Brands Will Spend Whooping $27.5 Billion On Influencer Marketing This Year: 355% Growth In Last 5 Years
Recent years have seen the rise in influence marketing as today’s the age of social media. Even though the impact is parochial to few industries, still its power can not be ignored.
Spending $27.5 billion by 2022, $51.15 billion by 2027
A whopping $27.5 billion will be spent on influencer advertising in 2022 if the numbers presented by StockApps.com are to be believed. By 2027, the same number is believed to go up to $51 billion.
When you take the same number for 2017, it stood at only $6.04 billion. Hence, we can see that during the last 5 years, the influencer advertising industry has grown by approximately 355%.
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.
For anyone who is related to this industry then these figures are to be taken with a pinch of salt. As the Influencer advertising witnessed spectacular growth during 2017-2021 and the annual growth rate fluctuated between 34.6% and 46% during the four years. However in the year 2022, the rate of growth tumbled down to 20.4%.
At least until 2027, the rate of growth is expected to keep decreasing. As per the numbers, by 2027 the annual growth rate will only be around 10% – which is considerably lower than the growth rate witnesses in the last five years.
China to splurge 57%, US second in Spending
Leading the pack is China when it comes to spend on influencer advertising. The love of the Asian economic giant is evident from the fact that in 2022, China will spend $15.69 billion.
Out of the total spent on influencer advertising in 2022, this makes 57%.
Second to the Red Dragon, is Uncle Sam. With a $4.25 billion expenditure on influencer advertising, the United States of America is in second in the list and is followed by Japan & Germany, both spending less than a billion dollars in 2022.