Influencer MarketingOpen Influence

Are You Optimizing Your Marketing Budget with Influencers?

By September 5, 2019 No Comments

As influencer marketing solidifies itself as a dominant force in advertising, organizations have begun better tracking its scope and forecasting its future. Among a wealth of third-party and corporate studies, there’s a strong consensus that the percentage of marketing budgets dedicated to influencers is growing, fast. The amount of partnerships are up, influencer earnings are up, and a growing class of micro-influencers can now support themselves while delivering results. There are no signs of slowing down either: 39 percent of marketers reportedly plan on increasing their budgets for influencers by as much as 39 percent.

Nowhere is this better exemplified than Estée Lauder’s most recent earnings report. The beauty giant, which owns approximately 30 percent of market share, revealed they spend 75 percent of their marketing budget on digital, with a great portion of that being influencers. They explained this impressively heavy investment is a reflection of influencer marketers growing more sophisticated with their targeting – but more importantly, because they’re getting results.

If you’re a brand and some portion of your marketing budget isn’t directed to working with content creators, it might be time to re-evaluate. A study by Altimeter suggests that brands allocate at least 25 percent of their budgets for influencers.

Several studies suggest the influencer marketing industry will reach as much as 15 billion by 2022. As brands continue to see results – both in ROI and fostering stronger, more meaningful customer relationships – we can expect this trend to continue. Considering that every year, more users opt in to ad-blocking software, the ability to organically reach audiences via the content creators they love becomes a more obvious choice for reaching the next generation of consumers.

 

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