The global influencer marketing platform market size was valued at USD 4.6 billion in 2018 and is projected to grow by more than 25% annually from 2019 to 2025, according to a new report published by Grand View Research, Inc.
The rising need for brands and agencies to foster deeper connections with consumers is contributing to this growth and influencer marketing has enabled organizations to maximize their reach beyond legacy marketing practices, says the report. Social media allows organizations to engage in content-driven publicity by collaborating with the most suitable personality to create a digital identity for audiences, thus enabling higher and closer engagement.
Furthermore, ongoing innovations, including virtual influencers, are expected to increase the demand for these platforms. A virtual influencer provides affordable scalability and a higher degree of creative freedom, which helps target the right customer. The fashion industry is one of the largest adopters of virtual influencers in their advertising campaigns. For instance, Lil Miquela, a virtual influencer designed by Brud, has collaborated with brands including Chanel and Prada.
‘Search and discovery’ applications captured over 37% revenue share of the influencer marketing platform market in 2018, owing to the rising demand from companies to collaborate with influencers to drive their digital advertising campaigns. The analytics and reporting segment also contributed significantly to the market growth in 2018.
Large enterprises segment captured the largest revenue share in 2018, however, influencer marketing is gaining popularity among the Small and Medium Enterprises (SMEs) owing to better affordability and similar returns as compared to traditional marketing methods. Service providers, such as AspireIQ provide custom campaign designing and management for small enterprises. Additionally, influencer marketing platforms offer detailed insights such as demographic and psychographic data on influencers, which helps SMEs design more targeted campaigns.
The fashion and lifestyle segment captured a revenue share of more than 35% in 2018.
The growing presence of millennials on social media is promoting brands and agencies to cater to their needs. The rising tendency of millennials to buy products showcased by their favorite influencers, at the convenience of one-click is further augmenting the segment growth.
The food and entertainment sector is anticipated to hold a significant market share over the forecast period, owing to the increasing consumer demand for new experiences regarding entertainment and hospitality.
North America emerged as the highest revenue generating regional market in 2018. The growing number of Instagram users has fuelled the regional market growth. The region is expected to witness exponential growth in the next few years as the companies in Canada are yet to explore influencer marketing to its full potential as compared to U.S.
Europe is expected to showcase significant growth over the forecast period, attributed to the rising adoption of blog-based marketing on account of greater creative freedom as compared to social media marketing.
Brands such as Upfluence Inc., Speakr Inc., AspireIQ, and Grapevine Logic Inc. are among the major players influencing the market.
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