An influencer firm breaks down how much it charges brands on TikTok compared to YouTube, per view
- TikTok is a big focus area for influencer marketers who are looking for new opportunities to reach its coveted audience of Gen-Z users.
- Influencers and brands are still negotiating on the right pricing structure for sponsored content on the app.
- TalentX Entertainment, a new TikTok talent management company, said it charges a lower cost-per-view to brands on TikTok than on YouTube because it's much easier to scale on TikTok.
- TalentX charges $0.01 to $0.02 per view for TikTok, and $0.03 to $0.08 for YouTube, the company said.
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As TikTok emerges as the next frontier for influencer marketing, brands and creators are still trying to determine how much to charge for sponsored content on the platform.
Some creators have focused on charging a flat rate for each sponsored post. Others set rates based on a video's view count or the number of app installs that it drives.
TalentX Entertainment, a new influencer agency representing some of TikTok's biggest stars, told Business Insider it charges one to two cents on TikTok for each sponsored video view. On YouTube, it charges between three and eight cents per video view.
The cost-per-view for a sponsored post on TikTok is cheaper because it's much easier to scale on the new app, said Warren Lentz, the company's chief revenue officer.
For Instagram, where brands have more experience running sponsored campaigns, TalentX takes a different approach.
"They're buying the Story views or the Feed views and impressions," he said. "Some brands are much more nuanced than others and really know what they're seeking and they have a strong idea of how they're going to measure their ROI [return on investment]. Other brands actually turn to us as their consultant and they ask us what we feel is the most effective."
While creators aspire to grow their following across social apps in order to attract multi-platform sponsorship deals, many brands are eyeing a particular platform when launching a new campaign.
"Most brands when they come to us and want to do influencer marketing spend, they typically have one platform in mind, whether it be YouTube, Instagram, or TikTok," Lentz said.
The single metric that brands care the most about is engagement, according to Lentz. Followers and subscribers do not matter.
"Some of our influencers, which we're very excited about, are averaging anywhere from 25 to 50% [engagement], meaning if they have 500,000 Instagram followers, they're getting upwards of 250,000 likes per post, which is unheard of and unprecedented."
For a complete breakdown of how TalentX Entertainment is making money from TikTok, YouTube, and other media platforms, read our full story on Business Insider Prime: How TalentX plans to rule TikTok, starting with 32 influencers and a Los Angeles mansion
And for more on how TikTok stars are building a business on the app, check out these other Business Insider Prime posts:
- How a pair of 30-year-old video producers turned TikTok from a side gig to their main job: 30-year-old Greg Auerbach and his childhood friend Nate Twer are building a business making funny videos on TikTok. The pair have 590,000 followers and nearly 14 million likes on the app.
- A college TikTok influencer with 1.6 million followers explains how much money she makes - and her 3 main sources of income: Cosette Rinab has 1.6 million followers on the app and said that she splits her time between studying film and public relations for school and growing her page.
- Marketers share what it's like to use TikTok's invite-only tool for finding the right influencers to hire for brand deals: Business Insider spoke to marketers who are beta testing TikTok's new matchmaking tool for influencers and brands, "Creator Marketplace."
