The Rise of Influencer Marketing
1. Global Influencer Marketing Market Size
According to the MarketsandMarkets report “Influencer Marketing Platform Market – Global Forecast to 2024”, the global influencer marketing industry was worth $8.08 billion in 2019 and is expected to grow at a CAGR of 22.3%, reaching $22.3 billion by 2024.
2. Consumer Trust in Influencers
- According to Edelman’s report “2019 Edelman Trust Barometer”, an impressive 63% of consumers trust influencers more than traditional advertising methods indicating the significant impact influencers have on consumer decision-making.
- Additionally, the GlobalWebIndex report “Influencer Marketing: A Consumer Perspective” indicates that 58% of individuals have purchased based on influencers’ recommendations, highlighting influencers’ persuasive power in driving consumer behavior and influencing purchase decisions.
3. Return on Investment (ROI) and Effectiveness
Businesses generate an average of $5.20 for every $1 spent on influencer marketing. Influencer campaigns earn $6.50 in media value for every $1 spent. 89% of marketers consider influencer marketing practical or more effective than other channels (Mediakix, “Influencer Marketing 2020 Report”).
4. Social Media Engagement and Reach
- Instagram reigns as the top influencer marketing choice, with 93% of campaigns utilizing it. 80% of marketers find influencer-generated content highly effective for driving engagement (Mediakix, “Influencer Marketing 2020 Report”).
- Micro-influencers (10,000-100,000 followers) achieve higher engagement rates (7.2%) compared to more prominent influencers (Influencer Marketing Hub).
5. Influencer Preferences and Industry Trends
96% of influencers prefer Instagram as their primary platform. Authenticity is a crucial factor for influencers when selecting brand collaborations. Long-term partnerships are becoming increasingly popular, with 68% of influencers favoring extended collaborations (Mediakix, “Influencer Marketing 2020 Report”).