How Much Do American Brands Pay Pikicast Influencers for Marketing?
The K-pop and K-drama craze has taken over the world, and brands that want to connect with Korean youths are using Pikicast influencers to market their products and services.
Pikicast is Korea’s answer to Buzzfeed, and is divided into sections for videos, music, celebrities, and more.
With over 80 million monthly users, the platform connects local influencers with brands, and since its launch in 2017, has established itself as Korea’s hottest influencer marketing platform.
It’s essential that you know the prices these Korea-based influencers will ask for when promoting American brands on the Korean platform, and that you’re adequately prepared to pay them.
Who Uses Pikicast Influencers?
Pikicast was launched by former Naver executives and quickly rose to become Korea’s go-to for youth-oriented branded content.
The platform allows users to follow influencers of their choice, and combines the best aspects of social media into a magazine-style layout.
Most users are between the ages of 18 and 34, and 80% of them visit the site every week.
Korean brands Nokia, Carl’s Jr, and Coca-Cola utilize Pikicast influencer campaigns to connect with the youth.
The platform has over 1 million influencers, and it has over 25 million followers.
Brands can easily connect with Korean influencers and advertise their products on the Pikicast platform.
How Much Do American Brands Pay Pikicast Influencers?
Pikicast influencers charge a flat fee for their services; no complicated payment methods or contracts need to be negotiated over endless email chains.
According to the American influencer marketing agency, LAVIDGE, the average cost per Pikicast influencer is between $500 and $5,500 per promotional post.
Influencers with over 3 million followers will demand at least $5,000 for a single promotional post.
For influencer profiles with fewer than 10,000 followers, the average starting cost is only $500.
Most Korean influencers will only accept payments in Korean won, and can accept payments via PayPal.
Payment Methods
When marketing products and services on Pikicast, influencers are paid upfront for their services.
American brands cannot pay Korean influencers using credit cards, as they do not allow transactions with non-Korean businesses.
American brands will need to use a third-party payment service like Payoneer to pay Pikicast influencers via bank transfer.
American brands can also directly deposit cash into a Korean bank account using Western Union.
To avoid dealing with foreign currency exchanges, American brands can also work with an American influencer marketing agency that specializes in the Korean market.
Benefits of Using an Agency
Influencer marketing agencies have established relationships with local influencers, and they are able to negotiate better deals for their clients.
Not only do they save you time by managing the entire process, but they also have more experience dealing with cross-border transactions.
Some influencer marketing agencies will charge a commission based on the value of the influencer partnership.
Other agencies will charge a flat fee for their services; either way, they are able to provide the best bang for your buck.
Legal Matters
When it comes to influencer marketing, Korean laws are strict.
Failure to comply with local regulations could lead to hefty fines and a damaged reputation.
All influencer marketing content must be labeled as sponsored, and the words “advertisement,” “ad,” or “sponsored post” must appear at the top of the post.
Additionally, businesses and influencers must clearly state the nature of the product or service that is being marketed.
The Korea Fair Trade Commission (KFTC) is the agency responsible for regulating advertising on influencer platforms like Pikicast, and it has the power to impose fines for violations all the way up to ₩30 million.
They can also bar influencers from operating on the platform for up to five years.
America’s Federal Trade Commission (FTC) imposes similar fines and penalties for violations.
Conclusion
Pikicast is Korea’s leading influencer marketing platform, and American brands can expect to pay a flat fee of between $500 and $5,500 for influencer promotions.
With over 80 million monthly users, it’s no wonder why Korean influencers are sought after by brands looking to market their products and services to the youth.
American brands should consult with a local influencer marketing agency to ensure they comply with Korean laws when marketing on the platform.