Influencers Now Expect Compensation for Sponsored Content, and Most Prefer Cash

Survey reveals nearly 80 percent of influencers prefer to be paid in cash, but only 27 percent of marketers are willing to provide it.

Influencers have increased their expectation for cash compensation over the past year, according to a recent survey, Izea State of #SponsoredSocial 2013 Report.

The report surveyed both marketers and influencers and gathered interesting information about sponsored content, payment preferences, types of content used and considerations for sponsorship. Surveyed marketers reported that nearly 80 percent of influencers preferred to be paid in cash rather than given free products or other exchanges.

However, only 27 percent of marketers indicated they’d be willing to pay influencers in cash.

Courtesy of Izea

Free products and discounts are marketers’ preferred choice of payment, with 46 percent and 37 percent willing to provide them, respectively. Still, among the influencers surveyed, nearly 70 percent responded they’d be willing to accept free products, and 52 percent would accept discounts or coupons.

The report also illustrated the forms of sponsored content marketers used in 2013. According to the survey, marketers increased their use of sponsored tweets, photos, and check-ins. Sponsored blog posts saw a slight decrease over the past year, dropping from 54 percent in 2012 to 51 percent.

Courtesy of Izea

Other important findings:

  • A sponsored blog post is worth $100 on average to influencers. Influencers expect $83 for a sponsored tweet and $45 for a sponsored Facebook update. In most cases, influencers place a higher value on themselves than the advertiser.
  • 92 percent of influencers have accepted or would accept some form of compensation to promote something through social media.
  • 61 percent of influencers share additional posts about their sponsors outside of the contractual agreement. The majority (88 percent) also reported they are more likely to purchase from brands that sponsor them.
  • Influencers make more money from sponsored content than from display ads.
  • Only 30 percent of influencers and 25 percent of advertisers have both read and understood the FTC’s guidelines on sponsored content.

Influencers also rated their importance of factors when considering an offer for a social media sponsorship, ranking the quality of the advertiser as the top factor before value and form of compensation. The factors are ranked as such:

1. Quality of advertiser
2. Value of compensation
3. Form of compensation
4. Ease of transaction
5. Clear disclosure
6. Giveaways for readers 


Izea’s key takeaways from the survey:

  • Native advertising through social media is growing in popularity and spend.
  • Influencers now earn more through sponsorships than display advertising, strengthening marketers’ beliefs that display ads are dying.
  • Sponsored content is becoming more sophisticated and executed through a variety of mediums.
  • The quality of an influencer’s content and quality of the marketer rank No.1 in importance for each party.
  • The average amount of followers and traffic for influencers is steadily increasing.
  • Compensation for social media posts is now expected, if not required, with an emphasis on cash.
CyberAlert grants permission to republish this article provided that the republished version contains a link to the original article on the CyberAlert Blog. facebooktwittergoogle_plusredditpinterestlinkedinmail

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