As the number of influencers continues to grow, and there are more and more people trying to become one. At the same time, brands are investing more money in this kind of marketing since there is a growing number of proven influencers that give them returns.
Brands are no strangers to partnering up with influencers. However, this market is changing and evolving constantly. That’s why brands need to adjust their strategies as well. There are more and more influencers who specialize in different niches.
Each of them has its upsides and downsides. The concept might be simple, but the market is very complex, and many variables need to be taken into account. That’s why we’ve decided to share some essential industry stats and market research that can help you get a better understanding.
The Whole Influencer Market Size is Expected to Reach $9.7B in 2020
The best way to see how much the influencer market is developing is to look at its total size every year. In 2016 the whole market was worth $1.7B, and this was the start of the whole industry. Just four years later, the estimates show the entire market will be worth $9.7B by the end of 2020.
That’s an increase of $6.6B in just four years. At the same time, the market was growing each year by at least 50$ of its value. For example, in 107, it was worth $3B, which means that the market grew by $1.3B or around 90% of its value.
Some further forecasts indicate that the whole influencer marketing market will be worth up to $15B in 2022. It shows that there are no signs of the market slowing down its growth soon.
Over 90% of Brands Say That Their Influencer Market Efforts are Driving Sales
The whole market growth is astonishing. That’s why it’s really no surprise that there are more and more brands looking to use influencer marketing for driving sales. On top of that, the introduction of new convertible platforms such as TikTok has made sales even easier.
There are a lot of options selling creatively on social media through influencers. In 2020, 94% of brands reported that they were successful at boosting sales through influencer marketing. At the same time, in 2019, 18% fewer brands said they were successful.
This shows that the use of influencer marketing is subjected to change. It’s about audiences and their perception. When brands recognize that their audiences have had enough of getting hit with direct sales and product placements, they can switch to other methods.
Brands also use influencers to start social initiatives, tell stories, and educate their audiences. At the same time, influencers are constantly evolving, and creators are finding ways to incorporate brands and their products.
The Number of Influencer Platforms/Agencies is Growing
As the whole industry has been developing, the growth attracts various companies that saw an opportunity to profit and help influencers. At first, it was all about individual influencers making arrangements with brands randomly.
But now there are countless platforms and agencies for influencers to turn to. Through them, they can easily get connected with brands that could require their services. It was challenging for both brands and influencers to start a relationship organically.
However, we are now witnessing many certified platforms that act as middlemen between the two sides. The growth of platforms and agencies has been constant since 2015, and in 2019 there were 1120 of them. By the end of 2020, we can expect an even greater number.
From 2015 to 2019, the number of platforms increased by almost six times. The largest growth so far was between 2018 and 2019, when 380 new platforms were opened up.
Many Brands Are Planning on Using TikTok For Influencer Marketing
TikTok is one of the latest sensations in the social media world. The Chinese social network quickly exploded in the country and then expanded worldwide. At the moment, TikTok has over 800 million active users and over 2 billion app downloads.
Even though it’s still a young social network, some important numbers indicate its potential. In March 2020, total user spending in the US was over $1.1 million. Compared to February, the number has increased by 34%.
It shows that the platform is highly convertible and that there’s room for influencers to push brands to their audiences. Brands have recognized this and are already starting to invest in TikTok. In fact, 42% of companies that use influencer marketing say that they plan on focusing on TikTokin the near future.
TikTok was also the most downloaded social media app in 2019. It had over 33 million downloads in Apple’s store during the 2019 Q1 alone.
1500% Increase of The Term “Influencer Marketing” on Google
In three years, there has been an increase of 1500% of searches for the term “Influencer Marketing” on Google search engine. It shows just how present this marketing technique is. Brands are more interested in it; people want to learn about it and pursue careers as influencers.
There has been a constant growth of these searches in the past five years, and in 2019 there were over 70,000 searches per month. In 2015, the number of monthly searches was just 3,900. It’s a major growth that indicates how much this industry has expanded.
Given the results in the post five years, we can only expect an increase by the end of 2020. Some estimates show that the number of monthly searches may surpass 100,000.
We hope our market research report has helped shed some light on the influencer marketing industry. No matter if you want to advertise or you want to become a creator, this is a good time to do it. However, you need to be through with your approach and due diligence to be successful. Good luck!