KUALA LUMPUR: Influencer marketing continues to be a dominant force for brands and marketers, with the industry projected to surpass US$19 billion in 2023, according Partipost, an influencer marketing platform in Asia.
The market is expected to to reach US$30 billion by 2027, the firm said in "Asia Pacific Insights: Influencer Marketing Report 2023" released in collaboration with MSW Ventures.
The report sheds light on the influencer marketing landscape, revealing key trends, statistics and valuable insights for brands and marketers operating in the region.
"As customers become more accustomed to using social media to stay connected, get information, and make purchase decisions, brands who recognise the unique opportunities presented by collaboration with influencers are increasingly leveraging this strategy to tap into their target audiences, elevate brand awareness, and drive conversions," it said.
The report draws upon the findings of two surveys conducted by Partipost. The first involved 200 brands from various industries, and the second involved nearly 1,000 social media users.
Both surveys spanned across five Asian countries namely Malaysia, Singapore, Taiwan, Philippines, and Indonesia.
Highlighting some key findings, Partipost said the percentage of brands investing in influencer marketing rose significantly from 73.2 per cent in 2021 to 87.8 per cent in 2023.
Nearly 60 per cent of them planned to allocate 10-50 per cent of their marketing budgets specifically for influencer marketing in 2023, recognixing its cost-effectiveness as one of the most affordable forms of branded content.
The number of brands collaborating with influencers surged from 68.3 per cent in 2021 to 76.6 per cent in 2022 and 83.9 per cent in 2023.
Nano influencers garnered the highest following among social media users (58 per cent), and 54.4 per cent of them agreed that nano influencers had the most significant influence on their purchase decisions.
The report highlights that more than 86 per cent of social media users prefer influencer accounts over brand accounts due to relatable content and honest reviews.
In the era of short-form videos, TikTok and Instagram Reels are highly demanded content deliverables brands ask from influencers. Over 50 per cent of users prefer this type of content when an influencer shares about a product or service.