Influencer Pay Equity Guide

November 13, 2023

Considerations for Influencer Marketing Campaigns & Contracts

The ANA, 4As, PR Council, and their members have partnered on the first industry collaboration of its kind to address the lack of transparency within the influencer marketing supply chain and the reported pay gap between white and BIPOC influencers. The guide offers an actionable roadmap for marketers committed to equitable compensation and greater transparency in the $34 billion influencer industry.¹

"As a marketer of color, it's important to me that everyone we work with is not only treated well but is compensated equitably for their work. We want to foster a culture of trust and respect between influencers and the brand, which can ultimately lead us to foster long-term partnerships and positive brand sentiment in the creator marketplace."

— Nilam Patel, Social Media Influencers and Ambassadors, Nationwide

"Influencers can reach untapped audiences in a way that is both authentic and powerful at brand building. Yet not all influencers have the same access to social capital, legal counsel, experience negotiating contracts, and administrative support. Knowing this, it is vital for marketers to promote fair business practices that foster equity in influencer partnerships."

— Kevin Freemore, SVP Media, Tech & Data, 4A's

The ANA spearheaded this cross-industry initiative in response to recent studies that indicate a 29% pay gap between white and BIPOC influencers.² As the first industry collaboration of its kind, the ANA convened marketers from major brands including Target, Bayer Consumer Health, Nationwide Insurance, Paramount, Wells Fargo and Unilever and key agency leaders.

While the roots of pay inequity are complex and multifaceted, a major contributor is the lack of transparency within influencer marketing. Influencer marketing often requires involvement from multiple influencer platforms, social platforms, and agency partners to execute campaigns. With this complexity, brands can lack full visibility into influencer payment, which prevents marketers from ensuring equitable pay across their various brands and influencer partnerships.

By providing considerations that span from campaign planning through campaign execution, the ANA aims to combat this lack of transparency, eliminate the pay gap, and help provide clearer benchmarking of campaign performance and ROI particularly for marketers executing campaigns across multiple brands and lines of business. "This collaboration and Guide will help ensure more fair, equitable, and transparent practices when partnering with influencers, who fuel growth for marketers and our industry," said Bob Liodice, ANA's CEO.

Kim Sample, President at PR Council added, "During a moment when many are stepping back from diversity, equity and inclusion initiatives, this partnership represents our industry's steadfast commitment to DE&I. It's critical for our workforce and our work." The Guide provides a framework that marketers can use with their influencer marketing partners across every stage of partnership:

Campaign Planning: How to ensure equity from the start with diverse teams that represent diverse voices, perspectives, and experiences
Evaluating Risk: How to anticipate, mitigate, and properly prepare for potential negative responses
Exclusivity Clauses: How to establish agreements that are beneficial to brands while not unduly restricting an influencer's livelihood
Usage Rights: How to establish clear and fair payment terms for ongoing content usage
Compensation: Additional factors beyond influencer reach, follower count, and audience size that should be considered when calculating equitable compensation
Contracts: How to develop influencer agreements that are specific and fair, and considerations for avoiding common contract missteps

The guide can be accessed here.

¹Ad Age, "Global Influencer Marketing Spend Expected to Hit $34 Billion in 2023." Gillian Follett, September 14, 2023.
²Adweek, "Study Reveals a Significant Racial Pay Gap in Influencer Marketing." Natalie Venegas. December 7, 2021.

Source

"Influencer Pay Equity Guide: Considerations for Influencer Marketing Campaigns & Contracts." ANA, 4As, PR Council, 2023.