Influencer Advertising - Pakistan

Ad spending in the Influencer Advertising market in Pakistan is forecasted to reach US$14.00m in 2024.
The annual growth rate (CAGR 2024-2030) is expected to be 8.08%, leading to a projected market volume of US$22.30m by 2030.
The average ad spending per internet user in the Influencer Advertising market in Pakistan is anticipated to be US$0.12 in 2024.
When compared globally, China is expected to have the highest ad spending with US$19.16bn in 2024.
In Pakistan, Influencer Advertising is rapidly growing, with brands leveraging social media personalities to reach a diverse and engaged audience.

Definition:
Influencer Advertising refers to advertising that allows marketers to promote products or services by collaborating with influencers on social media. Influencer Advertising allows marketers to reach targeted audiences based on the influencer’s performance and their follower profiles; they also have the ability to measure the performance of campaigns. Influencer Advertising refers to all advertising fees paid directly to influencers (or to their person of trust or representative) for posting or streaming sponsored content (e.g., posts, videos, and/or stories) on social media to promote products or services to their followers. This sponsored content typically includes images, videos, live streams, and/or text.

Additional information:
Influencer Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Advertising spending paid directly to influencers to post sponsored content

The values of giveaway products as well as services that influencers receive in exchange for reviews, mentions, or giveaways for their followers
Advertising spending allocated to paid social media campaigns to boost content
Affiliate commissions, i.e., the commissions that are paid to influencers when someone makes a purchase based on their content or links
Gross merchandise volume (GMV) of transactions from sponsored posts or live streams

The Influencer Advertising market in Pakistan is experiencing significant growth and development due to several factors.

Customer preferences: Customers in Pakistan are increasingly turning to social media platforms for entertainment, information, and inspiration. As a result, they are more likely to follow and engage with influencers who have a strong presence on these platforms. Influencers are seen as relatable and trustworthy figures who can provide valuable recommendations and insights. Customers in Pakistan also appreciate the authenticity and creativity that influencers bring to their content, making influencer advertising an effective way to reach and engage with the target audience.

Trends in the market: One of the key trends in the influencer advertising market in Pakistan is the rise of micro-influencers. These are individuals who have a smaller but highly engaged audience. Brands are increasingly partnering with micro-influencers to promote their products or services as they offer a more targeted reach and higher engagement rates. Additionally, micro-influencers are often seen as more authentic and relatable, which resonates well with customers in Pakistan. Another trend in the market is the growing popularity of video content. Platforms like YouTube and TikTok have gained immense popularity in Pakistan, with millions of users actively consuming video content. Influencers who create engaging and entertaining videos are able to capture the attention of their audience and effectively promote brands and products. This trend has led to an increase in video-based influencer campaigns, with brands recognizing the power of video content in driving engagement and conversions.

Local special circumstances: Pakistan has a large and growing youth population, with a significant percentage of the population under the age of 30. This demographic is highly active on social media platforms and is more receptive to influencer marketing. Brands are leveraging this demographic by partnering with influencers who have a strong presence among young people. Additionally, Pakistan has a diverse cultural landscape, with different regions and communities having their own unique preferences and interests. Influencers who are able to cater to these diverse audiences are highly sought after by brands.

Underlying macroeconomic factors: The increasing availability and affordability of smartphones and internet connectivity in Pakistan have played a significant role in the growth of the influencer advertising market. With more people gaining access to the internet, the potential reach of influencer campaigns has expanded significantly. Additionally, the rise of e-commerce in Pakistan has created new opportunities for influencer advertising. Influencers are able to drive traffic to online stores and promote products directly to customers, leading to increased sales and revenue for brands. In conclusion, the Influencer Advertising market in Pakistan is experiencing growth and development due to customer preferences for relatable and authentic content, trends such as the rise of micro-influencers and video content, local special circumstances including a large youth population and diverse cultural landscape, and underlying macroeconomic factors such as increased smartphone and internet penetration and the growth of e-commerce. This market is expected to continue to evolve as social media platforms and customer preferences continue to evolve.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Influencer marketing has become one of the most popular and effective forms of online marketing. With millions of internet users browsing social media platforms for entertainment, inspiration, and product recommendations daily, it is no surprise that marketers are harnessing the power of social media’s most recognizable faces for promotion. The global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. As influencer endorsement continues to mature as an industry, the size and value of influencer marketing platforms also continue to expand every year, making collaborations between brands and creators more profitable than ever.