The Influencer pay gap
Influencers are part of most campaigns we see online as they’re a great way to connect to new markets and spread your reach!
But did you know there’s a pay gap in influencer marketing?
During the Black Lives Matter Movement of 2020, a pay gap between white influencer sand influencers of colour was discovered. There’s not only a pay gap for influencers of colour, but disabled influencers, those over the age of 24 and women are often paid less than their counterparts.
Let’s take a closer look at this pay gap.
What is the influencer pay gap?
ISevenSix Agency published the ‘The Influencer Pricing Report’ in March 2021. The report found that 57% of influencers believe their ethnicity plays a significant role in the amount they are paid. 99% of those identified as a person of colour.
Also in 2021,MSL released a racial pay gap report in the US, in which 49% of Black influencers reported their race contributed to an offer below market value. When BIPOC influencers are included, 36% reported the same.
Then a year later MSL published the ‘Just Influence’ report, in which nearly 600 UK influencers were surveyed. A pay gap of 18.7% was found between white influencers and influencers of colour. This gap increased to a shocking 21.5% when directly comparing white and Black influencers.
And in the influencers opinion it was not coincidence as 50% believed they were paid less because they were people of colour.
Gender, age and disabilities and the Pay Gap
Similarly, a gender pay gap has been increasingly reported on. HypeAuditor was one of the first companies to showcase the issue with their study published in 2020, which claimed 50.5% of creators globally are women and 49.5% are men. Yet, ‘men have 7% higher pay on average.’
The State of Influencer Equality released in 2022 by IZEA resulted in even more alarming results. Their findings revealed that across all social media platforms men make 30% more than women.
Gender pay gaps aren’t all either. The ‘Just Influence’ report reported a ‘153.6% pay gap between influencers aged 18-30 and 30-45.’ They also found that ‘influencers who defined themselves as having a long-term physical or mental health condition earned 23% less per post.’
But why is this pay gap happening?
It’s a new industry
Some argue that the influencer market is new and so standardisation and professionalism isn’t established yet. However, as Charlotte Williams states ‘in 2022, social media has now been around for almost 20 years.’
Williams goes on to argue that jobs in social media aren’t taken seriously enough by those in power and this ‘lack of rules and guidelines has made the space incredibly difficult to navigate for both brands and influencers, leaving more room for underpayment and exploitation.’
Lack of Transparency
A lack of transparency is one of the biggest factors. The influencer market is an unregulated industry and so there’s nothing to hold agencies and brands accountable for being fair in their pricing. Likewise, there’s also no way of knowing what one influencer makes against another, making space for agencies and brands to be dishonest and pay unfairly.
Negotiation
Agencies and brands often approach influencers with a price in mind, rather than having a discussion and hearing the influencers pricing. This means that fair negotiations often don’t take place for influencers from marginalised backgrounds, as found by MSL: ‘White Influencers are nearly three times more likely to generate a positive outcome in fee negotiation Vs Black Influencers’.
Unable to speak out
To make matters worse, marginalised influencers are also unable to speak out without their reputation being judged. MSL’s research shows that ‘35% of respondents feel there was a direct correlation between them speaking out on discrimination issues and brands not approaching them.’
Language
Something else to consider is language use. Several years ago, in 2019 Wired magazine asked why women are influencers and yet men are content creators. Yet, even if a woman prefers not to use the term influencer, they’ll likely still be branded as one. ‘And if she’s streaming video games, she’s referred to as a “female gamer,” rather than just a “gamer.”’
How do we close the gap?
Needless to say, this pay gap needs to be put to an end. But how?
Marketing Inclusively
First off, marketing inclusively! Inclusive agencies specialise in influencer marketing with people from marginalised backgrounds and re often determined to spread the message of how to do so fairly.
So by supporting and using inclusive agencies, they’ll be able to grow and include more influencers from marginalised backgrounds. How do you support them? By making your marketing and campaigns inclusive and using inclusive agencies.
Not too sure what inclusive marketing really means? Here’s a blog that breaks it down: https://www.arimacompany.com/blog/what-is-inclusive-marketing
Audits and Transparency
Completing audits and publishing findings is a great way of keeping companies accountable. Influencer Marketing Hub regularly publishes their influencer rates to give companies a realistic idea of what influencer marketing can cost and to help influencers see what others with similar followings are charging.
Another great resource is the instagram account influencerpaygap, which shares anonymous messages from influencers detailing their highest paid jobs so that influencers can compare how much they are paid and how they’re treated with others.
Nabilla Doma, a global influencer manager, says on the matter ‘There needs to be more concrete guidelines. There needs to be some sort of understanding when it comes to payment, because it is a job.’ MSL also found 92 per cent of all influencer respondents believed that pay transparency could eradicate the racial pay gap so pushing for trasnparency could go along way!
Institutional change
Institutional change and authorities with the power to keep brands accountable would also be a game changer! In 2022 MPs recommended that ‘the government investigate pay standards in the industry as part of a wider review of the influencer market.’ There were also moves to establish a trade union for influencers and creators in the UK.
The Creator Union campaigns for fair pay and inclusivity in digital campaigns and will open membership soon.
Influencer Training
MSL also point out that influencer training is key. They have promised to support at least 500 influencers in 2023 with ‘two in-person workshops in March and September 2023 to bring together Influencers, agents, brands and educators to help nourish a more open and fair Influencer marketing industry.’
Tips for small businesses hiring influencers
Don’t let this dissuade you! Influencers can be a geat asset and it’s so important to hire inclusively or else you’ll be missing out on audiences likely to be interested in your brand. Here are some tips when it comes to hiring influencers so that you can do so with confidence!
Clear communication is so important. Being honest and transparent is not only the most ethically sustainable, but practical way to begin a relationship with an influencer. A positive relationship can lead to a long term mutually beneficial partnership.
When it comes to looking for influencers from marginalised backgrounds, be specific. Either go to inclusive agencies or tell your agency what you’re looking for. There’s nothing wrong with searing for Black influencers, or disabled influencers, or trans influencers and so on.
If you’re looking for resources, here are some more that we haven’t already mentioned:
There is a pay gap in influencer marketing, but with more conversations and education, we can create fair pay for influencers.
Want to include inclusive marketing into your strategy but not sure how? We offer workshop with tailor made advice for your brand! You can find out more here: https://www.arimacompany.com/workshops
