Social media influencers have seen a huge rise in the prices they can charge for sponsored brand posts on Instagram.
New research from marketing firm Izea found the average price of a sponsored photo on Instagram has risen from $134 (£104) in 2014 to $1,642 (£1,276) in 2019, equating to a rise of 1125 per cent.
Izea’s report looked at sponsored content on Facebook, YouTube, Instagram and blogs, examining negotiated rates from 2014 to 2019.
Covering micro-influencers (those with fewer than 100,000 followers) and celebrities, the report found the average cost for a sponsored Instagram photo has increased 44 per cent from 2018 to 2019.
YouTube videos command the highest fees – four times that of the next highest-priced form of sponsored content – up from $420 in 2014 to $6,700 in 2019.
The research suggested that influencer-sponsored posts grew by 150 per cent in the last year, with the use of the hashtag #ad more than doubling.
That may also be due to the fact that at the start of the year, the Competition and Markets Authority warned that some influencer posts could be breaking consumer law if they did not make clear when posts endorsing products were ads.
“Marketers continue to place more value on the content and distribution provided by influencers,” said Izea chief executive Ted Murphy.
“We believe content produced by influencers is competing with and in many cases replacing creative that was traditionally produced by agencies. Despite the dramatic price increases up to this point, influencers are generally able to produce content much more cost effectively than agencies – and provide the additional benefit of distribution to their followers,” Murphy added.