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Influencer Marketing

11 Influencer Marketing Statistics You Should Know (Updated for 2021)

By Misha Talavera

When we first published this blog in 2018, we were not quite sure how influencer marketing would evolve in the coming years. We were optimistic with influencer marketing statistics that it would continue to grow, but we never imagined that the industry would take the leaps and bounds that it has during such a short period of time. 

Fast forward three years and we have seen the rise of Instagram shopping, IGTV, Instagram Reels, and TikTok. We also experienced the turning point of nano and micro influencers and saw a new wave of young influencers claim their way to fame on TikTok.

I think it’s pretty safe to say influencer marketing is here to stay but I am just going to let the data speak for itself. Here are 11 influencer marketing statistics you should know. 

The Stats

1. 56% of brands use the same influencers across different campaigns

  • Influencer Marketing Hub 

Building long-lasting relationships with influencers is at the forefront of many brands’ influencer marketing missions. Using the same influencers across different campaigns has a plethora of perks. Here are a few:

  • Previous success minimizes uncertainty
  • Both brands and influencers know what to expect
  • Finding influencers for new campaigns isn’t a hassle
  • The influencers loyalty and love for the brand builds more trust in the brands mission and products for audiences

GymShark and Bang Energy are two major figures in influencer marketing who build long-lasting relationships with influencers and activate them in a handful of campaigns. 

@justmaiko

@bangenergy really be energizin my tiktoks🤩😂 @bangenergy.ceo #BangEnergy

♬ Get busy speed edition – 37.2k || <3

2. 67% of brands use Instagram for influencer marketing

  • Influencer Marketing Hub

With over 1 billion users a month (Omni Core), it is clear why 67% of brands use Instagram for influencer marketing. Like influencer marketing, Instagram has evolved immensely since its birth. Marketing on the app has been taken to new levels with tools like explore, IGTV, shopping, and branded content ads. Instagram also sees a continuous influx of new creators, especially nano and micro influencers, making influencer marketing more accessible on the platform. 

Instagram ranked #1 for the most important and impactful channel. Despite this ranking, the use of Instagram for influencer marketing has seen a decrease from 80%. This 13% decrease may be a result of a shift towards TikTok. TikTok has seen a 45% rise in influencer marketing on the platform! 

TikTok’s popularity is supported with data. Check out the industry case studies from viral TikTok campaigns here.

3. Rise of Shoppable eCommerce and Influencer Marketing Campaigns

  • McKinsey

McKinsey’s global consumer sentiment survey indicates that consumers are turning to digital, contactless shopping experiences in order to access the products they need. McKinsey also foresees this shift sticking past COVID regulations due to convenience.

With this in mind, shoppable eCommerce on social media platforms and shoppable influencer marketing campaigns are going to continue to grow. In the United States, 34% of people say they have shopped on Instagram based on an influencer recommendation.

4. 36% of brands still tend to pay their influencers with free products (or even just discounts on more expensive products) rather than paying cash to their influencers

  • Influencer Marketing Hub

Money, especially for small brands entering any industry, plays a large role in incorporating influencer marketing into marketing strategy. With the rise of nano and micro influencers, influencer marketing has become more affordable. This influencer marketing statistic indicates that aside from paying cash to more affordable nano and micro sized influencers, small brands can follow suit and pay their influencers with free product samples or discounts in order to enter the space. 

5. 2020 Saw a Record High Number of Brand Activated Influencer Campaigns on YouTube 

Influencer marketing campaigns increased throughout 2020, and YouTube was not a platform forgotten about in the process. A record high of 4,449 brands activated influencer campaigns on YouTube, spreading across over 15 industries. Altogether, these brands poured $1.1 billion into influencer marketing campaigns on the platform and achieved an overall view count of 9 billion. 

Looking to run an epic influencer marketing campaign on TikTok? NeoReach has the best experience in creating viral campaigns that convert on social media. Sign up here! 

6. Influencer marketing is expected to grow to be worth $13.8 billion in 2021

  • Influencer Marketing Hub

Influencer marketing is expected to have over a 4 billion dollar growth margin from 2020. COVID-19 caused companies around the world to shift their marketing models and adapt quickly, helping the influencer marketing industry grow. 

7. Integrated YouTube videos are the most popular form of content for influencer marketing on the platform

integrated paid promotion YouTube

Of the four main content types on the platform – dedicated, intro, end, and integrated – integrated took first place as the most popular form of content for influencer marketing on the platform. Integrated videos boost the authenticity of the advertisement for the audience and decrease the likelihood that a viewer will skip through the sponsored portion. Tech, followed by beauty, and food and drink were the three industries that used integrated content the most. 

8. Micro influencers have the best engagement rates

  • Influencer Marketing Hub

Despite having less followers than mega and macro influencers, micro influencers have the best engagement rates. Present day, micro influencers have an average engagement rate of 3.86% on Instagram while mega influencers only have an average engagement rate of 1.21% on the platform. This shocking influencer marketing statistic highlights the major shift in influencer marketing towards nano and micro influencers. Brands are able to get more bang for their buck. 

9. Instagram Sponsored posts are growing by 30% year-over-year 

  • MediaKix

According to MediaKix, since 2017 #sponsored posts on Instagram have grown 6x and #ad posts have grown 2x. These growth rates have led the total number of views for both hashtags combined to exceed over 15 million. The growth of these FTC approved sponsorship disclosure hashtags is not a coincidence. Their growth rates mirror the increase in spend and paid ads on the platform. 

Growth of sponsored posts on Instagram

Via MediaKix

10. Businesses are making $5.20 for every $1 spent on influencer marketing

  • Influencer Marketing Hub

Only the bottom 25% of companies that participate in influencer marketing fail to generate revenue. The remaining 75% of companies generate revenue through their influencer marketing efforts with the top 13% of businesses seeing a $20 return on every $1 spent on influencer marketing. 

11. Instagram posts and Instagram stories are the two most effective content forms for influencer marketing

  • MediaKix

Instagram proves to be an overwhelming favorite amongst influencer marketers. 78% of respondents in a MediaKix survey found Instagram posts to be the most effective content form, closely followed by Instagram stories which were found by 73% of respondents to be the second most effective content form. Trailing Instagram posts and Instagram stories were YouTube videos, Instagram Videos, and blog posts. 

The influencer marketing industry has evolved immensely over the years and these 11 jaw dropping influencer marketing statistics reflect these changes. The data indicates that influencer marketing has a promising future, with more growth ahead of us. We are so excited to see new influencers emerge and see new features being added to important platforms like Instagram and TikTok. 

Still interested? If you’d like to see influencer marketing in action, check out our case studies here.

FAQs

Q: What is influencer marketing?

A: Influencer marketing is a digital marketing strategy in which brands partner with influencers to promote their products and services. Influencer marketing takes place on various social media platforms like Instagram, Facebook, Pinterest, TikTok, YouTube, and Snapchat as well as other platforms like an influencers blog. Influencer marketing places the creative of an ad in the hands of influencers because influencers know how to reach their audience best. 

Q: What is an influencer?

A: Influencers are popular, trusted individuals with large followings on social platforms and, more often than not, are experts in their industries. Influencers built their brand from the ground up, gaining the love and trust of their followers over time. These content creators create the best content, give the best advice, share stunning photos, and have high engagement. 

Q: How effective is influencer marketing? 

A: According to 80% of marketers, influencer marketing is effective. Moreover, 89% of marketers believe influencer marketing works just as well, or outperforms other marketing channels. A survey conducted by MediaKix indicates that influencer marketing delivers 11x ROI than traditional marketing. Outside of a marketers perspective, influencer recommendations influence 49% of consumers purchase decisions. 

Q: How big is the influencer marketing industry?

A: The influencer marketing industry is currently expected to grow to be worth 13.8 billion dollars in 2021. Many factors contribute to the size of the influencer marketing industry including influencer count and agency count. According to Mediakix, there are between 3 and 38 million influencers all ranging in size and industry. In addition to influencers, to date there are 1360 influencer agencies and platforms. 

Q: What brands work with influencers?

A: Influencer marketing is not limited to one industry or one company size. Hundreds of brands globally partner with influencers to create content and target audiences. According to NeoReach’s 2020 Year in Review Report, the top five industries utilizing influencer marketing with the highest spend on YouTube are food, fashion, beauty, tech, and gaming. Some key players on YouTube include Honey, NordVPN, Reese’s, Bang, and SquareSpace. 

Q: Can I enter the influencer marketing industry with a small budget? 

A: Yes! Small brands should not be intimidated by influencer marketing because of spend. Nano and micro influencers are great options (arguably one of the best options) and influencers can be paid through commission of their sales, free products, or discounts. 

Q: Why is influencer marketing important? 

A: Influencer marketing is important because 92% of millennials trust an influencer over a celebrity or traditional advertisement. This flooring influencer marketing statistic proves that influencer marketing helps brands gain recognition, reach new audiences, and expand their customer base through organic, authentic means. 

Q: How are influencers classified? 

A: Influencers are broken into tiers based on their follower count. Each individual influencer agency’s definition may vary slightly, however the following is a good baseline. Nano influencers 1K-10K followers, micro influencers 10K-50K, mid tier influencers 50K-500K, macro influencers 500K-1M, mega influencers 1M+. 

Q: How do I find the right influencers for my campaign?

A: Finding the right influencers for your campaign is the hardest part of the process .Brands can find their own influencers manually with or without an influencer search engine or they can source out to an influencer marketing agency to find the right influencers for them.

In order to find the right influencers, we first recommend screening influencers to see if they are compatible with your brand and are what we like to call “brand safe” by having a feed that is free of hateful or inappropriate content. Next, you must find an influencer with an audience that fits your target audience (i.e. age group, geographic location, hobbies, brand affinity, lifestyle, etc). Influencers engagement and reach should also be taken into consideration in the process. 

Ready to start your search? Check out this blog for a list of great free influencer search tools from NeoReach and other agencies.  

Q: What should I look out for in influencer marketing? 

A: Every brand should be on the lookout for fraudulent influencers. It is easier said than done, even large companies like Febreeze and Baby Einstein have accidentally had their fair share of handling fraudulent influencers. Some red flags to look out for include poor content quality, lack of engagement from followers, and infrequent posting habits. 

Q: How do I track influencer marketing conversion? 

A: There are a few tools you can use to track influencer marketing conversion. Google analytics unique UTM codes, discount or redemption codes, dedicated landing pages, hashtags, and trackable links are the most popular tracking methods implemented. 

Q: What are the goals of influencer marketing campaigns? 

A: Goals of influencer marketing campaigns vary brand to brand. Driving brand awareness or driving direct response are typically the two goals. Driving brand awareness involves building positive sentiment and brand affinity, driving website traffic, growing social media following, and creating buzz around the brand. Driving direct response involves driving purchases, sign-ups, downloads, and website traffic. 

Q: What are the pros and cons of partnering with an influencer marketing agency? 

A: Influencer marketing agencies have a breadth of knowledge and expertise. Influencer marketing agencies also have a pool of influencers they have already formed relationships with, making the outreach and onboarding process much easier. Overall, an influencer marketing agency’s expertise and experience is invaluable, as many agencies have spearheaded dozens of large scale campaigns from start to finish. One thing to note is that some influencer marketing agencies can be pricey but there are agencies available for brands of all sizes. 

Q: Will influencer marketing last?

A: Influencer marketing statistics signal that influencer marketing is here to stay for a while. Companies trust and attain desired results from their influencer marketing efforts. New generations of influencers are rising and platforms like Instagram and TikTok are creating features on their apps to make influencer marketing easier than ever before. 

 

This article was written by Lauren Conklin

Want to break into the world of influencer marketing? Get started with us today!

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