Collabstr, a leading influencer marketplace, has released its 2024 Influencer Marketing Report, which analyzes data from 35,000 brands and 80,000 influencers. The company found that the influencer market had a strong year, growing 13.79% from 2023 to 2024, meaning the market value will reach approximately $19.8 billion.
The anticipated expansion of the global creator economy market indicates a transition from $127.65 billion in 2023 to an estimated $528.39 billion by 2030, showcasing a projected Compound Annual Growth Rate (CAGR) of 22.5%. The integration of additional in-app monetization features, such as YouTube Shopping, empowers creators to seamlessly connect products or merchandise directly to their channels. This strategic enhancement enables the establishment of diverse income streams, thereby augmenting the growth prospects within the creator economy.
The report found that TikTok and Instagram are neck-and-neck when it comes to the most popular social media platforms for influencer marketing. Both hold a 42% market share when it comes to paid collaborations between influencers and brands. User-generated content comes in third at 14% and YouTube in fourth with 2% market share. UGC is often seen as the “modern-day word-of-mouth”. The reason for having loyal, happy customers create content for brands lies in authenticity. When customers genuinely love a product or service, their testimonials and user-generated content carry an inherent trustworthiness that traditional advertising can’t replicate. These authentic endorsements resonate with potential customers, fostering a sense of reliability and credibility. This approach also humanizes brands, demonstrating that they value their customers’ opinions and experiences. Such content can take the form of reviews, social media posts, or even user-generated videos, allowing brands to leverage their existing customer base as powerful advocates. Ultimately, this strategy builds a strong, loyal community around the brand, fueling growth and trust for years to come. With 60% of marketers agreeing that content authenticity is just as crucial as content quality, dismiss user-generated content at your peril.
Half of all creators that Collabstr analyzed offer user-generated content services for brands. This is a 93% increase from 2022, where only 26% of creators were open to offering UGC services to brands. According to Nielsen, 92% of consumers find UGC content “more trustworthy” than other types of ads, making it a win-win for both brands and UGC creators. Successful campaigns will translate to conversions and a better connection to audiences through ingrained trust.
On average, brands spent $214 for paid collaborations with an influencer, which is down 16.8% compared to last year. This can be partially explained by the massive influx and market saturation of increasing influencers.
Despite the decrease in average payment size per influencer, influencer marketing spend grew to all-time highs in 2023. 77% of influencer marketing budgets were spent on influencers in the United States, which is an estimated 6% decrease from last year. In Canada, 10% of influencer marketing budgets were spent on influencers, a 20% decrease from last year.
“2023 was an interesting year that showcased the influencer marketing industry’s adaptability, despite economic uncertainty” said Kyle Dulay, co-founder of Collabstr. “We’ve seen an increase in user-generated content, AI influencers, and shoppable content, which means the industry is finding new ways to grow.”
Even with the supply of influencers increasing, Collabstr found that the asking prices for influencer collaborations increased in 2023. The average influencer charges looked like:
- Instagram– approximately 15.17% higher than 2023.
- Tiktok – approximately 13.04% higher than 2023.
- UGC – approximately 10.10% lower than 2023.
- YouTube– approximately 3.16%. higher than 2023.
The full 2024 Influencer Marketing Report can be found here.
