Influencer Marketing Explodes: $29B in 2022, More Growth Ahead! | by David Cross – CrossCopywriting.com | Sep, 2023

Rising Popularity of Fashion, Entertainment & Sports Influencers Drives Industry Boom

Global influencer marketing spending experienced a remarkable surge, increasing by 21.5% in 2022, reaching a staggering $29.14 billion. This trend is expected to continue in 2023, with an anticipated growth rate of 16.9%. These statistics are the result of a recent study conducted by PQ Media, a renowned provider of media econometrics.

The substantial growth in influencer marketing is attributed to an escalating number of brand marketers investing in an expanding pool of macro and micro influencers who employ various social media platforms to endorse products and brands within their social circles.

The driving force behind this surge is the considerable increase in social media usage among pre-Boomer demographics, particularly Millennials and iGens. These key target consumers are generating unprecedented online buzz about brands and products, significantly influencing their peers. The trend is particularly evident in the realms of fashion, entertainment, and sports.

According to PQ Media’s Global Influencer Marketing Forecast 2023–2027, influencer marketing investments in the United States saw a notable increase of 22.2% in 2022, amounting to $22.19 billion. Furthermore, it is projected that spending in this sector will rise by 17.6% in 2023.

Influencer marketing has become an indispensable component of successful omnichannel campaigns, enabling brands to enhance their social media presence with high-quality content and, consequently, boost sales.

In 2022, the United States dominated the global influencer marketing market, accounting for a substantial 76.1% of total spending. However, PQ Media predicts that the U.S. share will decrease to 67.8% by the end of 2027 as influencer marketing continues to expand globally and becomes an integral part of omnichannel marketing efforts targeting Millennials, iGens, and mGens over the next five years.

PQ Media defines influencer marketing as an alternative marketing strategy that utilizes research and technology to encourage consumer dialogue about brands and products. This strategy is deployed through various online and offline tactics, often facilitated by influential peers, communities, and brand advocates. The influencer marketing sector encompasses three broad channels: content creators, strategic service providers, and measurement & platform suppliers, along with five additional categories within these channels, including influencer research, influencer technology, public relations agencies, influencer agencies, and consulting firms.

In both the global and U.S. markets, content providers constitute the largest and fastest-growing influencer channel, followed by measurement & platform providers and strategic services. These three major influencer channels witnessed growth rates ranging from 18% to 26% in 2022, with similar growth expected in the current year due to the increasing prominence of U.S. influencers in key brand verticals like fashion, entertainment, and sports. Moreover, leading influencers in other top 20 global markets, such as India, Japan, and Taiwan, are gaining significance.

India was the fastest-growing global market in 2022, registering a remarkable growth rate of 33.6%, followed closely by Japan, where influencer marketing spending increased by 33.1%. Eight additional markets experienced growth rates exceeding 20%, including the United States. Notably, none of the top 20 countries observed growth rates below 10%. Among these countries, the United Kingdom held the largest market share at 6.6% of global influencer spending, with Canada, Germany, and France being the only other major media markets accounting for over 1% of global influencer investments.

Within the five influencer marketing categories encompassed by the three broad influencer channels, public relations agencies led with global spending reaching $6.10 billion, followed by macro influencers at $5.32 billion and brand ambassadors at $4.43 billion. Micro influencers demonstrated the most rapid growth in 2022, with a notable increase of 30.5%, trailed by macro influencers at 27.7% and influencer agencies, which experienced growth of 22.5%, as indicated by the Global Influencer Marketing Forecast 2023–2027.

Several key trends are driving the consistent double-digit growth of influencer marketing in 2022 and 2023:

• Shift in Metrics: Brands are moving away from influencer-focused metrics, such as “likes,” in favor of more brand-focused data, such as click-through rates. Influencer marketing is now seen as fostering more meaningful conversations, with the value of “buzz” becoming a critical ROI metric.
• Education and Training: Influencer marketing is gaining recognition in educational settings, with colleges offering courses on the subject, leading influencers conducting online seminars, and trade organizations hosting conferences on influencer marketing.
• Authentic and Creative Content: Content is becoming more authentic and creative, with influencers allowing fewer brand filters to ensure spontaneous product discourse and using products in natural settings to enhance authenticity and engagement.
• Video Content: The use of video content is on the rise, facilitated by the expansion of 5G technology. This enables easier integration of video content as smartphone download speeds continue to accelerate, and research indicates improved consumer engagement with video content.
• Omnichannel Integration: Influencer marketing is being incorporated into more omnichannel campaigns, with influencers creating and launching new content through experiential marketing channels, including virtual and hybrid events, games, and concerts.
• Dominant Social Media Platforms: Instagram, TikTok, and YouTube are the leading social media platforms used by influencers. Instagram is favored for reaching Millennials, TikTok for engaging iGens, and YouTube’s new short video format shows promise in reaching younger demographics.

Some notable influencer marketing campaigns that achieved significant success in 2022 include:

• Cisco’s Gaming Creator Campaign for Dungeons & Dragons: This campaign targeted the role-play gaming market, activating new players in the UK, France, and Germany.
• Elevar Sports’ Instagram Campaign for Sportstyle Sneakers: Elevar Sports showcased its new shoe sole technology by generating buzz and engagement through high-profile Instagram influencers with a substantial following in the athletic footwear niche.
• Universal’s All-Access Campaign: This initiative aimed to improve brand reach, increase web traffic, and promote Universal’s All-Access program. It employed influencers via Instagram and Facebook to promote movies and encourage UAA signups.

In the two decades since PQ Media published the groundbreaking Word-of-Mouth Marketing (WOMM) Forecast in 2007, the influencer marketing landscape has evolved significantly. The term “word-of-mouth marketing” has been largely replaced by “influencer marketing.” PQ Media has adapted to this transformation by expanding its research scope globally and delving deeper into the numerous media platforms, channels, strategies, and tactics employed by brands and influencers to establish emotional connections with target consumers.

PQ Media CEO & Founder Patrick Quinn remarked, “Influencer marketing has become a very effective promotional method to partner with prominent content creators to engage key demographics and achieve strategic marketing objectives. If executed well, influencer marketing is an invaluable piece of successful omnichannel campaigns because it helps brands improve their social media reputation with high-quality content and, ultimately, grow sales.”