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Is influencer marketing really living up to the hype?
First, check out these ten frequently asked questions about influencer marketing if you’re just getting started.
With this year’s influencer marketing numbers on track to double those in 2017, it’s no secret the industry is booming. As an early mover in the industry, we went from running experimental influencer campaigns in 2013 to regularly designing seven-figure programs for the world’s largest brands two years later.
The industry isn’t expected to slow down anytime soon.
Any good decision-maker would be skeptical of the hype, so instead of focusing on what people have to say we can let the numbers talk.
1. Influencer marketing is on track to be worth $5-$10 billion by 2022, up from $4-$8 billion in 2019
In less than half a year, the average monthly search for the phrase “influencer marketing” has increased almost five times as much. An average of 500 searches each month now sits around 2,400.
The interest in influencer marketing almost doubled within the calendar year, showing a substantial increase since the year before, which saw around a 40% increase.
These influencer marketing stats reflect the widespread increase of awareness and popularity of the industry.
2. Over 2/3 of marketers will spend more on Instagram than any other platform
Instagram usage has vastly improved at significantly faster rates than any other social media platform. That’s why it’s no surprise that 69% of marketers said they plan on spending the most amount of money on Instagram for influencer marketing this year.
This influencer marketing stat shows that over six times the amount of spending will occur on Instagram than on YouTube, the second most popular platform to spend on.
3. Marketers are willing to spend on influencer marketing
11% of respondents to Influencer Marketing Hub’s survey said they plan on spending more than 40% of their marketing budgets on influencer marketing in 2019. Another 12% will spend 30%-40% of their budget on influencer marketing, and 24% will give 20%-30% of their budget to the same cause.
Each firm has a different marketing mix, and even the biggest supporters of influencer marketing understand they must spend money on other areas for their campaigns to be successful.
The most common budget for influencer marketing is $1,000 – $10,000 a year, closely followed by $100,000 – $500,000 a year.
4. Influencer marketing campaigns earn $6.50 for every dollar spent
Probably the most important influencer marketing stat, this shows how successful campaigns can be. With marketers planning on increasing their budgets, influencer marketing is becoming the fastest growing medium for many brands.
Businesses are earning around $6.50 for every dollar they spend. Campaigns run with influencers in the top 13% can earn up to $20 or more for every dollar spent. In addition, companies improve customer loyalty, offering a lifetime customer value.
5. Instagram engagement rates are up
When compared to other platforms, like Twitter, Instagram has continued to separate itself from the rest of the pack in the past couple of years.
Though engagement rates are expected to fall with an increase in followers, Instagram’s engagement rates best Twitter’s at all follower levels.
That’s why it’s no surprise when the influencer marketing stats show Instagram ranks #1 as the most important and impactful channel.
Check out our other blog post to see the benefits of Instagram and other platforms for influencer marketing.
6. 17% of marketers spend over half their budget on influencers
Though this influencer marketing stat seems less impressive than the others, it reflects how important it has become for companies in a variety of industries. The most common industries in influencer marketing are eCommerce, fashion, and beauty, gaming, travel, and lifestyle brands.
The most common amount companies expect to spend on influencer marketing lies between 0%-10% of their entire marketing budget.
7. Instagram posts are the most viewed
78% of marketers chose Instagram posts as their preferred content format for influencer marketing. Sponsored Instagram posts are everywhere because they’re easy to produce and publish.
A photo with a caption uses less time and money to make, resulting in a more affordable option for smaller companies trying to use influencer marketing.
The second most used formats are Instagram stories. Originally gaining their popularity from Snapchat, over 500 million Instagram users upload content to their stories each day.
Videos also carry popularity. Whether it’s YouTube or Instagram videos, both options rank relatively high on the list of preferred influencer marketing formats.
8. TV viewership is declining
Important demographics have moved away from regularly watching TV with the cord-cutting movement. These same demographics alternatively receive most of their daily media content through social media channels, apps, and platforms.
According to this infographic from AdWeek, marketers are spending 500% more on millennials than all other generations combined.
2015 was the first year more time was spent on mobile apps than on TV.
9. 40% of internet users use ad-blocking technology
This influencer marketing stat might scare you at first glance; however, it’s good for influencer marketing campaigns. U.S. ad-blockage is around 40% on laptops and 15% on mobile devices.
The reason this benefits influencer marketing is the fact that it doesn’t include it. These ad-blocks target traditional ads.
People don’t block content from their favorite accounts or celebrities. In reality, they do the exact opposite. Real people and influencers are gaining power in advertising.
10. Twitch Livestream is the least popular platform for influencer marketing
Twitch Livestream ranked last in the ranking of forms of content preferred by marketers in 2019. Its gamer-oriented audience numbers around 15 million each day.
Large brands like EA, Doritos, Hershey’s and KFC have been experimenting with the platform that’s in its earlier stages of influencer marketing.
The influencer marketing stats show the audience is mostly young male gamers, which is extremely specific. The platform has begun to expand into other categories like Art, Talk Shows, Music, and Food & Drink.
It will still take more time for marketers to figure out if Twitch is a useful medium for influencer marketing.
