Influencer Marketing Explained In 9 Graphs

Hey,

Really excited about this one - all you ever wanted to know about the current state of play around influencer partnerships.

From marketing investment growth in the channel, to platform market shares, generational differences and more - we’ve got all the data covered!

Let's get 10% smarter in 10 minutes about - the current state of play of influencer marketing.

❤️ Are Brands Still Investing In Influencer Marketing?

Let's start with the big picture.

Brands are pouring serious money into influencer marketing, with spending in the U.S. projected to reach an astonishing $7.14 billion by 2024. That's a staggering 195% increase since 2019.

But why are brands so eager to invest in influencer partnerships?

Perhaps the rise of general rise of social media is behind this? It’s fundamentally changed the way consumers discover and engage with brands. Traditional advertising methods are becoming less effective as consumers increasingly turn to social media for product recommendations and reviews. Influencers have emerged as powerful intermediaries, with the ability to reach and persuade vast audiences through authentic, relatable content.

📊 But Will Influencer Marketing Actually Drive Revenue?

Now, you might be wondering: do influencer campaigns actually drive sales?

The data suggests that influencers may not be the most effective tool for immediate, direct purchases.

In fact, they rank lower than other marketing channels like email, advertising, and even traditional catalogs when it comes to driving short-term sales, based on this data.

But why?

One key reason is that influencer marketing often focuses more on building brand awareness and activating ‘consumers’. The influencer's content serves to introduce the brand, showcase its value, and provide a next step if the viewer is interested in learning more.

But the point of becoming ‘activated’ and actually converting may be days, weeks, or even months.

For example, while email campaigns or search ads can be directly linked to sales through tracking links and pixels, the path from influencer content to purchase is often more complex and indirect.

Consumers may discover a product through an influencer's post, but then go on to research the brand further, compare prices, or wait for a sale before making a purchase.

This makes it challenging to accurately measure the short-term sales impact of influencer campaigns.

However, it's crucial to understand that influencer marketing is a long-term play.

To effectively measure the impact of influencer marketing on brand equity, marketers need to look beyond immediate sales and adopt a more holistic, long-term approach to performance measurement. This may involve tracking metrics like brand sentiment, social media engagement, website traffic, and customer feedback over time.

📈 Which Platform Is Growing Most? 

So which platform should you focus on?

The data shows that TikTok is experiencing explosive growth in the influencer marketing space.

Its share of influencer marketing spend has skyrocketed from just 2.3% in 2019 to an impressive 20.8% by 2024.

One key factor behind TikTok's ascent is its unique content format and algorithm. TikTok's short-form, vertical videos are perfectly suited for mobile and have quickly become a favourite among younger audiences.

The platform's algorithm is also incredibly effective at serving users a steady stream of personalised, engaging content, keeping them hooked for longer periods. This has created a highly active and engaged user base that is attractive to brands looking to reach these demographics.

In contrast, YouTube's longer-form content may be losing appeal among younger audiences. While YouTube remains a massive platform with a diverse range of content, it has become increasingly saturated and commercialised in recent years.

It's important to note that YouTube still remains a powerful platform for influencer marketing, particularly for certain verticals and audience segments.

YouTube's longer-form content allows for more in-depth product reviews, tutorials, and educational content, which can be highly effective for building brand awareness.

Ultimately, the choice between TikTok and YouTube (or other platforms) will depend on your specific target audience and content strategy.

👩‍💻 What Type Of Influencer Should You Work With?

Selecting the right influencers to work with is an art in itself.

In this context, engagement rate is a crucial metric that can help you identify influencers who have the most active, loyal, and responsive followers.

On TikTok, micro-influencers with 5-10K followers often boast the highest engagement rates (76% on average), making them a sweet spot for eCommerce brands.

But why does engagement rate matter so much, and why do smaller influencers often outperform their larger counterparts in this regard?

Engagement rate basically measures how much an influencer's followers are actively interacting with their content. It takes into account metrics like likes, comments, shares, and saves relative to the influencer's total follower count.

A high engagement rate suggests that an influencer's audience is highly invested in their content and is more likely to trust their recommendations and perhaps even take action based on their endorsements.

Micro-influencers often have higher engagement rates because they tend to have a more niche, dedicated following. When a micro-influencer recommends a product, their followers are more likely to perceive it as a genuine endorsement from a trusted friend, rather than a generic ad from a distant celebrity.

In contrast, on YouTube, engagement rates tend to increase with follower count, suggesting that partnering with larger, more established influencers is the way to go. The data suggests that influencers with 1m+ followers hold an average engagement rate of 141% vs. just 12% for TikTok influencers in the same follower count bracket.

🤥 Do People Even Trust Influencers Anymore?

Consumer trust in influencers is not a constant.

In fact, the data suggests that trust in influencers is gradually declining over time. In 2023, only 5% of consumers reported experiencing FOMO (fear of missing out) from influencer promos, a notable drop from the peak of 11.4% in previous years.

But what’s driving this erosion of trust?

One key factor behind the decline in influencer trust is the increasing popularity and saturation of influencer marketing itself.

As more and more brands jump on the influencer bandwagon, consumers are being bombarded with a constant stream of sponsored content and promotional posts, leading to a sense of fatigue and skepticism.

So consumers are becoming more discerning - looking for more authentic, transparent, and value-driven content.

To them, influencers are not just seen as promoters - but as trusted advisors, role models, and even digital acquaintances.

🙋‍♀️ Who Does Your Audience Trust?

It's also important to consider your target audience when developing your influencer marketing approach.

Research shows that Gen Z and Millennials are significantly more receptive to influencer recommendations compared to older generations.

A whopping 45% of Gen Z and Millennials rely on influencers for product recommendations, while only 4% of Boomers do the same.

This stark generational divide underscores the importance of segmenting your audience and adapting your influencer strategy accordingly.

If your core customers are younger, double down on influencer partnerships to maximise your impact.

If your target market skews older, you may need to explore alternative tactics to build trust and credibility.

🇬🇧 Who Does Your Audience Trust? A UK Perspective

If you're targeting the UK market, it's essential to understand the unique influencer marketing dynamics at play.

UK-specific research shows that Gen Z and Millennials in the UK are even more likely to be swayed by influencer recommendations compared to their US counterparts.

53% of UK Gen Z and 42% of UK Millennials report being influenced by social media influencers, compared to just 19% of Gen X.

🤳 What Type Of Influencer Content?

Now, let's talk content.

From a consumer perspective, research shows that certain types of influencer posts are more effective at creating a positive brand perception, and this effectiveness varies by gender.

Influencer posts featuring exclusive brand offers or discounts consistently drive higher brand perception than those without, particularly among female audiences - 76% positive brand perception rate among women, compared to just 43% for generic brand content.

This suggests that women are more responsive to influencer partnerships that provide tangible value and benefits.

On the other hand, the research also found that men are more likely to respond positively to influencer content that shows a brand's unique features or benefits. For example, an influencer post that highlights the technical specifications or performance advantages of a new smartphone may be more effective at creating a positive brand perception among male audiences.

💰 Which Commercial Model?

When it comes to compensating influencers, Pay Per Campaign remains the most popular model, as used by 64% of U.S. marketers that adopt influencer marketing as a channel.

Of course, the optimal approach will depend on your specific campaign goals and KPIs.

For example, Pay Per Campaign can be effective for driving targeted brand awareness and engagement, while pay-per-performance, also known as the affiliate model, may be better suited for campaigns focused on direct response and sales.

Another thing of note - gifting accounted for just 37% of responses, perhaps signalling the more professional outlook of modern influencers.