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Witnessing exponential growth in the last decade, influencer marketing has become a powerful tool in growing your business and creating brand awareness. Influencers are individuals who have sway over the purchasing decisions of consumers. Brands partner with important influencers in their niche for them to endorse their products or services, expand the reach of the brand, and generate leads.
With the onslaught of Covid-19, consumers have increasingly started to look at online mediums for entertainment, shopping and conversations. Thriving on this opportunity, influencers have started to shape the behaviours and preferences of the audience. Investing in an influencer marketing strategy is a crucial step in building an online presence and broadening the reach of the brand.
Let’s look at key influencer marketing statistics to highlight how the industry works and where it’s headed in the future.
The expected growth of the industry in 2022 is $16.4B
We can see a steady development in the influencer marketing industry over time, which is expected to grow by leaps and bounds this year. It is a lucrative industry that is soaring from $1.7 billion in 2016 to $13.8 billion in 2021. This year, the market is expected to grow to $16.4 billion. We can attribute this growth to increasing dependency on social media which has popularised short format videos, Reels and Stories, on platforms like TikTok, Instagram, Facebook, and YouTube. Optimization of data collection has led to targeted content being shared.
Rise of micro-influencers with 91% engagement rate
The shift from mega-influencers to micro-influencers is distinct. By spreading their budget across several smaller influencer partners, brands are seeing greater returns as they are recognised as subject matter experts with loyal followers. Content created by them has seen 91% of engagement on sponsored posts as reported by the 2022 State of Influencer Marketing conducted by Klear.
Instagram, the most popular channel for influencer marketing campaigns
With 94% of influencer marketing campaigns being conducted on Instagram, it’s the most popular channel among influencers.
Next comes Facebook, appearing in 43% of the campaigns, followed by TikTok and YouTube with 13% and 10% respectively.
Influencer recommendations persuade 49% of consumers
According to a survey conducted by Twitter in 2016, 49% of consumers depend on social media influencers to make purchase decisions.
Furthermore, 40% of them confirm to have purchased products after seeing them being used on social media by influencers they trust.
41% of consumers discover new products through influencers weekly. And 86% of women turn to social influencers for buying advice.
Growth of influencer marketing companies by 26% in 2021
As the industry has grown, influencer marketing agencies have increased by 26% in 2021, offering services to companies who are looking to invest in the influencer marketing platform.
They streamline the process of influencer marketing for brands by helping them identify and connect with influencers that suit their niche.
A formidable marketing tactic, influencer marketing is here for good. Armed with these statistics that prove the power of influencers, you can make a drastic difference to your business with the right influencer marketing strategy. It’s high time to leverage this power!