A new report from social media marketing platform Emplifi, which analyzed Instagram content and surveyed 165 influencers, reveals that micro-influencers with up to 50,000 followers may offer brands the best return on investment (ROI). 

According to the report, approximately 7% of influencer content on Instagram is sponsored, with slight variations across global regions. 

Source: Emplifi

The data indicates that smaller influencers, particularly those with up to 10,000 followers, post sponsored content 67% more frequently than their larger counterparts with over 1 million followers.

Emplifi attributes this trend to micro-influencers’ closer relationships with their followers, which allows for more authentic brand partnership integration. 

The report suggests that these smaller influencers are attractive for brands with limited budgets.

Compensation for influencer partnerships varies widely. Instagram influencers charge between $10 and $10,000 per post, while TikTok rates range from $25 to $2,500 per post. 

The study finds that cash remains the preferred payment method, especially for influencers with larger followings. However, alternative forms of compensation, such as gift cards, free products, or additional content exposure, can be effective, particularly for micro-influencers.

Factors Influencing Selection

Emplifi highlights that influencer selection should be based on factors beyond follower count. 

Key considerations include the influencer’s engagement rate, content quality, past collaborations, and alignment with brand values. 

Source: Emplifi

Emplifi’s survey reveals that personal interest in the brand and shared values often take precedence over compensation when influencers choose brand partnerships.

The report also notes seasonal trends in sponsored content. 

Sponsored post frequency tends to peak in the months leading up to the end of the year. However, the study observes a slight overall drop in sponsored posts from influencers, potentially due to tightened budgets and economic uncertainty. 

Emplifi cites a Donnelly Financial Solutions survey indicating that 49% of CFOs express concern about inflation impacting business performance.

Setting KPIs and Tracking Performance

For marketers planning influencer campaigns, the report recommends setting clear key performance indicators (KPIs) before launch. 

These may include engagement rates, click-through rates, and conversions. To track performance, 

Emplifi suggests using analytics tools such as Google Analytics and native social media insights. For more precise ROI measurement, unique discount codes, UTM parameters, or affiliate links tied to each influencer are recommended.

The study advises brands to consider the broader impact of influencer campaigns, including brand sentiment and long-term customer loyalty. 

Regular review of performance data and flexibility to adjust strategies based on results are emphasized as crucial for optimizing influencer marketing ROI.

According to the report, budgeting for influencer marketing campaigns requires careful planning. 

Emplifi recommends brands start with small tests using micro-influencers before scaling up. 

A mix of cash payments and product offerings is suggested as an effective compensation strategy. The report also advises setting aside a budget for content amplification through paid social ads to expand reach.

Emplifi’s data shows that larger influencers (with over 1 million followers) share sponsored posts less frequently than smaller influencers. 

The report suggests this may be because larger influencers focus on maintaining content authenticity and avoiding overwhelming their audience with sponsored partnerships.

The full report is available here.