Contrary to popular belief that influencers only emerged in the past few decades, they have actually been around since the time of the Roman Empire when gladiators used to endorse products and advertise goods on city billboards. Modern influencer marketing on social media started around 2005 when YouTube was launched. Nowadays, social media gives anybody a chance to establish themselves as an influencer and to promote brands and products to their followers. Due to the method's effectiveness, marketers use influencer advertising for various goals, including boosting traffic, raising brand awareness, reaching audiences, boosting sales, and enhancing engagement. Because of its precise targeting and performance monitoring, the influencer marketing technique has been shown to provide a higher return on investment for each campaign.
The market is driven by everyone involved (marketers, influencers, audiences, and social media platforms). There is more demand from marketers because influencer advertising works so well in terms of return on investment (ROI) and organic engagement. Further, the number of influencers has increased significantly since 2019, particularly on TikTok. Also, the time users spend on social media has been steadily increasing over the past year, and they have become more interested in personalized content that caters to their preferences and interests. This indicates that there will be a higher demand for micro and nano influencers who can produce content that appeals to their followers. The growth of social media platforms has also made it easier for marketers to track and measure each influencer's results with whom they collaborate.
Because influencer marketing allows companies to connect with consumers on a deeper level than other forms of advertising, marketers are paying more attention to it. Brands will most likely shift from working with influencers as part of a campaign to working with them more as partners. Influencers can provide content based on personal experiences, which creates more trust between them and their followers. Influencer marketing is expected to continue gaining importance in advertising because of its accurate targeting and high return on investment.
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.
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