Statistics point towards increasing brand spend on Influencer Marketing for 2020. What does this mean for your company/brand? Recently, 60% of 18-34 years old in South Africa say that their purchase decisions have been swayed by influencers on social media. (source: eConsultancy). Statistics show that the recent attitude of consumers are fostered by trusted endorsements by persons they feel an emotional connection with Influencers. Influencer marketing has been on the rise, both in South Africa and globally. SocialPubli.com, the leading global micro-influencer marketing platform, released a 2019 Influencer Marketing Report: A Marketer’s Perspective report. The report revealed that over half of respondents (53%) allocate at least 10% of their marketing budgets to influencer marketing. When asked about their investment projections for 2019, 60% of marketers said that they plan to further increase their influencer marketing budget in the upcoming year. 30% plan to maintain the same budget and only 2.5% expect to decrease their Influencer Marketing Hub in partnership with other researchers, conducted its sample study in the UK, and found that Influencer Marketing has continued to grow as an industry. It was a $1.7 billion industry in 2016, increasing to $3 billion in 2017. Growth continued to $4.6 billion in 2018 and is expected to continue its upward trajectory this year to potentially become a $6.5 billion industry for 2019-2020.
92% of the market surveyed believe influencer marketing is an effective form of marketing. And guess what? 86% intend to dedicate a high portion of their budget to influencer marketing. 63% of businesses who budgeted for influencer marketing intend to increase their spending over the next 12 months, with 17% expecting their influencer marketing spend to remain the same. 15% of respondents were unsure about what would happen with their influencer marketing budget, and only 5% intend to decrease their budget. In the US, Statists reveal a 39% decision by brands to increase their influencer marketing campaigns; 35% of brands are uncertain yet; 21% will remain the same; and only 5% of brands decided to decrease their budget on Influencer marketing campaigns.While some brands in South Africa have yet to embrace influencer marketing and some are to set aside budget for influencer campaigns, most are taking advantage of the new order. At R-Squared we have seen this happen, as the average influencer campaign budget from our clients has significantly increased over the last 18 months. The key to success with Influencer marketing is having the right influencer marketing expert create a perfect framework.
The statistics reveal influencer marketing has grown more than 3.5 times in less than 4 years because of its efficiency. We have seen globally in 2019 that 60% of marketers increased their influencer marketing budget. 86% in the UK have dedicated a significant portion of their budget to influencer marketing while 63% of businesses who budgeted for influencer marketing have decided to increase their influencer marketing over the 12 months. In the US, the decision by brands to increase their influencer marketing spend increased by 39%. Some of the most successful brands and agencies have moved a significant portion of their budget to influencer marketing.
Is your brand following the same trend
*Emmanuel Okonkwo works as External Communications at R-Squared Digital a leading influencer marketing creative agency in South Africa that works with most of the best brands and agencies in the country and internationally. R-Squared Digital is known for its masterful management and its specific industry expertise in designing, executing and managing influencer marketing projects that are extremely engaging, authentic, and protecting the brand equity.
Source: IAB South Africa