INFLUENCER MARKETING — is it a bubble or are we onto something truly groundbreaking?
In the last 12 months, the market demand for influencer marketing has exploded. As an early mover in the industry, we went from running experimental influencer campaigns in 2013, to regularly designing 7 figure programs for the world’s largest brands 2 years later.
And there are no hints that this growth is slowing down anytime soon.
Yet any good decision-maker should be skeptical of the hype. So instead of focusing on what people have to say, in this article, I focus on what the numbers have to say. I let the data speak for itself.
11 Influencer Marketing Statistics:
1. Marketers received $7.65 in earned media value for every $1 spent on influencer marketing – Influencer Marketing Hub.
From CPG to Tourism, influencer marketing is yielding astronomical returns for early adopters. To view a concrete example, download our case study of how FanDuel reached a 5:1 ROI with influencer marketing.
2. Marketing induced consumer-to-consumer word-of-mouth generates twice the sales of paid advertising – McKinsey.
As the adage goes, a person talking about their experience with your brand is 10 times more valuable than talking about your brand.
3. Customers acquired via word-of-mouth have a 37% higher retention rate – McKinsey.
This held true across industry verticals.
4. 81% of marketers that tried influencer marketing report that it is an effective channel – eMarketer.
5. As a result, 84% of marketers plan to run influencer marketing programs within the next 12 months – eMarketer.
These 5 influencer marketing statistics beg the question: why is influencer marketing performing so well?
6. TV viewing among 18-24-year-olds is declining by 9.5% every year – Nielsen.
The decrease is sharpest among teens (12-17) which totaled 14.5% decrease year-over-year. Older Millennials (25-34) and GenX (35-49) saw a 6.7% and 3% decrease respectively.
7. Meanwhile Facebook, the most popular social network, reached 1.55 billion Monthly Active Users (MAUs) – Statista.
If Facebook was a country it would be the most populated country in the world. YouTube (1 billion MAUs) and Instagram (400 million MAUs) would be more populated than the USA. Although Snapchat doesn’t disclose MAUs, their Daily Active Users crossed 150 million in April 2016, surpassing Twitter’s.
8. 92% of consumers trust online word-of-mouth recommendations, while only 33% of them trust online banner ads – Nielsen.
Consumers are tired of getting sold to. Instead of viewing ads, people prefer listening to what the people they care about have to say. It baffles me how this fact of human nature is not common knowledge.
9. 47% of online consumers use adblockers – Digital News Report.
In 2016, the best way to reach consumers is to publish content they want to consume via channels they already trust and follow – influencers!
10. 8 out of 10 of the most influential personalities among teens are YouTube stars – Variety Report.
YouTube stars like Smosh and KSI ranked above traditional celebrities like Katy Perry and Johnny Depp. This trend is most acute among teens, but all generations are shifting their attention from traditional channels to social media.
11. The number of online searches for “influencer marketing” is growing by 5000% a month – Google Trends.
The marketing world is quickly waking up to the potential of influencer marketing. As Google Trends shows, the interest for the channel has grown exponentially since early 2015.
As these influencer marketing statistics show, influencer marketing is hitting the mainstream. However, while most marketers are only dipping their toes in influencer marketing, only a select few are implementing a long-term influencer marketing strategy.
As the web-space matures over the next couple years, the brands and agencies that invest in streamlining their influencer marketing are going to reap the greatest profits. This presents an opportunity for marketers that make influencer marketing a priority and establish a well-oiled system before the market adjusts.
Still interested? If you’d like to see influencer marketing in action, check out our case studies here.