By: HypeAuditor–HypeAuditor’s goal is to help marketers create outstanding and effective influencer marketing campaigns using a data-driven approach
Instagram was launched in 2010 and rapidly gained its popularity. With its 1 billion monthly active users Instagram becomes not only one of the leading social networks but also the most strategically important platform for Influencer Marketing.
In 2019, Nearly 90% of all influencer campaigns include Instagram as part of the marketing mix— higher than any other social media channel in the industry.
Thanks to Instagram’s consistent popularity, a wide range of Instagram influencer tiers and categories available to work with, and the simplicity of sponsoring Instagram content, Instagram has definitely moved influencer marketing into the mainstream.
The Instagram influencer market reached $5.24 billion in 2019
During the 2019 influencer marketing spending on Instagram influencers increased by 22% and reached $479M in December.
The number of Instagram Stories’ daily active users (DAU) currently sits at 500 million. This number has been continuously rising since 2016, when Instagram first launched the Stories format. Advertisers also included stories in their influencer marketing strategy and the number of integrations in Stories is growing month over month.
Our estimations show that 47.18% of sponsored integrations occur for Stories. And their share is growing month over month.
The impact of COVID-19 on influencer marketing
Influencer Marketing has been markedly impacted by the COVID-19 pandemic and, like many other industries facing a period of unprecedented uncertainty. The final impact will depend on the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and other economic factors.
Many businesses experienced a significant reduction in the demand, thus they become more provident in their advertising spendings. According to the survey made by Influencer Marketing Hub, 69% of brands expect they will decrease AD spend in 2020.
We compared the money spent on sponsored posts and stories in the first quarter of 2019 and the first quarter of 2020 and we can see that Influencer Marketing didn’t suffer as much as other industries. Rather, one can even say not about a fall, but about a reduction in growth
The comparison of Instagram Influencer Marketing global spend in 2019 and 2020
The Market size in the first quarter of 2019 was approximately $1185M and in 2020 this figure rose by 3.9% to $1232M.
The largest budget cuts occurred in March. If we compare March 2019 to March 2020 we will see that market size was reduced by $16M (-3.8%).
COVID-19 made its adjustments and slowed down the growth of the industry but Influencer Marketing didn’t suffer as much as other industries.
“In a time of disaster, people rely more on social services. We are seeing surges in traffic, especially in areas most affected,” Mark Zuckerberg said during the conference call. “People want to stay connected while being asked to maintain social distancing and eliminate loneliness.”
The use of social networks is growing, and therefore grows the amount of advertising money that is being redirected from offline to online.
Based on the comparison of the money spent on sponsored posts and stories in the first quarter of 2019 and the first quarter of 2020 we estimate that the Instagram Influencer Marketing market size would be from $5 billion to $6.5 billion in 2020.
Brands and advertisers are searching for the most effective ways to share their message to the masses online. As one of the few viable ways advertisers can connect with audiences online influencer marketing will continue to grow.