There’s no question that influencer marketing is taking off fast. Like, super fast. Regardless of what industry you’re in, influencers can have a major impact on your bottom line. While we know that this type of marketing is incredibly effective, most people don’t really understand why. And, sure- the whole “I don’t care how it works, as long as it works” philosophy is great. But understanding the mechanics of a marketing strategy that may help your business grow from dud to stud is important.
The past year has seen the demand for influencer marketing skyrocket. When things explode like this, it often creates a bubble that eventually bursts in our faces. This one doesn’t seem to be slowing down anytime soon though. Instead of taking my word for it, check out the following influencer marketing stats.
92% of consumers trust word-of-mouth recommendations compared to 33% who trust brand-generated ads (Nielsen)
People aren’t dumb. Well, most people anyway. They know when they’re being sold to and they know when they’re being viewed as just another dollar sign. For this reason, brand-generated advertisements have lost a lot of weight among consumers. This is where the influencer comes in. Instead of companies doing the selling in a pushy, promotional way, they’ve turned to real people with real followers to do it for them. Instead of looking like an ad, though, their posts look like a genuine recommendation from someone who uses the product.
Marketers are making $6.85 in earned media value for every $1 spent on influencer marketing (AdWeek)
Money talks. A huge draw for businesses using influencer marketing is the crazy return they’re getting. Believe it or not, the $6.85 return on every $1 spent is a conservative estimate. To give you a better idea of how this falls in comparison to the rest of the marketing world, it’s been found that influencer marketing delivers 11 times the ROI over all other forms of digital media. Eleven. Times. You’re literally throwing your money away by not using influencer marketing.
81% of marketers who have tried influencer marketing have had a good experience (eMarketer)
The best way to judge just about anything is to get feedback from those who have tried it. Take any review website (Yelp, Rotten Tomatoes, Trip Advisor, etc…). People do not hold back. If something sucks, they’re going to let the world know.
On top of over 80% of marketers enjoying their influencer marketing experience, 84% of them plan to employ this type of strategy in the next year (eMarketer).
Customers acquired through word-of-mouth marketing are 38% more likely to stick around (McKinsey)
Word-of-mouth marketing is the original influencer marketing. With it being arguably the most effective form of marketing to ever exist, it’s no wonder that influencer marketing is kicking such butt. Recommendations passed through word-of-mouth are so much more authentic than those passed along through the company itself. For this reason, the customers acquired through WOM marketing are much more likely to stick around than those who are acquired through traditional ads. It’s a realer, more genuine connection.
TV viewership is down 9.5% each year among 18-24 year-olds (Nielsen)
You’re probably asking yourself “Who cares about TV, we’re talking about social media here”. True. But if people are watching less TV, it’s because they’re doing something else. And it’s not being more physically active or learning to knit, trust me. The focus has transitioned from the TV screen to the phone screen. With the staggering stats of how long people are on social media (it’s a lot), we know that their time is monopolized by platforms like Instagram, Facebook, and Twitter. If you want to be seen, that’s where you need to be. That’s where your ads need to be placed.
47% of online consumers use ad blockers (Digital News Report).
Ads are annoying. They slow down your browsing and interrupt the stuff you want to see. So just like your annoying ex, they’ve been blocked. Because of this, the best way to reach your customers is to send your message through influencers’ feeds. They’re highly followed, likeable, and trustworthy sources.
Online searches for “Influencer Marketing” is growing 5000% a month (Google Trends).
Influencer marketing may not be breaking the Internet but it’s certainly bending it. Google Trends has found that online searches for this type of marketing strategy has been growing exponentially since 2015.
While stats are certainly subject to skewing, there’s no doubt that influencer marketing is a force to be reckoned with. As the market matures over the next few years, those who have invested in influencers and their capabilities earlier will reap the highest rewards. If you’re still not sold, look into how this type of marketing has benefited those in your own industries.