North America Influencer Market Spend

Part
01
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Part
01

Influencer Marketing Market Size

The North American market size for influencer marketing is estimated to be $1 Billion. Below you will find an overview of how we have calculated this market size and a look at some related findings.

INFLUENCER MARKETING MARKET SIZE: NORTH AMERCIA (UNITED STATES AND CANADA)

  • The North American market size for influencer marketing is $1 Billion.
  • The calculation for this market size is available below.
Other Findings:
  • The Global Market size of influencer marketing in 2018 was $2 Billion.
  • According to Points North, North American marketers spent more than $1 billion on influencers in 2018.
  • Companies spent about $1 billion in 2018 on influencer marketing in the U.S. and Canada.
  • About $102 million spent on influencer marketing in North America was wasted on fake followers.
  • Most of the influencer marketing campaigns are executed through agencies, however, some brands also deal directly with influencers.
  • 88% of influencers stated they prefer using Instagram to share their content, 42% prefer Facebook, and 37% prefer YouTube.
  • According to the State of Influencer Marketing report, 67% of brands run their campaigns in-house, while 33% run their campaigns with the help from an agency.

RESEARCH STRATEGY

In order to find information on the North American market size for influencer marketing, we looked for influencer marketing industry reports. We found a helpful report on Klear. The report provided information on the state of influencer marketing in 2019, but there was no information on the market size of influencer marketing in North America. However, the report provided stats on the distribution of Influencer Marketing at a global level, which also had information for United States and Canada. We then looked for information on the influencer marketing spend of companies and found helpful content on Econsultancy which had information on the global market spend of companies in 2018. We also found the market spend of companies in North America on Mediapost and I2inc.

CALCULATIONS

  • The Global Market size of influencer marketing in 2018 was $2 Billion.
  • According to the State of Influencer Marketing Report, the distribution of Influencer Marketing is about 50%.
  • Since there is no direct information on the market share of influencer marketing in North America, we have used the global distribution of Influencer marketing as the market share for North America.
  • On the basis of the distribution, we have assumed that North America has 50% market share of global influencer marketing.
Market size of influencer marketing in North America = (Global Influencer Marketing x Market share of North America)= (2,000,000,000 x 50%) = 1,000,000,000

Therefore the market size of influencer marketing in North America is $1 Billion.


Part
02
of two
Part
02

Influencer Marketing Market Size: Verticals

The influencer marketing market sizes for the top verticals in the North American region are not publicly available. Referencing the derived data from a previous research, the calculated influencer marketing market sizes for the top verticals based on the budget of the North American region are as follows: fashion - $224.7 million; beauty - $187.1 million; e-commerce - $139.4 million; retail - $113.4 million; and sporting goods - $80.2 million.

FINDINGS:

INFLUENCER MARKET - TOP VERTICALS

Based on the number of influencers, the top verticals are the following:

INFLUENCER MARKET - TOP VERTICALS MARKET SIZE

The following are the derived figures of the influencer market sizes of the top categories based on the extrapolations and explanation in the strategy section:
North American influencer market size from the previous report: $1 billion
Values below are calculated based on the available figures in the social baker report. The calculation details s are indicated in the section below:

INFLUENCER MARKET TOP VERTICALS - NUMBER OF BRANDS MENTIONED BY INFLUENCERS

OTHER HELPFUL FINDINGS:

US and Canada Top Influencer Marketing Company Spenders

The following are the top companies in the US and Canada that are spending the most on influencer marketing:

  • Brands are spending only around 10% of their budgets on influencer marketing. However, this percentage is expected to increase as they become more confident of this approach.
  • Companies can earn $6.50 for every $1 that they will spend on influencer marketing.
  • Over two-thirds of retailers in the North American region engage with influencers.
  • Around two-thirds of marketing personnel are planning to raise their planned spending on influencers.
  • Influencers prefer Instagram over other platforms.
  • Around 89% of marketing staff mentioned that Instagram is considered as a primary channel where they can conduct influencer campaigns.

RESEARCH STRATEGY

We started our research by looking for directly available data on the market size breakdown of the largest verticals under the North American influencer marketing sector. As specified, we took into consideration the market size scope and value from the previous research entitled "Influencer Marketing Market Size" for consistency." We then looked for the required information by searching through various sources such as in marketing-related sites like Chief Marketer, Social Bakers, Hootsuite, Emarketer, Martech Today, and other similar sites; market research reports from sites such as Statista, IBIS, Wise Guy Reports, Report Consultant, and similar sources; publications such as Forbes, Business Insider, Medium, and other relevant sources. Based on this search approach, we were not able to find readily available data on the verticals' market size. Some data points were also outdated although still relevant as there are no contradictory reports that were recently released. What we found were the most popular industries that were mentioned by influencers in their posts. We also stumbled upon some figures on the number of brands mentioned by influencers per industry. We also found a report from the Report Consultant site that might contain the exact market size breakdown of the influencer market verticals. However, most of the contents of this report are behind a paywall.
We also tried to approximate the data by looking for estimated revenues of the brands using influencers. We hope to derive the required information by summing up the revenues of these brands from relevant company annual report and in business directory sites such as Hoovers, Owler, Zoom Info, and other relevant sources. We then found several brands from influencer sites such as Media Post, I2inc, and other similar sources. However, we were not able to find a comprehensive list of brands that uses influencer marketing in order to come up with a good market size breakdown of the verticals.
We then tried to determine if we can find the amount given by the brands to some of the biggest influencers. We looked for any relevant figures on social media platforms such as Instagram, Facebook, Twitter, YouTube, and others; in media outlets such as in CBC News, CNN, and similar sites; publications such as Vogue, Allure, Canadian Living, and other relevant sources. Based on this strategy, we were not able to find enough statistics that can help in triangulating the required data. What we found is some general information on what brands typically give to influencers as incentives.
We inferred that the reason why this specific breakdown is not available could be due to the highly specific nature of the required information.
Given the lack of publicly available information on the market size breakdown of the largest verticals under the North American influencer marketing sector, we decided to triangulate the data using some of the information found from the search effort above and from the previous report.

CALCULATIONS:

We first considered the given data from the Social Baker's report on the number of influencers under the most popular verticals.
As per the report, the following are the largest verticals based on the number of influencers: fashion - 308,865; beauty - 257,218; ecommerce - 191,586; retail - 155,808; and sporting goods - 110,225.
Since the categories featured were considered as the biggest ones, we calculated the total number of influencers from all the most popular verticals from the report as follows:
308,865(fashion) + 257,218(beauty) + 191,586(ecommerce) + 155,808(retail) + 110,225(sporting goods) + 93,747(services) + 88,789(electronics) + 62,626(retail food) + 55,060(FMCG food) + 50,632(accommodation) = 1,374,556 total number of influencers.
We then inferred that since the verticals above were the ones that are popular with influencers, we decided to calculate the percentage of influencers for each category over the total number of influencers derived above. Since these are the most popular ones, we also surmised that the other lesser categories not featured in the report have negligible contributions to the total number.
The percentages of influencers for the top five verticals are then calculated as follows:
Fashion: (308,865/1,374,556) X 100 = 22.47%
Beauty: (257,218/1,374,556) X 100 = 18.71%
E-commerce: (191,586/1,374,556) X 100 = 13.94%
Retail: (155,808/1,374,556) X 100 = 11.34%
Sporting goods: (110,225/1,374,556) X 100 = 8.02%
Since North America has the biggest number of sponsored content for influencers as per the Social Baker report graph, we have extrapolated that the percentages that were calculated above can roughly represent the region. We also inferred that since the breakdown above is tied to the number of influencers for these verticals, the percentages can also be extended to the market size share of these categories.
The following are the calculated figures of the market size of the top categories based on the extrapolation and justifications stated above:
North American influencer market size from the previous report: $1 billion
Fashion: 22.47% X $1 billion = $224.7 million
Beauty: 18.71% X $1 billion = $187.1 million
E-commerce: 13.94% X $1 billion = $139.4 million
Retail: 11.34% X $1 billion = $113.4 million
Sporting goods: 8.02% X $1 billion = $80.2 million

Sources
Sources