The age of social media has led to the emergence of influence marketing in recent years. Even though influence marketing is mainly limited to specific industries, one can’t ignore its importance anymore. According to the numbers presented by StockApps.com, a total of $27.5 billion will be spent on influencer advertising in 2022.
Spend on influencer advertising to grow up to $51 billion in 2027
Influencers have become an essential part of the digital advertising/marketing industry. The influencer industry is still in its nascent stage and highly unregulated, but that is not stopping brands from spending tons of money on influencers. According to the numbers on Statista, brands are expected to spend $27.51 billion on influencer advertising this year.
In comparison, only $6.04 billion were spent on influencer advertising in 2017. Hence, the influencer advertising industry has grown by approximately 355% during the last five years. During the next five years, the spending is expected to grow at an annual growth rate (CAGR) of 13.21%. At this rate, bands will spend $51.15 billion on influencer advertising in 2027.
Interestingly, these numbers contain a cautionary tale for anyone related to the industry. Influencer advertising witnessed spectacular growth during 2017-2021. The annual growth rate fluctuated between 34.6% and 46% during the four years. However, the rate of growth tumbled down to 20.4% in 2022. The rate of growth is expected to keep decreasing at least until 2027. According to the numbers, the annual growth rate in 2027 will be only 10% – which is considerably lower than the growth rate witnesses in the last five years.
China to splurge 57% of the entire spending in 2022
When we look at numbers from individual nations, China is way ahead of the rest of the pack. It’s apparent from these numbers that the Asian economic giant loves to spend on influencer advertising. In China, $15.69 billion will be spent on influencer advertising in 2022. China’s amount makes up 57% of the total amount expected to be spent on influencer advertising in 2022.
The United States of America is in second with a $4.25 billion expenditure on influencer advertising. The United Kingdom, Japan, and Germany make up the rest of the top five, with each country spending less than a billion dollars in 2022.