Influencer marketing is an innovation that accompanies digital marketing in a sense. It has taken brand marketing to a different level. Today, brands have become more open to having social media influencers represent their brands on the social media sphere.
A common trait of many influencers is their ability to engage authentically with their audience and offer a realistic perspective on a product or a service. Since 2017, the rise of influencer marketing has grown astoundingly and there have been some amazing changes that this industry has witnessed.
We have compiled a list of stats that prove the growth and viability of top influencer marketing trends and these will explain how influencer marketing has become so popular.
1. Brand Buy-In
Did you know? in 2018, brands were said to have invested over $1.6 billion on Instagram alone! Instagram is well-known to be a social media platform where most influencers reside and share their content. As a result, 39% of brands have increased their spend on influencer marketing for 2019. The brands include even the giants like Nike, Gucci and Victoria’s Secret, Christian Dior are some of the names
Influencer marketing has made it into the top marketing trends for 2020 which might increase its popularity and gain more brand buy-in. In that way, 2020 certainly looks like a good year to quickly hop on the bandwagon as others are starting to increase their influencer marketing budget!
With a well thought out strategy, influencer marketing can be affordable and effective depending on whether they use micro or macro-influencers. This means that brands can widely spread their products or services at a fraction of the cost of traditional advertising. Using visual content, you can engage different audiences through influencers that use a variety of social media platforms.
2. Instagram is at the forefront of influencer marketing
Although Influencers are found in many different social media platforms, the majority is on Instagram. Due to that, marketers have included Instagram in 93% of their marketing campaigns and the use of Stories increased by 60%. While Instagram has been on the rise, other platforms like Twitter and Facebook have declined.
That has led to Instagram designing an influencer version of the app which is specifically aimed at catering to this demand. Influencers also prefer using Instagram to post brand-related content and because of that, brands have faced the pressure of creating more visual content.
Brands need to create beautiful visual content they will use for marketing like images and videos. If brands create their own content, they are meeting the influencer halfway because he won’t have to handle everything for the business.
Shane Archer who works as the digital marketing head for an assignment writing service, Pay for papers and Best paper writing service, shares an interesting point here.
He says, ‘’Instagram has also grown to accommodate influencers and designed options catered to them. For example, its algorithm favors the authentic relationships that the influencers create with their followers. It means reciprocity – how much you like and comment on your followers and how much of it do they return.’’
3. Tiktok is One of The Most Downloaded Apps
Currently, TikTok rules with over 500 million downloads and is an example of how users can propel an app to success. This platform has immensely transformed the viral marketing of content and made it easier for content creators to create highly engaging content that is usually funny with cool background music.
Since its inception, the platform has grown immensely to accommodate additional features like Instagram Stories and Videos. Brands have seen immense engagement through a platform like TikTok that appeals to the younger generation.
Influencers have also taken advantage of this platform and created video content that they can share with the world through TikTok. Although this platform was conceptualized with entertainment purposes in mind, it has now branched out to become a great hub for influencers.
4. TV Viewing Is Declining by Almost 10% Every Year
Millennials are losing interest in watching television and are instead migrating to social media channels. You are most likely to reach the younger generations on Instagram, Facebook or Twitter than using TV commercials.
This significant drop and decline are due to the fact that young people prefer to engage with content on platforms they prefer. Instead of watching TV, they would rather spend their time on less traditional media platforms on their laptops or mobile devices.
This means that companies need to more strategic in reaching this age group and influencer marketing has become viable to channel to grab the attention of the young user.
5. Word of Mouth Generates More Sales
People have a sense of trust in one another and this proven by the fact stats show that word of mouth marketing is highly effective. In fact, up to 50% of purchasing decisions comes from a word of mouth recommendation.
Brands have to understand the top-down approach is no longer effective for consumers of the new age, and what people have to say about your brand is important. In a recent study, it was revealed that 92% of consumers trust the online word of mouth recommendations above online banner ads. People are likely talking about how they experience your brand and what makes it worth buying.
Natalie Arthur, works as the team leader – digital marketing for an online assignment help, AssignmentGeek, talks about the power that word of mouth recommendations holds. She says, ‘’our agency deals with students, and in a college or university environment, the word spreads fast if you offer quality and good prices. This has helped us increase their business almost 2x.’’
6. Influencer Marketing Has High Customer Retention Rates
Influencer marketing has proven to be highly effective as it shares a message that customers can relate to. In other words, the influencer’s content is geared towards echoing customer sentiments and this leads to a more supportive client base.
Part of influencer marketing entails visibly solving a challenge that a potential customer might be facing and gaining engagements. As per a McKinsey report, retention rates can increase by up to 37% which means more chances of them making a purchase, thereby leveraging your returns. It basically helps you in building relationships and not just one-time transactions.
7. ROI of Marketers
Some marketers invest a lot of money in an influencer marketing strategy for a long time it has been complex trying to figure out how much they get in return. Social media developers noticed this and they started creating analytical tools that can give you an idea on the money you are making back as a company.
The results have been that on average, companies are estimated to get back $7.65 on every $1 on influencer marketing. Some make significantly higher but it all depends on how you are structuring this marketing strategy.
8. The term: “Influencer Marketing” is highly searched for
If you have ever wondered how popular influencer marketing is, according to Google, the term ‘influencer marketing’ grows up to 5000% every month!
Goes to show that something that barely existed before 2015 can grow tremendously. You can take this to your advantage and increase your brand’s SEO score with relevant influencer marketing articles.
9. Sponsored Posts are Rapidly Growing
Sponsored posts have created a great stir in the influencer marketing scene because in 2018 alone, Buzzoole Insights reported that it created more than 2.9 billion engagements. When considering the previous year performance of this influencer marketing tool, it showed a 73% annual growth.
Using sponsored posts can be very effective for brands because it has been proven to drive more engagement than organic posts. When a sponsored post comes from a popular person, the influencer it might be more well-received to the audience.
10. The effect it has on consumers
Online shoppers mostly have used social media to make purchase decisions pertaining to products they have an interest in. On the other hand, some have started developing an interest in products after seeing them used by influencers. Rakuten marketing reported that 8 out of 10 customers procured products after seeing it recommended by influencers.
For brands to make more money in the eCommerce scene, they need to ensure that they include influencer marketing in their campaign. Influencer marketing has been very effective in generating direct sales.
Conclusion
Influencer marketing can now be considered a pivotal part of digital marketing that ensures that a long-term strategy is in place. It can fully function as part of an overall marketing ecosystem and provide an even higher potential for engagement with consumers. Influencer marketing is certainly a revolutionary outlook on marketing that carries a lot less risk than most marketing avenues.
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