Influencer Advertising - Nigeria | Statista Market Forecast

Ad spending in the Influencer Advertising market is projected to reach US$4.7m in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2028) of 8.88%, resulting in a projected market volume of US$6.7m by 2028.
In global comparison, most ad spending will be generated China (US$19bn in 2024).
The average ad spending per internet user in the Influencer Advertising market is projected to amount to US$0.0 in 2024.

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

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.

This report presents a comprehensive analysis and additional information on the Digital 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.