Influencer endorsements are marketing for the new millennium. It is when an influencer, a person on a social media platform with a high number of followers, creates content recommending or reviewing your product. It is already a booming business, with ad spending estimated to reach between $5 and $10 billion by 2022, yet there are businesses, particularly smaller companies that still seem hesitant to enter the new field. But with 72 percent of major brands dedicating some of their marketing budget to influencers, rest assured that savvy influencer marketing can be just as lucrative as traditional marketing.
Social media grows every year, nearing 3.5 billion social media users in 2019. Platforms make influencer marketing distinctive in that influencers have already created a niche and a customer base. Marketers need only to find a way to organically advertise on platforms consumer already use. Even micro-influencers can have a following of 1,000 to 100,000 people—potential consumers that are not limited by location.
This creates not only an opportunity for sales, but an invaluable abundance of information. Marketers are able to track current trends as well as customer reactions to their product. Platforms are a place where influencers and consumers alike can engage in a more organic way, which is the reason influencers garner such positive results. As many as forty-nine percent of consumers trust the recommendations from influencers and thirty-seven percent of consumers find inspiration through social networks. In that way, a good post can serve as a global storefront for millions of users.
It's not empty marketing. About seventy-five percent of marketers have said that social media has increased traffic to their business, and those who have been using social media marketing for two years have reported an increase in sales. When adding influencer marketing into the equation, the average value is about $5.20 per every dollar spent.
Influencer marketing is a powerful tool that is only slated to grow alongside social media. It seems that above all, consumers value the authenticity of influencers because they see influencers not as celebrities, but as peers. Marketers can use the trust influencers have built in their base to promote their product in a more efficient way than traditional marketing.