Influencer marketing is becoming the fastest growing channel for consumer brands

Influencer marketing is becoming the fastest growing channel for emerging and incumbent consumer brands, beating organic and paid search and email marketing in terms of growth. Worth $2B in 2017 influencer marketing is expected to reach $10B by 2020. The key reason is trust that influencers build with their followers. Around 80% of women before purchasing are seeking advice on social media. Half of them make a purchase due to influence post (and I am one of them!). Teenagers claim that they trust influencers more than celebrities and that their favorite influencers understand them better than friends.

Influencer marketing has also demonstrated a very good return on investment. According to Tomoson (influencer marketing platform), businesses earn $6.50 for each dollar spent on influencers with the top 13% earning $20 or even more. Influencer marketing not only allows to decrease CAC but also attract higher quality consumers. Therefore, an average budget for influencer campaigns for small-to-medium brands have grown to $25-50k and it’s expected to increase.

There will be more widespread use of influencer digital marketing tools and platforms that help to create and realize campaigns, measure and analyze results and manage relationships between brands and influencers. Some of the examples of such platforms include companies like AspirelIQ, Upfluence, NeoReach, Mavcrk, Traackr, Speakr, Famebit, Webfluential. Obviously, Pixlee, Tomoson, etc.