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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

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Weibo and WeChat


KOL Marketing Costs
You can’t deny Weibo and WeChat KOL marketing in China is
red hot. For any brand hoping to succeed in China, KOLs are

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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

hands-down the best method out there. Yet many brands don’t
work with them because Weibo and WeChat KOL marketing
costs are a total enigma.
PARKLU
Brands can’t make heads or tails of the potential costs.
has created
That’s understandable. a totally
free tool to
I personally think China holds the world title for Most estimate
Confusing Social Media Ecosystem. your KOL
fees and
WeChat is essentially a black box with the social data of reach
China’s entire population inside. It all goes in, but very little across 11
useful data for marketers comes back out. Weibo, while more social
open, is a mess and hard to trust. On top of all that, the KOL media
marketing ecosystem is not standardized and there is little platforms.
public data on costs.
TRY IT OUT
That’s why I poured over three months of aggregated
KOL data from more than 1,100 Weibo and WeChat KOL
accounts and compared it to the average price they charge for
a brand-sponsored post.

I want to expose the truth about Weibo and WeChat KOL Connect on
marketing costs and see how they stack up to alternatives like WeChat
pure ad spend on Weibo and WeChat. My goal is to help you
make better marketing decisions and to have clearer
expectations when working with KOLs.

*Note: This article will note address ROI. ROI research results
are forthcoming.

So, what are Weibo and WeChat KOL marketing costs in


China?

Let’s start by looking at how much brands are paying WeChat


and Weibo to promote their self-made marketing messages.
Start Your
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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

1) Understand the Cost of Pure Campaign


WeChat Advertising
There are 2 main options for paid WeChat advertising:
Contact Us
Moments Advertising Email Address:
Banner Advertising sales@parklu.com
Moments advertising has a couple minimum thresholds just to
get in the door. China-based companies have a minimum ad
spend of about ¥50,000 RMB and companies based abroad
can start at around ¥10,000 RMB. Find Us on

WeChat Moment Advertising CPM (cost per 1,000


impressions):

Categories

Bilibili

China Social
Networks

Douyin

E-commerce
*Core City = 1st tier city, large city = 2nd tier city, Others = 3rd, 4th and other smaller cities
Health & Fitness
WeChat Banner Advertising CPM (cost per 1,000
Influencer
impressions): Marketing

KOL Marketing

Live Streaming

Luxury

Marketing
Strategy
https://www.parklu.com/weibo-wechat-kol-marketing-costs/ Page 3 of 21
Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

Meipai

Micro-influencers

Millennials

ROI

Travel

Wang Hong
Marketing

WeChat
*Note that the pricing for banner ads are only for accounts with 500k followers or less.
These accounts have set prices and marketers can use WeChat’s ad-buying system to
buy banners that target these specific accounts. If an account is larger than that, it is
Weibo
considered by WeChat to be a KOL account, to buy banner ads on these accounts,
marketers must directly contact WeChat and the pricing will be set by the KOL account. Weitao

There’s not much arguing that advertising on WeChat Xiaohongshu


Moments is the best form of pure digital advertising that China
has to offer most brand marketers. As a start, it has a
respectable range of targeting perimeters (but nowhere near
the sophistication of Facebook advertising) and some vital
spread mechanisms.

WeChat banner ads, on the other hand, are a mix of poor


targeting choices and notoriously low impact on mobile device
users, banner ads are likely as effectual as any programmatic
mobile banner buying solution.

2) Understand the Cost of Pure


Weibo Advertising
Weibo advertising is every KOL’s frienemy (it has become
extremely expensive to operate a KOL account on Weibo),
and an ad agency’s go-to when clients expect big numbers.

Weibo is the best and worst that China’s social media


marketing has to offer. With instant-play video, live streaming,

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click-to-buy e-commerce, and Weibo Stories (similar to


Instagram Stories), Weibo is perfect for content creators and
brand marketers alike that wish to reach audiences on an
open platform.

However, it also has a dark side. Weibo plagued with fake


accounts (known as zombie accounts) that are controlled by
hackers selling followers, likes, comments, and reposts on
Taobao. Because of this, it can be seriously tough to tell if a
post has truly gone viral or is merely a mass of cash-eating
zombies.

With that said, Weibo does provide some fairly advanced ad


targeting for both bloggers and agencies.

Weibo provides some landing page ad solutions, which I’m not


going waste time on because I believe banner ads to be the
best way to burn money in the whole of social media
marketing.

Weibo Promotion CPM (cost per 1,000 impressions):

*Target Owed Followers = Post promotion to account followers’ homepage. *Target


Interest Demographics = Post promotion to the homepage of accounts with specific
interests. *Target Other Account Followers = Post promotion to specific account
followers’ homepage.

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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

3) Set Expectations and


Understand Limits
With the basic costs of pure WeChat and Weibo advertising in
mind, it’s almost time to delve into Weibo and WeChat KOL
marketing costs.

But first, I want to outline some of the limitations presented by


these platforms that either a. make it difficult for a KOL’s
content to be seen and shared, and b. prevent non-account
holders from knowing the true impact of a KOL’s posts.

a. There are a few platform-specific disadvantages to


KOL marketing.

For instance, on WeChat it takes five clicks to be able to


watch a video distributed through a KOL’s subscription
account

#1. Open WeChat

#2. Find and then open the blue subscription folder

#3. Find and then open KOL’s subscription account

#4. Find and then open the desired post

#5. Read content and press to play a video

This process is daunting for followers and subject to drop-off


rates at each stage. This is why most KOL’s
WeChat subscription accounts have about a 5% to 10% read
rate compared to their total follower count.

Weibo has its own set of content viewing limitation issues.


Unbeknownst to the majority of marketers that I have spoken
too, Weibo’s algorithm restricts organic reach similarly to
Facebook and Instagram. Currently, only about 10% of a

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Weibo KOL’s total followers will organically see a new post in


their Home Feed. The other 90% of followers will need to
access the KOL’s account to see a new post, or the KOL will
have to pay Weibo for distribution (this is one reason why
operating a Weibo KOL account is so expensive).

Bonus: Tactics to get the most out of your Weibo KOL


Campaign

If you can make a post go “viral”(e.g. liked, commented, or


reposted a lot) Weibo’s algorithm will trigger it to organically
share the content with more followers.

There are some tactics brands can employ on Weibo to


squeeze the most value out of a KOL marketing campaign
and artificially make a post go “viral” –

#1. Pay for post promotion via the KOLs account because
there is reduced CPM rate of 10rmb per 1,000 impressions.

#2. Have the KOL agree to stick your promoted content to the
top of their mainstream. If the KOL pays to be a VIP, which
they most likely do, they can select a single post to be stuck to
the top of their account for however long they want no matter
what else they post.

#3. Pay for fake likes, comments, and reposts. This has a
three-pronged benefit. Firstly: The fakes trick Weibo’s
algorithm into believing that the post has gone viral and will,
therefore, be spread to more followers organically. Secondly:
When someone sees a post with a lot of engagement it’s more
likely to be paid attention to. Thirdly: The five most engaged
posts will be featured in the KOL’s Profile Page and will
remain there until there are five posts with more engagement.

Fake engagement costs 1rmb per 50 comments, likes, or


reposts. There are better quality sellers on Taobao, so do your

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research.

If you are concerned about buying your own fake


engagement, don’t be. This is a very common practice in the
KOL world. So, instead of wrestling to figure out what’s fake,
you can judo flip the zombies to work for you. When it comes
to tracking, simply subtract the fake engagement you bought.
Neither accounts nor posts get flagged for buying fake
engagement.

From personal experience, posts with fake engagement will


boost organic spread to reach 25% to 40% of the KOL’s total
followers.

*These tactics are based on the author’s personal experience


and are not necessarily endorsed by PARKLU

b. Some limitations that prevent us from knowing true


CPM

Only so much data can be scraped from a KOL’s account.

On WeChat, only views up-to one hundred thousand, the


number of likes, and the comments can be retrieved. All other
forms of engagement, including total follower count, are not
calculable or viewable by anyone but the account holder.

With Weibo it’s equally tricky because only total followers,


comments, and likes can be scraped. For Weibo the only fair,
but not at all accurate, way to calculate post reach (without
getting the information from the KOLs themselves) is to take
the number of followers and reduce it by 90% (since organic
reach is only 10%). Therefore, when I was calculating average
costs, I had to assume that if a Weibo KOL has a million
followers, a single post received one hundred thousand
impressions due to the inability to see the data.

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When it comes to engagement rates there are again some


severe limitations that we have to factor in. With the data that
I’m analyzing I could only assess likes and comments for
WeChat. With Weibo, I only had access to likes, comments,
and reposts. Also, I am again factoring in that only 10% of a
KOL’s Weibo account followers saw any given post, otherwise
the engagement rates would look dismal with the overall
average of engagement rate being 0.13%.

The Truth of Weibo & WeChat


KOL Marketing Costs
The following costs skew towards higher cost rates due to lack
of data transparency. Again, these are worst-case scenario
costs, actual CPMs might not be as high.

The following data was pulled from 1,100 WeChat and Weibo
KOLs on the PARKLU platform and is aggregated averages.
Pricing was a mix of KOL campaigns, KOL campaign bids,
and KOL set pricing. All Weibo and WeChat KOL marketing
costs data and pricing was broken down by account size or
impressions. Though it is impossible to totally eliminate fraud,
all suspicious data and accounts were excluded.

Weibo & WeChat KOL


Marketing Costs

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Average engagement rates for KOLs: WeChat & Weibo

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Weibo & WeChat Ad Costs vs Weibo & WeChat KOL


Marketing Costs

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Looking solely at the numbers, pure advertising is WAY


cheaper. But this is far from the whole story of Weibo and
WeChat KOL marketing costs when we consider the absolute
value.

Added Benefits of Collaborating


with a KOL
Original, High-Quality Content

When you work with a KOL, you are paying for content
creation too, not just exposure. Let’s say you don’t work with a
KOL and just buy ad impressions. Well, where is that ad
content going to come from? You would have to hire someone
to create the content. Comparing the CPM of pure ad
distribution to the CPM of a KOL’s distribution isn’t fair
because the latter includes the cost of content creation.

Furthermore, many brands are missing out on one added


bonus of KOL marketing. Namely, they can repurpose KOL
content on other brand channels. If you are paying the KOL to
create excellent content that resonates with your target
customer, you should distribute it in more places than the
KOL’s own account.

Paying for Attention vs. Disruptive Marketing

It’s difficult to compare the value of a view, click, or comment


on a KOL’s content with pure advertising because viewer
attitudes and motivations are completely different with each
medium.

When fans see native promotion embedded in KOL content,


they don’t have the same emotional response as when a
random ad blocks them from seeing what they really want.

Pure advertising is a form of disruptive marketing because

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people visit social media to engage with friends, family, and


KOLs. Ads stand in their way. When thought about like this,
the impression value of a pure ad is much less than the
impression value of a KOL’s post.

An Engaging, Trusting Relationship With Their Audience

Even though brands launch and maintain their own blogs,


video channels, and podcasts, those company accounts will
always lack a personal human element. KOLs grow trust and
loyal followings through the personal relationships they
develop with their fans. Besides creating amazing content, the
best KOLs regularly spend time connecting with followers,
answering questions, chatting with them live, and even going
out to eat with fans or sending top fans gifts on their birthday.

It’s unsurprising the quality of engagement with a KOL post is


much different than that of an ad. An ad in WeChat Moment
has, well, a few moments to convey a brand’s message.
Engagement with a KOL article, on the other hand, requires a
high level of intentionality — the act of accessing the content
is itself a four-step process.

And moving on to Weibo, this platform demands an even


higher level of engagement from brands. As I learned while
working at China ad agency, one-off posts from companies
will have even less of an effect than a WeChat Moment ad,
garnering about the equivalent attention of banners. To be
successful on Weibo and match the influence of KOLs, brands
must contribute constantly and provide a high-level of fan
engagement. They should eventually develop the same
approach KOLs take.

But even then, a brand will never be a person.

KOLs are Social Media Marketing Experts

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It’s ironic that companies are willing to pay consultants and


agencies hundreds of dollars an hour for their expertise, but
are hesitant to pay KOLs. KOLs are experts too. They
understand Chinese social media platforms and their
audience, and they know what type of content and distribution
methods will achieve the best results.

The problem is this:

Too many brands do not trust KOLs and micromanage them,


thereby losing out on the opportunity to utilize the KOLs’
expertise.

If you want to achieve the best results from a KOL campaign,


treat the KOL like a consultant instead of telling them what to
do. Ask them their opinions and recommendations. Give them
the freedom to do what they think is best for your brand.

You’re Not Just Paying for a Post

When you work with a KOL, you’re not just paying for one post
— you’re paying for years of blood, sweat, and tears. Many
KOLs worked their asses off for years with no pay to build
their audience and perfect their content. When they do finally
start earning money, you’re paying for all their experience and
all the work they’ve put in. Top KOLs are successful because
their brand is their life and they are extremely dedicated to it.

Trickle-down KOL Economics

Sometimes the cost of working with a large KOL can seem


prohibitive. However, if done correctly, a campaign with a top
KOL will spark a chain reaction. Many smaller KOLs will start
creating content based on the trend your initial campaign
started.

They’ll end up promoting your brand or product without

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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

compensation because they want to be on-trend. I’ve seen


this happen time and time again. Although it’s hard to
measure, it happens frequently.

Lower Barrier to Entry

While the CPM of a KOL’s post might be higher, the barrier to


entry is lower than pure advertising.

As an example, let’s compare a WeChat Moments ad with a


native content ad in a KOL’s article. If you’re a China-based
company, a Moments ad is a 50,000RMB commitment and
10,000RMB for a foreign company. KOL campaign costs are
simply more accessible, especially for SMEs.

My Final Thoughts on Weibo and WeChat KOL Marketing


Costs

Comparing the cost of ads to content created and distributed


by KOLs is really apples and oranges. What a brand receives
from working with a KOL is more than bought impressions.

Brands pay for relationships and a reputation that KOLs have


painstakingly built and a vast amount of knowledge and
expertise the KOLs have accumulated while growing their
brand.

And most importantly, you are paying for real attention, not
impressions.

Traditional ads disrupt content, they block social media


consumers from consuming the content they really want.
KOLs create the content people want to consume. And your
best hope, if you don’t work with a KOL, is to block their
content with your banner, 30-second video, or post.

Researched & Written by Elijah Whaley

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Weibo and WeChat KOL Marketing Costs | PARKLU 31/03/2019, 4*27 PM

Edited by Lauren Hallanan & Daniel Boltinsky

Want to learn more about Weibo and WeChat KOL


Marketing Costs?

Listen to Elijah’s interview on China Digital Marketing Podcast


– What is the Real Cost of Influencer Marketing in China?

Still Have Questions?


Check out our FAQ and detailed tutorials on how to
post a campaign to our KOL marketplace, or speak
to us to find out how to launch your first campaign

Contact Us

or just try it out

Start Free

By Elijah Whaley | November 2nd, 2017 | KOL Marketing, ROI,


WeChat, Weibo | 16 Comments

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