“At a fundamental level, influencer marketing is a type of social media marketing that uses endorsements and product mentions from influencers – individuals who have a dedicated social following and are viewed as experts within their niche.” - Jenn Chen, Sprout Social
Read on for the key statistics on influencer marketing you should know for 2020.
Build Up That Trust
Society’s wary nature is presenting quite the challenge for businesses. People trust other people, but not necessarily the brands or businesses we engage with. One way to bridge the trust gap between consumers and businesses is to implement influencer marketing.
For influencers to be most effective, they should have these three characteristics: relatability, authenticity, and expertise. Consumers are entrusting “ordinary” folks to help navigate their shopping experiences – people that you and I can RELATE to. We once flocked to buy products based on celebrity endorsements, but now our purchasing decisions are less impacted by popularity.
Consumers are more receptive to the recommendations of people who are like them. However, if the influencer fails to be TRANSPARENT, their credibility will be jeopardized. People want to hear directly from other people what their personal experience has been with a product or service. They also want to know whether the influencer, from nano (1K – 10K followers) to mega (1 million and up), has posted organically or rather, was compensated to do so. Influencers are transparent when the #ad and #spon tags are included in their paid-for postings; similarly, when they use the “Paid Partnership” tag on Instagram.
The only influencers more trusted than “real people” are experts – those who have the KNOWLEDGE and SKILL to use the product or service. Knowledge is power…and revenue.
Instagram is the “Chosen One”
This social media platform continues its rise in popularity at a rapid pace. In February 2013 – less than 2.5 years after launching – Instagram had 100 million monthly active users. Five years later, the platform had 1 BILLION.
Despite Facebook having the largest number of users, Instagram is the preferred social media platform for influencer marketing. Here’s why Instagram is chosen above the rest:
- 500 MILLION daily active users (Oberlo, 2019)
- 100 MILLION photos and videos shared daily (HubSpot, 2019)
- 500,000 active influencers (Omnicore, 2019)
- 83% of users have purchased new products and services because of Instagram (Oberlo, 2019)
- 60% of users (and 70% for shopping enthusiasts) discover new products and services on Insta (Omnicore, 2019)
Invest Wisely and Reap the Rewards
Influencer marketing is booming for a reason. It encompasses many different goals and strategies such as increasing brand awareness, creating traffic, and increasing sales. If the right strategy is paired with the right budget, influencer marketing can be a cost-effective tool to reach your target audience and meet – or exceed – marketing goals.
Not only do influencers bring in new customers, they bring in a larger ROI as well. According to Mediakix, “89% [of marketers] say ROI from influencer marketing is comparable or better than other channels.”
If you still doubt the impact influencer marketing has on consumers, consider these last two statistics from the 2019 Edelman Trust Barometer special report, "In Brands We Trust?":
- “74% of consumers are dodging brand messaging”
- “63% trust influencer messages more than brand messages”
This industry is projected to reach $10 billion this year (ClickZ, 2019), up from $1.7 billion in 2016 (Influencer Marketing Hub, 2019). If you haven’t incorporated influencers into your marketing plan and budget yet, what are you waiting for?
Daniel Wellington is Top of Class
This Sweden-based watch company has experienced tremendous growth since it opened for business in 2011. Daniel Wellington (DW) was one of the first large IG influencers and many would say, has become a master of influencer marketing. DW gave people free watches; in return, the recipients were asked to post about their experiences on social media. And it worked, in a big way! Thanks to their exponential boost in popularity, DW has built a global empire, including brick and mortar stores across five continents.
Reach me at tjones@sherpamarketing.ca if you think a social media influencer can help with your marketing objectives.