Why write a whole post on the influencer marketing market size? Can’t you just give us a number and send us on our merry way? Sure, we could do that. But have you ever known The Shelf to dish out the bare minimum?
We put together this post to not only show you the numbers but also to explain what the heck they mean, how they’re trending, and what that means for your business. Influencer marketing is a rapidly growing industry, and it’s important you don’t get swept up with the current. We hope this post will serve as a life raft to help you paddle along. In the spirit of this nautical analogy, we’re here to help you steer your brand’s ship toward prosperity.
In this in-depth guide, we’ll break down all you need to know about the growing influencer marketing market size. Plus, we’ll discuss how your brand can stand out in this saturated industry. Let’s get started.
What is Influencer Marketing?
Before we even talk about influencer marketing market size, let’s make sure we’re all on the same page with our terms. First and foremost that means understanding influencer marketing. You can check out a wealth of information on the industry elsewhere on our blog, but the gist is that influencer marketing is a digital alternative to traditional advertising.
Whereas marketing used to mean putting up billboards or investing in television commercials, now a healthy portion of our marketing budgets are funneled online. One of the most lucrative ways to market on the internet is to use social channels like Instagram, TikTok, Facebook, and Pinterest. And one of the best ways to market on those channels is with the help of influencers.
Influencers are content creators who have earned a sizable following and the trust of that following. They create content their followers enjoy, often within a specific niche. They build rapport and trust within that niche and with their audience, and eventually, they become enough of a trusted figure to successfully sell products. Instead of paying a random commercial actor or big-time celebrity to sell your products in an ad, you enlist the help of an influencer. Because they’ve earned the trust of their audience, they’re more likely to make sales.
The trust element in influencer marketing makes it more akin to word-of-mouth advertising than traditional marketing types. Learn more about the difference between influencer marketing and traditional marketing here.
How Do We Define Market Size?
Market size is a fundamental concept in the world of business and economics. Think of it as the proverbial pie – the total value of a specific industry or product category within a given geographical area, often measured in monetary terms. It’s like sizing up the slice of the pie that your business can potentially claim. Imagine you’re a tech company launching a new line of smartphones. Understanding the market size involves digging into the number of potential buyers in a particular region and how much they’re willing to spend on smartphones. Is it a sliver of the pie, or a generous helping?
But here’s the twist: market size is not a static entity. It’s a dynamic beast, influenced by economic shifts, technological advances, and changing consumer preferences. As you consider your slice, you must also factor in growth trends, seasonality, and the impact of competitors who may be nibbling at the same pie. Moreover, market size is your compass for making strategic decisions. It informs product development, pricing strategies, and marketing efforts. The bigger the slice, the more you can potentially reap. But remember, what you bring to the table – your innovation, quality, and understanding of customer needs – can redefine your slice’s size. So, market size is not just about understanding what’s there; it’s also about shaping what could be yours in a vibrant, ever-changing marketplace.
So What Is the Global Influencer Marketing Market Size?
The influencer marketing marketplace is bustling and expanding as we speak. As of 2023, influencer marketing is a $21.1B industry. That’s up 29 percent from 2022 when the market size for influencer marketing was valued at $16.4B. Using our definition from above, that means there is $21.1B being made in the influencer marketing industry in 2023 alone. That’s a lot of pie!
It’s no wonder that most marketers want a generous helping of the influencer marketing pie. In fact, 82 percent of marketing teams have a dedicated influencer marketing budget. And 17 percent of marketers invested in influencer marketing for the first time this year, in 2023.
Is Influencer Marketing a Good Idea for My Brand?
Yes. Influencer marketing is a worthwhile investment for nearly any brand. You may have heard rumblings that influencer marketing is dead, but in truth, influencer marketing is alive and well. There’s a reason 89 percent of marketers who invested in influencer marketing in 2022 decided to maintain or increase their influencer marketing budgets in 2023. Influencer marketing works.
And it makes sense. Of all the humans on Earth with the internet, 87.5 percent use social media. That’s 4.8 billion people scrolling on the platforms where influencer marketing shines. If that doesn’t blow your mind, consider this. The average social media user, regardless of demographic, spends 2.5 hours on social media each day. That’s 2.5 hours worth of attention from 4.8 billion people. Some quick math tells us Earthlings collectively spend an average 12 billion hours on social media each day. In the attention economy, that’s a lot of eyeballs and a lot of marketing opportunity.
The beauty of influencer marketing, despite the fact that there is money to be made, is that there’s an influencer and an audience for every brand. The creative freedom and ingenuity of influencers knows no bounds. Whatever your brand is selling, there’s an influencer who could help you boost sales.
How to Navigate the Growing Influencer Marketing Industry
As the influencer marketing industry grows and evolves, your campaign strategies will have to grow and evolve too. The best time to start influencer marketing may have been yesteryear, but the second best time to start is today. In 2023, brands earn an average of $5.20 for every dollar they spend on influencer marketing. That’s a great return, but just a few years ago in 2015, that ROI was $6.50 for every dollar spent.
I don’t say this to scare you. The influencer marketing bubble isn’t going to burst. But it’s important to know how to navigate this industry as more and more marketers flock to get a piece of the pie.
Because influencer marketing is rapidly changing, it’s important to remember to remain flexible. Set actionable goals. Track your metrics. And be ready to pivot.
The beauty of influencer marketing is that you can change and improve your campaigns on the fly. These aren’t the one-and-done uber-expensive television commercials of the past. They’re scrappy, collaborative, and generally cheaper suites of content pieces that can be tweaked and improved as you roll out each campaign.
Don’t be afraid to try things out. Use 24-hour story features to test messaging or gauge interest in a new product before you launch. Trust your influencers to know their audiences and the current market. Don’t be afraid to fail. Just make sure you fail better the next time.
Standing Out in the Influencer Market
You may be asking yourself: if there are so many brands influencer marketing, how does my brand have a chance to stand out? Luckily, the key to influencer marketing success is our bread and butter. We have a whole article on influencer marketing best practices you should totally check out when planning your next campaign. For now, we’ll give you a quick overview.
Standing out in the influencer marketing world boils down to a few key things. (We’re giving you all the links so you can deep dive into these strategies on our blog.) If you follow these five steps, you’ll be ahead of the curve in the influencer marketing game:
- Build ROI-driven campaigns
- Choose the right influencers
- Create kickass content
- Transform audiences into customers
- And track and adapt to your metrics
The key to standing out in the influencer marketing industry is to remain strategic at every step of the process. A great team leads to engaging campaigns leads to top-notch influencer selection leads to captivating creative content leads to conversions. Every step in the process builds on the last.
Mastering the Market, Influencer Marketing Style
One of the best ways to ensure you’re getting the most bang for your buck is to work with an influencer marketing agency you trust. Choosing the right influencer agency partner can make navigating influencer marketing much smoother. The best agencies know the market, are on top of trends, and have proven their ability to get results. If you’re overwhelmed by the looming possibilities of diving into the market, partnering with an agency could be the right step.
Of course, there are plenty of agencies out there worth their salt, but here at The Shelf, we’re biased. When it comes to hitting those KPIs and getting jaw-dropping ROI for your influencer marketing campaigns, The Shelf has you covered. We know all the tricks of the trade to help you succeed, whether this is your first influencer marketing campaign or your hundredth.
Whether you enlist our services or DIY your next campaign, check out our 2023 Guide to Influencer Marketing Strategy for the deep dive. We’re here to spill the tea on all things influencer marketing strategy.
That’s That on the Influencer Marketing Market Size
We hope this inspired you to make the most of the ballooning influencer marketing market size. Whatever your niche, there is an opportunity to capitalize on influencer marketing. With more and more people scrolling and engaging on social media, there are plenty of people from each target audience being influenced.
Once you find your audience, we can help you find the creators who influence them. From Gen Z to Boomers, adventurers to homebodies, and every market in between, everyone is inspired by somebody. We’ll help you find who inspires your audience and guide them to creating resonant content for your brand.
If you’d like help designing your next influencer marketing campaign or you’re finally adding influencer marketing to your strategy and you’re not sure where to start, we can help. Schedule a strategy call with one of our experts today. We’ll guide you through the sea of influencer marketing and bring those highly coveted results you seek safely to harbor.
About This Author
Ariana Newhouse | B2B Writer
I am a freelance writer and comedian based in Los Angeles, and while making people laugh is my jam, it’s not always the company brand. So, I strive to make people feel something. My writing philosophy is collaborative, empathetic, and humanistic. At the end of the day, no matter the message, there are real people on both ends of the process.