Influencer Marketing Up 34% in 2021, $1B Above 2020, Says EMarketer
Spending on influencer marketing in the U.S. will rise 33.6% this year to $3.7 billion, almost $1 billion more than in 2020, said an eMarketer report. Growth will continue in double digits until 2023, approaching $5 billion. That compares with estimated spending of $58.66 billion on social network ads, which are seen growing 26.9% over 2020. Both are social media-based.
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Nearly two-thirds of marketers worked with influencers last year, up from 55.4% in 2019, but budgets strained during the COVID-19 pandemic forced some to pause campaigns or cut influencers’ paychecks, slowing growth. Many beefed up influencer content in their paid media campaigns, which aren't part of the forecast.
Though eMarketer doesn’t publish platform-specific breakouts for influencer marketing, it estimates Instagram is the leading influencer marketing platform with about half the market, with significant spending also going to influencer campaigns on YouTube and Facebook. TikTok is a “small slice” of the influencer spending pie but “growing fast.” EMarketer expects more investment in the segment as influencers prove their ability to drive sales and brand awareness,
U.S. social commerce growth will dip to pre-pandemic levels in 2022, eMarketer said, saying sales via social networks including Facebook, Instagram, Pinterest and WeChat jumped by 39% in 2020. The average amount spent annually by a social buyer will double from last year, to $737.32 in 2025, it said. Some 90.2 million consumers ages 14 and up, 35.9% of internet users, will make at least one purchase via social media this year, second to China, it said. The market research firm projects social commerce will be a $79.64 billion industry in the U.S. by 2025. It defines social commerce as purchases made by buying directly on a social platform, such as via Instagram Checkout, or through clicking links on the social network that lead to the retailer’s product page to complete the transaction.
Social media shopping “may not work for every customer base,” eMarketer said, saying Generation Z and millennials are most likely to purchase via social media. Half of consumers 18-34 will make at least one social commerce buy this year vs. a third 55 and older, it said. Though social buyers aren’t spending a lot as a whole, average order values are “relatively high,” said the report. Brands should create social media platforms that inspire consumers and enable one-click purchases, it said.