According to the latest statistics by Statista, the global influencer marketing is expected to grow to $162 million in 2020 and surpass $370 million by 2027. With the rise of the IoT and various social media platforms, it’s easy to see why companies would turn to influencers to promote and market their brands. The growth in influencer marketing has caught on in Central and South America as well. Research by eMarketer reveals that Instagram usage in Latin America grew from 34.5% in 2015 to 44.4% in 2016, and that this growth is expected to double by 2022.
The industry has become so large that it’s now impossible to ignore.
For decades, brands have been using media stars, supermodels and famous athletes as their brand ambassadors. However, an article by the Latin American Post explains that these company ambassadors have been replaced by digital pioneers that enjoy significant online power. Since influencers have a large number of followers and are familiar with the language that appeals to a larger audience, they provide companies with new and innovative ways to engage and connect with consumers. In addition to this, influencers share a stronger rapport with their fanbase because they are able to use the accessibility of social media to establish more personal connections with followers and effectively gain their trust.
Among the various social media platforms, Instagram has been one of the most effective in bringing brands and products to consumers through influencers. Nowadays, consumers prefer subtle and relationship-based advertisements, and that’s what influencer marketing via Instagram is all about. A feature by Petal reports that influencers with 250,000 to 500,000 followers make upwards of $670 per post on their Instagram accounts. But even micro-influencers (people who have between 10,000 to 20,0000 followers) are noted by Business2Community to have higher engagements than macro-influencers because they have relatable content, interact with followers to boost engagement and produce content that looks more authentic. This is the reason why 80% of the influencers from Asia, Europe and Latin America are micro-influencers, as reported by the Business of Apps.
Coming from the side of marketers, aside from providing novel ways to reach customers, there is another reason why influencer marketing should be something worth considering. An article by Tech Jury highlighted how marketers can get 11 times higher ROI with influencer marketing strategies than with old school channels such as TV campaigns and magazine features. Influencer marketing works like word-of-mouth coupled with social proof, which is why they are effective in building the credibility of brands without spending too much. As of the moment, the most common influencer budget is $1,000 to $10,000 per year; however, ZDNet reports that this number is expected to rise by 40% in the next five years.
With the unstoppable rise of social media and how deeply entrenched technology is in our day to day lives, the importance of influencer marketing can no longer be denied. As highlighted in our previous post ‘Using Clothes to Make Political Statements: Can it Go Viral?’ even clothes can help you voice your opinion and make you go viral – so what could established influencers do?