brands continue to lean toward influencer marketing
Annual Expenditures on Influencer Marketing
Social media marketing continues to grow share on traditional marketing methods as digital trends shift consumer preferences. Today we'll cover 2023 influencer marketing trends including highlights in influencer marketing expenditures. Topics covered here are:
1.) Where Are Companies spending their marketing budget?
2.) Are Brands Seeing Return on Investment in Influencer Marketing?
3.) What Social Media Platforms yield the greatest return in influencer marketing?
4.) What Creators want in a partnership with Brands
What is the size of the Influencer Marketing Spend?
- Influencer marketing has grown to have an estimated market size of $16.4 billion in 2022 up from $1.7 billion in 2016. It is expected to jump a further 29% to an estimated $21.1 billion in 2023.
54% of companies are allocating up to 1/4 of their marketing budget to influencer marketing.
- 33% of companies surveyed allocated less than $250,000 a year, but 25% of companies spent over $1,000,000 a year in influencer marketing.
- 21% of companies allocated more than 50% of their marketing budget to influencer marketing.
40% of brands report rising production costs in traditional marketing, while 55% of brands report that influencer marketing costs have remained consistent.
Are Brands Seeing Return on Investment in Brand Influencer Marketing?
- 66% of brand respondents (those who use creator content), reported that creator content drove more ROI than non-creator digital content in the prior year.
- The top three challenges for brands in influencer marketing programs were:
1.) Driving Return on Investment
2.) Automating the influencer marketing processes
3.) Discovering new creators or maintaining existing partnerships.
What Social Media Platforms yield the greatest return in influencer marketing?
- 60% of marketers said Instagram delivered the greatest ROI over the 6 other platforms (TikTok, YouTube, Meta, Twitch and Snapchat)
- 62% of marketers reported that Instagram was twice as popular as TikTok for Influencer marketing, yet Creators disproportionately are using TikTok more.
- TikTok was over three times as popular as Youtube for creator marketing.
- 83% of Industry Leaders (those spending >$1M a year in influencer marketing), believe that Creator Content drives more ROI than traditional marketing.
What Creators want in a partnership with Brands
- Only 9% of creators said they would work with brands with lower-quality products if the compensation was high enough
- 24% of creators will only work with brands they love.
To see the sampling methods and survey data in more detail, go to:
PRIMARY SOURCE: CreatorIQ Influencer Marketing Trend Report 2023.
SECONDARY SOURCE: Influencer MarketingHub
