A lot can change in a year – even more so in a new, constantly changing field such as influencer marketing. As we step into 2025, we’re seeing some major shifts: engagement rates are dipping, AI is taking a bigger role, and TikTok’s rapid growth continues to shake up the industry.
So, what should brands and creators expect this year? HypeAuditor’s latest State of Influencer Marketing Report breaks down key trends across Instagram, TikTok, and YouTube, providing valuable insights into where the industry is headed. Let’s dive into the biggest takeaways.
The expanding creator economy and influencer marketing industry
The influencer marketing industry isn’t just growing – it’s booming. In 2024, the global influencer marketing industry was valued at $19.8 billion, and our projections indicate that by 2027, it will reach a staggering $31.2 billion. This rapid growth is being fueled by several major factors: the increasing integration of AI, the expansion of social commerce, and brands' continued shift toward measurable, performance-based influencer campaigns.
Beyond influencer marketing, the creator economy as a whole is surging. Goldman Sachs estimates that the market size currently sits at $250 billion, but by 2027, it’s expected to nearly double to $500 billion. This massive expansion highlights just how deeply embedded influencer marketing has become in the broader digital economy.
To put things into perspective, influencer marketing now accounts for 1.98% of total global ad spending, which WARC predicts will hit $1 trillion in 2024. While that percentage might seem small, it signifies a major shift in how brands allocate their marketing budgets, moving away from traditional advertising and toward authentic, creator-driven content.
Instagram continues to lead in ad revenue, generating $71 billion in 2024, thanks to the dominance of Reels and social commerce features. TikTok, however, is catching up fast, with $23 billion in ad revenue, largely driven by its unique ad formats and high engagement rates. YouTube remains a powerhouse as well, pulling in $34 billion and leveraging its stronghold on both long-form video and YouTube Shorts to maintain its strong presence.
All of this signals one clear takeaway: influencer marketing is certainly not a passing trend, but rather a critical component of the global advertising industry.
Instagram: still the top platform, but engagement is slipping
Instagram remains the most popular platform for influencer marketing, with 9 out of 10 marketers continuing to use it as their primary choice. However, maintaining high engagement on the platform is becoming increasingly challenging. Reels are a clear winner in terms of performance, with short-form video content outdoing traditional image and carousel posts. Yet, despite this shift towards video, some influencers are struggling to grow their audiences. In 2024, 35% of Instagram accounts saw a decline in follower growth, signaling that organic reach is becoming harder to sustain.
Engagement rates have also taken a hit, dropping to 1.59% in 2024, compared to 1.85% in 2023. This trend suggests that users are consuming content differently, and brands will need to focus on more interactive and community-driven content to keep audiences engaged. Features like Instagram Stories, Q&A sessions, and influencer collaborations will be more crucial than ever in 2025.
Another key takeaway from the report is the dominance of brands like Zara, Nike, and H&M, which led in influencer collaborations and brand mentions. Their continued success highlights the power of long-term influencer partnerships, rather than one-off sponsored posts. For brands looking to maintain visibility and engagement on Instagram, relationship-building with influencers will be a top priority.
TikTok: the fastest-growing platform, despite uncertainty
Even with ongoing discussions around potential bans and regulations, TikTok continues to dominate as the fastest-growing social platform. With 1.6 billion monthly active users, the platform remains a force to be reckoned with in influencer marketing.
One of TikTok’s biggest strengths is its high engagement rates, especially among nano-influencers (those with fewer than 10,000 followers), who see an average ER of 10.3% – far higher than Instagram’s current engagement rates. This suggests that smaller, niche creators continue to drive the most meaningful interactions on the platform. Brands wanting to capitalize on TikTok’s viral potential could consider partnerships with nano- and micro-influencers, as they tend to have more loyal, engaged audiences compared to larger creators.
TikTok is still a major resource for viral product discovery, with brands like Shein, Sephora, and Rare Beauty using influencer collaborations to capitalize on trends. In 2025, expect to see even more brands integrating TikTok into their marketing strategies – not just for awareness but for direct sales and social commerce, as TikTok Shop continues to expand its capabilities.
YouTube: the balance between Shorts and long-form content
YouTube continues to be a leading platform for influencer marketing, thanks to its ability to support both short-form and long-form content. While YouTube Shorts has surged in popularity, traditional long-form content still plays a critical role in brand storytelling and deep audience engagement, and is ultimately what the platform is known for today.
The key takeaway for 2025? Brands need a hybrid content strategy. Shorts are perfect for quick engagement and discovery, but long-form videos build credibility, allowing influencers to provide in-depth product reviews, tutorials, and storytelling that resonate with their audiences over time.
The continued success of creators like MrBeast, Stokes Twins, and Cristiano Ronaldo reinforces the idea that YouTube is still a viable choice for high-impact influencer campaigns. With its expanding integrated shopping features, YouTube is also becoming a bigger player in ecommerce, making it a strong contender for brands looking to drive direct conversions.
Final thoughts: Where is influencer marketing headed in 2025?
Influencer marketing isn’t slowing down – it’s changing, much like other industries. In 2025, brands will need to adapt to changing engagement trends, embrace AI-driven strategies, and prioritize authenticity to stay ahead.
Alexander Frolov, CEO and Co-Founder at HypeAuditor, had this to say: “Influencer marketing is now a core component of brand marketing strategies worldwide. While the industry faces challenges, such as fraudulent engagements and declining ER, AI advancements and strategic content creation continue to drive impactful campaigns. Brands must prioritize authenticity and engagement to maximize ROI.”
Instagram remains the dominant platform, but engagement is harder to maintain. TikTok’s viral potential is still unmatched, though regulatory risks loom this year. YouTube continues to be a powerhouse for both short and long-form content. And AI? It’s reshaping nearly every aspect of influencer marketing, from discovery to content creation and fraud prevention.
For brands and creators alike, 2025 will be about staying adaptable, leveraging data-driven insights, and creating content that audiences can connect with. Those who can navigate these shifts strategically will be the ones who thrive in this industry over the year ahead.
Want more insights?
For a deeper dive into these trends and industry benchmarks, check out the full 2025 State of Influencer Marketing Report by HypeAuditor. Get access to exclusive data, in-depth platform analysis, and the insights you need to refine your influencer marketing strategy.
