Intro to Influencer Marketing
Influencer marketing has become increasingly popular in recent years as more and more consumers are utilizing social media to discover new products and services. It’s an effective strategy for brands to reach their target audience in an authentic and engaging manner, as influencers provide a personal touch that traditional advertisements may lack. The content is displayed in a variety of forms, including social media posts, blog posts, videos, or product reviews. The intent is to leverage the influencer's reach and impact to increase brand awareness, drive traffic to the brand's website, and ultimately boost sales. With the recent rise in social media platforms such as Tiktok, influencer marketing has become a primary advertising focus for many brands. In the past year, 81% of consumers reported that social media posts from influencers, friends, or family members drove interest in an item or service.
YoY Growth
The coronavirus pandemic pushed influencers to the forefront due to consumers spending more time on social media and shopping online. In 2016, the influencer marketing industry was worth $1.6B. That increased to $16.4B in 2022 and is now expected to grow 29% to a whopping $21.1B in 2023. A 2022 survey by AdAge found that in 2023, 53% of advertisers plan to increase their influencer investment. Furthermore, 45% of advertisers reported they will prioritize influencers who regularly include shoppable links.
Types of Creators
The pool of influencers continues to grow as more creators go viral and discover new niches that attract more followers. Brands are then tasked with the challenge of choosing who they want to represent their product. Recent studies have shown that advertisers primarily work with influencers in the mid-tier (between 50,000 to 500,000 followers) and macro range (500,000 to 1 million followers). Rather than celebrity influencers, creators of this size are proven to have higher engagement levels and foster a more authentic online community. In addition, they tend to charge lower collaboration fees and they’re more likely to stay true to the requests of the brand.
Conclusion
While influencer marketing can feel foreign to some brands, now is the time to start considering it in your marketing mix. The influencer economy is reaching a variety of generations and audiences that you may not have tapped into in other efforts. There is space for all brands to benefit from the ever growing influencer community.
If you want more information on influencer marketing, don’t hesitate to contact us or check out these helpful resources:
References:
Advertisers Plan to Increase Investment in Influencer Marketing
Why Smaller Influencers Outshine Mega-Influencers in the Age of Social Media
81% of Consumers Embraced Influencer Marketing in the Past Year, Study Finds
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