Oct 25, 2018
As social media has become a more integrated part of our lives, influencer marketing has exploded. People are turning to their favorite Instagram stars, Twitter personalities and YouTubers for advice and recommendations on purchasing decisions.
These influencers are trusted by millions of consumers, and marketers are paying attention. It turns out that 86% of them have used influencer marketing since last year, and budgets for influencer marketing are skyrocketing.
Social media has given normal people an opportunity to build their own brand through stimulating content and engagement. These new influencers are more relatable than traditional celebrities. Since more people are joining social media networks every day, companies have realized they can leverage these platforms for marketing.
Interest in influencer marketing has only grown, which means a lot of research has been conducted, producing interesting statistics. So let's take a look at some of the most eye-popping results of these studies. Here are 20 influencer marketing stats that will surprise you.
1. 70% of Teens Trust Influencers More than Traditional Celebrities
It's extremely difficult for brands to build the same level of trust that influencers possess, but thanks to influencer marketing that trust can be transmitted to your brand. So much so that 4 in 10 Millennial subscribers say their favorite influencer understands them better than their friends. Another effect of influencer marketing is that brands don't have to waste resources promoting themselves, and instead use influencers to speak on their behalf and deliver the message they want people to here and trust.
2. 86% of Women Use Social Media for Purchasing Advice
This statistic should be important to any brand that either has women as their primary target audience or within their scope of ideal customers. It seems if you want to reach more women and get them to buy your product or service, you need to be present on social media and aware of the influencers they are interested in. And this behavior is growing, as 45% of women claim to be more active on social media that they were just two years ago. When it comes to influencer marketing, over half of women made purchases due to influencer posts, with Facebook and Instagram being the preferred platforms. The key to engaging this cohort through influencers is to be genuine and inspirational.
3. 49% of Consumers Depend on Influencer Recommendations
This statistic demonstrates the growing importance of social media influences for brands to connect with their audiences. Not only do 49% of consumers depend on influencer recommendations, 40% had purchased something after seeing it on Twitter, YouTube or Instagram. If consumers feel confident about an influencer's recommendation, they are more likely to make a purchase. Brands are able to piggyback on the trust of influencers.
4. 60% of Teens Follow Advice From Influencers Over Celebrities
The word of a celebrity isn't as valuable as it used to be. Not only do customers have a hard time trusting brands, traditional celebrities also seem to have lost the influence they once had. Influencers have the power to forge strong ties with fans and experience a more engaged audience, gaining three times as many views, twice as many actions and 12 times as many comments compared to videos from traditional celebrities. It seems these days consumers trust social media influencers and their peers above anybody else. The power has shifted to social media influencers.
5. Influencer Marketing Campaigns Earn $6.50 for Every Dollar Spent
With 59% of marketers planning to increase their influencer marketing budgets, this area of marketing is becoming the fastest growing channel for brands, beating organic search, paid search and email marketing. According to a Tomoson study, businesses earn $6.50 for each dollar spent on influencers, with the top 13% earning $20 or even more. That's a significant return on investment considering that over half of marketers also consider the customers they acquire through this route to be better prospects. In terms of influencer channels, blogs and Facebook are cited as the most effective platforms.
6. Influencer Marketing Is the Fastest-Growing Online Customer-Acquisition Method
More brands are hopping on the influencer marketing train. It's becoming more important than ever to build relationships with influencers who resonate with your brand and to create campaigns which are aligned with the values of an influencer's followers. In addition, 22% of marketers say influencer marketing is the most cost-effective method of obtaining new customers.
7. 57% of Fashion and Beauty Companies Engage in Influencer Marketing
Fashion and beauty are industries that rely heavily on influencer marketing, as organic growth for brands has become more challenging without advertising and amplification. In this sector, 57% of companies now use influencers as part of their marketing mix, while 21% are planning to add this to their strategy in the coming year. Many brands now use influencers to great success such as Lush using Grav3yardgirl and Nicole Guerriero gaining thousands of views on YouTube. However, while many fashion and beauty brands are keen on using influencers, many want to ensure that a brand affinity exists in order to drive success.
8. Major Brands Plan to Increase Spend on Influencer Marketing
More brands and marketers are coming to realize the incredible results that influencer marketing can produce. This impact is resulting in an increase in spend, with some 67% of marketers planning to increase their budgets in the next 12 months, particularly on Instagram. Not only is spend increasing to help boost brand awareness, reach new audiences and improve brand advocacy, it's fast becoming the key channel for many marketers.
9. The Influencer Marketing Industry is Expected to Hit $10bn by 2020
As an industry, influencer marketing has expanded exponentially over the past two years. Worth just $2 billion in 2017, the industry is set to reach $10 billion by 2020 as the industry witnesses more growth and becomes a more effective marketplace. This growth means more widespread use in marketing and will require marketers to evolve strategies in the way campaigns are measured, create analytics to scale campaigns and look at how to manage relationships between brands and influencers.
10. 74% of People Trust Social Networks to Guide Purchasing Decisions
About three-quarters of consumers trust opinions they find on social media, including those from friends, families and influencers, to help them make the right decision about buying a product or service. This creates huge opportunities for marketers in the promotion of products (sponsored or not) to reach new audiences and influence key cohorts such as Millennials and Gen Z.
11. Influencer Marketing Has Surpassed Print Marketing
What this means is brands are undergoing a transition in the ways they spend their marketing budgets. Expensive and inefficient ad buys, such as many of those found in newspapers and magazines, are giving way to influencer marketing. The return on investment in influencer marketing is now far outpacing any traditional medium.
12. 40% of Customers Use Ad-Blocking Technology
More and more Internet users are removing traditional ads from their online experience. In the US ad-blocking usage is 40% on laptops and 15% on mobile, as consumers are tired of being hammered with pop-ups and banners. But influencers are now filling the gap. People aren't blocking videos from their favorite social media celebrities - in fact, they're eating up every word they say. Advertising power is shifting to real people and influencers.
13. Marketers Spend $25,000-$50,000 on Influencer Marketing Campaigns
Spending on influencers has gone up over the past few years, and it's only going to increase. Many budgets for influencer marketing are on the rise, with marketers expected to invest an average of $25,000-$50,000 in multifaceted campaigns, which is in line with many external marketing budgets of small-to-medium sized companies.
14. 40% of Twitter Users Made a Purchase Based on a Tweet
It seems Twitter influencers do, as a matter of fact, have the ability to impact the purchasing decisions of followers. On the platform, influencers are now rivaling friends in terms of building trust, with 49% of Twitter users saying they relied on influencers compared to 56% listening to friends. Engaging in marketing campaigns with influencers over Twitter clearly has the potential to drive up sales of goods and services.
15. Two-thirds of Marketers Promote Content With the Help of Influencers
We already mentioned that 73% of marketers have a budget set aside for influencer marketing, but as of right now just 67% are actively engaging with and have a relationship with influencers. They're getting ahead of the curve and striking marketing deals to borrow their trust. Now is the time to jump in and get involved in influencer marketing. It's time to do your research and find influencers who might have the trust and dedication of your target audience.
16. Facebook is the Most Influential Social Media Network
With about two billion monthly users across the world, Facebook is the most influential social media channel, with some 19% of purchasing decisions being influenced by the platform. Other social media networks are catching up to the giant, but Facebook remains on top. Therefore, it's vital to stay active on Facebook and engage with influencers for marketing purposes.
17. YouTube is Hot on Facebook's Heels
While Facebook is still the alpha dog, YouTube is right behind with 18% marketing influence. The platform has made celebrities and influencers of regular people, and fame is open to all age groups and demographics. There's something for everybody on YouTube, and marketers are taking notice by putting more money into influencer marketing on the platform.
18. 60% of Consumers Have Been Influenced by Social Media or a Blog While Shopping at a Store
This changes the meaning of comparison shopping. According to research, 3% of consumers would consider buying a product in-store if promoted by a celebrity, compared to 60% for an influencer. Not only is the influence greater, but over half of customers are consulting blogs and social media on their mobile devices prior to shopping, highlighting the importance of easily accessible information and posts (social and blogs) to reveal a product's reputation.
19. Purchase Intent Increased by 5.2x by Influencers on Twitter
Part of influencer marketing research means discovering which social media networks are most suitable for promoting your brand and where your target audience can be found. According to Twitter, influencers created a 5.2x increase in purchase intent when users were exposed to brand and influencer tweets compared to 2.7x when just shown brand tweets.
20. 71% of Marketers Believe Influencer Partnerships are Good for Business
Influencer marketing campaigns should not be a one-and-done proposition. They are a valuable ongoing strategy in a marketer's toolkit, with nearly three-quarters of marketing professionals citing them as good for business. If you can partner with them and create a long-term relationship, making them ambassadors of your brand, the message they portray comes across as more trusted instead of promotional. It helps to boost your brand's credibility if you're seen as trusted by an influencer.
It’s better late than never when it comes to developing an influencer marketing campaign. A good way to start would be to reach out to some of your industry's top influencers and show off your great product or service to them.
Otherwise, do some research on some of the big-time social media influencers and find out which ones have your target audience as a significant portion of their following, and go from there.
Either way, understanding how to use influencer marketing to its true potential will help to drive brand awareness, leads and revenue.