Growth of Influencer Marketing in the Past 5 Years
Influencer marketing has experienced explosive growth in the past 5 years. In 2016, the influencer marketing industry was valued at $1.7 billion. By 2022, the industry had grown to $16.4 billion. This growth is expected to continue, with the influencer marketing industry expected to reach $21.1 billion in 2023 and $45.7 billion by 2028.
The growth of influencer marketing is being driven by a number of factors, including:
- The increasing popularity of social media platforms like Instagram, TikTok, and YouTube.
- The growing trust that consumers have in influencers.
- The effectiveness of influencer marketing campaigns in driving results for businesses.
Predictions for the Next 2 Years
The influencer marketing industry is expected to continue to grow in the next 2 years. Here are some of the key trends that we can expect to see:
- The rise of micro-influencers. Micro-influencers are influencers with a smaller following (typically between 1,000 and 100,000 followers). Micro-influencers are often more trusted by their followers than macro-influencers (influencers with over 100,000 followers), and they can be more effective at driving engagement and conversions.
- The growth of video content. Video is the most popular type of content on social media, and it is becoming increasingly popular in influencer marketing campaigns. Businesses are using video to create more engaging and informative content that resonates with their target audience.
- The use of influencer marketing to drive sales. In the past, influencer marketing was primarily used to build brand awareness and drive traffic to websites. However, businesses are now using influencer marketing to drive sales as well. This is being done through affiliate marketing programs, sponsored posts, and other types of partnerships.
Where Influencer Marketing Can Grow
Influencer marketing can grow in a number of areas, including:
- New industries. Influencer marketing is currently most popular in the fashion, beauty, and lifestyle industries. However, it is becoming increasingly popular in other industries, such as finance, technology, and healthcare.
- New social media platforms. New social media platforms are emerging all the time, and influencer marketing is following suit. Businesses are partnering with influencers on new platforms like TikTok and Twitch to reach their target audience.
- New types of content. Businesses are now using a variety of content formats in their influencer marketing campaigns, including videos, blog posts, social media posts, and live streams. In the future, we can expect to see even more innovative and engaging types of content being used in influencer marketing campaigns.
Where is the money being spent?
The fashion and beauty industry is the largest spender on influencer marketing, accounting for over 20% of the industry’s total spend. This is because fashion and beauty brands are constantly looking for new ways to reach their target audience and promote their products. Influencer marketing is a great way for them to do this, as it allows them to tap into the influence of their target audience’s favorite influencers.
The travel and tourism industry is also a major spender on influencer marketing. Travel brands are using influencers to promote their destinations and experiences to potential travelers. Influencer marketing is a great way for travel brands to reach a large and engaged audience, as well as to create authentic content that resonates with potential travelers.
The food and beverage industry is another major spender on influencer marketing. Food and beverage brands are using influencers to promote their products and services to potential customers. Influencer marketing is a great way for food and beverage brands to reach a large and hungry audience, as well as to create engaging content that makes people want to try their products.
Other industries that spend a significant amount of money on influencer marketing include gaming, technology, health and wellness, fitness, lifestyle, entertainment, education, and e-commerce. These industries are all using influencer marketing to reach their target audience, build relationships with potential customers, and promote their products and services.
Overall, the influencer marketing industry is expected to continue to grow in the next 2 years and beyond. Businesses that are not already using influencer marketing in their marketing strategies should consider doing so. Influencer marketing can be a great way to reach your target audience, build relationships with them, and achieve your marketing goals.
Given the continued growth influencer marketing, we have seen significant investment into hiring in the past 5 years with many Influencer Marketing Agencies looking for strategic, creative & commercial talent. If you’re looking to grow, get in touch with Alex Kirk our Associate Director of Influencer Marketing via Alex.email@example.com