Key Takeaways From The State of Influencer Earnings Report
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
For anyone who thinks the creator economy was overblown—think again. Influencer marketing company IZEA’s second report on the state of influencer earnings found that payment averages continue to increase. The report breaks influencers into different tiers—nano (less than 10,000 followers), micro (10,000 to 49,999 followers), mid-tier (50,000 to 199,999 followers), macro (200,000 to 499,999 followers) and mega (500,000 to 999,999 followers)—and pulls from data spanning 2015 to 2022.
Based on their findings, here’s what we can expect about influencer marketing in 2023.
Smaller creators are the future of influencer marketing
Influencers with less than 200,000 followers—considered mid-tier and below—all saw new payment highs. In 2022, mid-tier creators received an average of $3,396 per post, while micro and nano influencers took home $1,674 and $1,105, respectively.
Many smaller influencers consider their social media earnings a side hustle to complement their traditional job. On the flip side, the macro and mega influencers who are more likely to have made this their full-time gig, saw their payments decrease. Macro influencers earned $4,992 per post compared to 2021’s $5,043 per post. Mega influencers’ compensation fell from $6,786 in 2021 to $5,497 in 2022. Not exactly a drastic change, but enough to potentially point to a turn of the tide for what to expect in their annual earnings.
This tracks with what influencer marketing agencies have said: creators with fewer followers are more likely to actively engage their followers, who might then trust their sponsored posts more than that of a larger creator. And as the economy continues to waver, brands can pay a smaller influencer less than they would someone with millions of followers. Plus, there’s the fact that some people are expressing a distaste for larger influencers flaunting their wealth.
TikTok is big—but so are other platforms
It’s no secret TikTok has completely upended digital marketing. Agencies have scrambled to keep up, and many have shifted their content creation strategies to accommodate short-form videos and fast-moving trends.
And, yes, TikTok posts were worth quite a bit last year—the average video cost about $2,741. But the highest post per platform was livestreaming service Twitch at $4,373. Apparently, while everyone was talking about TikTok as the future of influencer marketing, brands were quietly turning to Twitch.
When it comes to photo-sharing platforms, the usual players didn’t come out on top either. Yes, an Instagram story was worth $2,784—more than a TikTok video—but an Instagram photo could bring in $1,311. A Facebook post, meanwhile, was only worth a measly $642. The real winner in the photo world is Pinterest, where influencers make about $1,450 per post. It makes sense. After all, people go to Pinterest to find inspiration for purchases like home decor and outfits.
A multi-platform presence is key
That said, creators who are serious about making money from their social media following would be foolish to stick to just one platform. After all, platform-specific creator funds aren’t paying what they used to. Combine that problem with certain sites having an uncertain future—looking at you, TikTok—means that creators have to solidify a larger internet presence.
IZEA’s report only confirms this. Creators who post videos across multiple platforms can earn about 3.9 times more than a video on a single site. An Instagram story paired with a YouTube video is worth about $12,007, while an Instagram story combined with a TikTok video brings in $6,444.
All of which explains why many TikTok creators are turning to YouTube after the video site announced it would extend its ad revenue-sharing program to include Shorts. Instagram influencers, tired of the platform’s ever-changing algorithm, are also exploring other platforms. Clearly, dedicating time across multiple platforms pays.
How the recession might further alter influencer marketing remains to be seen. For their part, influencers are already preparing for brands to offer less money. And those looking for internet fame might want to reconsider their dreams of cultivating millions of followers in favor of a small but loyal audience.
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Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
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