The global influencer marketing platform market size was valued at USD 13.78 billion in 2022 and is projected to reach USD 174.60 billion by 2031, with a CAGR of 32.60% during the forecast period 2023–2031.
An influencer marketing platform simplifies the entire process of identifying, engaging, and working with social media's rising stars, from the initial discovery phase to the final reporting. Connecting with new, relevant influencers for the brand, driving sales via affiliate links and promo codes, managing communication, and monitoring analytics to determine the return on investment of influencer marketing campaigns are all facilitated by a dedicated platform. Influencer marketing is a form of marketing that entails collaborating with influential members of social media and the content creation community. Co-creating content or promoting the influencer's community with the brand are the main components of the collaboration. A person with influence over others is called an influencer. Marketers use the social media influencer model to spread the word about their products to those who follow the influencer's social media accounts. Agencies and brands can streamline their processes when collaborating with influencers thanks to the tools provided by influencer platforms. There exists a software solution called an influencer marketing platform that helps companies with their influencer marketing initiatives. Some influencer marketing platforms also provide extensive searchable databases of potential influencers, indexed by sophisticated algorithms, for use by advertising agencies and brands. A few examples of social media platforms represented in Grin's searchable database are YouTubers, TikTok stars, and Instagram stars. A total of over 100 million influential people and 36 million profiles are reachable via email. Grin's similar function aids in locating even more preferred choices after the appropriate influencers have been identified.
|Market Size||USD 174.60 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
In recent years, video consumption has skyrocketed due to the increasing prevalence of smartphones and 3G and 4G networks. Therefore, businesses are developing marketing strategies to stream video content across digital channels. In the past three years, television viewership has decreased significantly and shifted to social media channels such as Facebook, YouTube, and Instagram. According to a 2017 Google study, YouTube is the second most popular search engine worldwide. Moreover, as 18- to 26-year-olds' television viewing decreased by 50 percent in 2017, video-based marketing increased from 63 percent in 2017 to 81 percent in 2018, according to Wyzowl's statistics.
Similarly, the Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2017-2022, indicates that global mobile video traffic grew by 59% in 2017. These numbers demonstrate the ongoing shift of consumers toward OTT and social media. Due to a decentralized consumer base, organizations cannot target their potential customers using conventional marketing methods. Therefore, they are adopting the influencer marketing strategy, which enables them to target prospective customers. According to the analysis conducted by Twitter and Annalect, 40% of Twitter users base their purchasing decisions on tweets.
The influencer marketing strategy effectively reaches buyers and increases customer engagement during campaigns. However, it cannot measure the campaign's effectiveness due to poor planning. Typically, brands conduct campaigns without planning their key aspects, such as the clarity of their end goals, geographic regions, and influencer types. Due to a lack of planning, campaigns fail or yield inadequate results. Moreover, the effectiveness of campaigns must be evaluated via multiple channels. In certain situations, purchasing decisions are made through offline conversation. For example, if individuals share product information via personal emails, LinkedIn, or other private accounts, their purchasing decisions are not considered when measuring campaigns. Therefore, brands find it difficult to evaluate the efficacy of their campaigns.
Consumer demand is dependent on the authenticity of products and the dependability of services. Traditional marketing and advertising methods consistently coerce consumers to purchase products. Traditional methods can create a negative brand image. In addition, consumers' shift toward OTT and social media channels has decentralized the consumer base across channels, resulting in high marketing costs with no return on investment (ROI). Therefore, businesses are increasingly adopting effective marketing strategies that reach end users without being annoying. Influencer marketing is one of the most effective marketing strategies because it reaches direct customers through macro and micro-influencers and creates a strong relationship between customers and brands. Through social media channels, brands endorsed by celebrities, bloggers, vloggers, and other well-known personalities instill consumer confidence. According to ClickZ, 22% of users between 18 and 34 base their purchasing decisions on celebrity endorsements. The above statistics indicate that brand image may be harmed if companies violate consumers' trust. Organizations have vast opportunities to gain consumer trust and acquire new customers by providing quality and openness.
The global market for Influencer Marketing Platforms has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.
In 2021, With a revenue share of more than 30%, North America dominated the market for influencer marketing platforms. This is primarily due to increased consumer engagement in social media and OTT platforms in the United States, especially during the pandemic when social isolation was common. As a result, corporations can use influencer marketing to promote their products and services. Furthermore, the presence of a skilled labor force in the region engaged in platform development, digital marketing, and AI-based analytics contributes to the market's expansion.
Due to the increased adoption of branding practices by leading fashion brands such as Chanel, Christian Dior SE, and Versace, Europe is expected to grow at a rate of nearly 32.0% through 2030. These brands are focusing on increasing market penetration and capturing a large customer base through micro- and nano-influencers. Furthermore, the ongoing deployment of automated systems in the Nordic countries to assist them in locating influencers and purchasing traffic is contributing to market expansion.
Due to the increasing adoption of cutting-edge technologies in countries like Japan, China, and India, Asia-Pacific is expected to experience the highest CAGR over the forecast period. APAC is expected to adopt more influencer marketing platforms as social media users continue to rise. The increasing implementation of ad-blocking solutions by users in APAC and Europe also drives market expansion.
The global market for Influencer Marketing platforms is categorized by Application, Organization Size, and End Use.
Based on Application, the market is segmented into Campaign Management, Search & Discovery, Analytics & Reporting, and Influencer Management.
Due to increased collaborations between brands and influencers for a specific campaign, the search and discovery segment held a revenue share of around 35% in 2021. Using audience demographics, performance, and content effectiveness, search and discovery solutions assist businesses in finding the right brand ambassadors. HypeAuditor, for example, offers search and discovery features for social media platforms such as TikTok, Instagram, and YouTube.
The analytics and reporting segment is expected to grow substantially over the next few years, owing to the growing need among businesses to analyze the critical factors of promotion campaigns, campaign effectiveness, content penetration, and influencer engagement. These factors enable businesses to change the content to meet their needs. Smartfluence, for example, is a well-known predictive analytics services provider that helps clients address potential risks in influencer campaigns.
Based on Organization size, the market is segmented into Large Enterprises and SMEs.
In 2021, more than 70% of the revenue came from the large enterprise segment. This was because more and more companies wanted marketing strategies that worked well and didn't cost too much. During the pandemic, a number of large businesses had to cut back on their operations. This cut their advertising budget, so they had to find new ways to promote their business and use the internet as their main marketing channel. A lot of people follow these businesses on social media, which can help them get more people involved through influencers and build good business relationships.
During the forecast period, the growth rate of the SME segment is expected to be around 35.0%, which is a lot. The growth can be attributed to the fact that more and more of these companies are working with micro- and nano-influencers to raise awareness of their brands and drive traffic to their websites at prices that are affordable. For example, in April 2022, the popular influencer marketing platform Mavrck announced that it would join forces with a leading social media marketing and commerce platform for small businesses and creators.
Based on End Use, the market is segmented into Food & Entertainment, Sports & Fitness, Travel & Holiday, Fashion & Lifestyle, and Others.
In 2021, the fashion and lifestyle segment contributed more than 29% of the market revenue for influencer marketing platforms. This can be attributed to the rising use of influencer marketing to make luxury lifestyle and fashion brands more accessible to consumers. Influencers are employed by various fashion companies to promote new clothing and accessories, thereby keeping consumers abreast of the most recent fashion trends.
Considering the rising demand for new and varied entertainment forms such as Over-the-Top (OTT) platforms, mobile game tournaments, online music events, etc., the food and entertainment segment held a significant revenue share of more than 23% in 2021. This significant increase in screen time during the pandemic presented an opportunity for food and entertainment companies to implement influencer marketing in order to promote new online content and events.
The major players engaging in the influencer marketing platform market are