Influence marketers revolve around, usually, a single person with a following across one or more social media platforms who is promoting a product or service to their followers. Unlike traditional celebrities, influencer marketing efforts prove profitable due to the target audience, who are always highly engaged with the influencer in question.
But how much could this engagement benefit your business? In this article, we will outline what the influencer marketing industry looks like, its effectiveness when to make use of it, and more.
Why is the influencer marketing industry so effective?
Influencer marketing campaigns have been around for more than a decade now, and in that time, the marketing strategy has become more sophisticated. The original form of this type of marketing revolved around traditional celebrity endorsements that were costly on the marketing budget, with minimal returns. However, this has transformed into a much more cost-effective format with a much higher ROI.
This is considered the case as marketing strategists have discovered that influencers have high engagement rates to make use of. Using Instagram influencers as an example:
- Nano-influencers – Nano-influencers have an average engagement rate of between 7-10%.
- Micro-influencers – Micro-influencers have an average engagement rate of between 3-5%.
- Macro-influencers – Macro-influencers generally report having between 1-3%.
Around 92% of consumers trust influencer recommendations more than traditional celebrity endorsements, as the latter is seen as what it is – hollow paid advertising.
On the other hand, influencers typically become influential through relevant content creation. When the influencer marketing campaign aligns with the type of content the influencer is already creating, the target audience is more likely to be inclined toward that product.
This simple equation has made influencer marketing campaigns more profitable, but it’s also opened up the doors for many brands that don’t have the capital for huge advertising campaigns. The influencer marketing industry has been expanding in popularity, with growth between 2024 and 2025 growing by 35.63%.
What are examples of influencer marketing campaigns?
There are eight main influencer campaign types:
- Sponsored posts – The brand pays the influencer to create content in the form of influencer posts. An example of this is Maybelline’s Superstar Vinyl Ink campaign, which partnered with many Instagram influencers to make reels demonstrating the longevity of their lipstick. They were paid per post, so long as they included specific hashtags, product shots and personal testimonials.
- Affiliate marketing and discount codes—This type of influencer marketing campaign involves sharing a unique discount code or affiliate link through your content and earning commissions per sale. YouTube influencers such as Marques Brownlee receive this type of deal, and you can see affiliate links in his descriptions for each gadget he reviews.
- Product seeding – Some brands seek publicity by sending free products to influencers, hoping for organic reviews or mentions, typically without a paid contract. The expectation is that the influencer will make content out of the new product. For example, Fenty Beauty sends PR packages to Snapchat beauty vloggers.
- Brand ambassadorships – This is a long-term creator partnership, where social media influencers sign up to represent brands for multiple campaigns. An example of this is HyperX sponsoring popular Twitch streamers, having them use their headsets whilst live on stream, mentioning the brand during gameplay and adding branded overlays to their video content. Whilst this racks up a high influencer marketing spend, it has been proven to give a huge boost to brand value.
- Event and campaign collaboration – Brands invite influencers to exclusive events, such as product launches or special collaborations. For example, Adobe partners with many business influencers on LinkedIn, a lesser-used influencer marketing platform, to host LinkedIn Live discussions on creative careers whilst featuring Adobe products in action.
- Co-branded products and collections – Brands work alongside influencers to co-create products, making that influencer a key figure whilst also giving creative input. Furthermore, the influencer is paid through the revenue share, further giving them an incentive to push the product. TikTok influencers are the most suitable for this type of influencer campaign, as TikTok thrives on impulsive buys.
- Social media takeovers – This is a clever type of influencer campaign that revolves around the person in question taking control of the social media platform for a day or longer, allowing them to post exclusive content that brightens the image of the brand. Red Bull, for example, gave extreme sports influencers access to their Twitter account for live coverage of adrenaline-packed stunts.
- User-generated content – Brands pay for influencer content with the intention for it to be reused in paid advertising. Apple, for example, reused a lot of influencer-generated iPhone photography in paid Facebook ads to showcase the performance of their camera.
Influencer marketing landscape – the types
Influencer marketing statistics show that there are four tiers of influencer popularity, each with its list of pros and cons. These stats are from the Influencer Marketing Hub.
Nano-influencers (1-10k followers)
This level of influencer may seem like it’s beneath the notice of brands, but that’s not necessarily the case. These influencers tend to be everyday social media users with a small following, but that following has higher rates of engagement than any other influencer tier.
The pros of nano-influencer marketing campaigns:
- Engagement rates – They offer a rate of 7%-10% in the UK, with 8.8% being the average.
- Cost-effective – Since the audience is small, the influencer marketing spend is also less for these types.
The cons of nano-influencer marketing campaigns:
- Limited reach – The small audience means that there is only so far the campaign can go.
- Resource intensive—Even if the cost is low, managing several nano-influencers can require time and effort, especially if they coordinate.
This influencer marketing strategy is ideal for startups, or local businesses looking to create a foundational, grassroots customer base. Common business types include farmers’ markets, subscription box companies, local boutiques etc.
The costs involved with this type of influencer marketing are minimal – fees range from free products to £10 to £100 per post. Furthermore, the return on investment is typically small, but collectively, these influencers can drive high levels of engagement for your brand. Start small, and build.
Micro-influencers (10,000-100,000 followers)
Micro-influencers are more intentional with their social media usage, often building follower bases surrounding specific niches. These niches can be anything from fitness to beauty.
The pros of micro-influencer marketing are:
- High engagement rates – Followers range between 3-5%.
- Trust – At this range, influencers are seen as more trustworthy. Being small, and devoted to one subject, their presence is built out of passion.
The cons of micro-influencer marketing is:
- Content quality—Companies that target this tier of influencers are typically much more professionally branded than the local, startup businesses of the previous tier, meaning it may be hard to find influencers who can create content that meets your brand’s quality standards.
Small to mid-sized brands that are relevant to the specific niche that the influencer is creating content around typically target this tier for influencer marketing. The industries can be anything from health and wellness to technology.
Collaborations typically cost between £350 to £1000 per post, but this is where ROI’s tend to skyrocket. For every £1 spent on influencer campaigns, you get an average of £4.12. This may sound like easy money, but bear in mind – you have competition.
Macro-influencers (100,000 – 1 million followers)
Macro-influencers are well-known figures on their platforms, typically large enough to branch out across several social media platforms.
The pros of dealing with this tier are:
- Huge reach – Their reach is large, and they likely create content at higher rates than most creators.
- Professional – By the time they’ve reached this high number, they are likely to have experience with brand collaborations, meaning partnerships are not only efficient but smooth.
The cons of dealing with influencers of this tier include:
- Moderate engagement rates – Engagement rates are noticeably lower than that of lower follower count influencers, limiting types of influencer content.
- Higher costs – Due to the reach, and the competition, this influencer tier is more costly.
Mid to large-sized companies that have a significant budget to burn in pushing their products or services opt to work with this tier of marketer, with fashion labels and tech.
Influencer marketing at this level tends to set companies back between £5,000 to £12,000 per post. This significant amount, however, has high rates of return – with approximately £5.78 return on every pound spent.
Mega-influencers (1 million + follower)
Mega-influencers are typically so popular that they become mini-celebrities, with their massive following being spread across several platforms.
The pros of dealing with mega-influencers are as follows:
- Huge reach – The messages being broadcast will reach a large and diverse audience.
- High visibility – Increases brand awareness. Recognition of brands goes a long way in ensuring future purchases.
The cons of doing business with this influencer tier are:
- High cost – Influencer marketing at this level is typically closed off to the companies with the largest budgets.
- Lower engagement rates – The massive and diverse audience typically means engagement is lower.
Corporations with significant capital allocated toward influencer marketing budgets are the only organisations that can afford the high price asked by these influencer types.
Per post, these huge influencers charge between £12,000 to £20,000 per post. As for the return on investment, it’s harder to pin down. It’s likely not as high as previous tiers, but even a 1:2 ROI is considerable considering how high the investments typically are in the first place.
How to begin and measure influencer marketing efforts
The effectiveness of your influencer marketing lies mainly in how good your plan is.
Define your goals
You need to know the specific things to track to determine marketing success. Common goals are:
- Boost brand awareness – Track increases in follows, post reach, and mentions.
- Increase engagement – Track increases in likes, comments, shares and saves.
- Drive website traffic – Track increases in click-through rates from influencer posts.
- Generate sales – Track purchases made using influencer discount codes and affiliate links.
Use tools to track performance
In 2025, there are a range of free addons or sites you can use to track influencer marketing performance. For example:
- Instagram insights – Instagram influencers often use this to track reach, impressions, engagement and clicks.
- Google Analytics – This essential piece of digital marketing kit shows website traffic.
- Bitly / UTM links – Tracks the amount of clicks that influencer links get.
- Affiliate programs – Examples include RewardStyle, Impact, Awin etc. Each of these tracks sales from influencer links.
Avoid fake followers
Some influencers inflate their follower count using techniques such as botting, or buying follows. This is usually done to kickstart a genuine following, but usually, influencers take advantage of marketers who otherwise don’t realise the deception.
If the following is true, there may be cause for concern:
- Engagement vs followers – If you find that there are huge amounts of followers for very little engagement in the form of posts, replies, etc.
- Generic comments – If there are comments that seem non-targeted, such as “Great content!”, emojis, etc.
- Follower spikes – Real influencers grow gradually, over time, rather than gaining huge amounts of followers. Take a look at growth graphs.
Tools such as HypeAuditor or Upfluence allow you to generate better insights into legitimacy.
Learn from influencer marketing reports
Understand the way the wind is blowing. More and more money is being devoted to the influencer marketing industry.
The two smallest influencer types offer 5x ROI, for minimal investment. This can easily climb the more influencers you get to advertise.
The best-performing industries are:
- Beauty & Skincare – 30%+ of sales come from influencer partnerships.
- Fitness & Wellness – 25%+ of product revenue driven by influencers.
- Tech & Gadgets – Influencers generate 18%–22% more conversions than paid ads.
Conclusion
Influencer marketing isn’t going anywhere. Statistics show that it’s becoming more and more adopted as an advertising mechanism, and to properly capitalise, you should get started sooner rather than later.