Influence marketing becomes trendy, grows to $12 million in 2020 | KyivPost
Popularity on social media pays off.
Last year, according to the Interactive Advertising Bureau (IAB), Ukrainian brands invested over $ 12 million in the niche market in which popular bloggers advertise products on Facebook, Instagram, Twitch or YouTube.
This is the first study to analyze the impact on marketing in Ukraine. According to Vera Slyvinska, head of the IAB’s Influence Marketing Committee, it contains anonymous data from fourteen Ukrainian advertising companies, including Burda Media, MediaHead and Razom Group.
The influence market is growing rapidly and is now competing for money with other media such as television or websites where brands advertise their products. According to Nastya Baydachenko, managing director of the IAB, Ukrainian companies plan to invest 50-70% more money in influence marketing in the next two years as influencers become increasingly popular.
Baydachenko said the market will continue to grow unless the government tries to regulate it. Globally, the influencer marketing industry is expected to be worth nearly $ 15 billion by 2022, up from $ 8 billion in 2019, according to another study by analyst eMarketer.
During the pandemic, more companies turned to influencers to promote their brands, even though their advertising spending shrank after the global economic downturn.
Instagram remains the most popular platform for the influence market, the “gold standard”. Almost four out of five brands choose Instagram for influencer campaigns. According to various estimates, 1,000 followers on Instagram worldwide cost 5 to 10 US dollars. Companies are willing to pay, they say the quality of customers and traffic from influencer marketing products is better compared to other sources.
In Ukraine, almost 13 million people use Instagram, but influence marketing in the country is slower than global, as Ukrainian influencers are popular locally and don’t attract as much money as international stars, according to Natalia Petryshyn, director of social media at the creative agency Grape.
There are over 800,000 bloggers in Ukraine and the number of local agencies working in influence marketing continues to grow, said Anna Golub, director of influence marketing at advertising agency Vivid, who participated in the IAB’s research.
However, the market is in the shadows as many influencers get paid under the table and don’t follow generally accepted standards, Golub said.
According to Forbes, the most popular Ukrainian influencers are children. For example, there is “Kids Diana Show”, an English-language YouTube channel with almost 77 million subscribers, or “Miss Katy” and “Mister Max” in Russian, each with 20 million subscribers.
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 subscribers on YouTube.
Influence marketing is a business for many Ukrainians. For example, popular Instagram blogger Anna Pogribnyak makes $ 2,000-3,000 a month, while the average monthly salary in the country is $ 400. Ukrainian star influencer Yan Gordienko, with 3.3 million subscribers on Instagram, claims to make $ 6,500 per post.
Globally, soccer star Cristiano Ronaldo, pop singer Ariana Grande, and actor Dwayne Johnson are some of the highest-paid Instagram influencers. Each of them can make over $ 600,000 per post.
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