What Percentage of Companies Use Influencer Marketing?
Influencer marketing is the newest trend in the business world. Brands in all sectors, be it beauty, tech, fitness or fashion, are adopting this tactic to reach out to their target audience in a sincere and interactive manner. So how many companies are actually using influencer marketing as part of their broader advertising strategy? You may be surprised by the numbers.
This week, we’re going to talk about the hottest data about influencer marketing, why it’ being embraced an masse, and the way companies are using social media influencers to raise brand awareness. Whether you’re a small business owner or a bonfire marketing genius, we’ve put together this informative post with the help of influencers to grasp just why influencer marketing is popular, and an inevitable bandwagon to jump on for your business.
The Emergence of Influencer Marketing
Now that more companies than ever are incorporating influencer marketing into their whopping 2018 budgets, the approach is not a novel, testing-ground experiment anymore. Now, it’s a global billion-dollar business instead. Recent data from Influencer Marketing Hub revealed 80% of marketers agree influencer marketing is an effective strategy, and it’s projected that by the end of 2023, businesses will be spending in excess of $21 billion on this method of promotion.
Why Has Influencer Marketing Grown So Fast?
Trends contributing to the rapid growth of influencer marketing include:
Pervasive Influence of Social Media: While social media platforms such as Instagram, TikTok and YouTube have more than 4.9B active users worldwide in 2023, they also provide easy marketing avenues and direct engagement to millions for influencers.
Traditional Ads Losing Effectiveness: Traditional ads are becoming less effective because people are becoming numb to them due to increasing use of tools such as ad blockers. Influencers provides a realer voice and are much more relatable to the end consumer.
Peer Over Brand Trust: Your audience members trust what others say about you (yes, even if the people they’re “talking” with are online friends) more than they trust you. Influencers fill that trust chasm.
Which Companies Are Using It?
The short answer? A lot of them! From mom-and-pop shops to Fortune 500 companies, companies of all sizes around the world are running influencer marketing strategies. Examples of the former include:
Beauty: The influence of creators in categories including skincare and makeup becomes the backbone of brands including Sephora and Glossier.
Fitness: Brands like Peloton work with fitness buffs and trainers to find health-conscious readers.
Tech : Tech giants such as Adobe and Microsoft team up with content creators to show how their tools can be used in real-life situations.
Food & Drink: Starbucks and Red Bull routinely collaborate with lifestyle influencers to generate hype for their goods.
Key Data on Influencer Marketing Usage
If you ever doubt how widespread influencer marketing is, take a look at these shocking statistics:
A Majority Are on Board
These days, it seems like every marketer is using influencer marketing, as evidenced by a recent study that found that almost four out of five (93%) marketers have deployed influencer campaigns in the past year, and even more will do so in 2019.
Different Budgets, Same Goal
So, while corporate giants lead in cash and magnitude, 67% of small businesses engage in influencer campaigns, proving that it’s not just for the big guys.
Growth Fueled by New Platforms
Platforms like TikTok have been game changers. In a year when growth exploded, 75% of global marketers launched TikTok campaigns in 2022, something that will only continue to ramp up with short-form video content taking the throne.
Positive ROI Drives Adoption
Numerous reports indicate that businesses receive an average $5.78 in return for every $1 spent on influencer marketing. This makes a powerful case for all types of businesses to buy into this concept.
The Biggest Industries Utilizing Influencer Marketing.
We know a lot of companies use influencer marketing but which industries are leading the way? Here’s a breakdown:
Beauty & Fashion
Indeed, these were some of the earliest industries to jump on the influencer train. Why? Social media, and especially Instagram, is the ideal place where this kind of stuff goes down. Whether it’s an outfit video or a beauty tutorial, Influencers can provide shoppers to see products in action and in real life.
Technology
Tech companies such as Apple, Google and Samsung use creators to demonstrate how certain gadgets, apps or software operate in real life. Tech scene content creators tend to be the kinds of people with real tech cred, so when they market you it hurts.
Fitness & Wellness
Fitness brands, from gyms and personal trainers to clothing and supplement companies, partner with influencers to sell health. Outlets like TikTok and YouTube have ignited the fitness culture, and brands are still leveraging this trend to access fitness-minded influencers.
Travel & Hospitality
Travel companies and destinations, who thrive on aspiration, are invited — through influencers — to make the aspiration real with beautiful photography and captivating storytelling. Travel – Whether it’s advertising local tourist attractions or luxury vacation hot spots, the travel industry is continuing its lead as the primary produser of social media ambassadors.
Food & Beverage
Food bloggers and chefs on Instagram and Pinterest post recipes and work with restaurants and brands, sending their followers to sample new recipes, products or tastes of a restaurant. Those influencers are targeting either the foodies or even casual browsers who are seeking a quick inspiration.
How Companies Are Cashing In on Influencers
The mass embrace of influencer marketing is far from a fluke. Companies are strategically using it to take advantage of its many benefits:
Small Influencers and Niche Platform Specialists
Micro-influencers (peculiar because they actually have smaller followings of 10,000–50,000), on the other hand, have these tightly knit and highly respondent communities. Brands understand the value of micro-influencers to create trust and credibility and they have become instrumental to any campaign.
Campaign Diversity
Ranging from new product introductions and brand awareness initiatives, influencer partnerships disrupt the monotony of old-school one-size-fits-all marketing. In fact, that this is one reason that influencer marketing is so effective across all industries.
User-Generated Content (UGC)
Content generated by influencers also often pulls double duty. Not only are they reaching audiences directly through the influencer and their shared content, but they’re reusing that content in their digital ads, social posts, and even on their website for lifelong value.
Is Influencer Marketing a Good Fit for Your Business?
The short answer is yes — for most businesses. Whether you’re an e-commerce store doing $1M per month in revenue or a multinational corporation, the right influencer marketing strategy is the one that can:
Drive customer trust
Reach new, niche audiences
Enhance your ROI across advertising initiatives
That being said, the power of influencer marketing lies in collaborations that resonate with your brand’s values and target audience. And those appeal and collaboration are key.
Key Takeaways for Your Brand
Begin with small – If it’s the first time you’re dealing with influencer marketing maybe you should start from micro-influencers that belong to your niche. Test your campaign and perfect it.
Monitor Results – Use analytics and track your key performance metrics such as engagement rates, clicks, and conversions to find what is working.
Close to Home – Make sure that the influencers who connect with your product or service really connect with it. It is the Authentic Thing that counts for long-continued effects.
Why Influencer Marketing Is Here to Stay
The sheer size of the companies using and benefiting from influencer marketing is an indication that this marketing strategy is going nowhere. With the spread of platforms like TikTok, Instagram and YouTube, and the growing popularity of innovations like AI-powered recommendations, influencer marketing is soon to be more efficient and widespread.
For those brands that haven’t yet leapt in, now’s the time. The sooner you plant your flag in the influencer world, the more of this growing industry will belong to you.
