Influencer Marketing Platform Market Size, Share & Trends Analysis Report By Component (Software, Services), By Organization Size (Large Enterprises, SMEs), By Influencers Type (Nano Influencers, Micro Influencers, Macro Influencers, Mega Influencers), By Application (Search & Discovery, Campaign Management, Analytics & Reporting, Content Creation, Influencer Relationship Management, Product seeding, Others), By End Users (Beauty & Personal Care, Retail & eCommerce, Travel & Hospitality, Food, Beverage & Spirits, Media & Entertainment, Consumer Goods, Education, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Influencer Marketing Platform Market Size

The global influencer marketing platform market size was valued at USD 7.19 billion in 2023. It is projected to reach from USD 9.23 billion in 2024 to USD 78.33 billion in 2032, growing at a CAGR of 30.6% over the forecast period (2024–2032). The proliferation of social media platforms like Instagram, TikTok, and YouTube has created vast opportunities for influencer marketing. With billions of active users worldwide, these platforms offer a broad reach for brands to engage with potential customers through influencers.

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.

Influencer Marketing Platform Market Growth Factors

Increasing Prevalence of Smartphones and 3G and 4G Networks

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.

Influencer Marketing Platform Market Restraining Factors

Lack of Planning

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.

Influencer Marketing Platform Market Opportunities

Increase Adoption of Effective Marketing Strategies

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.

Influencer Marketing Platform Market Regional Analysis

Europe: Dominant Region with 31.7% Growth Rate (CAGR)

Europe is the most significant influencer marketing platform market shareholder and is anticipated to exhibit a CAGR of 31.7% during the forecast period. 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.

North America

North America is estimated to exhibit a CAGR of 29.3% over the forecast period. Europe emerged as the second-largest geographical segment in the global market. 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 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.

Influencer Marketing Platform Market Segmentation Analysis

By Component

The software component holds the most significant share of the worldwide influencer marketing platform market, and it is anticipated that it will continue to maintain its dominant position during the forecast period. Software designed specifically for influencer marketing is a set of web tools that simplify the process of influencer marketing for all brands. These tools contribute to the efficiency of the influencer marketing process by providing several features, including identifying influencers, analyzing audiences, creating content, and managing campaigns.

As a result of its ability to give data-driven insights, automate various procedures, and improve the overall effectiveness of influencer marketing campaigns, the software component has emerged as an essential component for influencer marketing.

By Organization Size

The large enterprise segment accounted for over 70 percent of the total revenue. This was because many businesses wanted effective marketing techniques while spending a reasonable amount of money. During the pandemic, several multinational corporations were forced to reduce the scope of their operations. Due to this, they were forced to discover new ways to promote their company and make the Internet their primary marketing channel. This resulted in a reduction in their existing advertising budget. As a result of the large number of individuals who follow these companies on social media, they can increase the number of people involved through influencers and establish positive commercial partnerships.

The small and medium-sized enterprise (SME) segment is anticipated to have an impressive growth rate of around 35.0% over the projected year. The expansion can be ascribed to the fact that an increasing number of these businesses are collaborating with micro- and nano-influencers to increase the visibility of their brands and drive traffic to their websites at rates within their budgets.

• For instance, in April of 2022, the well-known influencer marketing network Mavrck announced that it would collaborate with a prominent social media marketing and commerce platform catering to creators and small businesses.

By Influencer Type

Micro-influencers hold a dominant position within the global market for influencer marketing platforms. Even though nano influencers are becoming increasingly popular, micro-influencers with 10,000 and 100,000 followers constitute the most significant portion of the influencer marketing sector. Nano influencers are known for their sincerity and highly engaged niche audiences. They have between 1,000 and 10,000 followers with a large number of followers. Micro-influencers are preferred because they have a wider reach than traditional influencers while keeping their authority within specialized niches. They have between 10,000 and 100,000 followers. Micro-influencers are believed to be the most cost-effective due to their higher engagement rates than more prominent influencers. To reach highly engaged audiences at a cheaper cost per engagement, seventy percent of businesses are already working with smaller artists with less than sixty thousand followers.

Even though nano-influencers are a relatively new and potentially fruitful area, micro-influencers continue to be the most potent force in the influencer marketing industry. This is because they combine reach, engagement, and cost-effectiveness. Brands are driving authentic connections and results through the increasing utilization of micro-influencers.

The market is further segmented by application into search and discovery, campaign management, analytics and reporting, content creation, influencer relationship management, product seeding, and others.

The search and discovery segment held a revenue share of approximately 35 percent. This was primarily attributable to the increased collaborations between brands and influencers for a particular campaign. Businesses can locate the ideal brand ambassadors with search and discovery tools. These solutions take into account audience demographics, performance, and the effectiveness of content. For example, HypeAuditor provides search and discovery capabilities for social media sites like TikTok, Instagram, and YouTube. There are also other functionalities available.

The analytics and reporting market is anticipated to experience significant growth over the next few years due to the growing demand among businesses to assess the essential components of promotion campaigns, campaign effectiveness, content penetration, and influencer engagement. This growing demand is projected to be the driving force behind this growth. Due to these elements, businesses can modify the material to satisfy their requirements.

• For instance, Smartfluence is a well-known provider of predictive analytics services that assists clients in addressing potential hazards associated with influencer management efforts.

By End-Users

The beauty and personal care sector was responsible for more than 28.8 percent of the total income generated by influencer marketing platforms in 2023. One possible explanation for this phenomenon is the growing use of influencer marketing, which aims to make beauty and personal care businesses more accessible to consumers. Influencers are employed by various companies that specialize in beauty and personal care to promote new beauty and personal care goods. This helps consumers know the most recent beauty and personal care trends.

Recent Developments

• June 2024 - Dabur, a company well-known for its natural and ayurvedic goods, and Qoruz, an influencer marketing platform in India, launched a new collaboration. This partnership aims to enhance Dabur's influencer marketing strategy by guaranteeing more authentic and productive interaction with its intended audience.
• May 2024 - Influencer marketing startup vHub.ai garnered significant attention after obtaining undisclosed funds in a seed round from several investors, including Z21 Ventures and the Startup India Seed Fund Scheme. Several current early-stage angel investors who helped assist Vhub throughout its original launch and development phases also participated in the investment round.