Influencer marketing is a phenomenon of modern marketing that places expert consumers in the role of consultants for buyers looking to make informed purchase decisions – and the power of influencers is growing every day.
Influencer marketing is the management of exchange relationships between service and product providers and trusted consumers with authority over a target audience.
Social media, one of the main mediums for influencers to flex their marketing muscle, has a white-knuckle grip on the youth of the early 2000s. Over the past 10 years, social media has built an entire digital world in which millennials socialize, create, and consume. The majority of their interactions and decisions happen online, and now they are reaching the age at which they are making and selling products and services. The wise marketer should pay attention to the growth rate of influencer marketing and track the statistics that can help craft a successful influencer marketing strategy and campaign.
To get you started and thinking about influencer campaigns and research, we’ve dug up some surprising influencer marketing statistics:
74% of people trust social networks to guide them to purchase decisions
Three out of every four customers trust the opinions on social media, including friends, family, and influencers, to help them make the right decision about a product or service. If you’re not working with influencers, you could be losing those customers to your competition.
49% of people rely on influencer recommendations
That’s nearly half of all potential customers. Influencers build trust by creating a memorable brand and creating useful and relevant content. When consumers feel safe with influencer recommendations, they follow them and purchase those products.
In 2016, influencer marketing surpassed print marketing
According to Google Trends, the following three marketing channels deserve your attention:
- Video marketing is still the most promising marketing channel
- Influencer marketing is moving in on video marketing
- Print marketing is falling behind in effectiveness
“Influencer marketing was rated as the fastest-growing online customer-acquisition channel, beating organic search, paid search and email marketing.” – Tomoson
Customers are blocking ads
47% of customers have reported that they use ad-blocking technology when browsing. Only 14% of people can remember when they last saw an ad and what it promoted. The power is shifting to the influencers – real people with real opinions.
75% of marketers claim to have allocated money for influencer marketing
Unless you’re already actively enticing influencers to try your product or service, your competition has you beat. Marketers know that influencer marketing is a top contender for marketing channels – it’s time to hop on board with social networks and influencers.
Businesses make, on average, $6.50 for every $1.00 spent
Tomoson found data that backs a huge return-on-investment for marketers and companies who use influencer marketing. At an average of $6.50 in revenue for every single dollar spent, the risk is, at least for now, well worth the reward.
Marketers spent $25,000 – $50,000 per influencer marketing program in 2016
Linquia’s deeper research found that spending on influencers has increased, as well. Most budgets for influencer marketing fall within the $25,000 – $50,000 range, which matches the external marketing budgets of small-medium sized companies.
Instagram has 700 million users
And a majority of those users are in the 16-24 year age range. Connecting with youth through social media outlets like Instagram enables access to a wealth of consumers, most of whom are endlessly hungry for consumer goods.
40% of Twitter users made a purchase based on a tweet
At least one purchase based on a tweet at such a high percentage means influencers do, indeed, have the ability to affect the decision-making process for customers. Engagement with influencers over Twitter has the potential to drive sales for goods that have previously been unavailable.
64% of brands are on Snapchat
Plus, they are reaching 301 million active users per month. Though Snapchat requires more creative marketing than most social channels because of the nature of the application, it also yields instant influence in the hands of powerful influencers who market across channels.
67% of marketers promote content with the help of influencers
That 67% goes beyond the 75% of marketers who have just set aside a budget. 67% of marketers are actively engaging with influencers and striking deals to promote products and services using their hard-built trust.
If you haven’t started looking into influencer marketing, take the time to get familiar by logging into your social accounts and exploring the accounts of users with large followings. Observe their words, actions, and photos, then start imagining how they can use those tools to promote your or your client’s products and services.
It’s not too late to get on board and start an influencer marketing campaign. Develop a strategy that includes some of your industry’s top influencers, and show them how useful and valuable your product or service is. If you have questions, talk to the masters of marketing at Leverage Marketing, and check out our Guide to Planning Your Digital Marketing Budget eBook to make sure you’ve got room in your budget to sway those influencers today.