The modern consumer’s growing demand for transparency and authenticity has paved the way for the influencer marketing boom. In fact, according to MediaKix, in the next five years, influencer marketing is estimated to become a $5-10 billion industry.
In the comprehensive infographic below, you will see that companies and brands that invested in influencer marketing campaigns generated a 520% return on investment. That is one of the reasons brands have increased their allocated budget for influencer marketing.
But influencer marketing is not all that simple. Although investing in influencer marketing can result in enhanced brand awareness and an expansion of market research, some companies are wary of the fraudulent activities that are plaguing the influencer marketing landscape. In fact, 42% of experienced marketers cite that influencers with fake followers and engagement make it extremely difficult to implement a seamless influencer marketing campaign.
Luckily the downsides of influencer marketing do not outweigh the benefits. Many marketers are jumping on the trend of authentic brand promotion. And what better way to improve your brand’s authenticity than to collaborate with influencers who have a unique voice, great appeal, trusted expertise and a relatability factor?
But it’s important to keep in mind that a massive following doesn’t always translate to a wider reach and better engagement. In fact, an increasing number of marketers are now placing their bets on nano and micro-influencers instead. These types of influencers have a lower follower count than celebrities and macro-influencers, but many of them generate a high engagement rate.
Moreover, savvy marketers are making long-term influencer partnerships a top priority. Research suggests that establishing a healthy, collaborative relationship with influencers yields better marketing results. Ongoing campaigns make it easy for both the brand and the influencer to keep track of their progress, allowing them to optimize content across various channels and update their strategies. This is a win-win for both the influencer and the company.
Now that we’ve given you a quick overview of what the influencer marketing landscape looks like in 2020, take a look at SmallBizGenius’ infographic for some more interesting statistics!
Please include attribution to 99Firms with this infographic.
Dive deeper into influencer marketing: The Ultimate Guide to Growing Your Business with Influencer Marketing