Is Influencer Marketing Changing?
Discover how influencer marketing is changing and how this affects marketing efforts. From the rise of micro and nano influencers right through to chanigng marketing budgets, we delve into whether influencer marketing is changing or if it’s just a reflection of a developing landscape.
Table of Contents
It’s no secret that influencer marketing has been a go-to for brands over the past few years, with the popularity of this marketing method increasing, and the results showing just why. According to Statista, the global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. Based on this, we are asking if influencer marketing is changing or just a result of a developing landscape.
Types of influencers
Over the years, influencers have shifted from A-List Celebrities, to ‘normal’ people who have a passion for creating content. When choosing the right influencer for your brand, there are numerous influencer types that you can choose from – each with its own benefits. In fact, the majority (81%) of marketers say macro-influencers top their list of ideal influencers, shortly followed by micro-influencers (74%).
- Nano-influencers: between 1,000 and 4,999 followers
- Micro-influencers: between 5,000 and 20,000 followers
- Power or mid-tier influencers: between 20,000 and 100,000 followers
- Mega-influencers: between 100,000 and 1 million followers
- Celebrities: Over 1 million followers
What we know
We can’t talk about influencer marketing without looking at the facts. From the rise of micro (and nano) influencers, right through to the engagement and ROI that influencer marketing brings, there are many reasons why more brands are turning to this marketing tactic.
Micro-Influencers Make Up 47.3% of All Influencers.
Micro-influencers are defined as an influencers with a follower count within the range of 10,000–100,000 followers. Over the years, brands have become more savvy with which influencers they choose, with micro-influencers making up 47.3% of all influencers. Still, micro-influencer-posted images convert over 20%, 7% more than the industry average than macro-influencers.
36% of Marketers Believe Influencer-Generated Content Performs Better Than Branded Posts.
People buy from people, and influencer marketing offers an avenue for you to advertise your business or service through real people so it’s no surprise that 36% of marketers believe influencer-generated content performs better than branded posts. What’s more, brands are investing more in UGC content creators – giving them a content creator that works with their brand.
21% of Social Media Users Under The Age of 54 Have Bought Into An Influencer Recommendation Recently.
Influencer marketing isn’t just a Gen-Z thing (although they are the ‘most influenced’ group), and there is a demographic shift with who is bought into influencer marketing recommendations. When looking at influencer marketing, don’t fall into the trap of seeing it as a younger demographic tactic, if the influencer you choose offers trust and transparency, it can work across a range of audiences.
What this means
Influencer marketing is always changing and will change again beyond 2024. However, there are key trends that are emerging in the market that we expect to stick around as they are based on psychological buying factors.
Authenticity and Transparency
Audiences can see through in-genuine connections, and this includes the influencers you choose. Just going for the ‘biggest’ influencers may not be best for your business. Go for influencers that align with your business and its values. Another example of this is allowing the influencer you choose to have creative freedom. There is a reason why influencers have a good following and engagement and it’s because people buy into them. By scripting content, you’re taking away from the authenticity they bring.
Influencer Created Products & Brands
Influencers are successful because they not only build a strong following but also a strong community. This community ‘buys into’ them and any products they endorse or produce. A good example of this is KSI & Logan Paul’s ‘Prime’ brand. For context, the brand is set to surpass $1.2 billion in annual sales and became the fourth-best-selling sports drink of 2023.
The Rise of Influencer Communities
Digital communities are something we have spoken a lot about and we expect to rise even further, and influencers are an aspect of this. As with the ‘Prime’ example above, influencer communities can help turn existing community members into customers. By working with influencers, you can merge your own brand community with theirs, ensuring that brand trust and authenticity are at the heart of this.
What's next for influencer marketing?
As noted earlier, influencer marketing is continuously evolving, and we anticipate further transformations in the coming years. This evolution includes a growing emphasis on influencer marketing, with marketing budgets increasingly allocated towards it. Moreover, we anticipate marketers placing greater importance on engagement and conversion rates within influencer campaigns, fostering long-term relationships with influencers to cultivate robust digital communities.
