The global influencer marketing platform market was valued at approximately US$ 148.04 million in 2019 and is projected to grow to US$ 337.74 million by 2027, reflecting a compound annual growth rate (CAGR) of 13.4% from 2020 to 2027.
Influencer marketing has emerged as a vital component of the digital marketing landscape, providing brands and businesses with innovative ways to engage with selective and hard-to-reach audiences. As smartphone usage continues to rise, companies are increasingly focusing on building robust relationships with their customers through strategic outreach.
The high engagement rates and authenticity associated with influencers are driving the trend towards video content in marketing strategies. Influencers are leveraging the interactive qualities of video to enhance sales, utilizing live-streaming formats that include Q&A sessions, real-time product unboxings, and behind-the-scenes glimpses of events. The growing preference for video content is a significant factor propelling the expansion of the influencer marketing platform market, which is anticipated to see heightened demand throughout the forecast period. Nevertheless, shifts in social media algorithms may pose challenges to the growth of the influencer marketing platform market in the near future. In 2019, Europe accounted for a substantial portion of the influencer marketing platform market share.
The influencer marketing platform market is categorized based on offerings, applications, organization size, end-users, and geographical regions. In terms of offerings, the market is divided into solutions and services. Various solutions are provided by influencer marketing platform providers to cater to the marketing needs of brands. Key solutions include influencer search and discovery, campaign management, third-party analytics, reporting, influencer relationship management, payment processing for influencers, content promotion and amplification, and account management.
Prominent players in the influencer marketing platform market include InfluencerDB, Launchmetrics, Upfluence, NeoReach, AspireIQ, Julius, Open Influence, Doveltale, Scrunch, Takumi, Tapinfluence, Onalytica, Famebit, Activate, Blogfoster, Boostinsider, BrandBacker, BrandSnob, BuzzStream, BuzzSumo, CreatorIQ, Grapevine Logic, Handbook, IZEA, Lefty, Mavrck, and Traackr, all of which provide solutions to brands globally.
Impact of the COVID-19 Pandemic on the Influencer Marketing Platform Market
The COVID-19 pandemic has led to a decrease in brand collaborations; however, it has also resulted in a significant increase in the use of digital platforms. This shift has been particularly evident as social media usage surged during periods of social distancing. Influencers have seized this opportunity to engage their audiences with creative and uplifting content.
A report published by an influencer marketing platform provider titled "The Impact of Coronavirus on Influencer Marketing" surveyed over 1,000 influencers in March 2020 to assess the pandemic's effects on their work. The analysis included data from 7.5 million Instagram posts, 2,200 TikTok influencers, and 260 campaigns. The findings indicated a ~33% rise in brands looking to hire influencers for creating photo and video content due to the temporary closure of production agencies.
The influencer marketing platform market experienced disruptions during the first and second quarters of 2020 due to the temporary shutdown of numerous businesses. However, this situation has allowed brands to reduce their advertising costs in regions affected by COVID-19, providing an opportunity to reach a wider audience more effectively.
The overall size of the influencer marketing platform market is determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the influencer marketing platform market. This research also includes an overview and forecast for the global influencer marketing platform market, segmented by five primary regions: North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Additionally, primary interviews with industry participants and experts are conducted to validate and analyze the data. Participants in this process include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the influencer marketing platform market.