In the golden age of social media marketing, there’s one subsection that has really stood out: influencer marketing. Getting endorsements from celebrities, influencers or someone with an audience can do wonders for growing your business and has proven to be an extremely cost-effective way of moving product.
At MarketPryce, we specialize in the athlete variety of influencer marketing. Through our two-sided marketplace, brands can connect (for free) with hundreds of pro athletes and agents in a few clicks and close a marketing deal.
In this piece, we break down some of the key advantages of and trends in influencer marketing.
Influencer Marketing Growth
Worth just north of $1.5 billion in 2016, the influencer marketing advertising industry value rose to $9.7 billion in 2020, according to Influencer Marketing Hub. By the end of 2021, the sector is set to be valued at more than $13 billion.
Marketers are seeing value in the industry and the amount of funds pouring into it year over year is proof. In upcoming years, we predict this curve to only get steeper and steeper.
Influencer Marketing Return on Investment
Return on investment is key to every marketing decision. Influencer Marketing Hub found that for every $1 spend on influencer marketing, $5.20 of value comes from it. This kind of return is incredible! Brands aren’t doubling their investment, they’re multiplying it by five when working with an influencer.
Comparing it to other popular trends, influencer marketing is beating out paid search in terms of ROI. According to a MediaKix report, 89% of marketers found that ROI from influencer marketing is comparable, better, or much better than ROI from other channels.
Micro Influencer Marketing
While there isn’t a set definition for “micro-influencer,” the term generally means someone with a smaller following who still has an audience they can reach. At MarketPryce, we work with lots of micro-influencers — athletes who have social media followings in the thousands instead of the hundreds of thousands or millions — and they’ve secured some awesome deals.
A study from the Keller Fay Group found that 82% of respondents said they were very likely to follow a micro influencer’s recommendation. Having a small audience can mean a much more personal connection with a fan, and this can be hugely impactful from an advertising perspective.