The influencer marketing market at the global level was worth USD 6.4 billion in 2020 and is estimated to reach 24.5 billion by 2026. The market is projected to grow with a CAGR of 31.9% from 2021-2026. Influencer marketing is an efficient way to develop marketing strategies, reach business objectives, and even curb expenses.
Influencer marketing is a procedure by which brands hold familiar figures who have power over their target markets upgrading their markets. Influencers are opinion leaders with a social following base.
Influencer marketing is surging itself quickly. Influencer marketing is the recent form of marketing. Influence marketing plays a critical role in social media and ad fatigue. Influencer marketing allows reaching people which can't be obtained through traditional advertising.
The rising interest in video-based content in people is one factor accelerating the influencer marketing market growth worldwide. The demand for big data analytics, the increasing need for creating a brand image, and surging ad-blocking software are the factors accumulating the growth of the market.
Organizations are highly adopting influencer marketing platform to search capable influencers who can develop their brands, augment brand exposure, and create a high-level of customer engagement. The rising use of smartphones and 3G and 4G networks and growing video consumption have increased excellently.
Factors like low influence on campaigns with the absence of technology-related knowledge, and the unavailability of professionals hamper the influencer marketing market growth globally.
COVID-19 Impact on the global Influencer Marketing Market
The widespread of the novel coronavirus (COVID-19) originated in Wuhan, China in December 2019. The virus has spread to every corner of the world affecting millions of people and many businesses were also affected. Governments have imposed a lockdown to prevent the virus spread. The COVID-19 has created a positive impact on the global influencer marketing market. Diverse sectors upgrade their businesses on a profitable advertisement medium which is a social media platform.
During the COVID1-19 period, 80% and more consumers of the US and UK have consumed more content. Before the emergence of COVID-19, 400 million people already have access to social media in India. But after the start of the pandemic, the number has increased over the last eighteen months with an exceptional shift in consumer behavior elevating the growth. Almost 2/3rd of the Indian population follows an influencer.
The global Influencer Marketing Market has been segmented and sub-segmented based on component, application, organization size, and end-user.
By component, the services segment is believed to have tremendous growth in the influencer marketing market throughout the period.
By application, search, and discovery segment holds a revenue share of 34.5% in the influencer marketing market. The ascending need amid the brands and marketers to combine with the best-fit influencer for a specific campaign. Influencer search and discovery segment allow companies to find the appropriate brand ambassadors using several filters like performance, the effectiveness of content.
For example, HypeAuditor provides search and discovery features for different social media platforms like Tik Tok, YouTube, and Instagram to its clients based upon their needs and demands.
The analytics and reporting segment is anticipated to provide considerable growth opportunities for the influencer marketing market globally. The segment growth credits to the need of the companies to examine vital elements like promotion campaigns like content penetration. Companies like Smartfluence provide prognostic analytic services helping clients soothe potential threats in influencer campaigns providing opportunities for the market to grow further.
By organization size, the large enterprise's segment accounted for the largest share with 75% in 2020. Large enterprises hold considerable social media following forcing them to create effective business relations with their customers and snowballing employment through influencers.
The small and medium enterprises (SMEs) segment is said to have exponential growth in the influencer marketing market. SMEs combine with micro and nano-influencers help in raising brand awareness and traffic to the company website at a low cost.
By end-user, the fashion and lifestyle segment is dominating the influencer marketing market with 30% of the revenue share and continues to dominate over the upcoming years. The demand for high-end lifestyles and fashion brands where people can be more approachable and can create closer interactions which drives the growing adoption of advertising practices.
Fashion and lifestyle fanatics enable companies to advance novel products through consistent interaction with their audiences and upgrade them by sending videos, picture-perfect, and sponsored photos.
By region, North America is dominating the influencer marketing market globally. As the lockdown has made everyone work from home and the growing adoption of social media for upgrading products and services. Digital marketing, platform development, and AI-based analytics are talent pools in the region.
Europe is estimated to experience generous growth over the foreseen period as fashion companies like Chanel, Versace, Christian Dior SE are some of the forebearers in adopting such branding practices. The region is attributed to the growing need to perforate the market more efficiently and capture a more extensive base using micro and nano influencers compared to working with celebrities. The growing use of automated systems in the Nordics helping them find influencers and purchase traffic contributing major growth in the influencer marketing market growth.
Whereas, Asia-Pacific is expected to have the quickest CAGR growth pace throughout the timeframe owing to the growing adoption of advanced technologies. The appearance of certain influencer marketing startups in India and China provides profitable opportunities in the region.
In Latin America, massive marketing agencies are providing social media and content marketing services. Online marketing is becoming more of a global industry.
Brazil is the growing country in the influencer marketing industry. For instance, in Brazil, TikTok is growing rapidly with more 113 million downloads.
Mexico is also experiencing quick growth ranking 5th on the countries and making up the largest spanish-speaking market.
In the Middle East and Africa, the social media and influencer marketing are proven to become an essential part of any market's online strategy.
The GCC market leads the MEA as the largest demand from brands and the top paid influencers.
Key Market Players
Recent Market Developments
Chapter 1. Influencer Marketing Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Influencer Marketing Market – Executive Summary
2.1. Market Size & Forecast – (2021 – 2026) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2021 - 2026
2.3.2. Impact on Supply – Demand
2.3.3. Impact on Production Cost
2.3.4. Impact on Supply Chain
Chapter 3. Influencer Marketing Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Influencer Marketing Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porters Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Influencer Marketing Market – Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Influencer Marketing Market – By Component
Chapter 7. Influencer Marketing Market – By Application
7.1. Search and Discovery
7.2. Campaign Management
7.3. Influencer Relationship Management
7.4. Analytics and Reporting
7.5. Compliance Management and Fraud Detection
Chapter 8. Influencer Marketing Market – By Organization Size
8.1. Large Enterprises
Chapter 9. Influencer Marketing Market – By End-User
9.1. Fashion and Lifestyle
9.2. Agencies and PR
9.3. Retail and Consumer Goods
9.4. Health and Wellness
9.6. Banking and Finance
9.7. Travel and Tourism
Chapter 10. Influencer Marketing Market , By Geography – Market Size, Forecast, Trends & Insights
10.1. North America
10.2.7. Rest of Europe
10.3. Asia Pacific
10.3.2. South Korea
10.3.5. Australia & New Zealand
10.3.6. Rest of Asia-Pacific
10.4. Rest of the World
10.4.1. Middle East
10.4.3. South America
Chapter 11. Influencer Marketing Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
11.1. Company 1
11.2. Company 2
11.3. Company 3
11.4. Company 4
11.5. Company 5
11.6. Company 6
11.7. Company 7
11.8. Company 8
11.9. Company 9
11.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.