Influencer Marketing Statistics - How Big Is It in 2023?

The stratospheric rise of influencer marketing in the last few years has been nothing short of astonishing. It is now a multi-billion dollar business. Are you impressed? Are you interested to find out where the industry is heading?

Then you’ve come to the right place. At TechJury we have compiled a list of valuable influencer marketing statistics. These will help visualize the latest trends in the industry and what to expect in 2022. Here are some numbers to whet your appetite:

Catchy Influencer Marketing Statistics

• Influencer Marketing Industry reached $16.4 billion in 2022, up from  $13.8 billion in 2021.
• Instagram is by far the most popular influencer marketing platform among brands.
• 93% of marketers use influencer marketing as part of their marketing strategy.
• 46% of Social Media users have purchased products promoted by influencers.
• About 56% of all respondents are aged between 30-44 years.
• 82% of consumer traffic in 2022 will come from video.
• IGTV is a regular advertising channel for 31% of businesses.
• 25% of Instagram’s sponsored posts target fashion. 
• Identifying fake followers is a challenge for 50% of brands.
• Around 42% of marketers base the success of influencer campaigns on sales and conversions. 

But hold on a minute:

What Is an Influencer?

You might have seen the term influencer bandied about on the Web quite a lot, but what exactly does it mean? The Punisher is a comic book vigilante who violently punishes criminals for their sins. By that logic, an influencer is someone who, well, influences people for their own good, right?

Well, not quite.

An influencer is an individual who’s capable of affecting (i.e., influencing) people’s purchase decisions because of his/her knowledge or authority. What’s more, this individual has a following – usually on social media – in a specific niche, such as fashion, food, fitness, photography, and so on. YouTube marketing is also quite common.

So, anyone can do it, right?

Yes and no.

You might be the world’s leading authority on, say, deep sea fishing, but if you have a grand total of 35 followers on Instagram, you won’t be able to influence anybody apart from your cat Mittens. So, what is influencer marketing?

Here’s the gist:

Influencer marketing is a new marketing tool that focuses on content-driven, digital campaigns. These campaigns are often collaborations between brands and influencers.

Types of Influencers

Influencers are at the heart of the industry; without them, it simply wouldn’t exist. But not all influencers are created equal. Whether you’ll need a micro-influencer or a macro-influencer depends on the nature of your business and your target audience.

There are several types, based on the size of their audience. Let’s take Instagram influencers (also known as “Instagrammers”) as an example:

• Micro-influencers have roughly between 5,000 and 25,000 followers.
• Small influencers have between 25,000 and 100,000 followers.
• Big influencers have between 100,000 and one million followers.
• Macro-influencers have between one and seven million followers.
• Celebrity influencers have more than seven million followers.

How Much Is the Influencer Market Worth?

The influencer market has been growing consistently since 2015.

1. The influencer marketing industry will be worth $24.1 billion by 2025.

(Source: Markets and Markets)

The market will grow by a CAGR of 32% by 2025. According to influencer marketing growth stats, that’ll mark an increase of $18.1 billion between 2020 and 2025.

The market witnessed remarkable growth, expanding from $1.7 billion in 2016 to $9.7 billion in 2020. It further surged to $13.8 billion in 2021, demonstrating consistent growth. In 2022, the market expanded even more, reaching an astounding $16.4 billion industry.

Influencer marketing market size worldwide (2016 - 2022)

Table source from Statista

Popular Platform

Influencer marketing takes place on a variety of digital platforms and channels. Many influencers use several.

2. Instagram was the most-used influencer marketing platform in the United States

(Source: Statista)

In 2021, Instagram emerged as the top influencer marketing platform among marketers in the United States, with nearly 68% of them using it for influencer campaigns.

Following closely behind was Facebook, which was used by 52% of marketers as an influencer marketing platform, while TikTok secured the third position with 42%.

TikTok surpassed YouTube as an influencer marketing platform and was projected to experience a further rise in popularity over the years, with the percentage of marketers using it projected to increase from 36% in 2020 to 54.9% in 2025.

Leading platforms used by marketers

3. 31% of businesses use IGTV to advertise.

(Source: Earth Web)

IGTV has become quite a hit with marketers. Due to its long-video format, businesses can offer in-depth descriptions of their goods and services.

4. 16% of social influencers worldwide use blogs as their primary social media platform.

(Source: Statista)

A few years ago, blogs were all the rage. Plenty of influencers still use them; besides, you have greater freedom in how you deliver sponsored content when you have your own blog.

5. 28.7% of US customers follow at least one influencer on YouTube.

(Source: Statista)

In a 2022 survey, researchers found that nearly a third of Americans follow a minimum of one influencer on YouTube. The second most popular platform was the Gram, with 28.4%. TikTok took third place with 20.5%, according to social media influencer statistics.

6. Only 2% of social influencers for brand collaborations worldwide used Facebook as their primary social media platform.

(Source: Statista)

Facebook’s reputation has suffered as a result of a number of so-called “fake news” scandals in 2016-2018. What’s more, young people are leaving it in droves for its younger, flashier sibling, Instagram.

The Rise and Rise of Instagram

Instagram is the most strategically important media channel for influencer marketing by a huge margin. Millennial consumer statistics suggest that the platform is a major trendsetter.

7. Influencer marketing campaign spending will reach $5 billion by 2023. 

(Source: Insider Intelligence)

Spending on influencer marketing will reach $4.14 billion in 2022. According to projections, it’ll then grow by 11.5%, approaching $5 billion next year. Note that this amount doesn’t include any non-cash payments. 

8. The most effective Instagram posts have 3 to 4 hashtags.

(Source: Statista)

Stats about influencer marketing reveal that including 3 - 4 hashtags gives the highest impression rate of 3.41%. Posts with 17-18 hashtags give the least engagement with 3.02%. 

9. 4 out of 5 brands use IG for influencer marketing. 

(Source: Influence Marketing Hub)

Instagram is a vital influence marketing channel for 79% of brands. This number has increased by 11% since 2020. 

10. Video content will drive the most traffic in 2022 and beyond.

(Source: Tinuiti)

Influencer marketing data reveals that over 82% of site visitors will come from video. Compared to 2017, this percentage will be 15 times higher!

11. Cristiano Ronaldo is the highest-paid celebrity on Instagram.

(Source: Market Research Telecast )

The soccer player has beaten Dwayne Johnson, who had topped the list for the last two years. With 453 million followers, Christiano earns a whopping $1.6 million per post!

Ariana Grande follows closely after the Rock, with 316 million followers. She pockets approximately $1.51 million per post. The fourth place goes to Kylie Jenner, who takes home around $1.5 million per promotion.

12. Most of the respondents aged 18 - 44 have purchased a product after seeing it is used by influencers.

(Source: Izea)

Response by age group

How Influencers Generate Revenue

Let’s face it, influencers don’t do what they do out of the goodness of their hearts. It’s also seldom because they absolutely loved that pair of jeans. The fact of the matter is they want to get paid. So, how do they make money?

13. Micro-influencers create 91% of engagement posts.

(Source: Rockcontent)

One might think that the big names bring in the big numbers. However, 91% of engagement posts come from micro-influencers – a 2% growth since 2020. 

14. ¼ of all sponsored posts on Instagram focus on fashion. 

(Source: Social Shepherd)

According to Instagram influencer marketing stats, 25% of sponsored posts are about fashion. The category is ahead of the food, baby, and entertainment niches. 

15. Brand ambassadors will be big in 2022.

(Source: Influencer Marketing Hub)

In 2022, brand ambassadorships are becoming increasingly prominent. Companies are adopting a continuous influencer marketing approach that enables them to maintain a consistent presence on various social media platforms.

Marketers can transform these thought leaders into genuine brand advocates by forging robust and enduring relationships with them. This involves partnering with individuals who possess a deep understanding of both the brand and its target audience.

16. The FTC sent 700 businesses warnings regarding inaccurate endorsements and reviews.

(Source: Influencer Marketing Hub)

In October 2021, the FTC sent hundreds of Notice of Penalty Offenses to advertisers, companies, and retailers. The warnings stated that each violation could cost up to $43 792 in fines.

Brand Marketers

Brand marketers are increasingly coming to realize the great potential of influencer marketing.

17. 5% of brands state they’ll spend half of their advertising budgets on influencer marketing in 2022.

(Source: Influencer Marketing Hub)

77% planned to include it in their overall marketing budget. 28% said they would allocate between 30% and 40% to it.

18.  92% believe influencer marketing is an effective form of marketing

(Source: Influencer Marketing Hub)

Given the other favorable statistics surrounding influencer marketing, it's not unexpected that our survey participants held a positive view of its effectiveness.

Specifically, 92% expressed confidence in influencer marketing as a valid marketing approach. It would be insightful to understand whether the 8% who were skeptical about its effectiveness had a negative experience with it or simply hadn't given it a try.

19. With 81%, content quality was the number one factor for brand marketers when picking the right influencers.

(Source: ReputationX)

If you’re thinking of becoming an influencer, this is one of the most crucial stats. Make sure you bring your A game to the field – otherwise influencer marketing companies will simply ignore you, and marketers will move on.

20. 42.3% of brands determine the success of influencer marketing by conversions and sales.

(Source: Influencer Marketing Hub)

How many likes did your sponsored Instagram post get? Did people post positive comments or questions? While there’s more to it than just numbers, it all starts with likes, clicks, and views.

Influencer marketing success stats reveal that 42% of brands say conversions from influencer campaigns determine how effective they are. 32.5% evaluate success based on clicks, while 29% check views, reach, and impressions.

21. 48% of brand marketers named audience relationships as the most important factor when running influencer campaigns.

(Source: Influencer Marketing Hub)

This is why a larger following does not necessarily translate into higher profits. Micro influencer stats show influencers with a few thousand followers tend to share more direct recommendations. What’s more, they’re usually better value for money.

22. 36% of brand marketers said recruiting influencers is their biggest challenge in managing influencer campaigns.

(Source: Influencer Managing Hub)

This may seem surprising at first, given the large and constantly growing number of influencers out and about. But here’s the thing: many influencers will not work with a brand they feel ambivalent about. What’s more, if you’re engaging micro-influencers – as opposed to a key influencer with an outsized influence – you’re likely to need a whole host of them.

And finally

23. ½ of businesses that use influencer marketing has trouble detecting fake followers.

(Source: Startupbonsai)

10% of followers on Insta are bots.

These fake accounts follow influencers, artificially pumping up their numbers. 

IG introduced machine learning tools to help wipe out fake profiles in 2018. However, according to influencer marketing stats, 50% of businesses still struggle with weeding them out in 2022.

How To Measure Influencers’ Impact

You may have gathered by now that influencers’ impact isn’t determined by the number of followers alone. In fact, there are several key performance indicators (KPIs) we can use to measure it. The most important indicator for 75% of marketers is:

Engagement Rate 

This indicator measures the “commitment” level between an influencer and their audience. It can give you a good idea of how people view your brand. Likes, reactions, comments, clicks, and views count as engagement in social media influencer marketing. You can calculate a profile’s engagement rate by dividing the average number of interactions per post by the number of followers, multiplying by 100.

But wait:

Why bother crunching numbers yourself when the Instagram Engagement Calculator will do it for you? Simply enter a handle, and click search. 

For instance, what’s the engagement rate of singer and celebrity influencer Katy Perry? With 164+ million followers as of June 2022, the answer is 0.08%. Her average interactions are 170, 970 likes, and 1670 comments.

You’re probably wondering:

Is this good or bad? Well, according to Instagram influencer marketing statistics for 2022, the average engagement rate of Instagrammers with over a million followers is 1.97%. So, Katy Perry’s engagement is pretty poor.

But there’s more:

Micro-influencers on Insta have the highest average engagement rate at 6%. The more followers an influencer has, the lower the engagement they get. Therefore, many businesses prefer working with multiple micro-influencers rather than a single influencer with a larger follower base.

Conversion Rate 

This indicator tracks several digital marketing facts, such as sales before, during, and after an influencer marketing campaign to measure its effectiveness. Other desired actions, such as signing up for a brand’s newsletter, could also contribute toward it.

Referral Traffic 

This indicator measures the number of visits to a website from pages other than Google. The key metrics here are new visitors, referral sources, total page views, and how long visitors browsed the site.

Reach and Awareness 

This indicator measures how many people became aware of a particular brand as a result of a campaign. Also, how did this campaign reinforce the brand’s standing with existing customers? You can use social media analytics to track impression data on your blogs, videos, and social media posts.

Audience Growth 

This indicator measures how many people are actually buying from your brand, as opposed to simply being aware of its existence.

But:

Even though marketers are aware of these key performance indicators, they still somehow find influencer marketing measurement one of their biggest challenges. There’s definitely room for improvement.

And finally:

Wrap up

So, what can the latest influencer marketing statistics tell us about where the industry is heading in 2022?

First, influencer marketing is growing by leaps and bounds. It’s now a multi-billion dollar business. Second, Instagram is the main platform of choice for both influencers and marketers by a long way. Third, sponsored content and sponsored social media posts are the two main sources of revenue for over two-thirds of influencers. So, if you’re thinking about becoming a digital influencer yourself, you better hone those social media skills and brush up on your deep-sea fishing.