Astonishing Facts and Figures About Influencer Marketing (Part 1)

People, as opposed to brands are able to leverage human connection to influence the decision making of consumers.

A well-executed social campaign as part of a broader digital strategy can pay dividends significantly. By the end of the current decade, it’s estimated that more than 50% of the world’s population will be active on at least one social network.

But how do you stand out from the crowd? How can you make your voice heard over the din of endless competition?

The answer is to leverage the unique power and appeal of influencer marketing.

Far from a fad, influencer marketing is here to stay. Across almost every dynamic, the faith people put in influencers they’ve never met is jaw-dropping.

But we all do it!

Whether it’s a celebrity you admire or someone you want to be like, there’s a powerful element of trust at play. And with that trust comes unflinching faith in their recommendations.

More businesses than ever are investing heavily in influencer marketing these days. And if you’re not ahead of the curve, you’ll likely be dragged under the wave of it. The evidence suggests we have barely scratched the surface of this 21st-century social media phenomenon.

To put the whole thing into perspective, here’s the first half of a two-part look at some of the most astonishing influencer marketing statistics of the moment:

1. Traditional celebrities have taken a backseat to influencers

Research suggests that at least 70% of teenagers trust influencers more than conventional famous faces. Around 40% of Millennials believe that the influencers they follow know their tastes and preferences better than their friends.

Yes, believe it or not, the data doesn’t lie. The polls are in. And the younger generations would sooner trust the suggestions of their favourite social media influencer.

2. Half of all consumers trust influencer recommendations

Approximately half (49%) of consumers across all demographics use influencer recommendations when shopping for products and services. Around four in ten consumers say that what they have seen on their preferred social networks has directly motivated them to purchase a product.

It makes sense, after all. You consume content that makes a product look fun, like the perfect solution for your needs, or even help you understand it more… what do you do next? You buy it.

In particular, influencers on Instagram and YouTube seem to hold significant swaying power over consumer purchases.

3. An effective influencer marketing campaign can deliver a massive ROI

According to The State of Influencer Marketing 2020 report, two-thirds of all businesses plan to increase their influencer marketing spending in the future. This is not difficult to understand, given the potential for generating an extraordinary ROI. Specifically, the report indicated that every dollar spent on influencer marketing generates an average of $5, a return far beyond the typical ROI associated with any comparable digital strategy,y—including SEO.

4. More women than men use social media for product recommendations

86% of women now use social media for product recommendations and advice. This figure suggests that any business primarily targeting women needs to invest heavily in social media marketing efforts.

5. The sector will be worth almost $14 billion this year

In 2016, the influencer marketing sector was estimated to be worth around $1.7 billion annually. By the end of this year, it will likely have a value of around $13.8 billion.

That’s an increase of over 700%!

More crucial to the point, experts expect this figure’s growth rate to increase in the years and decades ahead. The train isn’t slowing down.

Is it any wonder why more than 70% of the world’s biggest brands and businesses plan on spending more on influencer marketing this year?

6. Social media guides the purchasing decisions of four in five shoppers

Roughly 82% of consumers say the reviews, ratings, and recommendations on social media influence their purchase decisions. People put as much faith in the recommendations of influencers they have never met as those from their friends and family members.

Stay tuned for the second half of our two-part roundup of statistics, coming soon…