I'm assuming that means do you see rates rising for influences being paid by brands in 2019. Do I see rates rising? Yes. Do I think they should? No. There's a lot of threats in the influences space we talk about them a good amount. One of them is a lack of scarcity. Markets are controlled by supply and demand, there seems to be an almost endless supply of sponsored posts.
If influencers don't say no to more deals there will continue to be less and less scarcity for brands which means that they can drive process down further and further and further because every time there is one more of something every other one of those things is less valuable. That is how inflation works. Right? If there's $100 in the world in circulation and you print 10 more dollars then those $100 that were already there are less valuable. Think of the same way we have a lot of people rushing into the influencer space trying to make it as an influencer.
We have influencers doing an increasing number of sponsored posts that is driving scarcity down for which could drive prices down. I'm not sure that that is going to happen next year, that's probably more of a 2020 problem but it is something that we are thinking about and trying to think of ways to fix in our-- for our business and for our clients. There's in general too much sponsored content happening on an influencer's fee. They're doing too many things and in general, influencers especially if you get above 2 or 300k are having a hard time defending the prices that they're charging.
Especially if those influencers are represented by an agency then the prices are a fucking fantasy that are pulling out of thin air. Do I think rates will go up? Yes. Do I think they should? No. Do I think we could run into a collapse of influencer pricing in the next few years because of over-saturation of supply? Yes. Go back read your high school economics book, tighten up that supply, let's create some scarcity, with scarcity prices, go up everybody is happy. If you're a small influencer the same theory applies as far as supply and demand. I don't think that micro influencers prices feel as inflated because they're inherently lower.
While the CPMs may be high, that's cost per one thousand impressions. A foundational way that digital marketing people talk about buying media. The overall rate is so low it doesn't feel crazy. It's like 200 for every sponsored post or 300 or 500, that doesn't feel as crazy as 15,20,30 thousand for an Instagram post for some of those lot followers. Less of a concern in the micro space because for brands couple of 100 bucks is nothing.
- Influencer Rates in 2019, Unboxing Videos, Hashtags