Global influencer advertising spending is on an upward trajectory, defying consumers’ waning trust in influencers.
Brands and companies are pouring substantial investments into this marketing strategy, propelling the industry to unprecedented revenue levels.
Recent data from OnlyAccounts.io reveals that the worldwide expenditure on influencer advertising is set to exceed $30 billion by the end of the year, marking a 17% increase from 2022. Moreover, projections indicate that this figure is poised for significant expansion, with expectations of a 55% growth rate, ultimately reaching nearly $48 billion by 2027.
Averaging an Annual Increase of $4.2 Billion
In the last half-decade, influencers have emerged as a preferred choice for social media marketers, offering brands the opportunity to swiftly connect with millions of potential customers. Their meteoric rise in popularity has yielded substantial returns and heightened customer trust, prompting marketers to allocate more resources to influencer-based advertising.
This growth is evident in Statista’s findings, which highlight the remarkable evolution of influencer advertising. In 2017, brands and companies collectively spent approximately $6 billion on influencer marketing. Over the subsequent six years, this figure surged by over 400%, reaching $30.8 billion in 2023.
Despite the decrease in consumer trust in influencers, the trend indicates that brands and marketers remain committed to amplifying their investments in influencer advertising. According to Statista, annual spending in the influencer marketing sector is expected to increase by an average of $4.2 billion in the next four years, culminating in a record-breaking $47.8 billion by 2027.
The Rising Dominance of the Chinese Market
Of this total, a substantial portion, nearly $26.5 billion, will emanate from China, the world’s largest influencer advertising market. The United States, the second-largest global market, is anticipated to account for a quarter of this figure, with approximately $7.5 billion in total ad spending projected for 2027. In contrast, the United Kingdom ranks as the third-largest influencer advertising market, with an estimated $1.5 billion in total ad spending that year.
Chinese Market Leading the Charge
The most striking growth is expected in the Chinese market. In 2023, Chinese brands are set to invest a substantial $16.7 billion in influencer advertising. This figure is forecasted to surge by an impressive 58% by 2027, nearly reaching $26.5 billion.
Meanwhile, the US influencer marketing industry is projected to grow by 52% during this period, with total ad spending increasing from $4.9 billion to $7.5 billion. Following closely, the United Kingdom is poised for a 47% growth in ad spending between 2023 and 2027.
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