Johannesburg, July 2024: The global influencer marketing industry is set to grow to an astonishing $22.2 billion by 2025. If anyone ever doubted its staying power, this figure makes it clear: influencer marketing is here to stay.
In fact, according to the latest The State of Influencer Marketing Benchmark Report 2024, this growth is not just a global experience. In South Africa, the landscape is evolving rapidly, with local brands poised to capitalise on this growth through digital strategies and meaningful connections with consumers. The report reveals that 60% of brands that already budget for influencer marketing plan to increase their spending over 2024, demonstrating the sector’s intrinsic role in modern marketing strategies.
Influencer marketing continues to outperform traditional marketing channels. The report highlights that 85% of survey respondents believe influencer marketing to be an effective form of marketing, a clear increase from previous years. This confidence is driving more brands to allocate larger portions of their marketing budgets to influencer partnerships.
TikTok leads the way, utilised by 69% of brands engaging in influencer marketing, far surpassing Instagram (47%), YouTube (33%), and Facebook (28%). The appeal of these platforms lies in their ability to deliver visually compelling, short-form video content that resonates deeply with audiences.
A significant shift towards smaller influencers is also noted, with 44% of brands opting for nano-influencers (1k-10k followers) and 26% for micro-influencers (10k-100k followers). These influencers, known for their higher engagement rates and authentic connections with followers, are becoming key players in brand strategies.
“South African brands are increasingly recognising the value of these partnerships, diving into niche markets and forging deeper connections with their audiences,” says Pieter Groenewald, CEO of the Nfinity Influencer Group which owns influencer platforms such as theSalt and Webfluential.
Local brands aren’t just following global trends; they are setting standards. Albert Makoeng, MD of the Nfinity Influencer Group, says: “South African brands have always been at the forefront of innovation. The nature of influencer marketing presents an incredible opportunity for brands of all sizes to connect with consumers in more meaningful and impactful ways. By leveraging the unique qualities of our diverse influencer community, brands can achieve remarkable results that represent their innovative ways.”
The report further reveals that nearly a quarter of respondents intend to spend more than 40% of their entire marketing budget on influencer campaigns. This significant allocation underscores the growing trust and reliance on influencer marketing as a primary strategy for brand engagement and sales.
However, despite the promising potential, there are still challenges. Identifying the right influencers, measuring ROI, and managing campaigns effectively remain top concerns for brands. Yet, advancements in AI and machine learning are providing solutions. 63% of brands plan to use AI in executing their influencer campaigns, with 55% using AI for influencer identification. These tools are essential for providing detailed metrics on engagement rates, conversions, and influencer media value, ensuring every campaign’s success.
Groenewald adds: “We’ve developed sophisticated tools to help brands navigate these challenges. By providing detailed analytics and insights, we empower brands to make data-driven decisions and maximise their influencer marketing ROI. Our platform connects brands with the right creators, ensuring that every collaboration is strategic and impactful.”
Looking ahead, the report predicts continued growth in the use of AI and machine learning to enhance influencer marketing strategies. These technologies will enable better influencer matching, campaign optimisation, and deeper insights into consumer behaviour.
The State of Influencer Marketing Benchmark Report 2024 tells a promising story for the future of influencer marketing. With its high ROI, growing platform preferences, and the rise of micro and nano-influencers, the industry is set for significant growth.
For South African brands willing to embrace these opportunities, the future holds immense potential. As Makoeng aptly puts it: “The real challenge isn’t just to keep up with trends, but to stay ahead of the curve. With influencer marketing, brands can build genuine relationships with their audiences and make a significant impact in their industry.”