Influencers have one of the most prominent impacts on people today, they tend to idealize most of their favorite influencers.
According to Psychology of Influence, 82% of consumers are likely to follow a recommendation made by their favorite influencer. Hence, influencer marketing has emerged as one of the best marketing techniques over the past years.
In this article, we will discuss how marketers and businesses can use influencer marketing to boost their ROI, conversion rate, and brand awareness. We will also discuss the rise of AI influencers and trends for 2024!
Before we start, here is how the classification of Influencers is done based on their follower count:
| Influencer Type | Follower Count |
|---|---|
| Nano influencers | 1k – 5k |
| Micro-influencers | 5k – 20k |
| Power or mid-tier | 20k – 100k |
| Mega influencers | 100k – 1M |
| Celebrities | 1M+ |
Influencer Marketing Statistics 2023 (Top Picks)
- The influencer marketing industry is worth $21.1 billion as of 2023.
- For each $1 invested in influencer marketing efforts, businesses gain $6.50.
- 61% of consumers trust recommendations from influencers.
- Influencer marketing ad spending worldwide is anticipated to reach $30.81 billion by the start of 2024.
- The global AI influencer market is expected to reach $1.5 billion by 2025.
- 21% of brands work with 10 to 50 influencers, while 16% work with 50 to 100 influencers for their campaigns.
- 76.6% of marketers use Instagram for influencer marketing campaigns.
- Micro-influencers are preferred 10 times more by brands than mega-influencers.
- Influencer Marketing Campaigns Can Cost Anywhere Between $10k to $500k.
The influencer marketing Industry is worth $21.1 Billion as of 2023.
The influencer marketing industry has grown by 29% compared to the previous year. In 2022, the influencer marketing industry was valued at $16.4 billion.
The boom in social media usage and the rise in smartphone users has led to this growth.
Here are further details about influencer marketing market size in the following table.
| Year | Influencer Marketing Market Size |
|---|---|
| 2023 | $21.1 billion |
| 2022 | $16.4 billion |
| 2021 | $13.8 billion |
| 2020 | $9.7 billion |
| 2019 | $6.5 billion |
| 2018 | $4.6 billion |
| 2017 | $3 billion |
Source: Statista.
25% of marketers use influencer marketing.
Over half of them use influencer marketing daily, 25% use it often, and 1/3 have a long-term influencer marketing plan.
Here are further details about the share of marketers that use influencer marketing over the years:
- 2025*: 86%
- 2024*:82.7%
- 2023: 78.6%
- 2022:74.5%
- 2021:69.7%
Source: Statista.
60% of the brands work with atleast ten influencers for their marketing campaigns.
Out of those 60%, 21% of the brands work with 10-50 influencers. Meanwhile, 16% of the brands work with 50 to 100 influencers for their campaigns.
Besides, some brands even work with more than 1000 mini or micro-influencers.
Source: influencer marketing hub.
76.6% of marketers use Instagram for influencer marketing campaigns as of 2023.
This number is expected to reach 80.8% in 2024. The second most used platform for influencer marketing is Facebook, followed by TikTok.
The following table includes further details about the share of marketers that used different social media platforms for influencer marketing:
| Social media platform | Percentage of marketers using influencer marketing |
|---|---|
| 76.6% | |
| 58% | |
| YouTube | 44.2% |
| TikTok | 49% |
| 25.5% | |
| Snapchat | 17.8% |
Source: Statista.
The Rise Of AI Influencers
AI influencers, aka virtual influencers, are social media personalities that have been created using artificial intelligence video generators.
They are gaining serious traction on social media, with some of them generating thousands of dollars in revenue every month. This has prompted many people to rethink the future of the influencer industry. Let us take a look at some of the statistics associated with this trend in this section.
- The global AI influencer market is expected to reach $1.5 billion by 2025.
- 52.8% of marketers believe AI influencers have a significant impact on the future of marketing and entertainment.
- Only 23% of U.S. adults trust how generative AI is being used in social media, and another 39% said they would trust influencers less if they increased their use of AI.
- 71% of brands believe AI influencers can deliver higher ROI compared to real influencers.
The world is quickly adopting AI in almost every field of work. While there are many positive sides to an AI influencer, such as being available 24/7 and knowing no language barriers, there are downsides to it, like the lack of ability to truly express original ideas and emotions.
Source: Influencer Marketing Hub, Grand View Research, Hootsuite, EWM Swiss.
TikTok Influencer Marketing Statistics
In this section, we’ll be sharing some jaw-dropping statistics that prove just how influential TikTok stars can be when it comes to swaying consumer choices and boosting brand love. So, let’s explore the TikTok Influencer marketing scene in 2023 here:
- 49% of the TikTok audience admitted purchasing based on advice from influencers on the platform.
- Aerie cleverly leveraged the power of TikTok collaborations in a standout campaign, using the hashtag #AerieReal. They managed to skyrocket their digital sales by an impressive 75% in just one quarter.
- TikTok’s mega influencers’ engagement is 35%. This is miles away from Instagram’s 1.21%.
- TikTok micro-influencers also have a healthy engagement rate of 18%. If we compare the number to Instagram, the number is 3.9%.
Ad spending in the Influencer advertising market is projected to reach $30.81 billion by the end of 2023.
The influencer marketing ad spending is expected to grow at a CAGR of 11.61% between 2023 and 2027, reaching $47.80 by the end of 2027.
Most ad spending worldwide will be generated in China, accounting for US $16,760 million in 2023.
Source: Statista.
Just 0.23% of the Instagram influencers have more than 1 million followers.
The majority of Instagram influencers are nano-influencers with less than 10,000 followers. 27.73% of Instagram influencers have between 10,000 and 50,000 followers, and 6.38% have 50,000 to 500,000.
Meanwhile, just 0.28% of influencers have between 500,000 to 1,000,000.
86% of Women Turn to Social Media for Buying Advice.
- 45% of women say they’ve gotten more active on social media in the last two years, particularly on Instagram and Facebook.
- Furthermore, in the United States, women are 53.7% more likely than males to use Instagram.
- One study also shows that more than 50% of women have made purchases due to what they saw on social media.
This Stat shows that businesses that lack catering to female audiences should start doing it.
32% of GenZ are influenced by their favorite influencers while purchasing.
At the same time, 21% of millennials and 18% of GenX are influenced by influencers while making a purchase decision. Meanwhile, only 8% of the Boomers change their purchase decision due to influencers.
On the other hand, 54% of the parents of Gen Alpha said that their children had asked to purchase a product because of an influencer.
57% of Fashion and Beauty brands employ influencer marketing.
Aside from those, 57 percent. 21% want to include influencer marketing in their marketing strategy in the future.
TikTok has established a $1 billion creator fund to help Influencers flourish.
The TikTok Creator Fund debuted last year in spring with a massive $200 million initial investment and a goal of $1 billion in the following three years.
Sage Reads: Take a closer look at the state of TikTok through numbers
A whopping 49% of Twitter users have purchased as a consequence of a Tweet.
One more interesting figure is that Advertising accounts for 86% of Twitter’s revenue.
For each $1 spent on an Influencer Marketing campaign, marketers earn $6.50.
Some marketers even see as much as $18 in earnings for each $1 spent.
66% of marketers expect to boost their influencer marketing expenses, as this marketing sector is quickly overtaking organic search, sponsored search, and email marketing as the fastest-growing channels for businesses.
Statistics like this one show how influencers affect their followers’ purchasing decisions.
According to 51% of marketers, influencer marketing helps them get more clients.
Influencer content has an 11x return on investment than standard digital marketing approaches.
Influencer marketing is the quickest method of acquiring new customers online.
It is the fastest-growing online client acquisition method, according to 28% of businesses.
Affiliate marketing was identified as the fastest-growing channel by only 3% of the organizations polled.
The term ‘Influencer Marketing’ has a global search volume of 76.9 thousand.
As of October 2023, The global search volume for the term ‘Influencer Marketing’ is 76.9 thousand. India and the United States have the largest share of searches, with 14.8k.
Google Trends gave the term a score of 90 in October 2023 on a scale of 100.
46% of users globally use adblockers. This is where influencer marketing comes into play.
As more people are blocking traditional ads from their online experiences, Influencers are filling that gap with their promotions. Netizens are not blocking content from their favorite influencer.
The power of advertising is moving from corporations to individuals and influencers.
Influencer marketing campaigns can cost between $10k to $500k.
43% of the marketers spend less than 10K on influencer marketing, and 22% spend between $10K and $50K. Meanwhile, 14% of marketers spend between $50K to $100K, and 11% spend more than $500K on influencer marketing.
Source: Influencer marketing hub.
75% of Influencers want to collaborate with businesses that share their values.
75% of influencers want to collaborate with businesses that share their beliefs.
This makes sense because any creator who starts promoting off-brand items risks losing their following.
E-commerce stores are managed by 51% of companies that work with influencers.
Half of the brands that promote their products through influencer marketing also have an online presence in the form of E-Commerce stores.
76% of marketers are more interested in collaborating with micro-influencers than celebrities.
Smaller influencers have a greater rate of engagement and are plentiful.
As a result, it’s no wonder that companies prefer to collaborate with micro-influencers over traditional superstars.
Micro-influencers came next, with 64% of marketers’ choice.
49% of marketers are worried about the ever-changing social media algorithms.
Social media networks are increasingly becoming a pay-to-play business.
Not only for marketers but also for influencers, organic reach is dwindling.
Almost 50% of influencer advertisers struggle to keep up with constant algorithm updates.
50% of marketers cannot determine whether or not an influencer has fake followers.
According to statistics, only 55% of Instagram users are actual humans.
Bots or inactive users account for the remaining 45%. Many influencers use dubious tactics to gain followers by purchasing them.
How much do social media influencers charge in 2023?
The table below displays the charges of social media influences with different numbers of followers.
| Activity | Nano Influencers Charge | MicroInfluencers charge | Power Influencers Charge | Celebrities Charge |
|---|---|---|---|---|
| Instagram Video | $114 | $219 | $775 | $3,318 |
| Instagram Post | $100 | $172 | $507 | $2,085 |
| Instagram story | $43 | $73 | $210 | $721 |
| Facebook post | $31 | $318 | $243 | $2,400 |
| YouTube Video | – | $908 | $782 | $3,857 |
>> Know in detail How Much Do Influencers Make.
Most Popular Social Media for Influencer Marketing In 2023.
A Hubspot survey revealed some key statistics about social media and influencer marketing. Here are the findings.
- 25% of responders chose Facebook, 20% chose YouTube, 16% chose Twitter, and 15% chose Instagram when asked about their favorite social media as of 2023.
- 52% of marketers want to invest more in TikTok in 2023.
- 26% of marketers are pushing short video platforms like TikTok and Instagram reels the most in 2023.
- 46% of marketers claimed they had the best return on investment (ROI) through TikTok compared to other channels like Twitter and YouTube in 2022, and they hope to see the same growth in 2023.
- 83% of marketers intend to raise their spending on YouTube shorts in 2023.
- More than 60% of marketers said Short-form videos are the most efficient & deliver the best ROI.
- 44% of marketers want to use audio-based social media features such as Twitter spaces, Reddit chat rooms, etc., in 2023.
63% of marketers plan to boost their influencer marketing spending in 2023.
72.5% of marketers aim to boost their influencer marketing expenses in 2023. Only 5% of people want to lower it.
Marketers will spend $4.62 billion annually on influencer marketing until 2024.
Marketers will spend an average of $4.62 billion every year on influencer marketing between 2021 and 2024, representing a 25% rise compared to previous years.
Keeping up with Influencer marketing trends is one of the biggest challenges for marketers.
According to a Hubspot survey, 28% of marketers face challenges in keeping up with the Influencer marketing trends.
Besides, 26% of marketers said that managing costs is the biggest challenge for them.
63% of influencer marketers would use AI and ML in their influencer marketing campaigns.
64% of these marketers look forward to using AI and ML for influencer identification. At the same time, 13.3% want to use it for locating and distributing relevant content, and 5.6% for identifying fraud influencers.
BONUS: At DemandSage, we review top agencies offering their services for a region. Here is a list of top Influencer Marketing agencies in India.
Related Reads:
Sources
