As the demand for video content continues to rise, so does the popularity of user-generated content. A Grand View Research finding projected that the globally User Generated Content Platform Market will grow by 29.4% of CAGR by 2030.
Speaking of UGC we must also address the growing popularity of Tiktok which is currently one of the most downloaded social media platforms with over 1 billion active monthly users. It’s no secret that increasing usage of the app and consistent growth of fast and dynamic video content uploaded by TikTok’ers make it an obvious choice for brands looking to boost consumer visibility and engagement.
According to a survey report, TikTok’s UGC also performed ‘22% better than TikTok brand videos, 32% higher than Facebook ads and 46% higher than conventional ads’.
So, brands are choosing TikTok to help grow their business and increase sales. The influencer market is currently valued at $16.4 billion and is set to grow. So as people spend more time on social media platforms like TikTok, your brand should also look for ways to tap into this market.
But what is the state of TikTok influencer marketing in 2023 and why should you consider it?
TikTok is a smart choice for influencer marketing as its users spend an average of 46 minutes daily on the app. It has ushered in a new era of video content which keeps users hooked to the platform.
Additionally, it differs from traditional social media marketing channels which are usually driven by followers and similar social graphs.
TikTok’s unique algorithm can position your videos in front of others, even on day one, helping increase your reach and engagement. Its users also have a high chance of viewing your videos based on their search history or hashtag followings. It boosts brand engagement and discoverability to consumers, with potentially higher purchase intent.
This opportunity is doubled by working with influencer collaborations which empowers brands to reach larger audiences, fast and credibly.
As per the Insight into Culture Drivers for TikTok report ‘Partnering with creators on TikTok boosts view-through rates for TikTok specific ads by 193%, and branded content coming from creator collabs shows a 27% higher Ad Recall. Even TikTok users themselves agree - 62% say that creators are the best way for brands to connect with consumers.’
So as a brand, TikTok influencer marketing can help you gain popularity and boost sales.
It is estimated that the global Influencer Marketing Economy will have a Compound Annual Growth Rate (CAGR) of 33.4% by 2030. This is validated by the figures below:
These are one of the many reasons why marketing activity on TikTok increased exponentially. Currently, it is the most popular channel used by brands engaging in Influencer Marketing.
However, influencer marketing is the most preferred channel when it comes to marketing activities on TikTok because:
The potential of such purchases and reach is much higher on TikTok as it has the highest influencer engagement rate, with an average rate of 15.86%, and in the US it's even higher at 17.99%.
So, creating a consistent platform presence increases brand visibility and sales.
Therefore, 45% of marketers used TikTok for influencer marketing campaigns in 2022, which is expected to grow by 4% in 2023.
As of 2020, there were about 106 thousand influencers on TikTok which almost tripled from 2019. This is because more and more companies are collaborating with influencers to validate their social presence authentically.
If you are already gearing up to create an effective TikTok influencer marketing strategy for your brand, you might want to consider the following stats as well:
As per Influencer Marketing Report Benchmark 2023, most brands will choose to market with smaller influencers in the near future. They are more affordable, have a genuine following, and can create a higher impact with relevant and relatable content.
This data validates the Linqia report where 77% of marketers shared they want to work with micro-influencers than traditional celebrities or mega influencers. As they have good engagement and high reach towards more niche and targeted audiences.
Currently, 56% of marketers who invest in influencer marketing work with micro-influencers.
Additionally, micro-influencers have the highest engagement rates. As per an industry report micro-influencers not only had the highest post engagement rates among all influencer types and it is even higher on TikTok than other channels.
This also validates the study on TikTok shopping behavior worldwide where 45% of respondents mentioned they shop from paid influencer recommendations on TikTok.
There is no doubt that the biggest benefit of working with micro-influencers is that it is less expensive as per 44% of marketers.
As per a marketing research report by Statista, the average price per post of TikTok influencers worldwide was 1034$ US dollars in 2021 for mega influencers with more than 1 million followers. The average minimum price per post of macro influencers with 100,000 to 1 million followers was 151$ US dollars, while the average max price was 793$ US dollars.
In 2023 the average cost of a sponsored TikTok post is 3514$ US dollars as per IZEA. The costs also depend on the influencer category and their reach. For example:
Nonetheless, TikTok is a new platform and these prices can vary depending on a lot of factors like content format and type. But what remains obvious is the reach and growth potential of TikTok.
Forecasts suggest that 41.4 million GenZ users can be reached via TikTok this year (and 37.3 million on Instagram).
As per demographics GenZ's audience is most impacted by social media influencers. So, influencer marketing can get a bit challenging if you are targeting older customers. As per GWI report the percentage of people following influencers decreases with age with 28% for GenZ, 23% for Millennials, 16% for GenX, and 9% for Boomers.
More than half of the TikTok users are between 18-34 years, making it a platform for Gen Z and millennials, who prefer watching the latest trends and creating some of their own.
The goal as of 2023 as per the State of Influencer Marketing Benchmark Report is to create more User Generated Content (UGC) which builds an ideal ecosystem for both brands and creators to share promoted or un-promoted content on TikTok which is a natural home of UGC.
While a Statista 2022 survey in the US shared that for 38% of marketers generating sales was their top goal for influencer marketing, followed by 29% citing brand awareness and 24% for brand engagement.
No matter what the goals are influencer marketing can deliver 11x ROI over all forms of digital media.
As per a survey carried out in 2020 among marketers from Germany, the United Kingdom, and the United States, 60 percent of respondents said they believed influencer marketing had a better return on investment (ROI) than traditional advertising.
Additionally, the Influencer Marketing Benchmark Report cited that as per 42% of respondents, TikTok would deliver the best ROI for short-form videos followed by 34% citing Instagram reels and 19% for YouTube Shorts.
You can also track the performance of your TikTok influencer marketing campaigns with Exolyt.
Monitoring the campaign progress, user mentions, and feedback, and analyzing sentiments and reach will help you determine the ROI on your paid influencer campaigns. It also helps you to identify the right influencer content strategy for future campaigns both paid and organic to help you stay ahead of your competition.
Although TikTok has exploded in popularity and its growth is likely to continue, surprisingly only 18% of marketers are using this platform.
However, with the immense opportunity for fast growth on TikTok brands should make more of this platform. The faster they create more engaging content on TikTok and in collaboration with influencers the more likely they are to succeed in the influencer marketing space.
Hopefully, this round-up gives you a comprehensive overview of the influencer campaign landscape in 2023 and insights into the effectiveness of TikTok as a platform for influencer marketing, to nudge you in the right direction for immediate action.