By Oyinkansayo Wole-Bodunde.
Over the past few years, the influencer advertising industry has experienced remarkable growth, growing by 480% since 2017 and reaching almost $35 billion in revenue this year.
This impressive three-digit growth has increased influencer ads to the fastest-growing segment of digital advertising.
According to data from Statista, global spending on influencer ads is projected to increase by nearly 50% over the next four years, outpacing video ads and every other segment of the digital advertising landscape.
Despite a 2023 Trustpilot survey revealing that two-thirds of consumers in the US and UK have low trust in celebrity influencers, total spending on influencer ads continues to grow. Statista Market Insights predicts brands and marketers worldwide will spend over $35 billion on influencer ads in 2024, a 9% increase from last year.
Although influencer ads account for only 4% of total digital advertising spending, they are growing significantly faster than other segments.
By 2028, total spending on influencer ads is expected to reach $52 billion, growing by 49% and average of $4 billion per year.
This double-digit increase passes other digital advertising segments. Search ads are expected to grow by 36%, from $306.7 billion to $417 billion, while video ads will grow by 26%, reaching nearly $242 billion by 2028. Banner ads will grow by 25% and audio ads will grow by 19%.
The US and China drive the majority of influencer ad spending. In 2024, US and Chinese brands will generate $24.7 billion, or 70% of total influencer ad spending. By 2028, China’s influencer ad market will reach $29 billion, up 51%, while the US market will grow 44% to $8.1 billion. The two countries will account for $37 billion, or 71% of global influencer ad spending, by 2028.
The influencer advertising industry’s remarkable growth is expected to continue, driven primarily by US and Chinese brands.
