Prediction: Methodical Rise of Influencers

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Prediction: Influencers will hit bottom lines

Status: Occurring

“Twitter, Facebook, blogging, and websites like empower people who were quickly losing leverage. The ability to impact bottom lines through influence will create new levels of corporate accountability and responsiveness. Companies like Klout are beginning to identify who these influencers are and how much social power they are packing.”

Econovation, 2011p.83

What Happened

Why The Influencer Marketing Industry Will Be A $5-$10 Billion Dollar Market In The Next 5 Years, Mar 2018

We published an in-depth study and methodology on the Instagram influencer marketing spend with advertisers possibly spending $1.6 billion on Instagram alone in 2018, and also proved to brands and the world that fake Instagram influencers and engagement could be costing advertisers up to $100 million each year — a fraudulent practice for some macro and micro influencers alike.

2017 was the first year the FTC filed a case against individual influencers (not just brands) after it was discovered a few months prior that 93% of top celebrities on Instagram do not follow FTC guidelines on proper brand sponsorship disclosure.

The Brand Value of Influencer Marketing in 2018, Apr 2018

94% of marketers who use influencer marketing find it an effective practice, and influencer marketing can generate up to 11x the ROI of traditional advertising. – Irfan Ahmad

Jessica and Elizabeth shared some stats to highlight the increasing value of influencers: “With 39% of marketers planning to increase their influencer marketing budget in 2018, and 19% planning to spend over $100,000 per program, the growing importance of this industry is apparent.”

Budgets increase for influencer marketing, Apr 2018

Three-quarters (75%) of national advertisers in the US make use of influencer marketing and they are reported to be so pleased with the discipline that 43% of them expect to increase their spending on it over the next 12 months.

That is according to a survey of 158 client-side marketers, polled by the Association of National Advertisers in November last year

The Power of Instagram: Brands Eye More social Media Influencers, May 2016

A new study by TapInfluence found that social media influence marketing is 11 times more effective than banner ads, meaning that social media accounts with wide followings, so-called “influencers,” are coveted by companies looking to reach plugged-in consumers.

Individual Influencers exert power over brands

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What’s Next?


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