70% of Teens Trust Influencers More than Traditional Celebrities
It’s extremely difficult for brands to build the same level of trust that influencers possess, but thanks to influencer marketing that trust can be transmitted to your brand. So much so that 4 in 10 Millennial subscribers say their favorite influencer understands them better than their friends. Another effect of influencer marketing is that brands don’t have to waste resources promoting themselves, and instead use influencers to speak on their behalf and deliver the message they want people to hear and trust.
TikTok has created a $1 billon Creator Fund to nurture influencers
To encourage creators that dream of making a living from TikTok using their unique voice and creativity, the platform launched the TikTok Creator Fund in 2020. This fund requires creators to have up to 100,000 video views over a month to be eligible and is a reward to TikTokers for bringing joy to large audiences. The fund started at $200k and is expected to grow to $1bn in the U.S over the following three years. Their aim is to build an army of influencers that can make a living through brand partnerships, sponsorship and representation deals. Some of the first recipients of the fund were chef Matt Broussard, ‘Kombucha girl’ Brittany Tomlinson and prankster David Dobrik.
57% of Fashion and Beauty Companies Engage in Influencer Marketing
Fashion and beauty are industries that rely heavily on influencer marketing, as organic growth for brands has become more challenging without advertising and amplification. In this sector, 57% of companies now use influencers as part of their marketing mix, while 21% are planning to add this to their strategy in the coming year. Many brands now use influencers to great success such as Tropicana using @foreveryoursbetty, Tess Daly who has landed deals with Benefit and boohoo gaining hundreds of thousands of followers on Instagram. However, while many fashion and beauty brands are keen on using influencers, many want to ensure that those they choose have social consciousness sincerity to drive success.
82% of People Trust Social Networks to Guide Purchasing Decisions
Over three-quarters of consumers trust opinions they find on social media, including those from friends, families and influencers, to help them make the right decision about buying a product or service. This creates huge opportunities for marketers in the promotion of products (sponsored or not) to reach new audiences and influence key cohorts by catering to Gen Z and Millennials.
Marketers Spend up to $100,000-$500,000 on Influencer Marketing Campaigns
Spending on influencers has gone up over the past few years, and it’s only going to increase. Many budgets for influencer marketing are on the rise, with 19% of marketers expected to invest an average of $1,000-$10,000 followed by 18% spending $100,000 to $500,000 in multifaceted campaigns.