How much celebrities make via social media endorsements

Captiv8 says someone over 7 million followers on YouTube can charge a staggering $300,000

Social media offers companies the best opportunity to achieve their marketing targets effectively or to do even better.

Hence, growing demand from marketers for online social channels has also made it a lucrative territory for people with large online followings.



According to Captiv8, an analytics platform that connects brands to social media "influencers", someone with a following of between 3 to 7 million can charge, on average, $187,500 for a post on YouTube, $93,750 for a post on Facebook and $75,000 for a post on Instagram or Snapchat.

Social media is the latest platform of a rapidly growing industry. Since January, more than 200,000 posts per month on Instagram have been tagged with "#ad", "#sp" or "#sponsored", according to Captiv8. Moreover, these platforms can make consumers feel they have gained "unprecedented access to the lives of the rich and famous." Sponsors cash in on inculcating such 'sentiments', while at the same time enabling interaction with their target audiences in ways that traditional advertising cannot match.



Hiring "influencers" allows companies to reach a vast network of potential customers -- and hence, more money! Christiano Ronaldo is a case in point. He has a combined following of 240 million people across Facebook, Instagram and Twitter.

Having recently received a new watch from TAG Heuer, the star footballer posts a photo of himself, wrist aloft, to his Instagram account. He then dutifully thanks them for their "kind gift" and signs off the post with the company’s advertising slogan #dontcrackunderpressure. The effect that his post would have on demand for the watch, then, is not a wild guess -- and it also makes him rich-err!

This article originally appeared on The Economist.