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What is the global market-size (TAM) for the influencer marketing industry?
Thank you for your question about the global market-size for the influencer marketing industry. The short answer is that the global market-size (TAM) for the influencer marketing industry was $500 million in 2015, and it is expected to grow at a CAGR of 58.49%-82.06% to reach $5-$10 billion in 2020. The target company types include CPG, beauty, marketing/advertising, education, entertainment, fashion, food & beverage, home & garden, media, PR, retail, technology, and travel.
Below you will find a deep dive into this answer.
METHODOLOGY AND DEEP DIVE
To understand the global market size of the influencer marketing industry, I searched through reliable and trusted sources with actual studies on the market size of the influencer marketing industry.
Although there are dozens of reports with various estimates of the influencer marketing size, most of the estimates are guess-estimates, not backed by reliable metrics. I searched trusted market sizing companies such as Markets and Markets, Technavio, IBIS World, Lucintel, Deloitte, and Mckinsey, but I couldn't find any market sizing estimate for the industry. Statista has an estimate for the influence marketing spend in the US in general. It estimates that $121 billion was spent in the US on influence marketing but this influence market size is actually a broader market than you are probably interested in as it includes celebrity ambassadors, friends, employees, journalists, and industry experts. But even for this, there is no global estimate.
My assumption is that you are interested in influencer marketing as it relates to digital marketing (social media, blogs, etc), so I focused on this segment.
The best estimate I could find for the influencer marketing industry is from Mediakix. Mediakix estimates that the influencer market was worth $500 million in 2015 and that it would grow to $5-$10 billion in 2020. The problem with getting a reliable global estimate for this industry is that most countries in emerging markets do not mandate influencers to disclose their advertising as sponsored as it is in countries such as the US. Critics of Mediakix's estimate belief that their estimate is very conservative and that the market size was probably larger than their estimate suggest, however, Mediakix also states clearly that their estimate is conservative.
Trulycast did a guesstimate in December 2016 and estimated that the market was worth between $1.6 billion and $2.25 billion in 2016. This estimate is close to the $2 billion 2016 estimate provided by Influencer Marketing Index, a website dedicated to tracking the influencer marketing industry. Influencer Marketing Index tracks sponsored posts in general and makes an estimate based on those figures, but as earlier stated, influencers in countries in emerging markets are not obligated to disclose their message as sponsored. So even though Influencer Marketing Index relies on measurable metrics, some of it involves extrapolation of data to cover for markets where sponsored posts are not always indicated.
Instagram is the biggest market for influencers. According to Mediakix, the Instagram marketing influencer industry was worth $1.07 billion in 2017, and they project it would grow to $2.4 billion in 2019.
CAGR
The CAGR isn't directly stated, but we can calculate it using Mediakix's growth estimates of $5-$10 billion growth by 2020 from $500 million in 2015.
2015 - $500 million
2020 - $5 billion - $10 billion
Duration - 5 years.
CAGR 1 = [(5 billion / 500 million)^(1 / 5)] – 1 = 0.58489 or 58.49%
CAGR 2 = [( 10 billion/ 500 million)^(1 / 5)] – 1 = 0.82056 or 82.06%
So the CAGR of the influencer marketing industry between 2015 and 2020 is betweem 58.49% and 82.06% based on MediaKix's estimates.
TARGET COMPANY TYPES
A variety of industries makes use of influencer marketing and many industries are beginning to warm up to it. Linqia conducted a survey in November 2016 and found that 86% of marketers in various industries have used influencer marketing. The marketers surveyed worked in the following industries: CPG, beauty, marketing/advertising, education, entertainment, fashion, food & beverage, home & garden, media, PR, retail, technology, travel, and others. The percentage breakdown by industry is on page 10 of this report.
The research found that of the 86% that have used influencer marketing, 94% found it effective. The research also found that "of the marketers who used influencer marketing in 2016, 89% of marketers did so to create authentic content about their brand, 77% used influencer marketing to drive engagement around their brand and 56% used the channel to drive traffic to their websites or landing pages." Most marketers said they spent between $25,000-$50,000 per influencer marketing project in 2016 and expect this to double to $50,000-$100,000 per project in 2017.
CONCLUSION
To wrap it up, the global market-size (TAM) for the influencer marketing industry was $500 million in 2015 and is expected to grow at a CAGR of 58.49%-82.06% to reach $5-$10 billion in 2020. I have provided other requested information above.
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