Over the years the influencer marketing industry has been tarnished by issues relating to fraud and, as a result, has often been described as the “Wild West”. This perception of the industry was encouraged by the number of dishonest influencers who could easily rely on fraudulent tactics to buy fake followers and fake their engagement at the expense of brands. Influencer fraud has become a billion-dollar problem.
However, this image of the industry may not be as accurate as it used to be. According to HypeAuditor’s latest annual State of Influencer Marketing report, Influencer marketing has increasingly become more professionalised when it comes to content creators, marketers, as well as the platforms, resulting in an all-time low level of fraud. Now worth £15.5 billion in 2024, from our analysis, it is definitely one of the most effective methods to bridge the gap between a brand and its audience.
For brands looking to feel more confident in leveraging partnerships with content creators in an effective way, here is all you need to know:
Continue to be vigilant of fraud
In comparison to 2023, the average percentage of Instagram accounts impacted by fraud has reached an all time low, making this the third consecutive year that this figure has decreased. The overall number of influencers is now at 43%, according to our analysis.
This steady decline is encouraged in part by greater awareness among content creators, who have realised that skewing their engagement is counter-productive and will deter any brands to partner with them. In addition, technology has made it easier than ever to uncover fraudulent methods, empowering marketers to stay away from dubious influencers. Finally, social media platforms have taken steps to mitigate this phenomenon, for instance by deleting illegitimate content creators accounts. This is paying off!
Despite this positive trend, the overall number of influencers impacted remains high and marketers should continue to be mindful of the risks of fraudulent behaviour, which continue to cost advertisers millions each year. According to our research, some of the most popular fraudulent methods used on Instagram include buying followers, likes, story views and comments, which in turn skewed engagement. Content creators most impacted are mega and celebrity influencers with over 1 million followers.
Keep prioritising collaborations with nano and niche Influencers
It is no secret that some of the most impactful influencer partnerships– which successfully target a desired audience– prioritise working with nano or niche content creators. According to our analysis, nano influencers (with 1000 to 10,000 subscribers) have retained their spot as having the strongest connection with their audience since 2022. In 2023, these content creators proved to be the most popular, with an Engagement Rate (ER) of 2% on Instagram and of 10% on TikTok.
Nano influencers also make up the majority of content creators on Instagram in the UK, with 79% of influencers in this category. This, in addition to the fact that influencers with a larger audience with over 1 million followers tend to be most impacted by fraud, means that smaller content creators are a safe bet for brands for a strong connection with their targeted audience.
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Understand user demographics.
In influencer marketing, user demographic data is crucial for crafting a successful strategy. HypeAuditor has determined that approximately 46% of Instagram users in the UK fall within the 25 to 34 age brackets, which sustained a marginal 1% decrease from the previous year. In comparison, two-thirds of global TikTok users (65%) are under the age of 24 with 38% between 18 and 24, and 45-54-year-old users accounting for less than 2%.
The drop-off in user numbers among older age groups, especially those above 45, implies that influencer marketing on TikTok might be more effective for brands with products or services that align with younger demographics. Influencers who create content relevant to a youthful audience are likely to generate more engagement.
Encouraged organic growth
Despite Instagram users’ wide range of interest, lifestyle content continues to take the lead on this platform. According to our latest report, most Instagram influencers produce content related to Music (11%) and Lifestyle (10%) Beauty (8%) and Art (8%), while less competitive niches are Fitness & Gym (3%), comedy/humour (3%) and Literature & Journalism (2%).
This is great news for brands in these categories, as proven by the fact that the most talked about fashion brands on Instagram, in the UK, include Zara with 14,000 mentions, followed by H&M (11,200 mentions) and ASOS (8,600 mentions). On TikTok, the three most discussed brands globally are Target with 37,500 mentions, Netflix (29,400 mentions) and Amazon (28,200 mentions), reaffirming the enduring popularity of these brands within the dynamic TikTok community.
It is also worth noting that Instagram recently updated policies around its UGC to expand content collaboration opportunities. This means that advertisers can now boost more types of organic Instagram content as partnered ads, including branded content with the paid partnership label, Instagram Collab posts, @mentions, people tags, product tags, and other content without the paid partnership label. This provides a wide range of new ways for brands to monetize UGC, while also giving creators more opportunities to form business partnerships by expanding the pool of potential ad partners that can connect with them based on their posts.
Do not forget YouTube
YouTube remains one of the most engaging platforms and is one of the few platforms where male users (60%) outnumber female viewers (40%). This gender imbalance is most pronounced in the 25-34 age category: 22% male users and 11% female users. This is likely due to the popularity of video game influencers, who make up one of the top three most popular categories of YouTube influencers in the UK, followed by People & Blogs and Entertainment.
Let’s not forget that YouTube is also the second most popular search engine globally. This means that the content uploaded by influencers on the platform remains discoverable for an extended period after its initial publication. In addition, nearly 50% of internet users look for videos regarding a product or service before buying it. With recent new added ecommerce features, this platform should be considered as a crucial one as part of their strategy.
In 2024, the influencer marketing industry is entering a new era where brands can be more confident than ever of the impact of their campaigns to connect with their audiences. It is now crucial for marketers to consider what their next move should be to remain relevant in the eyes of social media users.
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