In recent years, social media platforms have become a key part of digital marketing strategies for businesses. Influencer marketing, in particular, has emerged as a powerful tool for brands to reach their target audience through popular social media platforms such as Instagram and TikTok. While TikTok is known for its explosive growth and viral content, Instagram is where many influencers look to monetize their following.
In this article, we will analyze a study conducted by Later that surveyed 500 creators and analyzed thousands of posts to determine how much influencers get paid per Instagram post and reel and we will also see why Instagram is better than Tiktok when it comes to earning money as an influencer marketer.
We will explore the key takeaways from the report, providing valuable insights for both influencers and brands interested in influencer marketing.
TikTok has quickly become one of the most popular social media platforms, especially among Gen Z and millennials. Its algorithm and unique features have made it easy for content creators to quickly gain followers and reach a wider audience. However, monetization on TikTok is still relatively new and limited, with fewer opportunities for sponsored content compared to Instagram.
On the other hand, Instagram has been around for over a decade and has a well-established influencer marketing industry. Many brands prefer to work with influencers on Instagram due to its highly visual nature and large user base. Instagram also offers more opportunities for monetization, such as sponsored posts and affiliate marketing.
According to a report released in March from social-media-management platform Later, more creators are getting paid for sponsored posts on Instagram than for content on other platforms — and they're earning higher rates.
While other data has shown TikTok has grown as an influencer-marketing platform, Later's report found that Instagram is still at the forefront of many brand collaborations.
"TikTok is really good for the initial stage of growing your platform and getting a lot of eyes on your content, when you want to monetize, you might start thinking about Instagram." says Monique Thomas, Later's editorial content marketing manager.
The report was based on a December 2022 survey of over 500 creators globally who work with Later and the influencer-marketing platform Mavrck, as well as an analysis of 31,000 social posts.
According to the study by Later, Instagram is the most lucrative platform for sponsored posts. On average, influencers charge $500 per Instagram post, with some charging up to $10,000 or more depending on their following and engagement rate. In terms of sponsored reels, the study found that they are the highest-paying form of sponsored content on Instagram, with influencers charging an average of $1 500 per reel.
Here's a breakdown of the median rates for creators on Instagram, based on the report's analysis of 29 000 posts:
The study also found that engagement rate plays a significant role in determining an influencer's rates. Influencers with a higher engagement rate tend to charge more for sponsored content as they are seen as having a more engaged and loyal audience. The niche of the influencer also plays a role, with influencers in more specialized industries such as beauty or fitness commanding higher rates.
In addition to sponsored posts and reels, influencers can also make money through affiliate marketing on Instagram. This involves promoting products or services through personalized links and receiving a commission for any sales made through those links. Affiliate marketing can be a highly lucrative source of income for influencers, with some earning tens of thousands of dollars per month.
Here are five key takeaways from the report:
1. Instagram was the most popular monetization platform among creators.
In-feed Instagram posts and reels were the two most common content formats creators in the survey had been paid for, followed by TikTok posts. Here were the shares of creators who said they had been paid for each content format:
- Instagram post (single image, carousel, or feed video): 84.2%
- Instagram reel: 63.8%
- TikTok post: 27.4%
- Facebook post: 26.8%
- Facebook story: 12.5%
- Twitter tweet: 8.3%
- LinkedIn post: 7.9%
- Pinterest pin: 7.1%
2. Reels were the most lucrative format.
While TikTok is the hub for short-form video content, reels appear to be the more profitable format: 44% of creators in the survey had earned over $200 per reel, compared to 28% who earned similar amounts per TikTok. Some creators in the survey even reported earning as much as $7,000 for a sponsored reel.
3. Creators want long-term partnerships with brands instead of one-off transactions.
Most respondents — 76% — said they want to have a personal interest in the brands they work with, while a majority also said they want to be aligned with the brand's product, and they want to connect with the brand's values.
4. Creators often consider time and resources when approaching brand deals.
When setting pay rates, creators most commonly weigh factors including the content format, scope of work and resources required, and the expected time to deliver and create content, according to the survey.
5. Some creators set their rates by guessing.
37% of respondents said they initially guessed their rates when approaching brand deals.
Why this data is important for influencer marketers, brand owners, and affiliate marketers?
Understanding the data on influencer rates and content formats is crucial for content creators, brand owners, and affiliate marketers alike. Creators can use this information to focus their content creation efforts, negotiate better deals with brands, and create more reliable sources of income.
Brand owners can also benefit from this data by using it to allocate their marketing budgets more effectively, create more genuine influencer campaigns, and cultivate more fair and sustainable partnerships with creators.
For affiliate marketers, this data can help them optimize their campaigns, reach a wider audience, and establish dependable and sustainable sources of traffic and revenue.
Conclusion
While TikTok can be a great platform for growing your following and gaining exposure, Instagram is where many influencers turn to monetize their following. According to the Later study, influencers can expect to earn an average of $1,643 per Instagram post and $2,457 per reel.
Of course, rates vary depending on factors such as engagement rate and niche, but with the right strategy and audience, influencer marketing on Instagram can be a highly lucrative source of income that's way over Tiktok.
So if you are a content creator, affiliate marketer or brand owner looking to take your social media reach to the next level, its better to use this as a hack: Start with Tiktok as the top-of-the-funnel traffic source and then send your audience to your Instagram, where you will be able to monetize in several ways.
