Scope of Influencer Marketing in 2020

SocialAdm April 6, 2020 1 Comment

The influencer marketing industry has picked up an enormous pace over the last 10 years. It shows no sign of slowing down as it is expected to grow to an approximate value of $9.7B in 2020. Though this is a relatively young industry, brands and influencers have become savvier at discovering increasingly effective approaches and modes of partnership for marketing campaigns.

Here are some of the trends we’ll be likely to observe in 2020:

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Micro-influencers vs Macro-influencers

Micro-influencers generally have anywhere between 1000 to 40,000 followers on a social media platform. These influencers usually rise from obscurity and have built up a specialist following over the years. They boast an organic bond with their small group of followers and hold genuine influence in their specific niche. The report shows a 300% rise in micro-influencers being utilized by firms since 2016.

Micro-influencers are seen to have engagement rates of 4.4% on Instagram, while mega-influencers had a rate of 0.7%. Their specialized fields make them assets for brands that align with their message and goals. Given the nature of the influencers’ close interaction with their fans, it is important that the values of the company align with what they promote.

Macro-influencers boast followings of anywhere between 40,000 to 1 million fans. Consumers find these influencers more credible owing to their following and tend to place a much higher value in brands associated with them.

With their extensive reach and strong online presence, macro-influencers continue to be ideal for creating brand awareness in 2020. Their audience is usually more diverse in nature, which means a macro-influencer could draw new consumers to a brand in a short space of time.

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Platforms

Image and video-heavy social media platforms pull a large audience, eager to interact with influencers. Instagram is seen to have beaten Facebook and YouTube since 2015 with 90% of all influencer campaigns including Instagram in marketing.

Video sharing app TikTok has experienced a rush in popularity with a record-breaking 113 million downloads in February 2020. This surge in popularity could make TikTok a lucrative platform to explore in influencer marketing this year.

While visual content is always a winner for influencer marketing, audio platforms show great potential for 2020. 165 million people in the US listen to podcasts, making them the newest way to reach potential consumers. Given the wide varieties of topics and niches available on podcasts, one could see this new medium becoming increasingly popular in 2020.

Demand for Transparency in Influencer Marketing

The Federal Trade Commission (FTC) of America and the Competition and Markets Authority (CMA) of the UK have taken a special interest in influencer marketing in 2019. The result will be a crackdown on the use of fraudulent methods to sponsor products and increase following.

In 2019, the FTC released a guide for online influencers to disclose their relationships with brands and paid sponsorships they engage in. Similarly, the CMA announced the necessity for influencers to disclose payment they have received from brands and to avoid misleading consumers by suggesting familiarity with products they have not used.

This report finds that only 14% of online influencers actually follow these guidelines. At this rate, one might anticipate a rise in real prosecutions by the FTC and CMA in 2020.

Rise in long-term influencer relationships

Short-lived single campaign influencer relationships are a thing of the past as brands strive to build long-term relationships and collaborations with influencers.

Long-term working relationships with influencers saves the brand time, money, and effort spent in finding new influencers for every new campaign. Selecting an influencer with a message and audience that matches the brand’s target market would guarantee more impactful campaigns.

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Conclusion

The Influencer Marketing Industry has rocketed over the past decade. Every month sees rises and falls in platforms and niches as this fast-paced industry continues to evolve. New competitors emerge in 2020 as TikTok gains popularity and Instagram breaks records in surpassing Facebook and Youtube. Nano-influencers (less than 1000 followers) are predicted to rise in popularity by 2022.

Market analysts predict this highly lucrative industry to be worth upwards of $15B by 2022. Proactive efforts and dedication on the part of the brand and the influencer would result in an enormously profitable business in the Influencer Marketing Industry in 2020.

Sources of inspiration:

About the Author:

With extensive experience in the commercial utilisation of multiple social media channels including Facebook, Instagram and YouTube, Jayant builds successful social strategies that increase brand awareness, promote customers engagement and ultimately drive web traffic and conversions. With an undergraduate degree in business administration and strong business acumen, he brings a customer-focused approach to online and social marketing.