your audience, generate huge flows of high-value Internet traffic and improve sales.

By leveraging these market trends and having an active Instagram audience, you can earn money by promoting brands and their products. There are several options for earning:

  • sponsored publications;
  • affiliate marketing.

Let’s look at each of them in more detail.

Sponsored post or story

Lena Temnikova

Sponsored posts are one of the most popular ways to make money on Instagram. Placing ads on bloggers shows amazing cases, which is why brands of all sizes are eager to partner with influencers. Moreover, not only millionaire bloggers are in demand. Brands turn to ads and micro-influencers with up to 50K subscribers.

The task of the influencer in this case is to create and place high-quality advertising content in his account. The sponsored post format can be anything from a regular product photo and brand mention, as if by chance, to a full review.

Cooperation is based on individual advertising agreements between the brand and the account owner. The influencer chooses the cost of placing an advertising post on his own based on several key parameters:

  • subscriber volume;
  • audience engagement;
  • being in demand.

Often two more unpredictable concepts affect the cost – the blogger’s personal desires and the ability to sell to their audience.

In determining the cost of an advertising post, a lot also depends on the format of the advertisement, the scale of the influencer, the budget of the brand, and the characteristics of the product. Generally, the more difficult it is to advertise a product and the longer it takes to create content, the higher the cost of sponsoring a post.

Affiliate Marketing

Affiliate marketing implies earning a certain commission on the sale of partner products, attracting new customers. The task of the influencer in this case is to conduct a review, talk about the benefits of the product and add a referral link or a promotional code for a purchase to the description. If users like the recommendation, they will go to the partner’s site and make a purchase, the blogger will receive a certain commission from the funds they spent.

Affiliate marketing has more flexibility compared to sponsored publications. The blogger can decide for himself which publication format to choose, what, how, and when to write, but earnings depend solely on the actions of the influencer himself. Working according to this scheme, it is important to choose the right products on offer so that they are ideally suited to your target audience.

Rate the audience quality

When a brand pays you to post, it actually buys views, likes, and conversions from your target audience. And you have to be honest with the advertiser about what kind of response you can offer. Selling your influence without actually having it is a recipe for disaster.

Therefore, before setting a price tag, you should definitely evaluate the quality of your audience. Detailed analytics of your account audience can be done with trendHERO .

The service allows:

  • find out subscriber demographics;
  • compare the interests of your audience with your brand values;
  • see how the number of subscribers is growing;
  • calculate audience engagement rate;
  • check your account for bots.

Аудит trendHERO
Прирост подписок и подписчиков

Advertisers now value quality over quantity. Nobody wants to overpay for bots in subscribers and “dead” souls, so before cooperation, you should definitely check the quality of your account. So, if necessary, you can increase the level of audience engagement, clean your account from bots, and not be included in the “black” list of unscrupulous bloggers.

Please note that advertisers can get detailed profile statistics without you. Therefore, it makes no sense to hide the faked activity and subscribers.

How to calculate how much to charge for advertising?

Advertising price depends on many factors:

  • format;
  • the quality and quantity of the audience;
  • brand budget;
  • influencer queries.

There is no single magic formula for calculating everyone. Therefore, below we suggest that you familiarize yourself with several different ways to determine the cost of advertising on Instagram.

Hourly Pay

Paying on an hourly basis is a good option for aspiring influencers who don’t yet have a huge following but already know they can create quality content.

Создание контента

It’s also a good option for anyone posting content that requires a lot more skill than just creating a photo or video. For example, if you conduct a full product review for your publications, apply technical editing skills, use special effects, drones, then it is logical that you should receive monetary compensation for your efforts and time spent.

How much a blogger charge for advertising in this case can be calculated using the following formula:

  • Hourly rate * hours spent producing content + any additional costs.

Example calculation for creating a sponsored post at an hourly rate of $ 50:

  • 30 minutes to research the brand and competitors;
  • 60 minutes to generate a publication idea and define a creative direction;
  • 45 minutes for product photography;
  • 60 minutes for editing and retouching images;
  • 15 minutes to publish the material and write a signature to the post.

Total: 3.5 hours to create a publication – that’s $ 175 payable.

Additional costs may include the cost of the required requisite, the cost of paying for the assistant’s work, travel and other expenses that the blogger incurred to create high-quality content.

When invoicing, be sure to include all hours spent starting from the time it takes to generate an idea. As for the additional costs, everything is individual here. For example, some even include in the price the travel time and money spent on gasoline and purchase of props. Others are frivolous about such calculations and carry out minor duties just like that.

It should be noted right away that not all brands may like the idea of ​​paying an hourly rate. In some cases, you will have to calculate in advance how long it will take you to produce in order to name a fixed fee. Of course, content creation can take you longer than you planned, or you can get it done much earlier. But knowing the estimated cost, companies can plan costs.

Calculating engagement fees

From cooperation, the brand wants to get views, new loyal customers, likes and comments. It makes sense that it makes sense to charge for the actual engagement of users under the post. This option will be attractive for those who do not want to track every second spent on a project and are confident in the quality of their audience and their influence.

But at the same time, it is important to understand that there is a certain relationship between the number of subscribers and engagement. As a rule, the more followers, the less engagement on the account. This is due to many factors, including the fact that subscribers believe: if a post has more than 30K + likes, then you no longer need them.

рекламный пост

To calculate how much a blogger should charge for advertising, taking into account engagement, proceed as follows:

  1. Calculate the average number of likes per post. For calculation it is recommended to take into account the last 12 posts. Display the total number of likes and divide by 12.
  2. Determine the average number of likes by counting all comments under the last 12 posts and dividing by the number of posts.
  3. Calculate the average number of activities per post by adding the average number of likes and comments.

Next, you can determine the optimal cost for one user activity and calculate how much it will cost you to post a post.

For example:

  • average number of likes per posts 3000;
  • average number of comments 75;
  • total user activity under post 3075,
  • selected price per activity $ 0.1.

Total: posting will cost $ 307.5 (3075 x 0.1).

Use trendHERO to automatically calculate engagement and get a ton of other useful statistical information about your profile.

Since comments require more effort from users, you can set separate fees for likes and comments if you wish. Remember, too, that brands always enjoy getting more than they intended. Offer a discount, multiple posts instead of one, additional product content as a courtesy.

Pay by CPM

The third option is the calculation of the cost of advertising by CPM indicator. CPM (abbr. From Cost per mille) is a marketing term that shows the cost per thousand impressions or subscribers, taking into account their engagement.

To calculate your CPM payment, follow a few simple steps.

Step 1: Calculate Engagement

First of all, you should calculate the level of engagement on your account. For this you need:

  1. Add the average number of likes and comments per post.
  2. Divide the resulting value by the number of subscribers on the account and multiply by 100%.

Average cost per 1000 impressions difference depending on the level of subscriber engagement:

  • 1.5-3% participation – 5 USD;
  • 3-5% – 7 USD;
  • 5-8% – 10 USD;
  • > 8% – 15 USD.

Step 2: Counting Subscribers

Next, divide the number of subscribers by 1000. For example, if you have 250K subscribers in your account, then the value for the CPM formula will be 250.

Step 3: calculating the CPM

Now all that remains is to substitute the obtained values ​​into the formula and make calculations:

  • Advertising cost = CPM by engagement rate x per subscriber ratio.

For example, let’s take an account with 25K subscribers and 3-5% engagement. Calculations for it will look like this:

  • $ 7 x 25 = $ 175 per post

Brands also often use a pay-per-1000 approach. To calculate the CPM in this case, you should:

  1. Take the average number of impressions a post gains and divide by 1000.
  2. Multiply the resulting value by the impression cost. The average cost is 20 USD, which formally means 2 cents per impression.

An example of calculation for an account, where 20,000 is the average number of impressions: (20,000/1000) x 20 = 20 x 20 = 400 USD.

As a rule, the engagement and impression rate for Stories and regular posts is different. Therefore, for each specific ad format, you should display your cost. Sometimes the cost of placement can be deliberately increased compared to the base rate. For example, if it takes many times more time and skills to create an advertising publication for all brand requirements than for a regular one.

Other ways

There are several other ways to determine the optimal cost of advertising in your account. The methods below do not require any special calculations, but make it easy to navigate in the market situation.

Use a calculator

You can use online calculators to calculate the cost of a sponsored post. It is convenient, simple and does not take a lot of time. But you have to rely on the average formula developed by professionals.

For example, service allows you to calculate the cost of advertising, taking into account the number of subscribers, their activity, the level of engagement and many other factors. To make a calculation, you just need to specify a nickname.
калькулятор стоимости постов в Инстаграм

The calculator from works in much the same way. It can also be used to calculate the approximate cost of advertising based on the number of subscribers, their engagement and some other statistics, by entering only the name of the account in the appropriate line.

Monitor your competitors

You can determine the approximate cost per post by conducting a competitor analysis. You can find out the cost of placing an advertising post directly, for example, by asking the owner of another account, or by looking for prices in chats and customer groups, on advertising exchanges.

Knowing the cost of advertising in accounts similar to yours, you can also create a competitive offer for advertisers, offering discounts or slightly more material for the same cost.

Refine your brand budget

Any negotiations on cooperation should begin with clarifying the customer’s budget. Of course, you should have already calculated your own minimum bar, below which you would not cooperate. But it’s still worth considering the brand’s budget.

Knowing the brand’s budget, you can act in several scenarios:

  1. Develop a proposal based on brand needs and budget.
  2. Reduce the time spent creating content and thereby reduce the cost of advertising for the brand.
  3. Get more than originally planned if the customer’s budget is more than the standard cost of placement in your account.

It may also happen that the brand that has applied does not have an advertising budget. Of course, free work does not pay the bills, but sometimes it’s worth agreeing to such offers. Especially if you need experience and feedback.

Some brands offer barter cooperation, interesting collaborations, and are ready to provide free copies of their products in exchange for publication. And even if from a financial point of view, such cooperation will be less profitable, but it can still be useful both for gaining experience and for networking.

When calculating the cost of advertising, everything is very individual. All influencers are at different levels, have their own strengths and weaknesses, and produce content of different quality. The final cost of placement can only be determined by you. After all, in the end, only you thoroughly know how subscribers trust you, how long it takes to create high-quality content and how real the activity in the profile is. We can only recommend that you stay honest with brands, monitor the quality of your audience and, if necessary, seek a compromise solution.

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