It’s this engagement that influencers and the corporate brands that sponsor them closely measure and bank on. In September 2018, Italian social media star Chiara Ferragni (@chiaraferragni) got married, broadcasting her two sponsored couture Dior dresses under the hashtag #SuppliedByDior to her 14.9 million Instagram followers. Her nuptials reportedly brought the design house a media-impact value of $5.2 million, earning the brand more media attention than another VIP 2018 bridal client: Duchess Meghan Markle.
Within the past year there’s been a really strong interest in influencers [from brands],” says Amanpreet Dhami, a digital strategist at Devon Consulting & Public Relations. The Toronto-based firm is a middleman between brands and influencers and has led campaigns with companies including Burt’s Bees, Glossier and Prada.
Of the over 30 brands currently working with the firm, “I would say a quarter of [our brands] do paid influencer marketing,” Dhami says. It might seem against the grain for haute couture companies like Dior to turn to influencer marketing alongside more drugstore brands like Burt’s Bees. But with 72 per cent of 2,000 millennial-aged Instagram users reporting that they’d made beauty or style-related purchases after seeing photos on their feed, “brands know that, with social media being that much more relevant with the millennial population and Gen Z, it has more influence over people’s purchasing decisions,” Dhami says.
And with the intimacy fostered by the idea that your feed is curated and targeted just to you, Capobianco says, “there is more of an expectation that the content a consumer is getting is more relevant, more tailored and more specific for them. Influencer content helps do that do that.”
Canadian brands, in recognition of this influence, have now allocated a higher percentage of their budget towards influencer marketing, with 77 per cent of brand’s budgets going to the strategy, compared to 69 per cent in the United States, per the 2017 Izea State of the Creator Economy Study. While Dhami says budgets are brand, campaign and influencer specific, typically, “Budgets range anywhere from $10,000 for a micro-influencer campaign to up to $100,000 if it’s a larger campaign,” she says. “There are also larger players in the industry such as the L’Oréals and the P&Gs (Proctor and Gamble) of the world who work with [even] larger budgets than this.”
Major brands may be spending more money on influencers, but they’re actually spending less on producing ads. “In the beginning, they couldn’t wrap their heads around paying influencers,” says Koonar, “[but] now that they see they’re replacing the typical amount they’d spend shooting an editorial: photographer, models, hair and makeup people, stylists, location. They see that it is actually quite affordable, especially when the audiences’ on social media are much more engaged than any other medium for advertising.”
These newly increased brand budgets, along with a greater knowledge of how to price your work, has allowed content creators like the Decoelis, and fellow Platform Media influencer Matt Benfield (@mr.benfield) to live off their content. Benfield is a member of the LGBTQ community and his lifestyle posts, often featuring his partner and fellow influencer Omar Ahmad, celebrate his sexuality and focus on positivity. When he launched his social media feeds in Berlin before moving to Toronto in 2018, he was coming into the field with a very limited knowledge of the financial side. “I didn’t really know how to price myself. [So] it was like a hundred euros here and a hundred euros there [for my content], but there wasn’t really anything sustainable.” Since joining Platform, Benfield says he’s seen his rates increase tenfold. In 2019, he’ll take home $80,000 to $100,000 after taxes. “It’s actually livable,” he says. “It’s more money than I’ve ever had and that I know what to do with. I’m really blessed to be able to have that financial stability.”