Influencer pay equity—5 key points for brands to consider from new industry guide

By the end of their first year as creators, 73% of white influencers will have signed their first brand deal, compared to only 46% of BIPOC influencers, according to a 2023 report from Publicis Groupe agency MSL. That’s just one stat cited in the new Influencer Pay Equity Guide from the Association of National Advertisers (ANA), 4As and the PR Council. The industry trade groups partnered with marketers from brands such as Target, Bayer Consumer Health, Nationwide Insurance, Paramount, Wells Fargo and Unilever on the guide, which attempts to bring more equitable compensation and greater transparency in the $34 billion influencer industry. The 16-page guide, released today, includes recommendations on compensation, metrics, usage rights and more. It was shepherded by the ANA’s Influencer Marketing Advisory Board, which was established in late 2020. More news: The state of DE&I from leaders at ADCOLOR 2023 Below, a quick look at some of the report's recommendations. (Read the full guide here.) Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here 1. Cash is king Marketers should “be mindful of the importance of compensating an influencer monetarily. Offering gifts, samples, event invitations, or exposure as forms of compensation in exchange for services generally should be avoided,” the report states. As influencer pay transparency platform FYPM put it in one of its Instagram posts, asking an influencer to promote your brand for free clothes is like asking a plumber to unclog your toilet for free plungers. 2. Be kind to the little guys Some types of influencers are more vulnerable to accepting lowball offers than others. “Nano-influencers (under 10,000 followers) and micro-influencers (10K–50K followers) are most vulnerable to in-kind offers (e.g., remuneration in the form of free products), especially when a brand with cachet is involved,” according to the guide. Recent creator and influencer marketing news from Ad Age 3. Diversity matters in the planning process, too Having a diverse and inclusive team on the brand side is “critical to ensuring equitable campaigns,” according to the guide, which goes on to highlight that “marginalized voices, perspectives, and experiences” should be represented throughout the entire campaign planning process, not just with the influencer themselves. The guide also specifies that diversity goes beyond race—it can also include ethnicity, sexual orientation, gender, religion, age, body type, neurodiversity, disabilities and more. Check out the latest Ad Age events and award programs 4. Payment is about more than vanity metrics Of course, it’s hard to ignore an influencer’s number of followers and engagement rate when contracting them for a sponsored post, but the guide suggests that many more metrics be taken into consideration when calculating compensation. Other considerations could include alignment with the brand’s target audience, content quality, expenses, sensitivity of the topic at hand and brand reputation. 5. Usage rights and exclusivity clauses are nuanced Usage rights and exclusivity clauses should be handled with care on the brand side, too. Before negotiating with a creator on these aspects of a deal, the guide recommends that brands consider a variety of factors, including whether or not the influencer’s content be used in the brand’s paid ads, and for what period of time the brand really needs exclusivity. The ANA guide follows recommendations from the MSL report, including that agencies and brands alert BIPOC creators when their requested rates are lower than those of their white peers. It also suggests that companies hire people “tuned into diverse talent” for their influencer marketing teams. Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

Influencer pay equity—5 key points for brands to consider from new industry guide

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