Ben Jeffries Influencer Landscape Update 2021 - Industry, Consumer & Brand Insights

As CEO and co-founder of Influencer, I couldn’t be the prouder of my team and am looking forward to seeing what 2022 will bring! This year, collectively we have faced enormous challenges and have had to adapt to a new way of life once again. And, as always, we’ve witnessed notable shifts across the influencer marketing landscape. I wanted to dedicate my first newsletter of 2022 to a summary of key highlights from my landscape updates over the past year to help you inform your strategies for 2022. 

Stay tuned for my annual round-up dedicated to platform developments and user insights, coming tomorrow. 

If you’d like to receive these updates on a weekly-basis straight to your inbox, please subscribe to my newsletter here!

Too Long; Didn't Read

• TikTok overtakes Google to become the most popular site on the PLANET;
• Influencer marketing spend is predicted to hit $4 billion in 2022;
• The global influencer marketing platform size is forecast to reach $84.89 billion by 2028;
• Social media is expected to penetrate 52.7% of the global market by 2022; 
• Revenue taken by Facebook, LinkedIn and other social media platforms is predicted to be over $50 billion this year;
• Globally, 2.9 billion people are expected to play video games this year;
• By 2022, over 120,000 stores will be using AR within their eCommerce sales processes; and
• Brands who build virtual e-commerce experiences see a 400% increase in inbound interest and brand value.

Creator Insights

• 73% of content creators named Instagram Stories as the most effective content format;
• YouTube creators are 4x more effective at increasing brand familiarity than traditional celebrities;
• Creators have the potential to increase their ROI by up to 30% for every channel their influence is added to;
• Creators can help to build a loyal customer base as 39% are more satisfied with products they find through creator content;
• Creators can help to build a loyal customer base as 39% are more satisfied with products they find through creator content and 38% say that they stay more loyal to a brand if it is promoted by creators; and
• 78% of creative entrepreneurs reported that YouTube has had a positive impact on their professional goals.

Marketer Insights

• 72% of marketers believe that the quality of customers gained from influencer marketing campaigns are better than other marketing types;
• 88% of marketers prefer to work with content creators who have a following of 100,000 or less;
• 32.5% of marketers are most interested in engagement or clicks generated by an influencer marketing campaign;
• 93% of businesses agree that consumers are more likely to spend money with brands they feel connected to;
• Only 29% of consumers prefer to shop in-store now, a number which has decreased by 9% in the past year;
• 86% of large companies believe that first-party data is most important to their organisation's digital media strategy;
• 91% of marketers and advertisers say that their company’s social media marketing budget will increase over the next three years;
• 90% of enterprise marketers want to work with micro content creators, up from 80% in 2020;
• Marketers and advertisers interest in using TikTok in influencer marketing campaigns rose by 325% in just one year;
• 65% of marketers and advertisers indicated that measuring ROI continues to be the biggest pain point in influencer marketing; and
• 85% of marketers cite 'generating more business exposure' as the leading benefit of social media marketing.

Consumer Behaviour

• 79% of people say UGC highly impacts their purchasing decisions;
• 71% of consumers now get at least some of their news input from social media platforms;
• 50% of shoppers say that a personalised online experience is extremely important;
• 77% of shoppers say they feel more connected to a brand if they are able to contact them on social media;
• 66% of global online shoppers say their mobile device is quickly becoming their most important shopping tool;
• 60% of shoppers have reported making a purchase due to FOMO;
• 76% of consumers say the effort creators make to build a relationship with them is important;
• 92% of consumers trust earned media such as recommendations from peers over traditional media;
• Buy now, pay later services have seen a 34% increase in usage the latest holiday season;
• 53% follow creators to be entertained and 37% do so to get shopping inspiration;
• After a poor online experience, 38% of Gen Z consumers say they’ll give a brand just one second chance before abandoning it for a rival;
• Royal Mail & Warc study shows 42% of Gen Z trust mail ads and have searched for a brand online after receiving a piece of direct mail;
• 72% of consumers do not care about the number of social media followers creators have, it is all about the content;
• 56% of consumers say personalisation based on their interests, tastes and online activity is important;
• 71% of weekly users have taken any shopping action as a result of seeing content posted by creators;
• Being trustworthy (66%), informative (58%), relevant (53%), and authentic (50%) are the most important features of any content for shoppers;
• Customers are more than twice as likely to trust the reviews of people that they follow on social media over the marketing on a company’s own website;
• Over 56% of global consumers now prefer to follow ‘everyday influencers’ on social media over celebrities and ‘perfect’ influencers, as authentic content is more appealing;
• 89% of consumers want to text with their favourite brands, 57% of consumers worry brands will text them too frequently and 65% said receiving too many texts from a brand would make them opt-out;
• 71.8% of consumers expect to use voice technology more in the future;
• To be trustworthy and authentic, 50% of consumers say creator content needs to be credible and provide balanced opinions; 
• 72% of consumers only engage with marketing messages customised to their interests; and
• Consumers think brands are ‘best in class’ on social media if they: engage with their audience (46%), are transparent (44%) and create memorable content (39%).

Brand’s adapt to new technology advances, often in preparation for the Metaverse:

• The New York Times experiments with AR gaming, after introducing an AR-enabled crossword puzzle;
• Gousto launches a “Give it Some” campaign as they partner with Spotify, allowing users to match Gousto recipes to music listening habits;
• Nike has filed seven trademark applications as it prepares to enter the metaverse;
• Alexander McQueen, Dior and Prada are turning to digital avatars and AI idols to woo millennials;
• Purplebricks launch new high-speed virtual tours on TikTok as reports claim British adults take 25 seconds to make a judgement on a property listing;
• Google and YouTube crack down on climate change;
• Gymshark announce first permanent physical store on London’s Regent Street;
• Bumble partners with TikTok to support users as they get back into dating, in an effort to make more quality matches on Bumble;
• Younger consumers boost John Lewis Partnership performance with the Waitrose and Deliveroo partnership, generating £1m a week and reaching 13 million people;
• IKEA has announced a new collection with Swedish House Mafia. The collection hopes to explore music and creativity at home;
• Disney looks to develop rising TikTok and Instagram creators who can promote the Mouse House on TikTok, Instagram and YouTube;
• Clubhouse partners with TED;
• Google says that it's seen a 70% increase in the size of its product catalog, and an 80% increase in merchants on its platform over the past year; and
• Amazon invests in physical grocery stores.

Brand purpose, authenticity & diversity are important to influencer marketing:

• 74% of internet users want to see brands focus on acts of kindness in their social ad campaigns, and marketers and advertisers should take note;
• TikTok launch a ‘Black Creatives’ program, as part of the platform's efforts to ensure greater diversity on its platform;
• 71% of consumers believe advertisers should promote diversity in their online ads, and this has prompted Facebook to launch a 'We Create' initiative that highlights the work of 15 black creators;
• TikTok launches ‘CommunityTok’ promotional push to highlight subculture engagement in the App;
• 38% of consumers are more likely to trust brands that cast diverse people in their ads;
• Weekly Facebook users are 2.4x more likely to follow a creator with a more diverse background than they were previously;
• 45% of users discover more new brands as a result of seeing content posted by creators with a more diverse background;
• According to Instagram, there were over 1.3 million posts supporting 'Black-owned' or 'Black-led' businesses in the past year;
• 64% of Snapchatters around the world say they’re interested in supporting brands that celebrate inclusion and diversity;
• 70% of consumers believe large companies have a special responsibility to make the world a better place;
• 46% more likely to purchase from a brand that champions their purpose;
• 57% of consumers are actively looking to purchase from new and independent businesses for the first time;
• 62% of shoppers say they cared about at least one sustainable aspect when purchasing online in 2020;
• 55% of people in the UK say that it has become important for companies to behave more sustainably because of the impact of COVID-19;
• 39% of digital consumers say poor environmental records impact their purchasing decisions;
• 71% of Gen Z shoppers say they respond best to advertising that shows people in real life situations;
• 73% of TikTok users feel positive and emotionally uplifted after viewing authentic content; and
• To be trustworthy and authentic, 50% of consumers say creator content needs to be credible and provide balanced opinions.

The pandemic accelerated an already ravenous appetite for video content:

• 14% of marketers picked live streams as high-value content for businesses;
• 2021 will see the average US consumer have 95% of the leading video streaming apps installed on their mobile devices;
• Expenditure on digital video ads is expected to reach £9.3 billion by 2024;
• Video content is key, as 43% of consumers want more video content from brands;
• Brand websites that put videos on their landing pages see 80% more conversions;
• 50% of Millennials and Gen Zers say they ‘couldn’t live’ without video in their life;
• People are now spending more time on TikTok than they are on Facebook;
• A brand's website is 53x more likely to reach the top of Google's search page if it includes a video;
• 49% of people aged 18-34 have been influenced to purchase the products they’ve seen being used in streaming video content;
• In the UK, 78% of people say they’ve watched a live stream over the past 12 months;
• 85% of people would like to see more videos from brands this year;
• 47% of online shoppers would buy products directly from live videos; and
• Video content encourages visitors to stay on your landing page 5 times longer and increases conversion by 86%.

By 2026, forecasters expect the value of social-commerce sales to reach nearly $3 trillion:

• The use of shopping apps grew globally by 45% in 2020, and this number is expected to increase further in the coming year;
• Pinterest gets into live shopping with launch of Pinterest TV;
• ‘Shopping via tweet’ Twitter looks to tap into the rising mobile shopping shift;
• 113 million users tap on shopping posts to learn more about the product each month on Instagram alone;
• Over 45% of China's digital shoppers will buy via livestream in 2023. More than 320 million people in China will make at least one purchase from a livestream this year, according to the latest forecast;
• Twitter unveils its new 'Shop Module';
• 77% of weekly Pinners discovering new brands on Pinterest, it comes as no surprise that this platform will now enable product tagging and brand partnerships on posts;
• 58% of millennials said social media is an important information source when making shopping decisions; half of Gen Zers agreed, while just 12% of baby boomers said their shopping is significantly influenced by social media;
• Zuckerberg reported that there are more than 1.2 million monthly active 'Shops' on Facebook, which is a significant amount considering that Facebook only launched 'Shops' a year ago;
• Facebook is working to make in-stream shopping more habitual on the platform;
• 86% of brands are already using shoppable links to allow consumers to go from inspiration to purchase instantly, showing that shopability is a hot trend in influencer marketing; and
• Netflix creates a new revenue stream through 'Netflix.shop'.

Tomorrow I’ll be sharing another annual round-up with you all that will be dedicated to platform developments and user insights. Please ensure you're subscribed to this newsletter to not miss out on the final round-up of the 2021!

Finally, keep up-to-date with the influencer landscape throughout 2022 through subscribing to my weekly newsletter here!