Influence marketing becomes trendy, grows to $12 million in 2020 | KyivPost
Social media popularity pays off.
Last year, Ukrainian brands invested more than $ 12 million in the niche market, where popular bloggers advertise products on Facebook, Instagram, Twitch or YouTube, according to research by the Interactive Advertising Bureau (IAB).
This is the first survey analyzing marketing in Ukraine. It includes anonymous data from fourteen Ukrainian advertising companies, including Burda Media, MediaHead and Razom Group, according to Vera Slyvinska, head of the IAB marketing committee’s influence.
The influence market is growing rapidly and is now competing for money with other media such as television or websites where brands are accustomed to advertising their products. As influencers become more popular, Ukrainian companies plan to invest 50-70% more money in influence marketing over the next two years, according to Nastya Baydachenko, IAB CEO.
Baydachenko said the market would continue to grow unless the government tried to regulate it. Globally, the marketing industry is impacting about $ 15 billion by 2022, up from $ 8 billion in 2019, according to another study by analyst analyst eMarketer.
During the pandemic, more companies turned to influencers to advertise their brands, although their advertising spending shrank after the global economic downturn.
Instagram remains the most popular platform for buying influences, “the gold standard”. Nearly four in five brands choose Instagram for campaigns for influence, the survey said. According to various estimates, 1,000 followers on Instagram cost $ 5-10 worldwide. Businesses are willing to pay, they say, that customer quality and traffic is better than the marketing products they influence compared to other sources.
In Ukraine, almost 13 million people use Instagram, but influence marketing in the country is growing more slowly than the global, because Ukrainian influencers are popular locally and do not attract as much money as international stars, according to Natalia Petryshyn, head of social media in the creative office Grape.
There are more than 800,000 bloggers in Ukraine and the number of local agencies working with influence marketing continues to grow, said Anna Golumb, head of influence marketing at Vivid Advertising, which was involved in the IAB survey.
However, the market is in the shadows, as many seekers are paid under the table and do not follow generally accepted standards, Golub said.
Among the most popular Ukrainian influences are children, according to the Forbes ranking. For example, there is the “Kids Diana Show”, a YouTube channel in English that has almost 77 million subscribers or the Russian “Miss Katy” and “Mister Max” which have 20 million subscribers each.
Another popular blogger is Alana Velum with 5.5 million subscribers on YouTube and 4.3 million on Instagram. Ukrainian travel blogger Anton Ptushkin has less than 5 million YouTube subscribers.
For many Ukrainians, influential marketing is a business. For example, popular Instagram blogger Anna Pogribnyak earns $ 2,000-3,000 a month, while the average monthly salary in the country is $ 400. Ukrainian influence star Yan Gordienko with 3.3 million Instagram subscribers claims to earn $ 6,500 per post.
Globally, some of Instagram’s highest paid influencers include footballer Cristiano Ronaldo, pop singer Ariana Grande and actor Dwayne Johnson. Each of them can earn over $ 600,000 per position.
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