We’ve increased our forecast for US influencer marketing spend for next year from $4.6 billion to over $6 billion, following TikTok’s explosion.
We asked The Daily podcast team to break it down:
Ahead of the pack: “Right now, and for the foreseeable future, Instagram is the clear market leader [for influencer spend],” said director of forecasting Peter Newman.
TikTok takeover: For the first time, we broke out TikTok in our influencer forecast, and the spending for that platform has been “astronomical,” according to Newman.
Bigger isn’t always better: Shrinking marketing budgets are forcing marketers to stretch their dollars and seek out the most effective ways to target their audience.
“We’re seeing advertisers and marketers want to target their dollars better. Influencers in niche communities are more effective as a means of delivering your message and getting your product in front of people most likely to be buying it,” said Newman.
The sweet spot: For marketers looking for the most bang for their buck, mid-tier influencers are the way to go.