Influencer marketing projected to hit £930m by year’s end

The UK’s influencer marketing spend is expected to reach £930 million by the end of this year, Sprout Social has revealed.

According to the software development company, the move is projected also to see rise of nearly 50% to £1.3 billion by 2029.

Speaking at the Digital Marketing World Forum (DMWF) at London’s Olympia earlier this week, Sprout Social Director of International Marketing, Cat Anderson said: “The influencer landscape is evolving rapidly. They [influencers] are no longer just for raising awareness; they are integral at every stage of the customer journey, from consideration to loyalty and advocacy.”

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Anderson added the industry is now moving away from massive audiences to smaller, more niche ones, revealing micro-influencers, those with 10,000 to 100,000 followers, now achieve 7% more engagement than mega influencers.

“Micro-influencers are proving to be more effective and affordable. They reduce customer acquisition costs by 45% compared to traditional advertising. Brands using influencers see a 48% increase in sales, and 73% of consumers are influenced by reviews and recommendations from influencers,” she stated.

Meanwhile, Anderson, who has been with the company since February 2021, addressed some challenges and solutions when it comes to dealing with influencer marketing.

  • Finding the right influencer: Identify influencers whose values align with your brand and whose audience matches your target demographics.
  • Managing relationships and expectations: Clear communication and setting expectations are crucial.
  • Ensuring authenticity: Authenticity builds trust. Work with influencers who genuinely like your product.
  • Monitoring costs and contracts: Negotiate fair compensation and ensure clear agreements.
  • Measuring effectiveness and ROI: Use the right tools to track performance and avoid vanity metrics.
  • Adapting to algorithm changes: Stay flexible and ready to adapt to social media algorithm updates.
  • Mitigating risks and managing crises: Assess risks and plan for potential crises.
  • Compliance and disclosure: Ensure all influencer content complies with legal requirements for disclosure.
  • Long-term relationship management: Build lasting relationships with influencers to keep their audience engaged.
  • Content strategy and alignment: Continually align your content strategy with your influencer collaborations.

“Influencer marketing is evolving, and with the right strategies and tools, it can significantly benefit your brand,” Anderson concluded.