Influencer marketing is one of the most efficient ways to promote products and services online. Most influencers know their communities inside out and understand exactly what topics resonate with them. This allows them to identify which brands are a good fit for collaboration and to deliver messaging to their audience in a familiar and trusted way – with minimal waste
It’s no surprise then that working with influencers has become one of the most popular forms of online advertising. It’s also no shock that successful brands are allocating increasingly larger budgets to influencer marketing. Influencers themselves also now understand the true value of their work. The costs involved typically include product provision and fees for content creation and publishing it across their high-reach channels. Depending on the campaign, brands may also invest in paid promotion on social platforms.
There are many cost factors to consider. Beyond building an influencer strategy or deciding how to find influencers, understanding pricing is essential for delivering your message effectively through a campaign. In this article, we’ll answer your most pressing questions on this topic.
Influencer Advertising Costs: The CPM
One of the most important metrics in calculating influencer marketing costs is CPM – Cost Per Mille (cost per 1,000 impressions). For decades, CPM has been a key metric in media planning and advertising as it tells you how much it costs to reach 1,000 people in your target audience.
In simple terms: how much do you need to spend for 1,000 people to see your advert?
After running a campaign, you calculate CPM by dividing total ad spend by the total reach, then multiplying by 1,000.
For example, if you spend £10,000 and reach 1,000,000 people:
CPM = (£10,000 / 1,000,000) × 1,000 = £10
Conversely, if you know your target CPM and desired reach, you can estimate your available budget:
Ad spend = (£10 × 1,000,000) / 1,000 = £10,000
You can also use CPM for forecasting based on past data or specific planning scenarios. It’s a helpful reference for determining the value of an advertising effort. But remember: CPM is a guideline, not a fixed value.
Several factors influence actual CPM outcomes — including the influencer’s popularity, average reach, engagement rate, authenticity, and brand alignment. Platform, campaign duration, and content quality also impact influencer marketing costs.
Note: CPM rates vary widely by platform. Benchmarks can help provide rough estimates, but actual prices fluctuate based on the above.
Benchmark CPMs by Content Type
Post Type | UK Benchmark |
Instagram Post | £30–£50 |
Instagram Story | £30–£50 |
Instagram Reel | £40–£70 |
TikTok Video | £30–£50 |
YouTube Video | £70–£130 |
LinkedIn Post | £50–£200 |
Influencer Advertising – Cost Overview
In day-to-day influencer marketing, influencers and creators are rarely paid strictly based on CPM. Instead, they usually charge flat rates for service packages — for example, how many posts or stories are included, how often links or discount codes are mentioned, etc.
These package prices are often derived from the influencer’s average CPM.
But how much should you budget for influencer marketing?
According to a 2024 study by Kolsquare and NewtonX, UK brands are steadily increasing their influencer marketing investments, with mid-to-large companies spending hundreds of thousands of pounds annually.
Real costs depend on where influencers are active (e.g., Instagram, TikTok, YouTube), their reach (follower count and actual impressions), and engagement rate. Niche influencers — with highly specific audiences — may command higher rates. Other pricing factors include collaboration duration and content usage rights (e.g., does the brand need a “buyout” to reuse the content across their channels?).
Ultimately, deciding how much to allocate for influencer marketing is a business judgement and negotiation process. Having a strong understanding of the influencer landscape — or getting support from specialists — is key to investing smartly.
Influencer Marketing Costs – Payment Models
Aside from CPM, several standard payment models are used in influencer marketing. Influencers usually have set rate cards available upon request, though these are often open to negotiation. Common pricing models include:
- Affiliate marketing (commission-based): Payment is based on conversions or sales generated via the influencer’s unique link or code.
- Pay per click (PPC): A fee is paid for every click on a link within the influencer’s content.
- Pay per post: A fixed fee is paid for each piece of content — suitable for controlling budget.
- Pay per lead / pay per sale: Payment only occurs when a lead or sale is generated through the influencer’s content.
- Pay per follower: A flat rate is paid per new follower gained as a result of the collaboration — ideal if follower growth is a strategic goal.
- Performance-based payment: Specific KPIs are agreed in advance (e.g., reach, clicks, conversions), and payment depends on meeting these targets.
- Daily rates for events/workshops: Some influencers charge fixed fees to attend events and share coverage on their platforms.
Which model is right for you depends on your goals and how you measure success. Hopefully, this article has given you a clear overview of how influencer marketing costs work in the UK context.
Still have questions? Don’t hesitate to get in touch!
FAQ
1. How much does influencer marketing cost?
There’s no one-size-fits-all answer — costs depend on factors like influencer reach, engagement rate, content format, and the agreed payment model.
2. What is CPM?
CPM stands for “cost per mille” (per 1,000 impressions). It’s a key advertising metric that shows how much it costs to reach 1,000 people in your target audience.
3. How much can an influencer charge?
An influencer’s fee depends largely on their reach and engagement. Niche influencers with specific, high-value audiences may charge more than general lifestyle creators.