Influencer Advertising - United Kingdom

Ad spending in the Influencer Advertising market in the United Kingdom is forecasted to reach £916.60m in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 7.85%, leading to a projected market volume of £1.30bn by 2030.
The average ad spending per internet user in the Influencer Advertising market in the United Kingdom is estimated to be £15.62 in 2024.
In global comparison, China is expected to generate the highest ad spending (£15.07bn in 2024).
In the United Kingdom, Influencer Advertising is rapidly evolving with brands increasingly collaborating with micro-influencers to drive targeted engagement and authentic brand promotion.

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 United Kingdom has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Influencer Advertising market in United Kingdom is the changing preferences of customers. With the rise of social media and digital platforms, consumers are increasingly relying on influencers to guide their purchasing decisions. Influencers are seen as trusted sources of information and recommendations, and their endorsements can greatly impact consumer behavior. As a result, brands are investing more in influencer advertising to reach and engage with their target audiences.

Trends in the market: One trend in the Influencer Advertising market in United Kingdom is the shift towards micro-influencers. Micro-influencers are individuals with smaller but highly engaged social media followings. They are often seen as more authentic and relatable compared to celebrities or macro-influencers. Brands are recognizing the value of micro-influencers in reaching niche audiences and are partnering with them to promote their products or services. Another trend in the Influencer Advertising market in United Kingdom is the rise of video content. Platforms like YouTube and TikTok have gained immense popularity, and influencers are leveraging these platforms to create engaging video content. Video content allows influencers to showcase products or services in a more dynamic and interactive way, capturing the attention of their followers and increasing brand visibility.

Local special circumstances: The United Kingdom has a highly developed influencer ecosystem, with a large number of influencers across various industries. The country is home to many fashion, beauty, and lifestyle influencers who have gained international recognition. This has attracted the attention of brands from around the world, who are eager to collaborate with these influencers to expand their reach in the United Kingdom market.

Underlying macroeconomic factors: The growth of the Influencer Advertising market in United Kingdom can also be attributed to favorable macroeconomic factors. The United Kingdom has a strong economy and a high level of internet penetration, providing a conducive environment for influencer marketing. Additionally, the increasing adoption of smartphones and social media platforms has made it easier for consumers to access and engage with influencer content. In conclusion, the Influencer Advertising market in United Kingdom is experiencing significant growth due to changing customer preferences, the rise of micro-influencers and video content, the presence of a well-established influencer ecosystem, and favorable macroeconomic factors. Brands are recognizing the value of influencer advertising in reaching and engaging with their target audiences, and are investing more in this form of marketing to stay competitive in the market.

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.