The world of business is growing exponentially with ever expanding industry verticals and scope of indulging into wide spectrum of business opportunities. Influencer industry is one such industry that is new in the world of business but in a very short period of time the industry has made tremendous growth with innovative platforms and measures being introduced every now and then. Now, first let us get into understanding what is influencer marketing?
Influencer marketing is a digital marketing technique that focuses on using influencers to drive brand’s message and awareness to a larger audience. Influencers are people with specialized knowledge of a specific genre and with a larger fan following on social media platforms. Their vast presence on various social media platforms like Instagram, Facebook, and Twitter helps create a launching pad for brands to expose themselves to a larger and wider market. In few words to say, this type of social media marketing strategy has become a showcase of technology explosion in the field of marketing with a view to assist in higher engagements, increased awareness, and better connections.
Now, when you are clear about what is influencer marketing, let us get into understanding its categorization. There are mainly two different ways of categorizing influencers:
- Influencer Reach: When the count of followers goes down the scale, the targeted reach of audience, cost-effectiveness, and audience engagement comes to a rise.
- Influencer Niche: Relevant genre or niche influencers are more effective with a fan following of specific target audience. Here the influencers align with the services or product of a brand.
Highlights of Industry Insights
The global influencer marketing platform has grown to a size of around 4.6 billion USD as revealed by researches done in the year 2018 and is expected to grow to around 26% by the year 2025. Furthermore, there are many key statistics that define the growing scope and value of influencer marketing industry in India as well as globally.
- Business Insider Intelligence estimates the industry to reach around $15 billion by 2022.
- Around 79% brands find Instagram influencers for brand promotion and awareness when designing their influencer marketing program.
- On the contrary, 46% brands look for Facebook influencers, 36% for YouTube, 24% for Twitter, and 12% for LinkedIn.
- 17% of brands spend half of their marketing budgets on influencers.
- Nearly 90% of brands and organizations dealing into marketing campaigns have experienced increased ROI from influencer marketing as compared to other marketing channels.
- There has been a dramatic rise in micro-influencers who have smaller fan following of around 10,000 to 50,000 followers are more accessible across various brands.
- Instagram is the most preferred channel and SnapChat is the least preferred marketing channel.
- In the past three years, the searches people make on Google have increased to about 1,500% for the term ‘Influencers’.
- When it comes to sponsored posts, 37% of consumers for authentic influencers.
- 45% of social media influencers are known to receive about 4 campaign proposals every month.
- Instagram has higher engagement rates than Twitter.
- A YouTube influencer who has around 1 to 3 million subscribers is known to charge about $125,000 per post.
- 82% of brands and companies option for marketing campaigns follow the words and recommendations of micro-influencers.
- More than 77% of fashion brands go for micro-influencers with strong presence on Instagram.
- 42% of marketers are known to associate with influencer networks for their designed marketing campaigns or programs.
- Around 67.6% brands consider finding the relevant influencer as big challenge.
- Campaigns run with micro-influencers are known to drive 60% higher engagement.
- Majority of the micro-influencers make 1000 dollar for every sponsored post.
Year 2020 for Influencer Marketing
- This year is going to witness about 65% increase in the influencer marketing budget.
- The year 2018 has experienced a revenue share of around 35% in the fashion and lifestyle segment.
- The food industry also shares significant revenue in the overall market value.
- The expected spending for 2020 is to be a hike of around 19% with a projected spending of $1,000 to $10,000 per year
- Almost 7% of brands and companies will invest more than a million dollars in the campaign this year.
- The year is expected to see a sudden rise in the earnings made by health influencers, beauty influencers, travel influencers, and influencers from many other segments.
- Around 69% of brands and companies are expecting to spend money on Instagram for marketing.
- The year proves to be a revolutionary year for Instagram and You Tube ranking the highest in the influencer list for effective marketing formats.
- Influencer marketing is known to become a 10 million dollar industry by the end of 2020.
The golden fact is that influencer marketing is industry is growing in size, volume, and value as well. There is nothing that can stop its growth to an unexpected high because of the unbelievable results the campaigns are delivering to all brands, companies, organizations, and individuals looking for marketing their respective products or services. Once you set clear goals, target KPIs, and define your marketing budget, you can place yourself in safe hands of authentic influencer. All you need to do is look for influencers from your niche and analyze how strongly they are connected with their followers and subscribers.
Moreover, you can guide them understand and promote your product in a more creative and unique manner. If to mention in a few words, influencer marketing has given brands a way of leveraging their professionals needs to outreach their respective organizational goals.