Despite the recent pandemic-induced slowdown in the spending companies dedicate to influencer marketing, it remains one of the strongest marketing tools. While the pandemic temporarily affected budgets, new trends seem to have set marketers back on track. The amounts influencer marketing spend are not only returning to normal but are even projected to rise further.
The fact remains that brands will always want to take advantage of the reputation of a famous/respected person and the influence they have on their audience and use it to sell products. That’s why we prepared the most interesting stats and facts on how much businesses are willing to spend on influencers — they will give you some essential insight regardless of which side of the barrier you’re on.
Influencer Marketing Spend Stats (Editor’s Choice)
- The influencer marketing industry is set to reach $13.8 billion in 2021.
- In 2019, 17% of surveyed businesses committed over 50% of their marketing budgets to influencer marketing.
- Almost nine out of 10 marketers see influencer marketing ROI as comparable or superior to that of other marketing channels.
- Influencer marketing spending in the US is set to grow by 30% in 2021.
- In 2019, the total value of influencer marketing on Instagram was estimated at $1.7 billion.
- Marketers using influencer marketing usually pay between $50 and $100 for 1,000 views on YouTube.
- Roughly 53% of micro-influencers never paid a sponsored post.
- Around 40% of Twitter users confirm they made a purchase after they saw a recommendation for it in a tweet from an influencer.
Influencer Marketing Budget Statistics
1. The influencer marketing industry is set to reach $13.8 billion in 2021.
Despite the obvious negative effects of COVID19 on all aspects of business, spending on influencer marketing is on the rise after an initial slowdown, with people spending more time online. The best indicator for this is that in 2016, only $1.7 billion went for this branch. By 2020, the market had grown to a spectacular $9.7 billion and is expected to keep expanding going forward.
(Influencer Marketing Hub)
2. Some 17% of companies commit over 50% of their marketing budgets to influencer marketing.
Although it might seem small, this percentage underscores the importance of this marketing branch. It particularly indicates how important influencers have become for brands in line with fashion, beauty, travel, lifestyle, or gaming. Then, 6% have a 91-100% influencer marketing ad spend. Another 2% allocate 81-90% of their total marketing budget to influencers. Next, 1% spend 78-80%. Finally, 4% spend 61-70%, and another 4% spend 51-60%.
(BigCommerce)
3. Three-quarters of those surveyed plan on dedicating a budget for influencer marketing in 2021.
Firms are happier to enlist the help of influencers when considering future marketing budgets. It’s no surprise then that 75% are planning on dedicating a specific budget for this in 2021. Although this marks a drop from 79% in 2020, it is much higher than back in 2017, when this was merely 37%.
(Influencer Marketing Hub)
4. For some 83% of companies, their influencer marketing budget comes from their overall marketing expenditure.
The majority of those (49%), however, spend less than $10,000. Next, 23% spend somewhere between $10,000 and $50,000. Following that, we have 12% of companies spending $50,000-$100,000. Another 7.5% are big spenders with $100,000-$500,000. And finally, 8.6% of brands splurge with $500,000+.
(ION)
5. Almost nine out of 10 marketers consider influencer marketing ROI comparable or superior to that of other marketing channels.
That for sure justifies the amount of money that goes into influencer marketing global spend. Some past reports show that in the case of some companies, the ROI of this branch was 11 times higher than any other digital form of marketing. For reference, the yield was between $5.20 and $6.50 for every dollar. Further, in terms of earned media value, advertisers should be expecting around $11.96-$18. EMV usually happens through reviews, influencer marketing, and word of mouth.
(Media Kix)
6. Influencer marketing spending in the US is set to grow by 30% in 2021.
Influencer marketing ad spend in the US is set to reach $3 billion, and exceed $4 billion in 2022. While growth was more modest in 2020 (14.4%), it is expected to accelerate going forward. Also, this amount doesn’t include non-monetary rewards such as free products and trips.
(eMarketer)
Influencer Rates and Payments
7. In 2019, 36% of the companies surveyed paid influencers by giving them product samples.
Another 21% of companies in particular research indicated they paid their influencers by offering them discounts on their expensive items. In addition to that, 10% entered them in a giveaway. It would, therefore, seem that the cost of influencer marketing in some cases is not monetary per se, although 32.4% actually paid influencers with money. This stat further underscores how many firms are working with micro and nano influencers who are fairly new to influencing and/or have a small number of followers, making such non-monetary rewards acceptable.
(Influencer Marketing Hub)
8. In 2019, the total value of Influencer marketing on Instagram was estimated at $1.7 billion.
This being a platform where 90% of its one billion and more users follow a brand, it’s no wonder. With the bigger fondness users have developed toward the photo-sharing platform, so has Instagram influencer pricing evolved. Typically, the amount of money per post an Instagrammer earns depends on their category, ranging from nano ($10 per post) to mega influencer ($10,000 per post).
(Business of Apps)
9. Marketers using influencer marketing usually pay between $50 and $100 for 1,000 views on YouTube.
Influencer marketing costs for YouTube further show that in 2021, an average YouTube video cost-per-view hovers around $27 per 1,000 views. In 2019, a company would have had to spend around $6,700 for influencer marketing in YT videos. Back in 2017, it was even more ($8,000). In 2018, the price had dropped to $4,085. And this is only if the influencers charge $20 for every 1,000 subscribers.
(Business of Apps)
10. Mega-influencers on Twitter charge over $2,000 per post.
Twitter might not be the first platform that comes to mind when we talk about influencer marketing, but many people rely on influencer tweets when considering a purchase. As opposed to the mega-influencers, those lower on the food chain earn less. Macro-influencers earn between $1,000 and $2,000 per post, followed by mid-tier influencers with $100-$1,000 per post. Micro and nano-influencers earn the least — $20-$100 and $2-$20 per post, respectively.
(Influencer Marketing Hub)
11. The cheapest price per post on TikTok is $5.
TikTok’s influencer marketing pricing puts this network largely in line with Twitter. Mega-influencers on TikTok charge $2,000 and over, macro-influencers would ask for $1,000-$2,000, while mid-tier and micro-influencers charge $100-$1,000 and $20-$200, respectively. Nano-influencers on TikTok go for $4-$25.
(Business of Apps)
12. A firm might end up paying up to $10,000 for a Snapchat influencer who has one million views, according to influencer marketing budget statistics.
Since this platform doesn’t operate on the basis of followers, views represent value for money. For those with fewer views, companies typically pay $10 per 1,000 views. Usually, the range of 1,000-5,000 views costs $500. At the other end of the spectrum we have influencers who can generate 50,000-100,000 views, and they typically earn up to $30,000.
(Business of Apps)
Statistics on Influencer Advertising
13. In 2019, brands used micro-influencers 10 times more than mega-influencers.
Those with fewer than 100,000 followers gravitate in the micro-segment in terms of influencer reach. Mega influencers meanwhile have over one million followers. The typical influencer marketing budget is now focused on those in the micro-segment as opposed to 2016 when the ratio was three times in favor of mega vs. micro. Companies have started reaping more benefits by dividing budgets into several smaller influencers with better-segmented followings.
(Startup Bonsai)
14. On Tik Tok, 32.55% of Upfluence’s clients seek mid-tier influencers.
Unlike the general trend, TikTok clients prefer mid-tier influencers. Micro-influencers on this platform are the choice in just 10.81% of cases. Micro influencer marketing seems to be more popular on Instagram with a 57.78% preference. YouTube follows suit, with 51.37% of Upfluence’s YouTube clients leaning toward the micro-influencer segment.
(Influencer Marketing Hub)
15. Approximately 68% of surveyees use Instagram for influencer marketing.
While Instagram influencer marketing spending is on the rise, 12% fewer marketers use this platform in 2021 compared to the prior-year period. They probably switched to TikTok, with 45% using it for influencer marketing campaigns. The number of influencers on both TikTok and Twitch expanded in 2020. On TikTok, it surged from 35,528 to 106,104, and on Twitch it more than doubled from 15,754 to 36,663.
(ION)
16. Between 2019 and 2020, about 240 new influencer marketing-related agencies joined the market.
For reference, in 2015, there were only 190 influencer platforms or agencies. Next year it was already 335, then 420 in 2017, 740 in 2018, soaring to 1,120 in 2020. All this speaks a lot in favor of the growing importance of influencer advertising and influencer marketing spend. With the growing maturity of the industry, new influencer marketing companies and platforms pop up to support the need of others that want an easy way to find those to promote their products. But also influencers craved the aggregating platforms that help them avoid the long and boring job of searching for a company to hire them.
(Influencer Marketing Hub)
17. Approximately 63% of those aged 18-34 trust what influencers say about brands, compared to what brands say.
Therefore, trust is the number one rule marketers should always take into consideration when planning their marketing or influencer marketing spend. Consumers actually avoid advertising when it comes directly from brands — as many as 74% do so, according to Edelman’s Trust Barometer for 2019.
(Edelman)
18. In 2020, 38% of respondents in a survey experienced influencer fraud.
For comparison purposes, this number was much higher in 2019 when influencer fraud was a challenge for 68%. This also reflects on companies’ brands and image — 43% believe that brand safety should be of concern occasionally, while 33% think it’s always the case. Lastly, 24% don’t see this as much of a concern.
(ION)
19. Roughly 53% of micro-influencers never paid a sponsored post.
These influencer marketing budget and spending stats are the results of research originating from Bloglovin’s survey on micro-influencers. Sometimes, like in the case of Instagram sponsorship, the cost is too high for every micro-influencer to pay. In fact, most of them managed to reach their influencer stage, without having to pay for the promotion. Just 10% have paid for Instagram ads.
(Influencer Marketing Hub)
20. Around 40% of Twitter users confirm they made a purchase after they saw a recommendation for it in a Tweet from an influencer.
Some 49% said that while browsing for recommendations, they relied mostly on influencers. As expected, 56% out of the total of those surveyed, sought advice from tweets from friends. On top of that, 20% of surveyees indicated that tweets from influencers made them share a product endorsement.
(Twitter)
The Bottom Line
Influencer marketing spend is on the rise and for a good reason. Amid the ongoing pandemic with more people spending time online, this segment of social network advertising can deliver better conversions and ROI than other types of marketing. While marketers still face challenges like fake followers without an actual value, it seems the effectiveness of influencer marketing outweighs the risks and therefore warrants the growing investment.
FAQs
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How much does influencer marketing cost?
Influencer marketing pricing varies a lot, largely based on the platform and on the influencer’s number of followers. Facebook influencers, for example, get $25 per 1,000 followers. Next, Instagram followers earn $10 per 1,000 followers. The situation is the same for Snapchat influencers ($10). Finally, YouTube influencers get $20 per 1,000 followers.
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How much do social media influencers get paid?
Average influencers on social media earn between $30,000 and $100,000 annually via product promotion. This, however, varies depending on the number of followers and the ability of influencers to raise the brand’s ROI.
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How much do Instagram influencers charge?
The cost of influencer marketing on Instagram depends on the category. Those in the smallest one, Nano (1,000-10,000 followers), charge $10 per post. The next group, Micro, (10,000-100k) charges around $100-500. Mid-tier influencers (100-500k followers) charge $500-5k per post. Then we have Macro (500k to 1 million followers) and Mega (over 1 million followers) charging $5-10k and over $10k respectively, per post.
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How much do companies spend on influencers?
In 2019, companies spent $7 billion globally on influencer marketing. In the US, spending on influencer marketing is set to grow 30% in 2021 and surpass $3 billion. Next year, the US spending on this branch of marketing is estimated to reach even more ($4 billion). According to some data from Influencer Marketing Hub, in 2020, about 62% of companies’ respondents in the research said they increased their budgets for this type of advertising. Another 20% confirmed they are aiming to keep the same influencer marketing budget in 2021. For reference, 49% of these companies had their budget at around $10,000 or less. Some 23%, on the other hand, spent $50,000 per year. Lastly, only 9% had a $500,000 annual budget (or more).
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What is the ROI of influencer marketing?
According to u003ca href=u0022https://99firms.com/research/influencer-marketing-statistics/u0022u003einfluencer marketing statisticsu003c/au003e for every $1 brand spends, ROI is $5.78. There are, however, two types of influencer marketing ROI — tangible and intangible ones. The first relates to the statistics you request from bloggers, social media content creators, etc, which allow you to track the traffic toward your company. Posts influencers share, however, live on after your marketing campaign. The influencer’s followers stick to your brand and recommend it which results in intangible ROI from your influencer marketing spend.
