Conversions and sales have become the most common methods to measure the success of an influencer campaign according to a survey among 4,000 brand marketers by CreatorIQ and Influencer Marketing Hub.
Around 65% of respondents said they measured ROI from influencer campaigns as the influencer marketing industry is expected to reach $9.7 billion in 2020.
More than 380 new influencer marketing agencies and platform were founded last year, showing just how interesting (and lucrative) the tactic is becoming.
The average earned media value per $1 spent has risen to $5.78 according to the report.
But it’s not all about super creatives with millions of followers. Instead, 300% more micro-influencers were utilised by big brands in 2019 compared to 2016.
Over half (55%) of marketers admit that they have a standalone budget for content marketing and 4/5 of respondents dedicate a budget to influencer campaigns in 2020.
The majority (91%) also said that they believed influencer marketing was an effective form of marketing as 80% of firms take their influencer marketing spending from their marketing budgets.
And its hardly a surprise, but Instagram continues to be the platform of choice for 87% of influencer marketers, but given TikTok engagement rates the short video app may quickly encroach on Instagram’s territory.
However, challenges prevail and fraud is on the rise with 2/3 of respondents previously having experienced influencer fraud.
Meanwhile, marketers admitted that finding influencers was one of the greatest challenge for them.