Influencer compensation: How money moves within the Nigerian influencer industry
According to a survey by the Influencer Marketing Hub, Instagram is the preferred channel of most global influencers, but not only is it their favourite playground, to onlookers, it is also the closest they get to see what life is like for an influencer. The platform is a treasure trove of evidence to prove that life as an influencer is posh. Regular updates about trips to the nicest destinations, newest gadgets on display and a hint of exclusivity all round, have made the role of online influencer quite attractive.
Earning millions For brands, the attraction comes from the monetary returns that investing in influencers brings to their business. The same survey from Influencer Marketing Hub shows that brands earn above $5 for each dollar they spend engaging the services of an influencer, and in industries such as the fashion industry where visual appealing content helps drive more sales, the return is even higher. About 70% of influencers the report surveyed understand their worth which is why they say they are in the space to earn revenue, and some of them, especially YouTube video creators have been known to earn millions. Here in Nigeria, the story follows a very similar pattern. Plaqad's 2020 Influencer Compensation Report shows that 100% of influencers in the country are in the business to earn from the content they create for brands. In the 2019 edition of the report, there was a tiny 8% who were willing to work for free, but given how much space has grown in the last few years, all practitioners in the space now want some share of the value they create according to the report.
Nigerian influencers have been able to drive a good increase in terms of investment return for brands given that 55.4% of those who come across influencer recommendations for a product agree that it has some impact on their purchase decisions. In 2019, only 22% of Nigerian brands spent below N5m. The rest spent as high as N50m on influencer campaigns, with the bulk of them planning to spend even more in the coming year, as they are already seeing positives using influencers during this pandemic, and expect them to get even more useful.