Influencer marketing is one of the fastest-changing industries as it’s also one of the most modern ones. And also – one of those that are constantly growing. Last year the industry reached $21.1 billion, up from $16.4 billion the year before. Further expansion is anticipated in 2024, and brands know this to be true: more and more of them allocate a standalone budget for influencer marketing. 47% of them already have it over $10,000:
Also, the influencer marketing industry is constantly undergoing profound transformations, shaped by innovative strategies and evolving consumer expectations. In this article, industry experts help you delve into the pivotal trends that are reshaping the industry, offering a comprehensive overview of the new directions in which brands and influencers are moving.
From the rising dominance of the hybrid model in influencer deals to the increasing emphasis on authenticity and human connection, these trends highlight a shift towards more sophisticated, data-driven, and results-focused marketing approaches. We also explore the significant roles of video content, virtual and augmented reality, stricter regulations, and the indispensable use of data analytics and AI tools in crafting successful campaigns.
In this article, you will find insights from industry experts, providing a forward-looking perspective on the dynamic world of influencer marketing in 2024. Join us as we uncover how these trends set the stage for a more refined, outcome-focused, and innovative era in digital influence.
2024 Influencer Marketing Statistics
Here are some key statistics that stand out from the report:
63% of brands allocated a standalone influencer marketing budget in 2023 (in 2020 there were 55%).
61% of brands choose the same influencers again to collaborate with, while 39% want to find someone new.
69% of brands prefer to work with nano- and micro-influencers, while 31% look for macro- and mega-influencers.
41.6% of brands now pay money to influencers, while only 29.5% give out free products.
55.5% of brands choose TikTok over other platforms for their influencer marketing.
Over 200 million influencers are monetizing their efforts in the world
Most of the influencers are Millennials – 45%.
76% of users have purchased after they saw the product on social media.
66% of consumers find short videos the most engaging content format.
Booming Popularity of Hybrid Model of Influencer Deals
The hybrid model in influencer marketing is becoming increasingly popular. This approach balances performance-based cost-per-action (CPA) campaigns, which are attractive to brands due to their direct correlation with sales or conversions, and fixed-fee deals that ensure influencers are compensated for their effort and creativity, regardless of the ad’s performance.
Hybrid deals typically combine a minimum guaranteed payment with a performance-based CPA component. This structure has been particularly successful in the gaming industry on platforms like Twitch, where ad integrations, banners, and overlays can update in real-time to show the streamer’s and the campaign’s performance.
In 2024, this hybrid model is anticipated to expand beyond gaming (where it is already well known) into other sectors such as fintech, trading platforms, subscription services, and e-commerce. This expansion suggests a growing recognition of the effectiveness of this model across various industries.
The frequency and application of hybrid deals are expected to see a significant increase in 2024, surpassing the levels seen in previous years. This trend indicates a shift towards more performance-oriented influencer marketing strategies.
Success in influencer marketing increasingly hinges on setting clear, initial goals and aligning campaign strategies with these objectives. Brands are adapting by using varied measurement methods that directly correlate with their specific campaign goals.
The upcoming year is poised to witness a more refined approach in influencer marketing, driven by data and precise goal alignment. This shift marks a maturation of the industry, moving towards more accountable and result-oriented practices.
Nadia Bubennikova, Head of Agency at Famesters
This trend shows the shift towards more sophisticated, data-driven, and results-focused influencer marketing strategies. The hybrid model of influencer deals, in particular, reflects a balanced approach that caters to both the needs of brands and influencers, offering a more sustainable and effective way to execute campaigns. This evolution indicates a deeper understanding of the value of influencer marketing and a commitment to optimizing its effectiveness through data and strategic alignment of goals.
Dominance of Video Content & the Rise of VR & AR
Short-form videos, particularly on platforms like TikTok, Instagram, and YouTube Shorts continue to be highly popular. These platforms have mastered the art of delivering snackable content that is engaging, easy to consume, and shareable.
Videos are outperforming photos and text posts in terms of engagement, with videos generating shares that are 1200% higher. Platforms like TikTok and YouTube Shorts are proving to be the most engaging according to 66% of consumers. Additionally, audiences find these short videos to be 2.5 times more engaging compared to longer video content.
The success of short-form video content lies in its ability to quickly capture attention, deliver a message, and entertain, making it a powerful tool for influencers.
Moreover, modern consumers, especially younger demographics, constantly seek new experiences and forms of entertainment. They prefer engaging content that offers an element of novelty and interactivity. Here’s where VR and AR technologies step in. With these technological advancements, storytelling techniques in influencer marketing are also evolving. Influencers now have more tools to create compelling narratives through a VR journey, AR interaction, or podcast series.
Videos are still ruling the roost, especially short-form content on platforms like TikTok and Instagram. They’re the go-to spots for cool, quick-hit content. Then there’s the rise of audio content, like podcasts, sneaking in as the new cool way to connect.
VR and AR are adding some serious magic, creating immersive experiences like stepping into another world. We will continue to see brands bring worlds from different universes alive in the real world using influencers at the center.
Elizabeth Walker’s, VP of Influencer Strategy at HangarFour Creative
Interactive and immersive content, like augmented reality experiences, is likely to become a focal point for influencer campaigns. This trend aligns with our observations of evolving consumer preferences and the demand for engaging, memorable content.
Frank Husmann, Co-Founder of Maxiality
Authenticity and Human Connection
This is one of the major trends shaping the influencer marketing industry and brands’ approach to it in 2024. The trend towards valuing authenticity and genuine empathy in influencers responds to the often polished and unrealistically perfect images portrayed in traditional media and advertising. Influencers who share real-life narratives, show vulnerability, and connect on a human level become more influential as they foster a deeper level of trust and relatability with their audiences.
This trend represents a significant shift in how audiences engage with digital content. For years, traditional media and digital platforms have been saturated with content portraying an idealized, often unattainable reality. You surely have seen this a million times on Instagram and other platforms: perfect photos of people with perfect bodies and faces in their perfect sterile houses, or some cars, or at resorts that are too expensive to be relatable for an average consumer. Shortly, this includes perfect lifestyles, flawless appearances, and manicured experiences. Over time, audiences have grown weary of this inauthentic portrayal, leading to a desire for more genuine and relatable content.
Influencers who share their real-life stories, including the ups and downs, challenges, and successes, resonate more with audiences. This authenticity helps break down the barriers that often exist in digital spaces. When influencers show aspects of their lives that aren’t picture-perfect, it humanizes them, making their content more approachable and relatable.
Consumers are increasingly savvy and can spot a fake influencer from a mile away. Brands that want to be successful in influencer marketing need to partner with creators who are authentic and transparent with their audiences.
Micro-influencers have smaller followings than macro-influencers, but they tend to have more engaged audiences. This makes them ideal for brands that want to reach a specific niche market.
Rahul Yogi, a Digital Marketing Executive at Arizone International LLP
Authenticity and vulnerability help in building deeper trust between influencers and their audience. When influencers are perceived as genuine and trustworthy, their recommendations and opinions carry more weight. This level of trust is crucial for influencers when they endorse products or advocate for causes, as it translates into a higher level of influence.
Brands increasingly recognize the value of partnering with influencers who can connect with audiences on a deeper level. Authenticity in influencer marketing leads to more effective campaigns, as audiences are more receptive to messages that come from a trusted source. Therefore, brands seek influencers who align with their values and genuinely connect with their audience.
I’m betting on authenticity becoming even more important. Influencers who can create genuine, relatable content are going to be the stars. It’s like people are tired of those too-perfect, staged posts, you know? They want real stories, real experiences.
Then, there’s the rise of micro and nano-influencers. I feel like brands are starting to realize that sometimes, smaller is better. These influencers might have fewer followers, but they often have a much stronger connection with their audience. It’s like having a recommendation from a friend rather than a celebrity.
Hilda Wong, Founder of Content Dog
The trend indicates a more mature, diverse, and authentic phase of influencer marketing, where deeper connections and genuine influence are valued over superficial metrics. For businesses, this means being more strategic and thoughtful in influencer collaborations, ensuring a true match in values and messaging.
Stricter Regulations and Industry Standards
With influencer marketing coming under increased scrutiny, there’s a growing likelihood of stricter regulations and standards being introduced in 2024. These regulations aim to ensure greater disclosure, transparency, and authenticity in influencer marketing practices.
Given the increasing scrutiny around influencer marketing practices, it is possible that 2024 will see the introduction of stricter regulations and industry standards. Influencers and brands may be required to adhere to specific guidelines regarding disclosure, transparency, and authenticity. This could include clearer guidelines on labeling sponsored content and the disclosure of partnerships.
Joseph A. Federico, Founder and CEO of Anchors To Dusk Publishing, LLC
Influencers and brands are already required to follow specific guidelines that mandate clearer labeling of sponsored content and transparent disclosure of partnerships, and this tendency will only continue gaining power and meaning. This means explicitly stating when content is sponsored or a product is endorsed as part of a paid partnership.
The challenge for businesses is to align influencer integrations with the same compliance rigor applied to direct advertising. This alignment is crucial to maintain consumer trust and avoid potential legal pitfalls. The complexity increases as businesses operate across international borders. Different countries have their own sets of laws and regulations governing influencer marketing. Companies must, therefore, navigate this intricate tapestry of legislation, ensuring that their influencer campaigns not only engage audiences but also comply with local regulations.
Influencers will need to be more mindful of the content they create and the partnerships they enter, ensuring they adhere to the evolving regulatory landscape. Brands, on the other hand, must be diligent in selecting influencers who understand and comply with these regulations.
I would say that one noteworthy trend in influencer marketing to remain vigilant pertains to the regulatory frameworks governing the industry. Concerns have been expressed by government agencies and watchdog organizations regarding the transparency of influencer marketing. In the past, correspondence has been dispatched by the Federal Trade Commission (FTC) to influencers who neglected to publicly disclose their endorsements. They are concerned that misleading consumers will occur. Therefore, in an effort to prevent the dissemination of false information, governmental authorities are increasing their oversight of influencer marketing. Furthermore, it appears that this influencer marketing trend will persist in the years to come.
An additional issue that has been raised is the omission of comprehensive information pertaining to a given product. An example of this is when Kim Kardashian endorsed the morning sickness medication Diclegis without disclosing its adverse effects. After the campaign was met with considerable opposition, the Food and Drug Administration of the United States became involved. Ultimately, Kim Kardashian was compelled to remove the post and re-post one that elaborated on the dangers associated with ingesting the substance.
Eleanor Kinney, Founder of PriceMyGarden
Emphasis on Data Analytics and AI Tools
Brands are moving towards a more systematic, data-driven approach, emphasizing the use of KPIs to quantify success. This means that instead of just looking at surface-level metrics like likes or follower counts, brands are digging deeper into data to understand the real impact of their campaigns.
Nadia Bubennikova, Head of Agency at Famesters
Brands are increasingly turning to advanced data analytics and artificial intelligence tools to measure the effectiveness of influencer campaigns. This shift allows for more precise campaign performance tracking and provides actionable insights for future marketing strategies. As the influencer marketing industry matures, there’s a growing focus on strategies driven by data and tangible results.
Brands seek concrete metrics such as engagement rates, click-through rates (CTR), and conversion rates (CR) to evaluate the success of their campaigns. This move towards quantifiable metrics represents a shift from viewing influencer marketing solely as a branding exercise to recognizing it as a vital part of the marketing mix with measurable outcomes.
The future of influencer marketing is destined to be data-driven. Companies are poised to intensify their dependence on advanced analytics and technology, employing precise metrics to gauge the efficacy of influencer campaigns.
This strategic shift towards data-driven insights ensures a more nuanced understanding of campaign performance, optimizing the impact of influencer collaborations in the evolving landscape of digital marketing.
John Dorris, President and CEO of Autoinfu
As return on investment and performance metrics become more critical, brands adopt a data-driven approach in selecting influencers, planning campaigns, and measuring success. By leveraging analytics tools, brands can assess an influencer’s impact on specific business objectives, such as improving conversion rates, enhancing brand sentiment, or increasing customer acquisition. The method ensures a more strategic alignment between the influencer’s audience and the brand’s target market.
With the increasing emphasis on ROI and performance metrics, data-driven influencer marketing strategies could gain prominence in 2024. Brands may leverage advanced analytics tools to assess an influencer’s impact on specific business goals, such as conversion rates, brand sentiment, and customer acquisition. This trend could lead to more strategic and targeted influencer partnerships, optimizing marketing budgets and ensuring a measurable return on investment.
David Victor, CEO at Boomcycle Digital Marketing
This data-centric approach enables brands to optimize their marketing budgets. By identifying and collaborating with influencers with a proven track record of influencing consumer behavior in relevant ways, brands can ensure a more efficient and effective use of their resources.
The trend that I believe will be most popular in 2024 is performance-based deals. This is because brands are becoming more focused on ROI, and they want to make sure that their influencer marketing campaigns are delivering results. Performance-based deals allow brands to track the results of their influencer marketing campaigns and only pay influencers based on their results. This is a more efficient and effective way to use influencer marketing, and it is likely to become more popular in 2024.
Tom Vota, Marketing Director at Gotomyerp
Influencer Marketing’s Evolving Trends
influencer marketing is undeniably evolving into a more nuanced and strategic domain. Expert insights reveal that the industry is pivoting towards a blend of authenticity, advanced technology, and data-driven approaches. The emergence of hybrid deal structures, the integration of VR and AR, and the adherence to stricter regulations reflect a maturing landscape. This evolution, driven by a deeper understanding of audience engagement and measurable ROI, signifies a pivotal shift in how brands and influencers will connect with their audiences. As we look forward, these trends are not just shaping the present of influencer marketing but are also setting the groundwork for its future trajectory.
If you are looking to stay ahead of the curve, now is the time to embrace these emerging trends. Explore innovative strategies, integrate them into your marketing plans, and harness the full potential of influencer marketing. Reach out to influencers who align with your brand values, experiment with new technologies, and leverage data-driven insights to craft campaigns that resonate with your audience. The future of influencer marketing is here, and it offers a world of opportunities for those ready to adapt and innovate.
Download Famesters 2024 Influencer Marketing Report
©2024 DK New Media, LLC, All rights reserved.
Originally Published on Martech Zone: Influencer Marketing Trends: Experts Reveal Strategic Evolution and Key Insights for 2024