By: Nicholas S. Jacobsson, Founder & CO-CEO of Influeri.

In recent years, much has been written about the squeezed margins of influencer agencies. At the same time, we increasingly hear from brands questioning why such a large part of the marketing budget never reaches the creator or the distribution. It is not uncommon to hear figures like 70 percent of the influencer budget being eaten up by agency fees - and in some cases, even more. While it is easy to dismiss this as ignorance, there is a structural explanation: influencer marketing has historically been extremely heavy on administration costs. But that has now changed.

The Heavy Burden of Manual Administration

Historically, running an influencer campaign manually has been an incredibly complex process. Agencies have justified their high fees not necessarily through creative height, but through the sheer volume of coordination required.

The Endless List of Manual Tasks

A manual campaign involves a long list of steps:

• Identifying and screening profiles

• Outreach, dialogue, and negotiation

• Contracting, briefing, and follow-ups

• Managing deadlines and collecting material

• Approval processes and reporting

• Invoicing and final payouts

What Happens When the Administration Disappears?

AI is changing this type of work first. What previously took a project manager a full workday can now be done in seconds. When technology eliminates 90%+ of the manual work, the entire cost structure changes.

Automation That Changes Everything

Through AI, we can now automate:

• Matching creators to target audiences and KPIs

• Outreach and dynamic contracts

• Follow-ups, activity reminders and content collection

• Real-time reporting and automated payouts

A Structural Shift from Process to Strategy

As complexity decreases through technology, the value moves. When AI handles the processes, the strategic work is the only thing left to charge for.

Who Should Own the Strategy?

If technology is no longer exclusive, strategy can be managed by:

• Media agencies or In-house teams

• The brand's own marketing department

• Independent strategists

An Industry Facing Structural Transformation

This is not an attack on agencies, but a recognition of a structural shift similar to what happened to travel agencies when booking went digital, or the taxi industry when Uber emerged. When transaction costs approach zero, the business model must be adjusted. The agencies that survive will be those that shift focus from administration to impact.

What You as a Brand Should Ask Yourself

Next time you procure an influencer campaign, ask three simple questions:

1. How much of my budget actually goes to creators and distribution?

2. What am I paying for - strategy or administration?

3. Could the same results be achieved with technology and a smaller team?

Influencer marketing is here to stay, but over-priced campaigns are not.

When the cost base changes, the price tag must follow. It is not radical; it is just market economics.

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