The influencer marketing space on Instagram has gained a significant amount of traction in terms of commercial interest over the last five years, according to a recent study by influencer marketing firm IZEA.
The study tracked the sponsored posts of influencers dating back to 2006 when IZEA first started processing transactions. Over the last five years in particular, the firm noted that there’s been a boom in the demand and price for sponsored content on both Instagram and blogs.
“Since , we have completed over 3.8 million transactions in different formats across a variety of social media channels. Our experience as a pioneer provides us with a unique and unmatched view of the evolution of the influencer marketing landscape. The space transformed from an experimental component of online marketing to a multi-billion dollar industry with real budget dollars,” said IZEA CEO and founder Ted Murphy.
On Instagram in particular, the average cost of a sponsored photo exploded since 2014, growing more than tenfold from $134 to $1,643 on average. The only market that currently draws in more dollars is YouTube, with an average cost per video at $6,700.
Facebook has experienced a stronger rate of growth, a 50-fold increase from 2014 from $8 to $395 per post, but the initial pricing was highly undervalued for a platform with so many users when compared to Instagram.
The only non-video medium currently competing nearly on par with Instagram is the blogosphere, with $1,442 per post on average.
All this data demonstrates that Instagram and personal blogs continue to be the go-to venues for income opportunities for influencers. However, the recent introduction of Instagram Reels might actually raise the bar slightly as video content becomes more popular on the platform, making pricing for sponsored posts even more competitive.
In addition to this, the rise in cost for sponsors is not as big of a deal as it may seem, since the amount that they pay for product placements and promotion is still much lower than it would be had they decided to schedule and set up a photo or video shoot themselves.
“The hourly price to concept a shoot, hire a model, hire a photographer, find a location, and retouch an image is still far more expensive in the traditional agency world. The average price for a sponsored content has room to grow and we believe that it will again in 2020,” Murphy added.