The global influencer marketing platform market size is anticipated to reach USD 23.52 billion by 2025, exhibiting a CAGR of 26.8% over the forecast period, according to a new report published by Grand View Research, Inc. Technological proliferation in marketing practices is expected to offer significant growth opportunities to the market.
The rising need for brands and agencies to foster deeper connections with consumers is contributing to the growth. Technological proliferation in advertising practices has helped companies to digitalize and disrupt marketing models. Influencer marketing has enabled organizations to maximize their reach more than the legacy marketing practices. Additionally, this marketing platform enables organizations to work with influencers who audiences relate with, thus assisting in developing better connections and higher engagement.
The advent of social media has dramatically enabled organizations to increase customer engagement via influencers. Social media allows organizations to engage in content-driven publicity by collaborating with the most suitable personality to create a digital identity for audiences, thus enabling higher and closer engagement. The presence of a large number of millennials, along with a significant number of influencers in their following on social media platforms, such as Instagram, further encourages companies to leverage influencer marketing to make a more substantial impact on millennials. For instance, iFluenz, an Instagram influencer marketing platform, assisted Yves Rocher to generate significant awareness about their new product line Eco-Douche.
Furthermore, ongoing innovations, including virtual influencers, are expected to increase the demand for these platforms. These platforms are programmed to provide more accurate results than human influencers based on historical performance, brand collaborations, and qualified engagement. A virtual influencer provides affordable scalability and a higher degree of creative freedom, which helps target the right customer. The fashion industry is one of the largest adopters of virtual influencers in their advertising campaigns. For instance, Lil Miquela, a virtual influencer designed by Brud, has collaborated with brands including Chanel and Prada, which have immensely gathered popularity.
Despite widespread adoption of the platforms, several brands and firms are struggling to measure the performance of this platform. Such brands and firms are expected to provide ample opportunities to influencer marketers to collaborate with them, thereby boosting the market growth. The need to create both authentic and marketable content has led marketers to adopt influencer marketing platforms. Influencers prove to be trustworthy sources for acquiring information about products rather than traditional forms of advertisements.
Advanced technologies such as Artificial Intelligence (AI), Artificial Neural Networks (ANN), Natural Language Processing (NLP), and Machine Learning (ML) provides better search results and analytics, which is expected to guide marketers in taking better decisions.
Key suggestions from the report:
- Influencer management is expected to be the fastest-growing segment over the forecast period owing to greater demand of brands to maintain efficient influencer relationships for longer and healthier collaboration
- Small and Medium Enterprises (SMEs) are expected to benefit from the adoption of influencer marketing platform owing to cost-effectiveness and higher engagement rates
- The sports and fitness segment is expected to witness significant growth over the forecast period, attributed to the rising consumer awareness regarding the benefits of maintaining a healthy and active lifestyle
- Asia Pacific is expected to dominate the market by 2025, owing to increasing mobile penetration, which makes it easier to reach out to a larger number of people via social media
- The key players dominating the influencer marketing platform market are AspireIQ Inc.; Grapevine Logic Inc.; Upfluence, Hypetap Pty Ltd.; and Speakr Inc.
Organization Size Insights
Large enterprises segment captured the largest revenue share in 2018. Marketing products and services by influencers enable large corporations to build greater trust as compared to traditional promotion methods. Influencer marketing also aids in getting higher Return on Investment (RoI) and better Search Engine Optimization (SEO). Large enterprises are expected to adopt the platform as it helps to grow the social media following and build customer relationships.
Influencer marketing is gaining popularity among the Small and Medium Enterprises (SMEs) owing to better affordability and similar returns as compared to traditional marketing methods. Service providers, such as AspireIQ provide custom campaign designing and management for small enterprises. Additionally, influencer marketing platforms offer detailed insights such as demographic and psychographic data on influencers, which helps SMEs design more targeted campaigns. Influencer marketing enables to generate higher site traffic, thus fetching higher inbound leads, which leads to high sales generation.
The fashion and lifestyle segment captured a revenue share of more than 35% in 2018. The growing presence of millennials on social media is promoting brands and agencies to cater to the former’s needs, thus aiding growth of the market. The rising tendency of millennials to buy products showcased by their favorite influencers, at the convenience of one-click is further augmenting the segment growth. Apart from the business point of view, industry exposure, and monetary compensation offered by the companies are the factors motivating millennials to follow influencers, thereby fueling the growth. Collaborating with the right companies provides influencers with opportunities to generate meaningful and relatable content for their followers, which is one of the major growth drivers.
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The food and entertainment is anticipated to hold a significant market share over the forecast period, owing to the increasing consumer demand for new experiences regarding entertainment and pallet. Restaurants and food chains resort to influencer marketing as visual communication to create a stronger impact on consumers. From an entertainment point of view, the availability of streaming services and podcasts on various Over-The-Top (OTT) platforms encourages millennials to explore new platforms of entertainment, which has resulted in brands to leverage influencer marketing to increase their reach and engagement. For instance, The British Broadcasting Corporation collaborated with Niki and Sammy Albon, a British YouTube duo, inviting their several followers to listen to their podcast, thus promising a significant number of engagements.
North America emerged as the highest revenue generating regional market in 2018. The rise in the number of ad-blockers has led marketers to find a unique way to reach the masses, which has resulted in the need to adopt an influencer marketing platform. The growing number of Instagram users has fueled the regional market growth. The region is expected to witness exponential growth in the next few years as the companies in Canada are yet to explore influencer marketing to its full potential as compared to U.S. This factor is anticipated to provide immense growth potential for marketers in the country to engage with audiences.
Europe is expected to showcase significant growth over the forecast period, attributed to the rising adoption of blog-based marketing on account of greater creative freedom as compared to social media marketing. Furthermore, online magazines are teaming up with well-established bloggers, which helps generate higher volume and traffic on their websites, thus fueling market growth. The rising number of inbound leads due to the adoption of influencer advertising is expected to provide an impetus to the regional growth.
Influencer Marketing Platform Market Share Insights
Upfluence Inc.; Speakr Inc.; AspireIQ; and Grapevine Logic Inc. are some of the major players maneuvering the market dynamics. Service providers are developing Artificial Intelligence (AI) and Machine Learning (ML)-based tools and solutions to ensure a strong market position. For instance, Hypetap Pty Ltd has launched an AI-enabled tool, which is expected to empower marketers to identify people, scenes, activities, and objects on social media to decide which influencer is the most appropriate to collaborate. Affable.ai is an AI-powered advertising platform that leverages advanced technologies to offer excellent services at affordable prices and also provides an in-build CRM to establish effective business communications between influencers and brands.