You've seen them flooding your Instagram feed, showcasing the latest fashion, sampling a new collagen, raving about a doughnut at their local cafe, sharing their OOTD or a snap of their Sunday run club. Social media influencers have become an integral part of numerous businesses' marketing strategies, with many jumping at the idea and others a little more cautious.
Let’s unpack this and examine the role of influencers in marketing strategies. Exploring what engaging an influencer might entail and the associated costs and benefits.
What is an influencer?
An influencer is an individual who has gained a substantial audience on their social media account, which functions as “their brand”. They utilise their platform to impact their followers' purchasing decisions through the content they post. This content often includes personal recommendations and opinions, referred to as user-generated content (UGC). Influencers typically work on platforms such as Instagram, TikTok, YouTube, and Facebook.
A couple of New Zealand influencers you can recognise are:
Where does my business start?
Before jumping in, it’s important to approach influencer marketing with a clear strategy. Without one, you risk wasting time, money, and resources. Here are a few starting points:
Define your objective – Start with WHY
Outline what you want the influencer to provide – Be clear on your deliverables.
Determine what you can offer in return – Look at your budget and business values.
With a strong strategy, you can identify whether an influencer is the right fit for your brand, and if so, what that could look like.
So, you’ve got a strategy. What are the costs?
Unfortunately, there's no one-size-fits-all answer when it comes to costs.
Influencer fees vary based on a number of factors and their egos.
The influencer tier is typically the first and biggest factor affecting cost. These can be broadly categorised by their following, engagement rate, and experience.
Nano-influencers (1,000 - 10,000 followers): Have engaged niche audiences and usually charge NZD $50 - $250 per post.
Micro-influencers (10,000 - 50,000 followers): They have strong community connections and typically charge NZD $250 - $1,000 per post based on engagement and content.
Mid-tier influencers (50,000 - 500,000 followers): They have a significant reach and typically maintain a professional approach. The cost for their posts can vary between NZD $1,000 and $5,000 or more.
Macro-influencers (500,000 - 1,000,000+ followers): Fees start at NZD $5,000+ per post and rise quickly for popular personalities.
Mega-influencers (1,000,000+ followers): Often celebrities or public figures, their fees can exceed NZD $10,000+ per post.
Other factors influencing cost, include:
Follower count is a key metric
A larger audience often means a higher price. However, focus on engagement rate, product/service suitability, and target audience as well.Engagement rate
An influencer with a smaller, active audience often has better results than one with a larger, inactive following.Content format
A simple Instagram story will typically cost less than a feed post or a professionally crafted reel. Platforms like TikTok have their own pricing structures based on views and trends.Campaign complexity
A simple product review will cost less than a multi-channel campaign involving several pieces of content, event presence, or long-term partnerships.
Real kiwi examples (inspired by NZ Herald Article):
Last year, Tourism New Zealand splashed out about $1.4 million on jetting in 50 overseas social media influencers for a “stargrazing” campaign with an extravagant crayfish and pāua dinner. The reaction from audiences was mixed.
Documents released to NZME under the Local Government Official Information and Meetings Act, showed that in the past five years, only Auckland and Christchurch have opted to use paid social media influencers within their campaigns.
Auckland has spent a total of $103,300, while Christchurch sat at just over $27,300. When breaking down the payments, Auckland started small in 2021, dishing out a $7500 payment to a New Zealand-based ‘Food & Drink’ influencer. Included in that cost were two social media posts, one video, and five stories.
Christchurch, meanwhile, jumped on the influencer bandwagon in 2022, where it dished out $20,000 within the year. That was split between just two influencers. The first – a New Zealand-based lifestyle content creator with 88,000 followers – received $8050 for two Instagram posts and two stories. The second payment of $11,950 went to travel and lifestyle photographers, Charlotte and James Maddock, based between New Zealand and Western Australia.
A homeware store launching its brand into the market may collaborate with a nano-influencer with 5,000 local followers who focuses on sustainable living. They could offer the influencer a selection of candles in exchange for a few Instagram stories and a feed post showcasing them in their home.
A tourism operator in Queenstown launching a new adventure package could partner with a micro-influencer with 30,000 followers who specialises in outdoor activities. They might pay around NZD $800 for a high-quality Instagram reel showcasing the experience and a blog post detailing it.
A New Zealand fashion brand launching a new collection might work with a mid-tier influencer with 200,000 followers known for their stylish aesthetic. They could negotiate a package including several Instagram posts, stories, and a TikTok video for around NZD $3,000.
Tourism New Zealand's pop-up restaurant at Castle Hill which brought in 50 social media influencers in 2024.
Beyond the posts
Remember that the cost of a single post is just one piece of the puzzle. Consider these additional factors:
Campaign duration
Longer campaigns or ongoing partnerships will likely involve a retainer fee or a discounted rate per piece of content.Travel and expenses
If your campaign requires the influencer to travel (e.g., to experience a tourism offering), you'll need to factor in travel, accommodation, and other related expenses.Content creation costs
Some influencers have their own production teams and may charge extra for professional photography or videography.Agency fees
If you work with a marketing agency who partner with influencers, they will have their own fees on top of the influencer's rates.
So, are influencers beneficial to your brand’s marketing strategy?
Influencer marketing can be a powerful tool when done with intention and clarity, but without a strategic approach, it’s easy to get swept up in the hype and see limited results.
Want to start a strategy and determine whether influencers are the right option for your brand? Get in touch with us.
