COVID Has Spawned Strong Growth in Influencer Marketing, Reports Find
Market research firm The Insight Partners valued the global influencer marketing management platform market at $148.04 million in 2019 and projects it to reach $337.74 millionby 2027, growing at a compounded annual rate of 13.4 percent.
The report calls influencer marketing management, which includes applications for search and discovery, campaign management, relationship management, and analytics and reporting, one of the most promising segments of the digital marketing mix, having opened a new world for businesses to connect with discerning and elusive audiences.
With the advancements in technology, influencer marketing has evolved across the world, it said, noting that influencer programs experience similar responsiveness as traditional media, which is causing a shift in ownership from communication budgets to media and marketing budgets. Modern platforms allow companies to run programs that activate thousands of influencers cost-effectively, it concluded.
Among industries, the report identifies the fashion and lifestyle, retail and consumer goods, and travel and hospitality sectors as the largest users of influencer marketing.
Europe held the major market share in 2019, though Asia Pacific is expected to witness high growth due to rapid urbanization, growth of the young population, increasing disposable income, advancements in technology, and increasing purchasing power, the research found.
The report identifies AspireIQ, InfluencerDB; IZEA Worldwide, JuliusWorks, Kolsquare, Launchmetrics, Lefty, Mavrck, NeoReach, Traackr, and Upfluence as key companies operating in the influencer marketing platform market.
The report also maintains that although the COVID-19 pandemic has resulted in fewer brand collaborations, digital platforms have gained immense traction as a growing number of people turned to social media platforms during social distancing. Influencers allow companies to keep their active audiences engaged, with their creative and positive content.
And as the influencer marketing segment continues to gain traction, other research firms see influencer marketing and digital advertising continuing to overtake traditional media, particularly as cable TV subscriptions continue plummeting.
Allied Market Research recently reported that it expects online advertising to reach $1.08 trillion by 2027.
Meanwhile, digital advertising companies are getting better at reaching targeted audiences for maximum engagement. With new trends in influencer marketing, mobile advertising, programmatic marketing, and more set to gain momentum in 2021, digital marketing is cementing its place and boosting companies like BBTV, The Trade Desk, AcuityAds Holdings, ViacomCBS, and IZEA Worldwide. Though these companies all took huge financial hits early in the COVID-19 pandemic, they all posted strong gains in the second half of the year, according to published reports.