How much to charge for an Advertising on Instagram? This question haunts the minds of many digital influencers. Mainly beginners. Many are afraid to charge early in their careers for having few followers and are left with the question: should I charge for my number of followers or for the full engagement of my Instagram account?
If you’ve started your Instagram profile now, you don’t have to worry about how much you’ll charge per ad. Not at this moment. You have other issues to resolve first, such as:
- Define who your target audience is (and your persona!);
- What is your niche (and sub niche);
- What communication channels will you use.
And to solve these issues, we have an article that can help you a lot: How to create a blog – it will help you create your blog from the beginning – to hire hosting, enable the SSL certificate, among other things).
Now that you are prepared, you have an outline of your business, we can start talking about money.
What is Instagram Advertising?
First of all, let’s understand what an Instagram advertisement or a sponsored post actually is.
When you see on a website or even on Instagram the terms or hashtags #publipost, #ad advertising or even Paid Partnership. This means that the brand in question – the one mentioned in the post – sponsored a post on the influencer’s profile.
The influencer hired to advertise on Instagram has the obligation to signal if it is a paid post. So that your followers can differentiate when it’s a tip from a friend or when it’s an advertisement with the intention of selling and reinforcing the brand. So they don’t feel cheated.
Is it mandatory to signal that it is an advertisement?
All sponsored advertisements must be marked as such. According to Paulo Arthur Góes, executive director of Procon-SP the CDC (Consumer Defense Code), “the relationship with the consumer must be guided by honesty, loyalty and cooperation. Therefore, the advertising carried out needs to be easily identified by anyone“.
Regardless of whether the influencer is large or small – that is, whether it has many or few followers. Góes explains that “if the sponsored product is in a space that enjoys importance in front of the public, not signaling advertising is deceiving the consumer“. And that’s because audiences look differently at content they know is sponsored.
Source: Uol
But what happens if you don’t signal that it’s an advertisement?
In addition to losing credibility with followers/consumers, the influencer can also be denounced to CONAR (National Self-Regulation Advertising Council).
A case like this happened to the influencer Gabriela Pugliesi and had great repercussions. At the time, the author of the blog Tips4Life, about healthy living and fitness, was asked if the posts of the products she recommended on her profile were paid. Followers claimed that there was no identification of #publipost in the content and denounced the practice.
In addition, the hashtag #explicapugli was added to encourage collection. The case is still being analyzed by CONAR. And at the time, she even turned off her Instagram profile for a while – many commented that she did this to stop losing followers.
When should I start charging for Instagram advertising?
One of the questions I get the most on Instagram is “when should I start charging?”. And I confess that it is very difficult to answer this question objectively because it will depend on three main factors, such as: the market, the niche and your performance.
Market – before starting any business, you need to do market research to understand its size.
The other day I was watching stories by Camila Farani, an investor at Shark Tank Brasil, and she was very emphatic when she said that before investing in any business, she needs the entrepreneur to understand their market very well.
Because when you know the market in which you are operating, you can have a predictability of growth. And this is fundamental in the business world.
Niche – The niche is another key point. There are stark differences between market categories and you urgently need to understand them.
For example, did you know that competitions and entrance exams are one of the most profitable niches to have an internet business?
But that’s not why you’re going to go headlong into a niche you don’t dominate. When you understand your niche strategically, you can get anywhere.
Its performance – this is the central point and the answer to “when should I start charging advertising on instagram?“
If you are starting your career as a digital influencer, I would recommend that you start thinking big. Thinking about how much you want to earn, how much time and what you will do to get there.
How much to charge for Instagram advertising?
To answer this question and understand how much to charge for Instagram advertising, you need to consider a few questions. And anyone who thinks that the number of followers is the main one is wrong.
When I closed my first partnership, we only had 2,000 followers. Okay that at the time, we did a swap, but what I want you to understand here is that the number of followers is not that relevant at the moment.
And why isn’t he relevant, Cami?
Because despite impressing at first glance, followers may not be quite that real. And that will frustrate whoever is partnering with you.
And what metrics should I focus on to get more publicity?
- Involvement: interactions carried out in your publication (likes, comments, saves, shares);
- Reach: unique accounts reached by your publication;
- Impressions: Number of times users interacted with your publication.
When we evaluate the metrics listed above, we find that followers have little or no relevance to them. Added to the fact that your total followers are not engaged followers, you should focus your strategy elsewhere.
How to charge per ad on Instagram?
Cost per Thousand (CPM) – we can migrate a metric used by Google Adsense to also charge per post on Instagram. You can set a fixed amount for every 1,000 accounts reached. For example, let’s assume that for every thousand accounts reached you charge a fixed amount of $15. In a post like this one of mine, in the example below, the account would be $15 x 8 (thousand) reach = $120.
*I found this technique very interesting and had never used it. I got to know it through Nanda Ferreira’s Simple Bella blog and thought it would be interesting to bring it to you. In her article, she says that through a survey, she found that foreign bloggers charge 5 dollars per thousand accounts..
If you want to make money with advertising on your instagram, but don’t know how to reach brands. Buy now, for just $3.98 our E-book Business Partnership Email Templates. In this material you will find templates of real emails (which we have already used to get great partnerships), to be inspired, reproduce and make a lot of money with your Instagram.
Engagement – with this tool, you can analyze the total engagement of your account and calculate how much to charge for an advertisement.
In the example above, an advertisement on my instagram would cost anywhere from 86 to 143 dollars.
Now tell me, what kind of advertising have you done on your networks?
If you have any questions, leave a comment below or contact us via Instagram @acamisantos.