Instagram Influencer CPM and Pricing per Post, Matrix/Cheatsheet, September 2017

I created this table to provide quick overview/cheatsheet to Instagram Influencer Marketing pricing. First you find the matrix, then some examples and finally the derivation to the numbers.

Matrix

This matrix is an estimate and a base to start a conversation, the final price is depending on many factors and don’t miss the derivation below.

Three Example Pricing Calculations

Amanda Lee, 10M Followers

Amanda would get between $23,125 and $115,625 per Instagram post (rough estimate).

Bee Ella, 964K Followers

Bee would get between $2.313 and $11,563 per post (rough estimate).

Paris, 38K Followers

Paris would get between $93 and $463 per post (rough estimate).

Derivation

Instagram Influencer CPM

Getting to a valid CPM isn’t easy because the only thing we have is the follower count and engagement rate of an influencer. Can we take the follower count as the base for the CPM? Not directly because…

  • Not all followers will always see all the posts of an influencer
  • The Instagram feed is curated by Instagram and it might happen that some or many posts are just not shown to some or many viewers
  • Many followers might be bots or just ‘auto-follows’

So, we need first to get the Followers-to-See rate (F2S)

Instagram Influencer Followers-to-See rate (F2S)

Some say that just 30% of the followers actually see a post (Andrew Griffin, Independent, March 2016). Facebook itself states 800m total users and 500m daily active users (September 2017), thus max. 62.5% of an influencer’s followers could see a post. I think 30% is too low because good influencer have insanely high engagement rates—up to 7.7% of all followers according to influence.co (April 2017). To move on, we just assume the median of 30% and 62.5% which is a Instagram Influencer Followers-to-See rate (F2S) of 46.25%.

Example: If an influencer has 10,000 followers 4,625 people view his/her post on average.

Instagram Influencer Price per Posts

$1,000/post of a 100,000 follower influencer account is the base according to Christina Naftelberg/Attention (June 2017). This would be a CPM of $21 ($1000 / (46,25% x 100,000 / 1000)).

Timothy Masek/Ladder mentions $5 CPM for native Instagram posts (August 2017) which would rather translate to $231,25 for a post of a 100,000 follow influencer (46.25% x 100,000 x $5).

Now, the question is wether a native Instagram ad or a product placement by an influencer does have a higher value. A native ad has much better conversion features (a button and super granular targeting) and a influencer promoting a product can have a much higher impact, in particular when there is natural fit between influencer and product (think of fashion).

When researching you find a range of CPMs between $5 and 10$ (without considering the real views) and it’s hard to nail one figure. There are too many factors involved such as…

  • Product influencer fit
  • Engagement rate
  • Demand for that specific influencer
  • Brand value of the advertiser (think of Chanel vs a small retailer)
  • Length of campaign/number of posts
  • Are you dealing directly with the influencer or through an agency, then you will need to put some commission fee on top
  • Extra rights such as rights to the picture for own promotion

To sum, CPMs between $5 and $25 are possible it’s up to you where to start negotiation.

But before paying a CPM of $20 or even $25 be aware that you 4–5x more than the native ad price and there must be a good reason to do so. According to Hollywood Branded, even Kim Kardashian with 100M followers allegedly gets $250K per post which would just translate to a $5–6 CPM.