Since 2016, the influencer marketing market has transformed significantly.That year, total monies grossed from activities totaled 1.7 billion dollars. The rise of influencer marketing is attributed to several reasons. The main reason is user generated content from Instagram, LinkedIn, SoundCloud, and Twitter fueled the growth as they transformed customer targeting, acquisition, and retention process(source: American Marketing Association).
Here are interesting facts about influencer marketing.
1. Nano- influencers have the highest engagement rate of 3.69%, whereas mega influencers engagement average is 1.06%. Nano influencers are influencers who have a following of less than five thousand people. Naturally, they have authentic relationships with their followers. Plus, they are eager to continue building relationships with more people and growing their brand.
2. In 2022, the influencer market in the U. S was valued at a record 16.4 billion dollars. One word that sums up the growth of influencer marketing: Meteoric. Case in point, in 2016, the whole market was worth 1.7 billion which is a 1/10 of its present value. Growth decelerated over the recent years.
3. Seventy-two percent of Gen Z and millennial follow influencers on social media. Celebrities influenced previous generations primarily and other methods of advertising. With the rise of social media, streaming, and a multitude of ways to consume media- influencers have become commonplace. This trend will continue with more people getting access to the internet soon.
4. Thirty-eight percent of marketers state generating sales was their top goal for influencer marketing in 2022. For any brand, finding additional channels of ways to generate sales is a never-ending goal. Sure, there is an organic search, paid search and email marketing which are all effective. Influencer marketing is trending up, more brands are increasing their budgets to expand into this channel. Frankly, ignoring this channel is a huge mistake. According to the State of Influencer Marketing 2020, businesses earn $5.78 for each dollar spent on influencers.
5. Fifty percent of millennials trust products recommendations from influencers. Seven years ago, influencers began their journey of building their brand, promoting products, and partnering with brands. Until 2019, become trustworthy to businesses who wanted to use their services. Now, there are agencies which vet influencers to ensure they are not risky to work with. Millennials, at least, 50% of them trust their product recommendations.
6. Forty-nine percent of consumers depend on influencer recommendations. Of course, anyone can leave a review or recommendation about a product. These recommendations are still dependable and trustworthy. However, there is a certain threshold that people are comfortable with to make an informed purchase.
7. TikTok has created a billion-dollar Creator Fund to nurture influencers. By nature, influencers are innovative, creative, and risk takers. However, they need to be rewarded for their hard work. With that in mind, an initial $200 million dollars have been.
8. Seventy percent of teens trust influencers more than celebrities. TikTok, Snapchat, and the like are where teens gravitate to watch short videos or content. Influencers have taken note and have been marketing on these platforms more to engage.
9. Fashion and Beauty companies – 57% engage in influencer marketing. There is no industry which is not utilizing influencers to boost their business, connect with consumers, and grow customer base. Fashion and Beauty more so than other business rely heavily on people (celebrities, influencers, and like) to promote their products. Really, it is a win-win situation for both parties.
Sources
2021, October 19th. 20 Surprising Marketing Influencer Statistics. Digital Marketing Institutue. https://digitalmarketinginstitute.com/blog/20-influencer-marketing-statistics-that-will-surprise-you
Influencer Marketing Market Size(2016-2022).Oberlo.https://www.oberlo.com/statistics/influencer-marketing-market-size
Moore, Kaleigh.How to Find Nano-Influencers: The Ultimate Guide.afluencer.
Geyser, Werner. What is Influencer Marketing? – The Ultimate Guide 2023. Influencer Marketing Hub. https://influencermarketinghub.com/influencer-marketing/
Goldenberg, Jacob, Lanz Andreas, Shapira Daniel, Stahl Florian. The Research Behind Influencer Marketing. American Marketing Association. https://www.ama.org/2022/02/16/the-research-behind-influencer-marketing/#:~:text=The influencer endorsement market more than doubled from,transformed the customer targeting, acquisition, and retention process.
With the growth in the size and opportunities of shopping online, the role of social media has exploded over the past few years. Influencers are increasingly playing a major role in the purchasing decisions of consumers. It is very interesting to see these facts about influencer marketing.
It is very helpful to see that nano influencers actually have the highest engagement, as well as the fact that 49% of consumers depend on the recommendations of influencers. Very powerful data here for any influencer.
LineCowley – Influencer Marketing has seen a meteoritic rise in SMM segment. Nano influencers, albeit being new, are motivated and go to great lengths to help brands all while simultaneously building theirs.
Frankly, it eye-opening the percentage of people who rely on influencers when making purchases. Despite this, consumers still rely on friends, family, and finally consumer reports (among others) for reviews.
Influencers are here to stay.