With social media’s rise in popularity, influence marketing has been on the rise over the past few years. Even though the impact is limited to a few industries, its power cannot be underestimated.
Spending $27.5 billion by 2022, $51.15 billion by 2027
According to StockApps.com, $27.5 billion will be spent on influencer advertising in 2022. By 2027, the same number is believed to go up to $51 billion.
The same number stood at only $6.04 billion in 2017. Therefore, we can see that influencer advertising has grown by approximately 355% during the last five years.
Expected to grow at an annual growth rate (CAGR) of 13.21%, during the next five years, if all goes well then, the industry spends on the influencer advertising in 2027 will be $51.15 billion.
This information should be taken with a grain of salt by anyone involved in this industry. During 2017-2021, influencer advertising experienced spectacular growth, with the annual growth rate fluctuating between 34.6% and 46%. In 2022, however, the growth rate dropped to 20.4%.
It is expected that the rate of growth will continue to decline until at least 2027. As per the numbers, by 2027, the annual growth rate will only be around 10% – considerably lower than the growth rate witnessed in the last five years.
China to splurge 57%, US second in Spending.
When it comes to influencer advertising, China leads the way. The love of the Asian economic giant is evident from the fact that in 2022, China will spend $15.69 billion.
57% of the total advertising budget for influencers in 2022 will be spent on influencers.
Uncle Sam is the second most powerful dragon after the Red Dragon. The United States of America is second on the list, spending $4.25 billion in 2022 on influencer advertising, followed by Japan & Germany, both spending less than a billion dollars.