Influencer marketing is predicted to be a global $22.2bn industry by 2025. While Instagram has long been the leading platform for influencer marketing efforts, TikTok is making its mark and projected to become the second highest-ranking platform in terms of marketing spend in the year ahead.
“We’re currently living in the age of authenticity. Customers are voting with their wallets and want to be purposeful in the transactions they make. Meanwhile, marketers are facing immense pressure to demonstrate ROI despite massive budget cuts,” said Emplifi CMO, Zarnaz Arlia.
“Influencer marketing gives brands a cost-effective path to reach and engage new audiences. And with the explosion of TikTok’s popularity, there are still untapped opportunities to connect with all new customer segments on a platform that is delivering measurable ROI for influencer marketing campaigns.”
But how can brands choose influencers and which industries are better suited?
Emplifi’s“The 2023 State of Influencer Marketing Report,” provides an insight into business-critical influencer marketing trends for 2023.
The customer engagement platform surveyed 165 influencers, ranging from mega-influencers to brand ambassadors about their social media habits, brand partnership preferences, and overall influencer experience.
Just 7% of influencer content is sponsored, peaking in the months leading up to the winter holidays. There has been a slight decrease in sponsored content year-over-year which is likely the result of marketing budget cuts.
The larger the influencer, the less frequently they share sponsored content on Instagram. On average, nano influencers (less than10K followers) post 67% more sponsored content than mega influencers (1M+) and macro influencers (100K - 1M) on Instagram.
Influencer marketing’s untapped potential by industry
Some industries are more likely to benefit from an influencer marketing strategy than others. For example, global healthcare brands have the potential to gain 18x their current reach by collaborating with an influencer.
Emplifi’s data reveals that collaborating with influencers can significantly boost the effectiveness of healthcare brand campaigns, as influencers achieve approximately five times more audience engagement (likes, comments, shares, etc.) on their average posts compared to those of healthcare brands.
Accommodation brands, a subset of the hospitality industry, can greatly benefit from partnering with influencers, as they can expand their social media reach by up to 18x and achieve 4.2x more audience engagement compared to their current performance.
The beauty industry is well-versed in influencer marketing and its impact: influencer marketing campaigns run by beauty brands win 14x the reach and 3.2x the engagement compared to non-influencer campaigns.