With influencer marketing, brands employ online influencers to promote their products or services, this makes influencers the middleman between brands and their audience. While a recommendation from a friend or family member is valuable, it's only a one-to-one interaction.
With influencers, this interaction could happen with hundreds, thousands, or even millions of people. But what are the most important influencer marketing statistics for this 2023? Stick with us and find out.
Compared to social media marketing or even video marketing, influencer marketing is considered to be a fairly new branch of marketing. Influencer marketing statistics show that an increasing number of businesses are also beginning to invest heavily in it.
To begin, let’s define what influencer marketing is. Influencer marketing is a marketing strategy where an influencer, representation or an influential group of people promotes a promotion or service through channels like social media.
This content is typically seen as “user-generated content” (UGC). Influencers may be paid through cash or noncash payment, such as free products or trips. Influencers are sometimes known as creators. In this article, we will use these two terms interchangeably, but they mean the same thing. Anyways, now that you know what we are talking about, here are some of the most important influencer marketing statistics for this 2023.
How much is being spent on Influencer Marketing?
The B2B House mentions that US marketers are projected to spend $5 billion USD on influencer marketing in 2022. Growth is driven by increased spending from existing brands that already use influencer marketing, and new brands trying influencer marketing. I
n 2022, 74.5% of marketers from companies with over 100 employees will work with influencers. Even though there are plans to reduce marketing budgets overall, influencer marketing spends seem to still increase.
Influencer Marketing Effectiveness
According to Oberlo, nearly all marketers – or 90 percent to be exact – believe influencer marketing to be an effective form of marketing. This is so much so that three-quarters of marketers say they will be allocating a dedicated budget for their influencer marketing activities, and up to 62 percent even plan on increasing their expenditure.
Other influencer marketing statistics certainly back this belief. Just under seven out of ten US marketers working in companies with at least 100 employees plan to use influencer marketing in 2021. Not just that – influencer and paid content are expected to make up 20 percent of digital marketers’ and agencies’ ad budgets.
Types of Influencers
HubSpot affirms that influencers fall into different tiers of "celebrity," typically based on their audience size. The three most common types are macro, micro, and nano. Let's take a closer look at each.
Macro influencers are a step down from traditional celebrities and mega-influencers. They have a prominent online presence, commanding anywhere from 100,000 to 1 million followers. In addition, they have a broader audience than micro and nano influencers because they cover a range of topics (instead of niching down).
More than half of marketers who invest in influencer marketing work with micro-influencers. A micro influencer has between 1,000 to 100,000 followers. Their content typically revolves around a specific topic, passion, or niche, making them respected experts in their field.
Nano influencers have the smallest audience of the three, but typically spark the most engagement. These influencers have less than 1,000 followers and operate within a super niche community. They've built an active and loyal community who are susceptible to recommendations.
Typically, nano influencers work with brands for little to no pay, instead receiving free products in exchange for a review or endorsement on social media.
Instagram Is the Preferred Social Media Channel
Influencer Marketing Hub says that although Instagram saw a slight decrease in use in 2020, its popularity increased in 2021, with the majority of brands choosing Instagram as their preferred channel for their influencer marketing campaigns, despite it having less monthly active users (1.3 billion) than Facebook, which is one of the most popular channels with (2.89 billion) monthly active users.
Interestingly, numbers have significantly changed in 2022, with Facebook taking the lead with 2.9mill active users and Instagram behind Youtube and WhatsApp with "only" 1.48 mill users.
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, that’s what the Digital Marketing Institute mentions, 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 hear and trust.
Influencer Marketing Campaigns Earn $5.78 for Every Dollar Spent
The State of Influencer Marketing 2020 found that 66% of marketers plan 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. In addition, businesses earn $5.78 for each dollar spent on influencers, with some seeing as much as $18. That's a significant return on investment and you can figure out your ROI using a social media calculator. In terms of influencer channels, Instagram and Twitter are cited as the most effective platforms.
Major Brands Plan to Increase Spend on Influencer Marketing
According to the Digital marketing Institute, more brands and marketers are coming to realize the incredible results that influencer marketing can produce. This impact is resulting in an increase in spending, with some 71% of marketers planning to increase their budgets in the next 12 months with the majority preferring to work with micro-influencers. Not only is spending increasing to help boost brand awareness, reach new audiences and improve brand advocacy, but it’s also fast becoming an important channel, with many marketers setting campaign KPIs to measure success.
It’s better late than never when it comes to developing an influencer marketing campaign. Collaborating with influencers can help create online buzz about your brand. In addition, it can strengthen your brand’s reputation, improve audience engagement, and increase conversions.