Influencer marketing has grown exponentially year on year since it first came into the spotlight. Influencer Marketing Hub has detailed growth from $1.7 billion in 2016 to at least $15 billion in 2022. However, 2023 influencer marketing and beyond, what does that hold? It’s only reached these heights because it’s continued to evolve, so where does it go from here?
What is Influencer Marketing
Social media influencer marketing is when a brand or agency ‘partners’ with social media creators to promote a product or a service, usually in return for money, but sometimes in return for ‘gifts’.
Statistically, and through comprehensive research, it has been proven that people are more likely to purchase something if they’ve been recommended it by somebody they trust. Influencers carry a high level of trust and so we’ve come full circle.
Brands and agencies will work with influencers with relevant audiences who are more likely to be drawn to their products, because common sense and that is ultimately one of the most important ways to deliver the best results.
Current Trends in Influencer Marketing
As we come to the end of 2022 there are some key things that we can take away from the current trends in influencer marketing. Here are 3 of the biggest changes that we saw throughout 2022.
Micro Influencers
Micro-influencers are those on social media who tend to be seen as more authentic and relatable than either celebrities or those with bigger audiences. There are various reasons why brands are increasingly turning to micro-influencers, but most of them stem around engagement.
Greater Transparency and Regulation
Transparency and regulation have been at the forefront of influencer marketing this year. In December 2018, Instagram announced a policy that required all influencers to disclose if they have received payment for promoting a product. Although this had been in place for a few years, it was rarely enforced.
With more brands demanding greater transparency, the number of influencers being penalised is set to rise and I’m sure this is something the Advertising Standards Authority and the Committee of Advertising Practice.
Increased Use of Technology
Partnering with influencers is becoming more data driven. Many brands are now turning to technology to identify influencers. Brands and influencers alike are increasingly turning to either a) influencer marketing agencies like Colossal Influence or b) paid tools to help them manage the entire process with varied results. From automated contract creation to more efficient payment methods, technology is making this process easier.
What to Expect in Influencer Marketing in 2023 and Beyond
As the industry continues to evolve, there are a few key trends that will likely come to the front. Emerging trends in influencer marketing include; greater use of artificial intelligence and blockchain technology.
Blockchain and AI in influencer marketing have started to come to the forefront, but in our opinion unsuccessfully. Influencer marketing and crypto specifically has been in the spotlight. AI creators started to offer something different, but there was a burst of success then things went quiet.
While it’s impossible to say what the future holds, I expect that the technologies above will play a key role.
Tips for Staying Ahead of the Curve
As the future of influencer marketing becomes clearer, brands that are able to stay ahead of the curve will be in the best position. Traditionally, brands have focused on ‘Top-tier’ influencers. In order to stay ahead of the curve. As time passes a funnel approach for big budget campaigns has started to become the norm.
Working with influencer marketing specialists
Brands that can automate the process of finding influencers will be able to scale their campaigns much more quickly. It’s super important to work with influencer marketing specialists like Colossal Influence to get the best value from influencer marketing campaigns.
As the world of influencer marketing continues to grow, brands, agencies and creators alike need to stay on top to succeed.
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