Brands will spend $32.5 bn on influencer advertising in 2023: Report
The influencer advertising industry has grown by an impressive 355% over the past five years, becoming one of the leading online marketing channels. With budgets growing fast and marketers seeing strong returns, the entire market will continue booming.
According to data presented by AugustaFreePress.com, brands will spend a whopping $32.5bn on influencer advertising in 2023, 18% more than this year.
The US and Chinese Brands Make 73% of Total Ad Spending
Despite initial concerns that influencer marketing might shrink due to Covid-19, the industry boomed in the past three years. Brands discovered influencer ads boost their brand reach, improve search ranking and build customer trust and loyalty. The growth of the entire market was also fuelled by increased usage of ad blocking tools, with the average global desktop ad blocking rate sitting above 43%.
According to a Statista survey, total ad spending in the influencer marketing industry has more than doubled since 2019, rising from $11.6bn to $27.5bn. Furthermore, companies and brands are expected to spend $5bn more on influencer ads next year. By 2025, the entire market is set to reach a $41.8bn value.
Statista data showed that Chinese and US brands account for over two-thirds of total ad spending or $20.1bn in 2022. Chinese brands will spend $15.7bn on influencer ads this year, four times more than US companies. This figure is set to grow by 19% to $18.7bn in 2023.
According to Statista, the US market will grow by 15% year-over-year, with total ad spending rising from $4.25bn to $4.92bn in 2023. The UK influencer marketing industry, the third-largest globally, will see total ad spending grow by 18% YoY to $1.1bn.
The Number of Influencer Marketing Companies Jumped by 30% in a Year
With 68% of marketers planning to increase their influencer marketing budgets, according to the State of Influencer Marketing 2022 report by Influencer Marketing Hub, the entire market offers a huge space for new players.
The Statista data showed that last year, there were 18,900 companies worldwide offering services related to influencer marketing, 30% more than in 2020. One-third of them were from the United States. Statistics show the number of US influencer marketing companies jumped to 7,300 in 2021, up from 5,400 in 2020.
Europe had the second-largest number of companies, or 5,600 in 2021, up from 4,500 a year before. Another 4,000 companies offering influencer marketing services, or 25% of the total, were from the Asia-Pacific region.
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