Influencer Marketing is Growing Much Faster Than Traditional Marketing

Even though influencer marketing used to be seen as a passing trend, it has grown by leaps and bounds. Many see it as a legitimate investment for marketing nowadays, and Insider Intelligence’s latest report reveals just how quickly it’s been growing as of late. According to the findings presented in this study, influencer marketing is outpacing the growth of traditional marketing by a large margin.

On Facebook, spending on influencer marketing increased by 11.6%, with revenue from ads only increasing by 0.1% in the same period. Instagram saw a 6% increase in ad revenue, but investment in influencer marketing more than doubled that with 12.7%. TikTok saw an astounding 23.1% increase in ad revenue because of the fact that this is the sort of thing that could potentially end up giving marketers a new platform. Even so, influencers on the platform saw spending rise by 27.8%, which just goes to show that influencers are succeeding across the board.

Snapchat actually saw a decrease of 1.8% in its overall ad revenue. In spite of the fact that this is the case, it received a 3.5% higher investment into influencers. Perhaps the only platform where ad revenue growth and influencer marketing investment could be compared to any extent whatsoever was YouTube, were ad revenue increased by 7.3% and influencer investment increased by 9% in the same time period.

With all of that having been said and now out of the way, it is important to note that 91% of creators now earn their living their sponsored content. This is up nine points from the 82% that said the same in 2021. Selling merchandise saw a decrease during this period, going from 15% to just 11%. The same goes for ad revenue and affiliate links, both of which shrunk from 33% to 18% and 56% to 44% respectively with all things having been considered and taken into account.

This reveals that even though ad revenue has been growing slowly, influencers are controlling an increasingly large chunk of it. The implications for the marketing industry as well as social media in general could be widespread.

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