Influencer Marketing Benchmark Report: 2020

2y ago
74 Views
4 Downloads
882.66 KB
37 Pages
Last View : 18d ago
Last Download : 2m ago
Upload by : Maleah Dent
Transcription

Influencer MarketingBenchmark Report:2020

IndexResearchInfluencer Marketing Expected to Grow to be Worth 9.7 Billion This Year7380 More Platforms and Influencer Marketing Focused AgenciesCreated Last Year8Only 14% of Influencers are Currently Fully Compliant with Legal Guidelines9TikTok was the Most Downloaded App on the Apple App Store in Q1 201910Better Engagement Rates for Nano- and Micro-Influencers Than for theSuperstars of Social Media11Increasing Average Earned Media Value per 1 Spent on InfluencerMarketing13Searches for “Influencer Marketing” in Google Continue to Grow14Additional MetricsInstagram Now Used by Nearly All Influencer Campaigns15Big Companies are Increasing the Number of Campaigns and CreatorsThey Activate16There is a Clear Move from Mega-Influencers to Micro-Influencers17Results from our 2020 Influencer Marketing brand surveyMassive Increase in Content in Recent Years19

Most Respondents Believe Influencer Marketing to be Effective19Nearly 4/5 of Our Respondents Intend to Dedicate a Budget toInfluencer Marketing in 2020202/3 of Respondents Intend to Increase Their Influencer MarketingSpend in 20202180% of Respondents Intend to Spend at Least 10% of Their MarketingBudget on Influencer Marketing22Although Most Brands Spend Less Than 50K on Influencer Marketing,5% Spend More than 500K23Most Still Recognize the High Quality of Customers from InfluencerMarketing Campaigns, Although Support is Down on 201923Nearly 2/3 Measure the ROI on Their Influencer Marketing24Most Common Measure of Influencer Marketing Success is NowConversions / Sales25Most Consider Earned Media Value a Good Measure of ROI2680% of Firms Take Their Influencer Marketing Spending from TheirMarketing Budget26About 4/5 of Influencer Marketing Campaigns are Run In-House27Many Firms Use Tools or Platforms to Execute their InfluencerMarketing Campaigns2787% of Respondents Use Instagram for Influencer Marketing28

Awareness is Still the Main Objective for Running an InfluencerCampaign, But Sales is Increasing in Popularity28Influencer Fraud is of Increasing Concern to Respondents29More Than 2/3 of Respondents Have Experienced Influencer Fraud30Brands are Finding it Harder to Find Appropriate Influencers30Mixed Views on Whether Brand Safety is a Concern in InfluencerCampaigns31Majority Believe Influencer Marketing Can be Automated, AlthoughSignificant Numbers Disagree32Audience Relationship Still Considered Most Valuable When Partneringwith Influencers3268% of Respondents Prefer Their Influencer Marketing to be Campaign-Based33Large Majority Consider Influencer Marketing to be a Scalable Tactic intheir Marketing Ecosystem33Engagement or Clicks is Most Important Criteria When Evaluating Influencers34More than 50% of Brands Work with Fewer Than 10 Influencers35There Has Been a Trend Towards Quarterly Campaigns, Although MonthlyCampaigns Are Still the Most Common36Finding Influencers is the Greatest Challenge for Those Who RunCampaigns In-house36Survey Respondents Spend 47% of Their Influencer Budget onMicro-Influencers37

We carried out our first influencer marketing survey in 2017, giving us excellent insight intothe state of the industry. We repeated the exercise last year, and have now made our studyan annual look into how marketing agencies and brands see the state of influencermarketing.In our Influencer Marketing Benchmark Report 2020, we surveyed 4000 marketingagencies, brands, and other industry professionals to gather their perspectives on the stateof influencer marketing in 2020.In addition to the results from our survey, we include some other relevant statistics relatedto influencer marketing that have come about thanks to recent research. Many of thesecome courtesy of our partner CreatorIQ, who provide an influencer marketing softwarecloud for enterprise brands, agencies, and publishers. CreatorIQ’s data comes from tens ofthousands of influencer marketing campaigns and posts piloted through their platform bytheir clients.One thing is very clear from these results. Influencer marketing is still a highly popular andeffective form of marketing. Although the media may at times run reports from naysayerscriticizing the industry, those who actively participate can clearly see the effectiveness ofinfluencer marketing.Here are the main results from our Influencer Marketing 2020 Study, along with a selectionof other relevant recent statistics we have found.Notable HighlightsInfluencer Marketing Industry is set to grow to approximately 9.7B in 2020More than 380 new influencer marketing- focused agencies and platforms established in 2019Average earned media value per 1 spent has increased to 5.78300% more micro-influencers utilized by large firms than in 2016The majority (55%) admit to having a standalone budget for content marketingNearly 4/5 of our respondents intend to dedicate a budget to influencer marketing in 202091% of our survey respondents believe influencer marketing to be an effective form of marketing65% of our respondents measure the ROI from their influencer campaigns5

The most common measure of influencer marketing success is now conversions/sales80% of firms take their influencer marketing spending from their marketing budget87% of respondents use Instagram for influencer marketingInfluencer fraud is of increasing concern to respondentsMore than 2/3 of respondents have experienced influencer fraud68% of respondents prefer their influencer marketing to be campaign-based, rather than always-onFinding influencers is the greatest challenge for those who run campaigns in-houseSurvey MethodologyWe surveyed 4000 people from a range of backgrounds. Although we had to remove someresponses due to a lack of clarity, the 2020 survey is our largest yet, with more than double thenumber of respondents compared to last year's study.34% of our respondents consider themselves brands (or brand representatives). 31% work atmarketing agencies (including those specializing in influencer marketing) and 4% are PRagencies. The remaining 29% represent a wide range of occupations and sectors.70% of those surveyed focus on the B2C sector, with the remaining 30% running campaigns forfirms in the B2B area. This shows a slight increase in the proportion of those engaged in B2Cmarketing (and a corresponding decrease in B2B) compared to last year, although the differenceis insignificant.The most popular vertical represented is Fashion & Beauty (24% of respondents), followed byTravel & Lifestyle (13%), Health & Fitness (12%), Gaming (7%), Sports (5%), and Family, Parenting &Home (5%). The remaining 31% grouped as Other, covers every other vertical imaginable. Due tothe size of our survey sample, the proportions of each industry vertical represented here willlikely be representative of the users of influencer marketing in general.45% of our respondents came from the USA, 16% Europe, 12% Asia (APAC), 5% Africa, with 15%representing the ROW (Rest of World).The bulk of our respondents came from relatively small organizations, with 40% representingcompanies with fewer than ten employees. 22% of the surveyees were from companies whichhas 10-50 employees, 14% 50-100, 13% 100-1,000, and 10% coming from large enterprises withmore than 1,000 employees.6

Influencer Marketing Industry Analysis 2020Influencer Marketing Expected to Grow to beWorth 9.7 Billion This YearEstimated Influencer Marketing Growth (YOY) 10B 9.7BMarket Size 8B 6.5B 6B 4.6B 4B 3.0B 2B 1.7B 020162017201820192020One of the best ways that we can see the growth of influencer marketing over the last fewyears is to compare the estimated market size of the industry each year. Back in 2016 (thedistant days of influencer marketing), we figured the industry to be worth 1.7 billion. It hasgrown rapidly every year since then. We estimate that there has been an increase of atleast 50% each year.This means that the growth in influencer marketing over the current year, 2019 to 2020, hasseen the estimated market size increase from 6.6 billion in 2019 to 9.7 billion in 2020. Weare fast approaching a market size of 10 billion.7

380 More Platforms and Influencer MarketingFocused Agencies Created Last Year1120Number of new platformsand agencies in the market 380 New platforms and740influencer marketing focusedagencies in the last 12 months33542019020152016201720182019As influencer marketing has matured as an industry, it has attracted support companies andapps to simplify the process for both brands and influencers. Organic influencer marketingcan be a slow and tedious process, particularly when it comes to finding and wooinginfluencers to promote your company’s products or services.380 new influencer marketing-focused platforms and agencies entered the market over thelast 12 months. Back in 2015, there were just 190 influencer platforms and agencies. Thisgrew to 335 in 2016, 420 in 2017, 740 in 2018, and 1120 in 2019 – more nearly three times thenumber that existed just two years previously.8

Only 14% of Influencers are Currently FullyCompliant with Legal GuidelinesOnly 14% of influencerswere compliant with FTCand CMA GuidelinesWe conveyed research on1000 fashion influencer postsfor a month and found only14% of posts to be compliantand meeting all regulatoryguidelines as set out by theFTC and CMA* 4200 posts assessed (Instagram)Both the US government agency, the FTC, and its British equivalent, the CMA, have taken aclose look at influencer disclosure over the last couple of years. They have made clearguidelines and expectations.The social networks (in particular Instagram) have made it easier for brands and influencersto comply with the requirements. However, influencers still have a long way to go to meetthe requirements. We undertook research on a sample of 1000 fashion micro-influencerposts for a month (over 4200 posts analyzed). We found only 14% of posts to be fullycompliant and meeting all regulatory guidelines as set out by the FTC and CMA. Ifinfluencers don't improve their performance soon, there is a real danger that the FTC andCMA will start prosecuting rather than just warning and educating.However, it is an improvement over last year’s results. In the equivalent survey we madelast year, we found only an 11% compliance rate.9

TikTok was the Most Downloaded App on theApple App Store in Q1 2019TikTok Is the Most DownloadedApp on the Apple App StoreIt ranked as the top mostTikTokdownloaded app in Apple’siOS App Store for Q1 2019,YouTubewith more thanInstagram33 MilliondownloadsFacebookSnapchat(SensorTower, 2019)010M20M30MAlthough app download numbers vary significantly from month to month, there has been adefinite surge in downloads of TikTok over the last couple of years. Indeed it ranked as thetopmost downloaded non-gaming app in Apple iOS App Store for Q1 2019, with more than33 million downloads.It hasn’t kept that position every month since launch; however, it has always performedwell. TikTok is no longer merely a niche social network and video sharing app. It isextremely popular and has real staying power with the young. Any brand with ayouth-focus should build some form of TikTok presence, possibly working with thefashionable youngsters who broadcast on the app.10

Better Engagement Rates for Nano- andMicro-Influencers Than for the Superstars ofSocial MediaAverage Engagement Rateon Instagram, TikTok and Twitter in 2019We analysed 100.000 influencer profilesacross leading Influencer Marketing Platforms 1.000 5.000 10.000 100.000100.000 er1.4%1.2%0.6%0.4%0.3%InstagramWe analyzed 100,000 influencer profiles across leading influencer marketing platforms,Instagram, TikTok, and Twitter to see if there were variations in the engagement ratedepending on an influencer's number of followers. We made a definite conclusion:influencers with a high number of followers have lower engagement than those with fewerfollowers.This is particularly evident on Instagram, where nano-influencers with fewer than 1,000followers have seven times the engagement rate than mega-influencers with greater than100,000 followers (7.2% vs. 1.1%). This pattern shows at every follower-number level inbetween these extremes.The follower rate numbers on the other surveyed platforms may differ, but the patternremains the same. Twitter has overall lower levels of engagement – people make so manytweets that go unanswered. But Twitter influencers with fewer than 1,000 followers have11

1.4% engagement, while those with more than 100,000 followers have a mere 0.3% of theirfollowers engaging with their tweets.TikTok has much higher engagement at all follower levels, but even here, the same patternis evident. Small TikTok users have 9.38% engagement, yet the superstars can only manage5.3%. Again, the trend is visible at all follower levels.Engagement Rate Benchmarksby Platform and Follower Size in 0.15%media platforms.4.3%1.0%9.5%2.9%0.38%0.01%1st Quartile1M YMega5.0%0.13%0.17%0.06%Medium6.2%3.6%four key channel sizes oneach of the major socialsMicro2.4%Average engagementrate benchmarks 4%0.008%0.002%0.07%3rd QuartileData analytics from CreatorIQ’s platform.Sample size: 224K posts, 5,6K campaigns and 31,7K social accounts from 2016 -2019.CreatorIQ also compared average engagement rate benchmarks across four key channelsizes on Instagram, YouTube, Facebook, and Twitter. While their study is not identical toours (they use slightly different engagement bands), the results still come to the sameconclusion. Smaller influencers have better levels of engagement than their largercounterparts.Indeed these statistics highlight how pitiful the engagement rates can be formega-influencers, particularly on Twitter (with just 0.008% engagement and Facebook(0.01% engagement). Even nano-influencers struggle to make much headway on these twoplatforms, (0.17% Twitter, 0.42% Facebook), so it is clear why so many brands prefer to useInstagram for their influencer marketing.12

Increasing Average Earned Media Value per 1Spent on Influencer MarketingEarned media is publicity gained from promotional efforts other than paid advertising.Earned media value is a monetary representation of this publicity. Businesses whounderstand influencer marketing gain impressive returns: up to 18 in earned media valuefor every dollar spent on influencer marketing.Even average firms achieve dramatic results, with an average earned media value of 5.78per dollar they spent on influencer marketing in 2019. This is up from 5.20 in 2018,indicating that there is now a better understanding of influencer marketing, with fewer firmsfailing to meet their marketing objectives.13

Searches for “Influencer Marketing” in GoogleContinue to GrowSearches rose from 3,900 searches per month in 2015, to 6,460 in 2016, 21,000 in 2017, andthen 61,000 in 2018. While the latest year’s rate of increase may have fallen, the number ofsearches continues to grow. In 2019, searches for the phrase “influencer marketing” rose to70,000. At this rate, it won’t be long before this number exceeds 100,000 searches for theyear.14

Additional MetricsWe also want to highlight a few other influencer marketing statistics that have come to light,assembled in coordination with CreatorIQ.Instagram Now Used by Nearly All InfluencerCampaignsThe “Great Instagram Breakaway”CreatorIQ analyzed the social platforms that brands make use of most when runninginfluencer campaigns. While Instagram has continually led the pack during the yearssurveyed (2015 onwards), its usage has continued to rise each year. Now more than 90% ofall influencer campaigns include Instagram as part of the marketing mix.Conversely, Facebook has noticeably lost favor over that period. Back in 2015, Facebookwas included in 75% of all influencer campaigns. In 2018, Facebook was used in less than15

half of the influencer campaigns, and its support dropped even further in 2019, toapproximately 40%. Other traditional platforms to lose favor between 2015 and 2018 wereTwitter and YouTube. However, both these platforms arrested their falls in 2019, withsupport leveling at about 45% for Twitter and 20% for YouTube. Notably, CreatorIQ foundTwitter support to be higher than Facebook. We tend to focus more on Facebook in ourInfluencer Marketing coverage (and considerably more on YouTube than its support wouldsuggest).Pinterest usage has fluctuated over the years, but it is currently used in approximately 10%of influencer marketing campaigns, one of its highest figures over the period.Big Companies are Increasing the Number ofCampaigns and Creators They ActivateAverage Required Posts per CompanyPost Per Creator 16

Average Creators ActivatedCreators Activated (Avg.)7006005004003002001000201720182019CreatorIQ findings show a clear increase in the average number of creators activated perorganization. Numbers nearly doubled from 320 in 2017 to 600 in 2018, and have continuedto rise (albeit at a slower rate) to 660 in 2019.There is a Clear Move from Mega-Influencers toMicro-InfluencersCreatorIQ data emphasizes the shift in focus from brands using mega-influencers tomicro-influencers. We have written extensively about the increased effectiveness ofmicro-influencers compared to offline superstars on social media. Micro-influencers tend tobe regarded as experts on a subject, and have laser-focused supporters who take an avidinterest in their views. While many people follow mega-influencers and celebrities, they17

Micro:Mega Creator Ratio Over Time2016The ratio of mega(1M followers) to micro( 100K followers)influencers used incampaigns in 2016 was 1:3.In 2019, there are 10microinfluencers usedfor every megainfluencer.MEGAMICRO1:32019MEGAMICRO1:10Mega Influensers: 1M followersMicro Influensers: 100K followersStat pertains to Instagram, YouTube, Facebook, & Twitter combined.often do so, simply because they recognize the name, rather than for any great interest inthe topic of the posts.The ratio of mega-influencers (with one million-plus followers) to micro-influencers (withfewer than 100,000 followers) rose from 1:3 in 2016 to 1:10 in 2019. In other words, there arenow 10 micro-influencers for every mega-influencer, compared with 3 micro-influencersper celebrity in 2016.18

Results from our 2020 Influencer Marketing brand surveyMassive Increase in Content in Recent YearsHave you increased content output in thepast 2 years?84%Yes16%No0102030405060708090100Our respondents were asked whether they had increased content output over the last twoyears. A colossal 84% of them admitted to having upped the amount of content theyproduced.This (partially) comes on top of the 75% increase in content claimed by last year’srespondents. Clearly, many firms now realize the insatiable demand for online contentnowadays, and are increasing their content marketing accordingly. Judging by the recentuptake in influencer marketing, much of this increase in content must be made anddelivered by influencers on behalf of brands.Most Respondents Believe Influencer Marketingto be Effective19

Do you think influencer marketing is aneffective form of marketing?9%YesNo91%Unsurprisingly, considering the overall positive sentiment expressed about influencermarketing, 91% of our survey respondents believe influencer marketing to be an effectiveform of marketing.This statistic has hovered around the same level in each of our surveys. It is clear that mostfirms that try influencer marketing are happy with the experience, and are willing tocontinue with the practice.Nearly 4/5 of Our Respondents Intend to Dedicatea Budget to

Influencer Marketing Industry is set to grow to approximately 9.7B in 2020 More than 380 new influencer marketing- focused agencies and platforms established in 2019 Average earned media value per 1 spent has increased to 5.78 300% more micro-influencers utilized by large firms than in 2016

Related Documents:

influencer marketing, that our survey respondents were highly positive about the effectiveness of the activity. Indeed, 92% believe influencer marketing is an effective form of marketing. It would be interesting to know whether the 62 respondents (8%) who disbelieved in the effectiveness of influencer marketing, had had bad experiences,

2017 INFLUENCER MARKETING IN REVIEW of marketers implemented an influencer campaign. 86% 71% of influencer marketers believe it’s an effective strategy. 92% of marketers say that video content produces the best ROI. 51% 71% Consumers are more likely to purchase based on social media reference. 6.50 ROI for every 1 spent on influencer marketing.

Marketing, Social Media Influencer, and Influencer Marketing. 2 . 7.1 Appendix One Thematic Question guide: _ 77 7.2 Table One- Table of participants (In-depth Interview)_ 79 . influencer marketing as a strategy in marketing. More so, since social media started, it has been apparent, the rise of social media .

influencer marketing but reporting and measurement is still a top concern, requiring the need for a guarantee in influencer ROI for enterprise marketers. 2020 was a big year for many in marketing and advertising, and the same is true for influencer marketing. When budgets

The influencer marketing agencies are the central and vital force of knowledge and experience within the influencer marketing area, working in order to ensure that campaigns are as successful and valuable as possible (Mediakix, 2021). Therefore, the influencer marketing agencies might become a driving force in how

Influencer Code of Conduct Canadians aged 18-35 are more likely to be aware of influencer marketing; but most are not aware of hashtags that denote paid influencer marketing. In response to a separate question, 21% of all surveyed said they had seen or noticed #Sponsored or #Ad in posts.

marketing on any social media channel. With rapidly evolving technology and marketing trends, it is . The Competition Bureau also published a detailed guide for influencer marketing in The Deceptive Marketing Practices Digest - Volume 4, available here: . (or network marketing) A marketing strategy whereby one party receives a commission .

9 MATHEMATICS - Week 1 Lesson 2: Properties of Operations Learning Objectives: Students will be able to simplify computations with integers, fractions and decimals by using the associative and commutative properties of addition and multiplication, and