Influencers who identify as persons of color command up to a 51% premium over those who identify as Caucasian.
Orlando, Florida (January 21, 2020) – IZEA Worldwide, Inc. (NASDAQ: IZEA), operator of IZEAx®, the premier online marketplace connecting brands and publishers with influential content creators, released the industry’s first published examination of earnings equality among social influencers. The report provides analysis of influencer earnings observed in IZEA’s online marketplace spanning 2014 to 2019. Data is comprised of negotiated rates between marketers and creators spanning the spectrum of micro-influencers to celebrities, and incorporates self-reported gender and race identifiers.
Key Findings Include:
- Over the past five years, the average earnings for all races and genders has risen dramatically. The average cost for a sponsored Instagram photo has risen 44% from 2018 to 2019 alone.
- In the last two years, persons of color commanded a premium over their Caucasian counterparts, with those of Asian descent making an average of 51% more per post.
- Females dominate the influencer marketing industry, receiving 87% of all transaction volume over the past five years.
- While females receive the lion’s share of deal flow, the abundance of brand-friendly female influencers ultimately drives prices lower, with females earning 47% less per post than males, on average.
- Influencers under the age of 24 command a premium of at least 44% more than those aged 25 years and older.
- Influencers with an annual household income of $100k+ or more per year charge an 80%+ premium for a sponsored post compared to their counterparts earning $50k or less per year.
“Five years ago, Caucasian influencers received 73% of all sponsorship transaction volume,” said Ted Murphy, Founder and CEO of IZEA. “That number has been steadily decreasing and fell to 61% in 2019. Caucasians currently represent approximately 65% of the U.S. population, so we are now at a tipping point where persons of color are receiving an outsized portion of transaction volume relative to their population size. This phenomenon is being driven by the desire of brand marketers to be more inclusive in their marketing efforts, in response to a changing consumer base. Not only have persons of color gained 12% more market share over the course of the past five years, they have also seen a dramatic increase in their earnings, commanding a 12% to 51% premium over Caucasian influencers.”
2015-2019 Sponsored Post Price Increases by Race:
- Sponsored Post prices charged by Asian influencers have risen 1,526% from $101 to $1,542 on average.
- Sponsored Post prices charged by influencers of African descent have risen 1,075% from $129 to $1,387 on average.
- Sponsored Post prices charged by Hispanic influencers have risen 854% from $146 to $1,248 on average.
- Sponsored Post prices charged by Caucasian influencers has risen 756% from $135 to $1,021 on average.
“We have seen a tremendous earnings equalization among various ethnicities and races, yet the earnings gap between male and female influencers persists,” continued Murphy. “We believe this gap is largely due to the abundance of brand-friendly female influencers. Influencer marketing started with ‘mommy bloggers’ more than a decade ago, and females still dominate the landscape today. However, the sheer volume of female influencers vying for brand dollars reduces their pricing leverage compared to their male counterparts. Scarcity and demand largely drive price and unfortunately appear to be working against female influencers, particularly those who identify as Caucasian.”