Business
ALTHOUGH people have started losing trust in influencers, brands and companies are still spending heavily on this type of marketing, pushing the entire industry’s revenue to new record highs.
According to data presented by global influencer ad spending will hit over $30bn by the end of the year, 17% more than in 2022. This figure is projected to grow by a further 55% and hit nearly $48bn by 2027.
Ad Spending to Grow by an Average $4.2B per Year
Over the past five years, influencers have become one of the top choices for social media marketers, providing brands an opportunity to reach millions of potential users practically overnight. Thanks to their surging popularity, marketers saw solid returns and increased customer trust, pushing them to dig even deeper into their pockets to promote through influencer ads.
The Statista figures prove that. In 2017, brands and companies spent roughly $6bn on influencer advertising. Over the past six years, this figure skyrocketed by more than 400% and hit $30.8bn in 2023.
The strong market growth is expected to continue in the following years, despite people losing trust in influencers. According to a 2023 Trustpilot survey, two-thirds of consumers in the United States and the United Kingdom described their level of trust in celebrity influencers as low. Still, it seems that won’t stop brands and marketers from spending more money than ever on influencer ads.
According to Statista, the annual ad spending in the influencer marketing industry will grow by an average of $4.2bn in the next four years before reaching an all-time high of $47.8bn in 2027.
More than half of that value, or nearly $26.5bn, will come from China, the world’s largest influencer advertising market. As the second largest globally, the US market will see one-quarter of that figure, with roughly $7.5bn in total ad spending in 2027. Far below, the United Kingdom ranked as the third largest influencer advertising market, with roughly $1.5bn in total ad spending that year.
Chinese Market to See the Biggest Growth; Ad Spending to Jump by 58% by 2027
The Statista data also show the Chinese market will grow the most in the next four years. In 2023, Chinese brands will spend $16.7bn on influencer ads. This figure is projected to grow by a massive 58% and hit nearly $26.5 by 2027.
The US influencer marketing industry will grow by 52% in this period, with the total ad spending jumping from $4.9bn to $7.5bn. The United Kingdom follows with a 47% ad spending growth between 2023 and 2027.
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-October 16, 2023 @ 16:45 GMT |
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