Our team at HypeAuditor estimates that the global Instagram influencer marketing market size is about to grow from $13.8 billion in 2021 to $22.2 billion by 2025. That is a compelling statement. However, we noticed that there are at the very least two major forces that are hugely affecting the growth rate of the Instagram influencer marketing market size.
The very first one is a bit bold and apparent. There is a massive rise in social E-Commerce, as several businesses have entirely changed their old marketing tactics. According to the Kantar Media report, the total expenditures on TV ads in 2010 (the year when Instagram was released) was around 131,1 billion dollars. There were a lot of E-Commerce firms that would invest in television and offline digital advertising. However, in 2021 the companies spent about 41.5 billion dollars on the same ad channels. So what happened here exactly?
The budget from these old channels is being re-distributed to Instagram influencers. In addition, another minor reason why there is massive growth for E-Commerce is that the advertisements put online on websites and mobile apps are working very ineffective, as lots of consumers have begun installing ad-blocking software.
Another critical yet undeniable fact that keeps pumping up the veins inside the Instagram content creator collaborations is that – more influencer marketers understand how they can interact and build relationships with content creators. That fact alone proves that the social influencer channel is getting invested more actively than it has ever before.
Almost 68% of all marketing specialists use Instagram for influencer marketing campaigns. So it’s not a wonder that the Instagram influencer marketing market size is steadily getting bigger and bigger. And exactly Instagram plays a huge and vital role in it. Instagram is like a perfect paradise where influencer marketers can easily reach new audiences and gain more traction for their business. According to employees with knowledge of the critical metric, Instagram has more than 2 billion monthly active users worldwide.
Instagram creators open up enormous opportunities for businesses looking to market their products and services authentically. 68% of marketing specialists consider Instagram necessary for their influencer marketing campaigns, making it the most popular social media channel for influencer marketing. That comes as no surprise. Influencer marketing on Instagram removes the barriers of traditional advertising because customers get to know about your brand from someone they trust. And it happens on an authentic platform they use daily. When a creator recommends a product or service, it is a credible recommendation, an excellent advantage for brands.
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The Big Updates
As the potential of Instagram content creators slowly became bigger and bigger, the Instagram team noticed this tension and decided to implement various updates to assist creators. Lots of them are directed towards increasing the opportunities for possible collaborations between multiple firms and influencers.
First of all, in 2021, Instagram has decided to launch a Professional Dashboard as a support service for creators. For all content creators, with all resources and tools on Instagram, the dashboard will help influencers bring all that information together in a singular, “home” location.
Another critical update that Instagram has dropped is the usage of links in the Stories. Links are now available for all users, not just those with 10k followers or verified accounts. This feature is handy for creators, businesses, and other people in the community, who could use Link Stickers to share information and resources. Now followers or potential consumers can easily follow the promoted product via a singular link on the screen. Also, links in Stories allow you to track advertisements even among micro-influencers so that anyone can share a link to a product/brand. That means that the role of user-generated content has been drastically increased, and brands can work with ordinary clients as influencers.
The “New Remix” for Reels enables content creators to add their unique approach to the existing or new Reel clips, which can help fuel up content trends. The choice is almost the same as TikTok’s ‘Duets’ option, which has become very popular in the app. The Remix feature takes sharing to another level and encourages the production of viral content. Content creators can now share brands’ videos with their comments, amplifying the reach and potentially making the chosen content go viral. Thus, impacting the brand or a company with a wave of traction will positively affect the company’s product.
One of the last Instagram updates was focused on the new monetization options for content creators. That included a brand-new affiliate marketing program, making it much easier for influencers to earn money from the promotions taken directly from the sponsors (aka influencer marketers or business owners). The new process enables influencers to sign up for the specific affiliate program and then choose the available products in the app to add to their posts. It’s a particular feature that took influencers on an entirely different level of monetization.
As you can see, the highlighted opportunities provide a substantial ground for promoting products and services for businesses and a lot of influencer marketers that are currently focused on influencer marketing. But apart from the vast Instagram updates that have been dropped in the past year, there are two other main reasons why the Instagram influencer marketing market size is growing bigger.
In Conclusion
The current market of social influencers is constantly and rapidly growing, providing more opportunities for businesses to promote their products. Obviously, with the presented facts and Instagram updates above, the Instagram influencer marketing market size will change by 2025.
So if you are a social influencer marketer or a business owner who wants to test-drive the new market space for his business, we welcome you to try HypeAuditor. Manage your influencer campaigns, search for your perfect candidate among 36+ million influencers, and build relationships with personalized messages – all in our dashboard. Try it out today for free!
