The document discusses the expansion of influencer marketing on social media. It defines influencer marketing as collaborations between companies and popular social media users to promote products or services. As social media platforms grew, more influencers emerged with dedicated followings, leading companies to work with influencers. The types of influencers are described based on number of followers. Current and future trends of influencer marketing expanding on platforms like TikTok and through smaller influencers are also outlined.

1. The Expansion of
Influencer
Marketing
(Social Media
Marketing)
Evan Mason
TESU
SOM-7020
10/16/2023

2. Overview
• The tremendous growth of social media has highly expanded the
influencer marketing segment
• A decade ago, only celebrities and a few prominent bloggers were
operating in the influencer marketing arena
• Now, in line with social media expansion, influencers have emerged and
have become a prominent force, packing punch
• Since they have considerable followers, develop higher engagement,
create enticing content, and foster authentic connections, companies are
increasingly using them as part of their social media marketing

3. Definition
• Influencer marketing refers to the collaboration between companies and popular
social-media users to promote the products or services of the former
• As more number of users began joining social media platforms, such as Facebook,
Instagram, Youtube, Tik Tok, Pinterest, Snapchat, and Twitter, several among them
evolved into content creators who developed their own multimedia content
• As those influencers’ followers or subscribers augmented and they built trust with
the latter, they were approached by companies to endorse or promote their
products or services
• Since they “have a dedicated social following and are viewed as experts within
their niche,” they have been able to successfully market products or services to the
target segment (“What is influencer marketing,” 2023)

4. Types of Influencers
Mega or celebrity influencers
• They have a huge following, particularly over 1 million followers, and often include
well-known actors, sportspersons, musicians, and other public figures
• They can attract a diverse audience, so they can be part of large-scale marketing
campaigns.
• However, they are extremely expensive, and their engagement rates might not be
high due to their broad appeal
Macro-influencers
• Typically have 100,000 to 1 million followers, and they might be “established
personalities within their respective niches” (“What is influencer marketing,” 2023)
• Also, they could have earned their reputation through steady content creation, so
they can effectively engage their followers compared to celebrities
• Nevertheless, they could still be a costly proposition

5. Types of Influencers
Micro-influencers
• Have 10,000 to 100,000 highly engaged followers, and they hold a considerable
presence on specific platforms, such as Instagram and TikTok
• They can “captivate a niche, passionate audience with their creative content,
relatable recommendations, and genuine interactions” (“What is influencer
marketing,” 2023)
• However, they might have consistency issues, so if they deficiently communicate
products or services, the whole campaign could fail
Nano-influencers
• Have less than 10,000 followers, and they cater to a small market segment using
any one of the social media platforms
• They are cost-effective and “often have strong connections with their audience,
thanks to their personable content and authentic engagement” (“What is
influencer marketing,” 2023)
• Nevertheless, they provide the smallest reach

6. Social Media Platforms
• Influencers might be active on all social media platforms or on specific platforms
• “Micro and medium influencers tend to prefer Instagram, for example, while macro
and mega influencers migrate toward TikTok” (“What is influencer marketing?”
2023)
• From the companies’ perspective, their target customer base could be more active
on particular platforms than others
• Hence, firms can choose an influencer who is active on a specific platform, on
which their prospective customers are actively engaging.
• “Although Instagram and TikTok are the most popular platforms for influencer
marketing,” companies should not discount the potential of the others (“What is
influencer marketing?” 2023)

7. Prospects of Influencer Marketing
• In recent years, companies have increased their budget for influencer marketing
• Since recent studies have shown that more than 50 percent of Americans are
buying products after seeing a post from an influencer, companies are more
inclined to invest in this arena (“What is influencer marketing” 2023)
• Although several influencers have a favorite social platform, they are attempting to
operate seamlessly across multiple platforms in order to attract more followers
• As live shopping has become an important trend and social media platforms are
incorporating live shopping feature into them, influencers are also facilitating
customers to buy products directly during live shopping sessions

8. Future Implications
• Among the different types of influencers, companies are mainly enlisting the
services of micro- and nano-influencers for their marketing campaigns
• Since those individuals “have smaller but highly engaged and loyal followers,”
companies can “establish more authentic and niche connections with their target
audience” through them (Ormos, 2023)
• Companies who have worked with micro- and nano-influencers have garnered
huge benefits, so they along with others are expected to continue using them
• According to a study by Influencer Marketing Hub, companies prefer to work with
small-scale influencers, with results showing that 39 percent of studied
organizations choosing nano-influencers as their most likely marketing partners
(“What is influencer
marketing” 2023)

9. Future Implications
• Among various social media platforms, influencer marketing is expected to be
highly active in TikTok
• According to a survey by Global Statshot, users are spending more time on TikTok
each month than any other social media platform. They are spending 31 hours, 14
minutes on TikTok followed by 27 hours on YouTube (Santora, 2023)
(Santora, 2023)
• Since TikTok has found favor among younger users, particularly young females, its
engagement rate is higher than any other social media platfrom
• Consequently, companies are allocating considerable money on TikTok-based
influencer marketing, and it is predicted that their budget could exceed 1.3 billion
in 2024 (Santora, 2023)

10. Future Implications
• Considering the huge potential of influencer marketing, companies are expected to
“collectively spend over $7.14 billion” on it in 2024 (Santora, 2023)
(Santora, 2023)
• Furthermore, they are supposed to conduct a long-term marketing campaign with
a particular influencer instead of a short campaign because of the effectiveness of
the former approach
• They are also expected to sign performance-based deals with influencers. “This
means that clients will expect influencers to deliver on their promises, such as a
specific number of sales or clicks” (Santora, 2023).

11. Way Forward
• Social media has become a huge catalog comprising excellent business tools that
can be used by companies of all sizes to enhance their functioning, including their
marketing campaigns
• Among the various marketing approaches, influencer marketing has become the
most sought-after option for companies
• It has led to the development of creator economy, which is actually the ecosystem
of content creators who enticingly market products or services through various
multimedia avenues, while also monetizing their skills
• The continuing technological advancements and people or customers’ increased
usage of social media platforms will push more companies practice influencer
marketing by enlisting different types of influencers

12. References
• Ormos, O. (2023, July 7). The future of influencer marketing and the expanding
creator economy. Forbes.
https://www.forbes.com/sites/forbesagencycouncil/2023/07/07/the-
future-of-influencer-marketing-and-the-expanding-creator-
economy/?sh=1aac336358e6
• Santora, J. (2023, October 10). 16 influencer marketing trends that will shape 2024.
Influencer MarketingHub. https://influencermarketinghub.com/influencer-
marketing-trends/
• What is influencer marketing: How to develop your strategy. (2023, April 17).
Sprout Social. https://sproutsocial.com/insights/influencer-marketing/
• What is influencer marketing? (2023, April 10). McKinsey & Company.
https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-
is-influencer-marketing