The Cost of Influencer Endorsements in Indonesia is Said to be Expensive, Requesting Famous Makeup Artists to Starred Hotels - How Significant is the Impact?

Kapanlagi.com - Recently, discussions about the cost of influencer endorsements in Indonesia have been buzzing on social media. Some even claim that the endorsement fees for Key Opinion Leaders (KOL) in Indonesia are the highest in Asia.

According to data from Mediatics in January 2024, the endorsement fees for Jennifer Coppen and Fuji have exceeded 100 million. Jennifer Coppen was even endorsed for a fee of Rp180 million.

Mediatics also revealed the endorsement fees per post on social media influencers based on the number of followers. On Instagram, for a story on an account with 10 to 50 thousand followers, the fee starts from Rp3 million.

1. Fantastic Rates

With a follower count of 10-50 thousand, one photo post in the feed is priced at Rp5 million. Meanwhile, for reels, the rate starts from Rp7.75 million. The rates become more expensive as the follower count increases.

Mediatics notes that influencers with more than 5 million followers usually charge rates starting from Rp37 million for 1 story post, Rp62.5 million for 1 photo in the feed, and Rp92 million for a reel.

On the other hand, different figures apply on TikTok. On TikTok, influencers with 10-50 thousand followers set rates starting from Rp7 million per post. If their followers are around 500 thousand to 1 million, the endorsement rates range around Rp17 million. For KOLs with more than 5 million followers, the endorsement rate starts from Rp39.5 million per post.

2. Starred Hotels to Famous MUAs

Influencer Endorse Rates Indonesia © x.com/mhuseinali

Bunga Budianto Putri, the Head of Talent Management at EMTEK, mentioned that there are at least 3 KOLs with the highest rates.

"The most expensive partnership so far? Based on my experience, there are 3 artists who are quite pricey (namely) Cinta Laura, Rossa, and Fuji," she stated when contacted by KapanLagi on Friday (23/5).

Not only are they expensive, but several KOLs also have requirements and special requests during the collaboration.

"Most of the female artists do not accept alcohol and cigarette brands, but not all of them. Some request a 5-star hotel even if the artist's location is in Jakarta. Some ask for famous MUAs to be provided along with wardrobe from renowned designers. They request vehicles like Alphards and proper waiting rooms, something like that," added Bunga.

3. A Process That Is Not Short

The high rates for KOL endorsements are understood by Ainin Dita Zulkarnain. Quoted from remotivi.or.id, she stated that an influencer must build a reputation over a considerable amount of time to gain public trust.

Additionally, Aini also highlighted the lengthy process of producing endorsement content. According to her, creating one piece of content requires hours of effort to develop concepts, coordinate with clients, produce, edit, and publish.

Still quoting from the same source, there is Vindy who mentioned that the high rates for KOLs are a way to filter brands. This means that the rates serve as a standard so that not just any brand can collaborate.

Furthermore, there are also KOLs who must try the products for a month before reviewing them, such as beauty influencers. The high rates are justified considering they have to bear the risk of skin issues during that month.

4. Build Public Trust

It can be said that influencers in the country are competing to build public trust. High rates are the accumulation of hard work in building personal branding over the years until KOLs have a loyal audience base.

This goal is quite different from KOLs abroad, such as Japanese KOLs. According to Husein Ali, a writer and social media celebrity, influencers are competing to get on TV. Mainstream media like TV is still considered a highly trusted source of information.

5. Impact of Influencers

So, how significant is the impact of influencer endorsements on a brand? This was answered by Bunga. According to her, it all depends on which KOL is being partnered with.

"If they are currently trending like Fuji or Cinta Laura, the impact could be around 80% or more for the crowd if the event is attended," she revealed.

"But if the KOL is just a well-known celebrity on Instagram but not extremely famous with followers between 250-500 thousand, the effective impact on the crowd is about 30-40%," Bunga continued.

6. Still Being Noticed by Brands

Bunga also added that the KOL industry will continue to thrive in the future.

"In my opinion, KOLs will continue to be noticed by brands and will develop because they follow social media trends, and as more social media platforms emerge, more new KOLs will also grow," she concluded.

(kpl/tdr)