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Global influencer marketing platform market was valued at US$ 10.5 Bn in 2022 and is projected to reach US$ 118.0 Bn by 2031 at a CAGR of 30.81% during the forecast period 2023–2031.
The internet has significantly changed the advertising landscape and provided businesses with new revenue streams. The widespread availability of high-speed and affordable internet services has opened up new channels for marketers to engage with target audiences, leading to the emergence of influencer marketing practices. Social media platforms such as Facebook, Instagram, YouTube, and Pinterest have become popular platforms for marketing purposes in the global influencer marketing platform market due to their large user base. Marketers have turned to online celebrities/influencers for product endorsements as they have a significant impact on the purchasing behavior of their followers. In fact, according to a study conducted by Twitter and Annalect, 40% of Twitter users rely on tweets to make purchasing decisions. Influencer marketing sites have emerged as powerful research resources, providing brands and companies with comprehensive databases of potential influencers with sophisticated algorithms.
The influencer marketing platform market's growing impetus is also attributed to customers' shift towards video-based content across the OTT space. With the increasing use of smartphones and 3G and 4G networks, video consumption has grown significantly in recent years. Therefore, organizations are designing marketing strategies for video-based content streaming across digital channels. In fact, a Google study in 2017 revealed that YouTube is the second-most used search engine across the world. Moreover, as television viewership reduced by 50% among the age group of 18-26 in 2017, video-based marketing increased from 63% in 2017 to 81% in 2018, according to Wyzowl's statistics. Consequently, organizations are moving towards influencer marketing techniques to target potential buyers as they are unable to reach their potential consumers through traditional marketing techniques.
However, the influencer marketing platform market growth is hampered by the lack of capabilities to measure campaign effectiveness. While influencer marketing has proven to be an effective marketing tool, brands and companies often struggle to measure the impact of their campaigns accurately. The lack of transparency and standardization in the industry has made it challenging for organizations to determine the return on investment (ROI) of their influencer marketing campaigns.
Rising Popularity of Social Media Platforms
Social media platforms such as Instagram, Facebook, Twitter, and YouTube have millions of active users, making them ideal platforms for influencer marketing. The rising popularity of social media platforms has led to the emergence of a new generation of influencers who have a significant impact on their followers. These influencers have the ability to persuade their followers to buy products or services endorsed by them. As a result, brands and companies are increasingly collaborating with influencers to reach out to their target audiences.
Growing Demand for Authentic and Personalized Content
Customers today are seeking authentic and personalized content that resonates with them. Influencer marketing provides brands and companies with a way to create content that is relevant to their target audiences. Influencers have a deep understanding of their followers' preferences and interests, which makes their content more personalized and authentic. This, in turn, increases customer engagement and enhances the effectiveness of the marketing campaign.
Lack of Standardization and Transparency
One of the biggest challenges in the influencer marketing platform market is the lack of standardization and transparency. There is no standard way to measure the success of influencer marketing campaigns, and the metrics used by different platforms vary widely. This lack of standardization makes it challenging for brands and companies to evaluate the ROI of their influencer marketing campaigns accurately.
Risk of Fraudulent Activities
The influencer marketing platform market is also vulnerable to fraudulent activities, such as fake followers, fake engagement, and fake influencers. Brands and companies need to ensure that they are collaborating with genuine influencers who have a real following and engagement. However, it can be challenging to identify fake influencers, and this can lead to a significant waste of marketing budgets. As a result, brands and companies need to exercise caution while selecting influencers to collaborate with and use tools to detect fake influencers.
Segmental Analysis ofGlobal Influencer Marketing Platform Market Report
The software component has been found to have the highest share in the global influencer marketing platform market in 2022 and is further estimated to continue its dominance over the projection period. Influencer marketing software are online tools that make the influencer marketing process easier for brands. These tools have several functionalities such as influencer discovery, audience analysis, content creation, and campaign management, among others, which help in streamlining the influencer marketing process. The software component has become crucial for influencer marketing as it provides data-driven insights, automates various processes, and enhances the overall efficiency of the influencer marketing campaigns.
Search, discovery, and onboarding function holds the highest market share in the influencer marketing platform market. Companies may use influencer search and discovery tools to locate the proper brand ambassadors using a variety of variables, such as audience demographics, content effectiveness, and performance, saving time and money over manual searches. The search function helps companies to identify potential influencers based on their audience reach, engagement, and other relevant factors. The discovery function enables brands to discover new influencers based on their interests, content, and followers. The onboarding function, on the other hand, assists in establishing partnerships with influencers, creating and managing campaigns, and tracking the performance of the campaigns.
Based on enterprise size, large enterprises accounted for the highest revenue share of the global influencer marketing platform market in 2022, owing to the need to deploy more cost-effective and efficient marketing strategies. Large enterprises have a larger budget and require a more comprehensive influencer marketing strategy. Therefore, they are more likely to invest in influencer marketing platforms to achieve their marketing goals. On the other hand, the small and micro-enterprises segment is expected to offer significant growth opportunities to the market over the forecast period. This is because SMEs can collaborate with micro-and nano-influencers, which helps them in increasing brand awareness and traffic to the company website at affordable prices.
By End User
The consumer goods and services industry is the highest end-user industry in the Global Influencer Marketing Platform Market and is also estimated to dominate the market over the forecast period. Among consumer goods and services, the fashion and apparel sector have the highest share. The rising need for high-end lifestyle and fashion brands to be more approachable for people and create closer interactions with them is driving the adoption of such advertising practices. Moreover, the growing popularity of social media platforms, such as Instagram, among fashion enthusiasts has created a vast opportunity for fashion and apparel brands to reach out to their target audiences through influencer marketing. Furthermore, the beauty and personal care sector, travel, and hospitality industry, and the food and beverage industry are other significant end-users of influencer marketing platforms.
North America has been a dominant region in the global influencer marketing platform market due to the high adoption of influencer marketing practices among brands and businesses. The region has a significant talent pool in platform development, AI-based analytics, and digital marketing, which offers a conducive ecosystem for the growth of the market. The US is one of the largest markets for influencer marketing platforms in North America, owing to the presence of several key players such as IZEA, Traackr, and CreatorIQ, among others. The availability of advanced digital infrastructure, such as high-speed internet connectivity, and increasing usage of social media platforms for product endorsements have been driving the growth of the influencer marketing platform market in North America.
On the other hand, the Asia Pacific region is expected to register the highest CAGR over the forecast period 2022-2030. The increasing number of internet users and the adoption of social media platforms for marketing purposes are driving the growth of the market in the region. The rapid growth of e-commerce and the increasing demand for digital marketing strategies by businesses have further fueled the growth of the influencer marketing platform market in Asia Pacific.
Moreover, the region has seen a significant rise in the number of social media users, particularly in countries like China, India, and Indonesia. The presence of a large youth population in these countries has led to the increased use of social media platforms, making it an ideal channel for influencer marketing. Additionally, the rising popularity of short video platforms like TikTok and Kwai has also contributed to the growth of influencer marketing in the region.
Furthermore, the Asia Pacific influencer marketing platform market is witnessing an increasing trend of micro-influencers, who are social media influencers with a relatively smaller number of followers. These micro-influencers have a higher engagement rate with their followers and are more cost-effective for small and medium-sized businesses. The growing trend of micro-influencers is expected to further drive the growth of the market in the Asia Pacific region.
Competitive Dashboard of the Global Influencer Marketing Platform Market
The key players in the Global Influencer Marketing Platform Market are Activate, Brandwatch, CreatorIQ, Grin, and Impact Tech, Inc. among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip of emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.
List of Key Companies Profiled:
The following are the different segments of the Global Influencer Marketing Platform Market:
By Function (Module):
By Subscription Plan:
By Enterprise Size:
|Market Size Value in 2022||US$ 10.5 Bn|
|Expected Revenue in 2031||US$ 118.0 Bn|
|Unit||Value (USD Bn)|
|Segments covered||By Component, By Function, By Subscription Plan, By Enterprise, By Industry, By Region|
|Key Companies||Activate, Affable Technologies, Inc, Anymindgroup (CastingAsia, Moindy), AspireIQ, BrandBassador, Brandwatch, BuzZoole, ChtrBox, CollabAsia, CreatorIQ, FYI (For Your Influence), Grin, Impact Tech, Inc., Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Global Influencer Marketing Platform Market was valued at US$ 10.5 Bn in 2022.
Global Influencer Marketing Platform Market is estimated to expand at a CAGR of 30.81% over the forecast period 2023-2031.
The growing impetus of the market is attributed to the customers’ shift towards video-based content across the OTT space.
Emergence of influencer networks is a key trend in the influencer marketing platform market.
The lack of capabilities to measure campaign effectiveness hampers the market growth.
The influencer marketing platform market is segmented based on component, function, subscription plan, enterprise size, industry, and region.
The major industries in the influencer marketing platform market are retail & e-commerce, consumer goods & services, healthcare, hospitality, and tourism among others.
Software component dominates the influencer marketing platform market in 2022.
Large enterprises have the highest share in the influencer marketing platform market in 2022.
Consumer goods & services the highest end user industry in the influencer marketing platform market.
North America dominates the global influencer marketing platform market.
The key players dominates the global influencer marketing platform market are Activate, Brandwatch, CreatorIQ, Grin, and Impact Tech, Inc. among others.