Expected to be worth over $13.8 billion this year, influencer marketing has seen a major spike in popularity. The industry is up $9.7 billion from 2020, according to Influencer Marketing Hub’s 2021 Benchmark Report, a huge increase from 2016 when it was valued at only $1.7 billion.
What is influencer marketing?
It’s a type of marketing that uses leaders with a large social media presence to promote a brand to a larger market. These leaders are called influencers because of the influence they have over the buying decisions of others.
What platforms are best utilizing influencers?
According to Business Insider, here are the most popular social media platforms U.S. marketers are planning to use for influencer marketing in 2021 (as of March 2021):
Instagram has remained one of the top platforms for influencer marketing over the years. The platform, which has made adjustments to cater to selling products, has become one of the best platforms for businesses, especially those that want to reach a younger audience.
Instagram’s latest features include tap-to-shop products on posts and swipe up to link users to products on Stories, and Instagram is getting even more creative showing off products with in-app filters and sounds in Reels. The most predominant influencers on Instagram have profiles related to lifestyle, fashion, fitness, and travel.
TikTok is a platform that has reported enormous growth in the past year, shown in the chart above for influencer popularity by platform. TikTok is suspected to have picked up the loss of interest in Instagram for influencer marketing.
The platform grew more than 85% throughout the pandemic and has proved to be a great platform for showcasing the human side of brands in a new, fun way! Most users prefer comedy content, followed by dancing and tutorials, so if you plan to use TikTok, make sure you have an influencer that will convey a sense of humor you find appropriate for your brand.
It’s important to note another platform that has shown great growth in the past year: Twitch. Although it’s not the most popular platform for brands to utilize for influencer marketing (unless your products or service can be beneficial to video gaming), the growth of its influencer use has more than doubled. In the first quarter of 2021, viewers spent a total of 6.3 billion hours watching Twitch streams, roughly 300 million more hours than the first quarters of 2020 and 2019 combined!
YouTube has also seen its fair share of business collaborations. Many subscribers find that they relate more to YouTube creators than traditional celebrities and because of this connection, they are more likely to trust them and consider their advice when buying products.
How much will influencer marketing cost?
While this will vary depending on which influencers you work with, the cost of your campaign (or post!) will typically depend on the following:
Social Media Platform: Not only does each platform have a different type of audience, but an influencer’s reach will also usually vary by platform.
Influencer Reach: Largely based on number of followers or subscribers, reach is considered the number of people the influencer has access to on the designated platform. Reach will also determine the category an influencer is in (ex. micro-influencers may have less than 50K followers while mega-influencers have over 1M).
Follower Engagement: This is very important for your business to consider when choosing an influencer! Just because someone has a lot of followers, doesn’t mean they get a high engagement rate. You can expect influencers with more engagement to charge more.
Industry or Specialization: You’ll want to find someone whose specialization relates to your business—this will give them the most credibility. Try to find someone who uses (or would use) your product or service on a regular basis.
Exclusivity: Do you want to make sure the influencer you work with won’t also sign a contract with your competitor? Be prepared to pay!
Type of Content: The level of work and creativity the influencer will have to dedicate will largely impact the pricing. If you are expecting engaging videos that take time to record and edit, expect to pay more than you’d pay for a photo post showcasing your product.
Influencer Demand: This one is pretty simple. If the demand is high for a certain influencer you’d like to promote your business, you’ll pay a premium.
The factors that help determine pricing are also great when deciding who you want to work with. Although the idea of working with a well-known influencer is alluring, it may be better to work with someone smaller who fits your niche better and has more engaged followers.
Want to discuss influencer marketing for your business? Or how to find the right influencer to collaborate with? Reach out to us and we will walk you through the process!