Study shows 57% increase in influencer impact amidst shift to Instagram stories and Tiktok
The prominence of influencers is mirrored in ad budgets, with 73% of organizations in the United States, the United Kingdom, and Germany reported that they spent more money on social media influencers than the previous years.
- In 2020, influencer partnerships had a 57% higher impact and effectiveness than in 2019.
- This year, TikTok’s sponsorship activity surged by 130%.
- Influencer marketing’s main source of growth is Generation Z.
On TikTok and Instagram Stories, influencers are moving away from the entire postings and toward quicker snippets. This echoes the shifts in consumer habits towards social media, pushed by Gen Z. The prominence of influencers is mirrored in ad budgets, with 73% of organizations in the United States, the United Kingdom, and Germany reported that they spent more money on social media influencers than the previous years.
Although the frequency of advertisement on Instagram posts decreased this year, the importance of influencers increased in reach and engagement, indicating that influencer relationships are still an important element of the marketing mix. Influencer marketing’s proportion of the market has risen from 31% in 2019 to 34% in 2020, indicating that Gen Z is a crucial source of growth. As the youthful demographic’s purchasing power develops, Gen Z could continue to support the share of the influencer market in marketing strategies.
Furthermore, TikTok’s growth as an influencing platform coincides with the expansion of the viral video app’s marketing possibilities. TikTok established a collaboration with e-commerce platform Shopify to enable companies and shops to sell their items through shoppable videos in September and later unveiled a strategy to showcase certified providers of marketing services on its app.
As the role of Gen Z in influencer marketing grows, organizations will need to adapt their strategy and prioritize their influencer partners to reach this group.