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Research Outline
Prepared for Ramon B. | Delivered September 30, 2019
Chinese Influencer Compensation
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Goals
Provide information on how influencers are compensated by brands in China vs. the USA, and specifically how the transactions occur
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Early Findings
Of any social media platform in China, WeChat
influencers make the most.
These influences tend to make between .5RMB and 1.5RMB per view.
Overall the cost of one WeChat influencer campaign averages around
1 RMB per view.
For example, one WeChat influencer with
550,000 followers
charges approximately
33,000 RMB
per post, as he has an average of
70,000
views.
However, this pricing
varies by platform,
with Weibo being noted to be as much as 55 times cheaper.
Platform Douyin
is the next most expensive after WeChat.
Payment for Chinese influencers
is also based on their varied team structure, with Chinese influencers likely to actually be a large team that partners with a brand vs an individual.
For example, Chinese influencer Gogoboi who works with a team, charges
$50,000 USD per promotion
and runs
15 brand collaborations
on average per month, equating to around
$9 million
of annual revenue from WeChat promotions.
Gogoboi’s Weibo account also has nearly
10 million followers,
and is projected to bring in an added
$15,000 USD
per post.
Another way Chinese influencers earn income is via programmatic advertising, in which they select the display of banners as part of their post, and WeChat shares
8-10% of the ad’s revenue
with them.
It’s also noted
that influencers may received external funding to launch product lines. For example, top influencer Li uses her influence to promote her brand, has also used her following to receive outside investment to fund her product line, but valuation or amounts invested were not publicly disclosed.
WeChat and other platforms have options for users to
link their bank accounts
to their platform username, which allows them to both buy and earn.
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