The Internet has effectively changed marketing and advertising landscapes. The rise of social media platforms like Instagram and the influencers that dominate them has given companies new opportunities to reach their target markets more directly.
In turn, people can now make a lucrative career just by posting photos on their Instagram for example. Reality star and beauty mogul Kim Kardashian is one of the biggest and most influential of this new breed of online celebrities.
Court Document Revelations
Missguided is a United Kingdom-based clothing retailer which specializes in selling affordable and trendy clothing.
Kardashian herself hasn't boasted about how much she earns through her 140 million-strong Instagram following. But recently released court documents finally gave people a glimpse into just how profitable her online presence has become. As TMZ discovered, Kardashian is consistently pulling in anywhere around $300,000 up to $500,000 per sponsored Instagram post. But some people claim that her rates can go even higher than that going up to a whopping $750,000 per post.
These documents were reportedly part of a lawsuit that the 38-year-old star filed against the popular clothing retailer Missguided. Apparently, the company's United States division has been repeatedly using pictures of Kardashian to advertise their knock-off goods. And it looks like she's finally had enough.
She's currently suing Missguided for $5 million and has expressed her distaste for its current practices. In a tweet, Kardashian condemned the company for piggybacking on the creative ideas of other brands for monetary gain. She talked about one particular vintage Mugler dress she wore in an event and lamented how Missguided generated knock-offs of it within a matter of hours.
Sponsored Posts
A sample of a classic sponsored Instagram post featuring Kylie Jenner and a hair vitamin company.
Most social media influencers like Kardashian and her sisters earn big bucks due to brand deals and sponsorships from companies who want to reach their followers. While Kardashian's current Instagram post rate is certainly envious, her younger sis, Kylie Jenner, earns even more than her.
According to an industry source, the young billionaire can get as much as $1 million for one sponsored post on her Instagram account. This makes her the highest-paid celebrity influencer in 2018 as per reports from Hopper IQ. Following her on the top list is singer Selena Gomez, who used to be the most followed person on the platform. She allegedly has a rate of $800,000.
Kardashian currently holds the fourth spot on the list just behind professional athlete Cristiano Ronaldo.
The Power of Influencer Marketing
The 'online influencer market' is expected to soon become a $1 billion industry by the end of this year.
So, why are companies willing to pay hefty sums of cash for a simple post on Instagram? Well, the answer is simple-- because this strategy works. According to digital marketing consultant Shane Barker, marketing products through influencers has consistently been proven effective over various campaigns.
The biggest benefit of going this route is that this kind of advertising isn't as 'pushy' as traditional methods. Influencers already have a big fanbase of people who willingly view their content. What more, they can sell products better because they often have a personal relationship with their followers and thus, have their trust.