Influencer marketing has become a staple of the modern marketing landscape, with brands of all sizes utilizing influencers to reach their target audience and drive sales. As we move further into 2023, it's clear that influencer marketing is here to stay. Leaping from $1.7 billion in 2016, influencer marketing grew to have an estimated market size of $16.4 billion in 2022. In 2023, it's expected to jump a further 29% to an estimated $21.1 billion.
Fast Facts:
- Influencer Marketing Industry is set to grow to approximately $21.1 Billion in 2023*
- It is now the norm to pay influencers (42%), rather than just give them a free product (30%).*
- TikTok is now the most popular influencer marketing channel, jumping ahead of Instagram (51%) for the first time, and well ahead of Facebook (42%) and YouTube (38%).
- Nearly 75% of Brands Track Sales from Influencer Campaigns*
Increased Emphasis on Authenticity
As influencer marketing has grown in popularity, so too has the importance of authenticity. Consumers are increasingly skeptical of sponsored content and are more likely to engage with influencers who they perceive as genuine and authentic. This attitude has contributed to the rise of the so-called "deinfluencer." A growing trend on TikTok, the deinfluencer highlights products or services that are not worth buying—an "honesty is the best policy" approach. In the coming years, brands and influencers will place an even greater emphasis on authenticity, with a focus on building long-term relationships based on trust and transparency.
Greater Diversity in Influencer Marketing
In recent years, there has been a growing awareness of the lack of diversity in influencer marketing. Brands are recognizing the importance of representation and inclusivity, and we can expect to see a greater emphasis on BIPOC and LGBTQ-centric influencer marketing campaigns in 2023 and beyond. This will include not just racial and ethnic diversity, but also diversity in terms of age, gender, body type and beyond.
The Rise of Micro-Influencers
While mega-influencers with millions of followers have traditionally been the focus of influencer marketing campaigns, we're seeing a shift towards micro-influencers in 2023. Micro-influencers typically have smaller followings but are seen as more authentic and genuinely engaged with their audience. Brands can also work with a larger number of micro-influencers for the same budget as a single mega-influencer, allowing them to reach a wider audience.
Increased Use of Video Content
Video content has been on the rise in recent years, and this trend will continue in 2023 and beyond. Influencer marketing campaigns will increasingly focus on video content, including live streaming and short-form video content like TikTok, Instagram Reels and YT shorts. Brands will need to work with skilled influencers who create engaging video content that resonates with their target audiences and can be utilized in a variety of formats.
Influencers as Advertisers
Brands are finding that their ROIs are greater with advertising through influencer content. As a result, whitelisting content has become standard in some contracts, especially when it comes to ecommerce brands. Brands are also increasingly demanding greater transparency and accountability from influencers as partnership costs go up. This means a greater emphasis on metrics like engagement rates, click-through rates, ATCs and ROI.
Influencers who can demonstrate the effectiveness of their campaigns via detailed analytics will be in high demand. Platforms and affiliate programs are growing in popularity to add a layer of data to partnerships. KPIs are getting more robust as first party data becomes the target for many brands. Brands and influencers need to adapt to changing consumer preferences and emerging trends, while still paying attention to platform algorithms. By doing so, they will get the most out of their influencer partnerships. *American Marketing Association * Influencer Marketing Hub 2023
Tyler Wilcox : December 12, 2023
