That’s how big the influencer marketing industry can become this year, according to statistics gathered by infographic design agency Milkwhale. The company’s research reported that content delivered by influencers returns 11 times the return of investment over conventional digital marketing. On top of that, they said brand utilizing influencers are making $6.50 for each dollar spent on them.
Is it worth the investment?
Based on Milkwhale’s research, it certainly appears to be a no-brainer. The study revealed that 96 percent of the influencers surveyed said they charge less than $1,000 for posting a single blog. Nine out of ten reported charging $250 or less for a Facebook post and less than $150 for a tweet.
Mass-media conglomerate Bloomberg’s research discovered that spending for influencer marketing continues to rise from the $255 million per month they reported over a year ago.
With more than 700 million monthly users, influencers have been using Instagram to reach their followers, many of whom are 16 to 24 years of age. Their average engagement rate is 3 percent. The rate drops to 0.04 percent with celebrity influencers who don’t engage their audiences as often.
Don’t forget other platforms
While Instagram is the preferred platform for most influencers, serious consideration must also be given to Twitter. Milkwhale reported that 40 percent of Twitter users made purchases as the result of a tweet from an influencer. When an influencer tweets promotional content, Milkwhale says the intent to buy increases more than five times.
Snapchat, with more than 301 million monthly users, is used by 64 percent of brands surveyed by Milkwhale. A main reason for the popularity is because half that number—150 million users—frequent Snapchat every day.
An interesting discovery was that 30 percent of customers say they’re more likely to purchase a brand endorsed by an influencer who’s not a celebrity. And mom bloggers rank third in influencing purchases according to Influence Central, one of the more than 230 influencer agencies to emerge since the rise in popularity of influencers.
Milkwhale also reported that an overwhelming majority of women (85 percent) look to social media for advice on what to purchase. The power of social media is so strong that 74 percent of those surveyed said they trust social media for their shopping decisions.
This is where the combination of trusted non-celebrity influencers and the appropriate platform are invaluable. Milkwhale reported that 60 percent of respondents trust these influencers. It’s the responsibility of marketers to identify and know their audiences in choosing the best platform(s).
That’s not all
As influential and important as influencers are, marketers would be wise to continue nurturing good comments and reviews from loyal customers. While Milkwhale discovered that 40 percent of consumers made purchases after seeing an influencer recommend a brand, it also reported that 92 percent of respondents trust recommendations from social media friends over advertising.
The last finding was reinforced by other data obtained by Milkwhale. That finding reported 56 percent of respondents acknowledging that they would be more likely to purchase a brand after seeing a positive review in social media.