The Future of Influencer Marketing
Did you know that the influencer marketing industry is forecasted to reach $121 billion by 2030? As the creator economy evolves, influencer marketing is maturing and becoming increasingly performance-oriented.
The industry has undergone a significant transformation, moving from curiosity about its effectiveness to a focus on scalability and optimizing ROI and performance for businesses.
With more people turning to social media to make purchasing decisions, it's no surprise that 56% of consumers buy products based on creator content. TikTok, in particular, is a powerful platform for driving discovery, especially among Gen Z and Millennials, who are more likely to purchase based on creator recommendations.
Why Are People Coming to TikTok?
People are flocking to TikTok for education and entertainment, often leaving with more than they came for. A striking 93% of users take action on the content they see on their For You Page, and shoppers are twice as likely to buy directly from TikTok because of its engaging content.
However, the rise of "de-influencing"—where creators share alternative products or negative opinions about brands—reminds us that influence can work both ways. About 36% of consumers have been deterred from making a purchase after listening to a creator's negative review.
Despite the industry's growth, challenges such as proving ROI, measuring performance, and finding the right influencers persist. Here’s how TikTok can help refine your influencer marketing strategy.
Influencer or Creator?
Understanding the difference between influencers and creators is crucial for marketers and brands. An influencer can impact their audience's actions, while a creator focuses on content creation around a passion or niche. Brands should seek creators who also wield influence.
Influence comes in many forms, from mega-influencers like celebrities to nano-influencers, who might be your everyday customers or employees. Marketers can search and connect with creators using demographic, location, and age filters. AI-enabled search expands results to include creators posting about related topics, helping you find the perfect match for your brand.
Leveraging TikTok for Influencer Marketing
TikTok's introduction of TikTok One offers a centralized destination for marketers to access tools, connect with creators, and gain insights. With nearly 2 million creators available, brands can discover top agency partners and leverage creative tools to scale successful campaigns with ease.
Audience or Content?
When working with creators on TikTok, consider two key factors:
Audience: The primary value of the creator is increasing reach via their TikTok community.
Content: The creator increases conversions through content assets they create on TikTok and repurpose elsewhere, such as via Spark Ads, e-commerce product pages, or email marketing.
TikTok Symphony, a Creative AI suite, blends human imagination with AI-powered efficiency. Symphony simplifies everything from writing scripts to producing videos and optimizing assets, fueling real results with a new paradigm of creativity.
Photo or Video Content?
The debate continues: Which performs better, photo or video content? The Wall Street Journal reported that photo posts receive nearly twice the likes and three times the engagements of videos on TikTok. However, our analysis shows that the difference in return on ad spend (ROAS) between ad units with images versus videos is not significant.
Ads fully showcasing the creator drive significantly higher ROAS compared to ads featuring the creator’s hands using the product or solely showing the product itself. Our recommendation is to use a mix of both image and video ads, and consider the impact of featuring people versus products in your creative.
Measuring Full-Funnel Impact
Understanding the return on investment for influencer marketing is essential. Tools are available to measure full-funnel impact, showing earned media value, ROI, and conversion tracking. Collaboration with third-party measurement partners also tracks brand and sales lift.
Businesses have seen impressive results on their campaigns, with significant conversion lifts and sales impacts across various industries. TikTok's new Unified Lift tool integrates brand and conversion lift studies, giving businesses a comprehensive view of their campaign impact. Advertisers can now confidently maximize the results of their investments on TikTok.
Whether you're looking to measure ROI, find the perfect influencer, or leverage TikTok's creative tools, we're here to support you every step of the way.
Don’t miss us at next year’s Influencer Marketing Show, and in the meantime, explore influencer marketing strategies tailored for your business!