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Wary of fake followers, agencies change how they charge for influencer ad campaigns

Ahalogy is adding impression tracking to its client platform and Peersway is identifying what percentage of an influencer’s followers is fake. On Instagram, a common practice has been to generate a cost per post based off an influencer’s follower count and multiply that by the CPM. For instance, an influencer working with Fohr with 100,000 followers would receive around $1,000 to $1,500 per post with a $10 CPM, said Nord. Other agencies like Ahalogy and Peersway instead charge clients fixed rates regardless of how many followers an influencer has. Both Collective Bias’ and Fohr’s new pricing models are now based entirely on fixed CPMs that don’t vary no matter how many followers the influencer has. They plan on scraping impression data (one impression is counted as one person viewing a post) from Instagram’s Business API and screenshots from their influencers’ business accounts. Enabling this shift in pricing is the fact that Instagram introduced a business accounts insights program two years ago that shows how many people saw an influencer’s post, said Nord. Before that, the only number to go off was followers. Collective Bias and Fohr said the new pricing format will also make influencer marketing easier for media buyers since other forms of media are bought in a similar way. CPMs on Instagram, which range from $5, on the low side, to $15, on the high side, will likely be double what they are now, said Nord.

For the original version including any supplementary images or video, visit https://digiday.com/marketing/fake-follower-problem-leads-agencies-change-charge-influencers/

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