Influencer marketing has been on the rise in recent years, with businesses of all sizes utilizing the power of social media influencers to reach new audiences. And it's no surprise because - influencer marketing can bean incredibly effective way to boost brand awareness and drive sales.
In fact, a report by Statista found that approximately 3.7 billion U.S. dollars were spent on influencer marketing in the United States in 2021. This number would mark 33% increase compared to 2020.
According to Influencer marketing hub, the United States has a large number of influencers, which is attributed to its size as the biggest consumer market in North America (Santora). Some cities that feature prominently on this list include Los Angeles, New York City, and Atlanta among many more.
So, what's behind this growth? There are a few factors driving the increasing popularity and spending on influencer marketing.
More returns: Return on investment (ROI) from influencer marketing is comparable to or better than other marketing channels. Influencers have a large and engaged following, so when they promote a product or service, it can result in a lot of exposure for little cost.
Greater trust: Influencers are seen as more trustworthy than traditional celebrity endorsements. People are more likely to believe what an influencer has to say about a product or service than what a celebrity has to say, as they are seen as more relatable. That's why most brands are choosing to work with micro-influencers.
Micro-influencers are often more effective than larger ones because they have very specific niches. This means a highly targeted audience that leaves you with higher conversions, and an authentic feel to it all thanks in part by micro-influencers commitment towards their craft.
Their marketing efforts are typically seen as much stronger when compared side by its authenticity vs other types of celebrities or brands who may only care about getting views instead caring whether those watching actually follow through on what was promised from start!
Ads Blocking: There has been an increase in the usage of Ad blockers in the US in 2021. The number of people who use ad blocking on their devices is on a rise. According to a CNETNews report, 40% percent or more than half the US population are now estimated to have blocked ads, which means they want privacy and security without any annoyance from them either (Shankland).
Adblocking is on the rise among younger internet users, who are resorting to this practice more than ever before. Aside from protecting themselves from pesky ads that pop up everywhere they go online, some people use ad blockers as malware protection too!
Most companies relied on running ads on websites and platforms like YouTube and these ads are not reaching the audience they have ad blockers installed. The best remaining option to reach them is via word of mouth. Influencers have proven to be the best in word-of-mouth marketing.
Drives more engagement: There isa correlation between the quality of content and how well it performs. Influencer-generated posts generate better results than those created by brands. Influencer marketing hub states that 60% of marketers note that influencer content drives more engagement from consumers compared to branded counterparts.
The Rise of TikTok: TikTok, the short-form video app, has created a new avenue for brands and influencers to work together. The app is popular with GenZ, who are more likely to respond to influencer marketing than any other age group. Influencers on TikTok can reach a large number of people in a very short time.
With over 138 million monthly active users in the U.S., it's no surprise that TikTok has become one of America’s favorite social media apps! The number of mobile unique monthly visitors to TikTok grew from 22 million in January 2021 to 28.8 in March 2021 (Wallaroo, 2021).
As Influencer marketing continues to grow in popularity, we can expect to see even more brands utilizing this form of marketing to reach their target audiences. We can also expect to see Influencers becoming more strategic in their partnerships, and working with brands that are a good fit for their audience.
Influencer marketing is a hot new trend that will be gaining momentum in the U.S., with spending reaching $3 billion last year and expected to exceed 4 billion by 2022 (99Content). While growth was more modest in 2020 (14.4%), it's anticipated this number can grow exponentially going forward as well--not including any other rewards such as free products or trips given out from influencers!
Also, social media usage continues to grow. In 2021, over 82% of Americans have a social media profile. This is an indication that people are becoming increasingly interested in using these sites for networking purposes as well as staying updated with friends' and family members' news through blog posts or photos on their profiles.
An Insider Intelligence report shows that 35.9% of social media users in the US made at least one social commerce purchase in 2021 (Intelligence). A report by Statista shows that 8 in 10 US businesses anticipate selling on social media within the next 3 years (Chevalier).
And it's not just America: every country across Europe has seen hugegrowth when compared to last year’s numbers!
In conclusion, it's evident that influencer marketing is on the rise inthe United States, with businesses spending more on the tactic each year. Asthe U.S. market for influencer marketing continues to grow, businesses would be wise to consider using this strategy to reach new audiences.
Influencer marketing can be an incredibly effective way to boost brand awareness and drive sales, so it's no surprise that the tactic is becoming increasingly popular.
What do you think about Influencer Marketing in the United States? Let us know your thoughts in the comments below!
99Content. "Influencer Marketing Spend." 99firms , 3 Jan. 2022,99firms.com/blog/influencer-marketing-spend/.
Chevalier, Stephanie. "U.S. Social Network Sellers by Company Size2021." Statista,30 July 2021, www.statista.com/statistics/1253515/united-states-businesses-social-media-commerce-company-size/.
Intelligence, Insider. "Social Commerce 2022: Social Media andEcommerce Convergence Trends Bring Growth Opportunity for Brands." Insider Intelligence, 28 Jan. 2022, www.insiderintelligence.com/insights/social-commerce-brand-trends-marketing-strategies/.
Santora, Jacinda. "Influencer Marketing Stats | 100 InfluencerMarketing Statistics for 2021." InfluencerMarketing Hub, 14 Feb. 2021,influencermarketinghub.com/influencer-marketing-statistics/.
Shankland, Stephen. "Ad Blocking Surges on Smartphones As We AvoidClutter and Seek Privacy." CNET,3 May 2021, www.cnet.com/news/privacy/ad-blocking-surges-as-millions-more-seek-privacy-security-and-less-annoyance/.
Wallaroo. "TikTok Statistics - Everything You Need to Know [Feb2021 Update]." Wallaroo Media,8 Mar. 2022, wallaroomedia.com/blog/social-media/tiktok-statistics/#.