TLDR: Influencer marketing has become an essential part of many companies' marketing strategies in recent years. As we move into 2023, it's important to take a look at the latest influencer marketing statistics to understand the current state of the industry and how it's evolving.
We've distilled the influencer marketing statistics worth paying attention to if you're interested in the world of social media and influencer marketing. Influencers have become a key part of many brand's marketing strategies. And the numbers show that it's a growing industry that's here to stay. 🚀
From increased influencer marketing budgets and the use of AI and automation, to the rising importance of influencer marketing ROI and the growing demand for influencer-generated content—here are the key influencer marketing statistics and trends going into 2023.
Overview of Influencer Marketing
Definition of Influencer Marketing
Influencer marketing is a type of marketing that involves partnering with individuals who have a an engaged following on social media to promote a product or service. These individuals, known as influencers, have built up a loyal following of people who trust their opinions and recommendations. By leveraging the influencer's audience, brands can reach a wider audience and potentially increase sales.
Importance of Influencer Marketing
Influencer marketing has become increasingly important in recent years as consumers have become more skeptical of traditional advertising. People are more likely to trust recommendations from people they know, or in this case, influencers they follow on social media. In fact, some studies have shown up over 90% of consumers trust influencers with fewer than 100,000 followers more than celebrity endorsements or traditional advertising.
Influencer marketing, in its perceived authenticity and trust-building, is particularly effective with the digital savvy, optimistically distrustful Gen Z consumers — who are, according to Forbes, in the "sweet spot of spending power." 💸
🔖 Read: 10 Reasons Why Your Influencer Marketing Isn’t Working
Benefits of Influencer Marketing
There are several benefits to using influencer marketing as part of your marketing strategy:
- Increased brand awareness
- Higher engagement rates
- More authentic content
- Access to a wider audience
- Increased credibility and trust
Let's not forget, influencer marketing can be more cost-effective than traditional marketing methods, as brands can often reach a larger audience for less money.
Overall, influencer marketing can be a valuable tool for brands looking to reach a wider audience and increase sales. By partnering with the right influencers and creating authentic content, brands can build trust with their audience and see a positive impact on their bottom line.
Influencer Marketing Statistics for 2023
Influencer marketing is a rapidly growing industry that shows no signs of slowing down in 2023. The market in the U.S. was valued at a record $16.4 billion in 2022, and 89% of marketers who currently engage with influencer marketing plan to increase or maintain their investment in 2023.
Influencer Marketing Industry Growth Statistics
More than 1 in 4 marketers utilize influencer marketing in their marketing strategy. Forecasts predict that from now until 2030, we will see a compound annual growth rate of 33.4%.
- In 2016, the industry was valued at $1.7 billion USD
- From then to 2022, it looked at an average annual growth rate of 46.9%
- In 2022, the industry reached a value of $16.4 billion USD
- It's expected to hit $21.2 billion USD in 2023
The influencer marketing industry is a rapidly growing sector that is changing the way brands approach advertising. Going from just over 10,000 worldwide (4,000 of which were in the US) in 2019 to 18,900 worldwide in 2021 (7,300 of which were in the US), according to this Market Analysis Report.
Influencer marketing agencies offer a range of services to help brands partner with influencers and create effective campaigns that resonate with their target audience. Services such as influencer identification and selection, campaign strategy and planning, influencer rates and contract negotiation, content creation, campaign management and reporting, and influencer relationship management on behalf of brands.
🔖 Read: What does an influencer marketing agency do? All your questions answered
Increased Spending on Influencer Marketing Campaigns
In 2023, influencer marketing budgets are expected to increase, with brands allocating more resources towards influencer marketing campaigns. The rise of micro-influencers, who have smaller but highly engaged audiences, is also contributing to this trend.
- 67% of marketers surveyed said that they intend to increase their influencer marketing budget in 2023
- 23% of marketers advised that they intend to allocate over 40% of their budget on influencer marketing campaigns. In the United States alone, influencer marketing spending is expected to reach over $4.5 billion
Influencer marketing platforms, and solutions specifically catered to help brands with influencer marketing, were worth more than $7.3 billion in 2021 and are forecasted to reach a jaw-dropping $69.9 billion by 2029.
Rise of Micro-Influencers & Growing Demand for Influencer-Generated Content
Micro-influencers are one of the many types of influencers becoming more popular among brands, with 63% of marketers planning to use them in their influencer campaigns. These influencers have smaller but highly engaged audiences, making them an attractive option for brands looking to target specific niches. Part of the reason influencer marketing has been so effective is that the created content doesn’t feel like advertising. Influencers may use certain products in the course of their activities and not comment, or their content and influencer posts could revolve around trying new products and providing what appear to be genuine, impartial opinions.
🔖 Read: Guide to Micro-Influencer Marketing: Who They Are, Why You Need Them & Where to Find Them
“Creating content is one of the superpowers of influencers– and that’s why more and more brands are working with influencers to get visuals for their social media channels. Influencers’ content just feels so much trendier and more relatable than professionally produced content, and thus, brings better engagement. Also, it’s significantly cheaper than organizing photoshoots by yourself.” — Marelle Ellen, CMO of promoty.io
Increased Use of AI and Automation
The use of AI and automation in influencer marketing is on the rise, with 63% of brands planning to use AI in their influencer campaigns. This technology is being used for influencer identification, content creation, and campaign optimization, making it easier for brands to manage their influencer marketing campaigns. These processes can also be used for locating and distributing content, and also to help distinguish "bogus" influencers, accounts, and engagements.
Rising Importance of Performance Measures & ROI
Analytics will play a big part in performance measures as brands place more emphasis on evaluating Return on Investment and finding ways to optimize it. There has been a steady rise in ROI tracking every year. In 2020, 65% of respondents measured influencer campaign ROI — 67% in 2021, 70% in 2020, and 71% advising that they intend to measure influencer marketing ROI in 2023. Interestingly, 83% consider Earned Media Value— calculating the worth received when an influencer shares brand content— a good measure of influencer marketing campaign ROI. This metric is also called Influencer Media Value. Almost 75% track sales arising from influencer campaigns.
The days of basing performance on the number of "likes" are over. Performance metrics will be more "critical". Data appraisals that are more qualitative and not purely quantitative— like engagement KPIs indicating interest based on time spent on a page— provide better insight than sheer numbers and will be more extensively used to gauge the success of digital marketing campaigns.
Consumers Want More Authentic and Transparent Campaigns
Consumers are becoming more conscious— especially the younger generation. They know when something’s not genuine. That's why it's important for brands to work with creators who actually use their products and are willing to recommend them to their followers. Genuine recommendations really stand out amidst all the sponsored messages on social media.
For the same reason, brands are looking to build more long-term relationships instead of just doing one-off collaborations.
🔖 Read: How to Build a Brand Ambassador Program From Scratch
Consumers are (and will continue to be) more drawn to influencer voices that are:
- more detailed and personal— drawing on individual experiences and preferences that will better resonate with similarly minded followers;
- nuanced and critical— demonstrating that they know enough about the subject matter to provide a reliable assessment of a product's quality and utility; and
- familiar and consistent— like a friend you trust, who is dependable, honest, and who shares your values.
Growing Popularity of TikTok (Short-Form Video)
TikTok is widely seen as the original home of user-generated content, crystallizing the popularity of short-term videos that previously existed as Vines and Snapchats, especially with its easy-to-use content creation tools.
"Short-form video is something that is taking over everyone's newsfeed. For influencers, this means they can charge more, because generally, creating video is more time-consuming than creating images. This is also beneficial to the brand because the product or service can be shown in use or in motion for a longer period of time." — Content Creator at Christina All Day
TikTok is ubiquitous, with over a billion monthly users— so much so that social media giants Meta and YouTube have developed and promoted short-term video formats in the form of YouTube "Shorts" and "Reels" for Facebook and Instagram to directly compete with TikTok.
Notably, TikTok is said to have a 15% larger engagement rate than that of their industry-leading competitors. More than 60% of TikTok users purchase brand products they see on the platform.
Influencer Marketing Statistics Recap & Final Thoughts
Influencer marketing is a rapidly growing industry that continues to evolve. As we've seen from the statistics, it's clear that influencer marketing is here to stay and will continue to be a vital part of any marketing strategy.
One thing that stands out is the rise of micro-influencers. These influencers have smaller followings but are highly engaged with their audience. Brands are realizing the value of working with micro-influencers to reach a more targeted audience and achieve higher engagement rates.
Another trend we've seen is the shift towards video content. With the rise of platforms like TikTok and Instagram Reels, video content has become more popular than ever. Brands that can create engaging video content with influencers are likely to see success in their campaigns.
Finally, it's important to note the importance of authenticity in influencer marketing. Consumers are becoming more aware of sponsored content and are looking for influencers who are genuine and align with their values. Brands that can work with influencers who have a strong connection with their audience and are authentic in their messaging will see the most success.
🥡 Key Takeaways
This is where we are, and where we are headed, with influencer marketing:
- The influencer marketing industry is expanding globally as brands invest more in influencer marketing
- Brands will focus on ROI and engagement metrics and use AI and automation to filter out inauthentic influencers
- Consumers will demand authentic content and transparency from brands and influencers
- TikTok will potentially replace Instagram as the preferred social media platform for marketing
- Micro-influencers will continue to grow in prominence due to their ability to sustain higher engagement with their followers
- Specialized channels that cater to specific niches or interests, such as beauty, fitness, travel, or gaming, will receive increased popularity for targeting specific audiences
So what’s your goal for influencer marketing in 2023? If you need help building more sustainable influencer marketing strategies and partnerships with influencers, get in touch.