Social media marketing is a rapidly growing industry, with the use of influencer marketing becoming an increasingly popular strategy for brands. Many businesses, including Hunter, collaborate with influencers to promote brands; and this has proven to be an effective way to reach and engage with a larger demographic.
However, a recent article by BBC News revealed prices for sponsored content have escalated in recent years, which has prompted us to consider the true value of influencer marketing.
A report by Socialbakers revealed that influencer marketing will become a $10 billion industry in 2020.
This figure highlights the sizeable growth in influencer fees over the years, with the average sponsored Instagram post in 2019 being billed at more than 15 times the 2014 rate.
The report found promotional fees have also soared on other social media channels. For example:
A sponsored blog post has risen from $7.39 in 2006 to $1,442 in 2019.
Sponsored content on YouTube has grown from $420 in 2014 to $6,700 in 2019
A Facebook status has increased from $8 in 2014 to $395 in 2019
Promotional Twitter posts has elevated from $29 in 2014 to $422 in 2019
While working with influencers has been a favourable marketing strategy for many years, this report also found that influencer-sponsored posts have grown by 150% and hashtag marketing doubled in the last year alone.
From an agency perspective, this report provided a thought-provoking insight into the financial logistics of digital marketing and how rapidly this industry is expanding. We regularly outsource influencers for our clients and have found influencer marketing to be an undeniably effective tactic for promoting a brand’s products, services and events.
However, we must also consider that the substantial growth of the industry demonstrates a highly saturated market space, making it crucial to be strategic when selecting marketing avenues. For instance, working with influencers who genuinely understand and support your brand’s values and vision is a more effective strategy than working with influencers based purely on their following.
It is also important not to exclude other marketing avenues in your business strategy. Although influencer collaborations can be an effective way to promote your brand to a target audience, traditional media marketing is still a highly productive strategy and sometimes may even be a better option - depending on the industry.
You can read BBC News’ article on social media influencers here.