To estimate the market size in 2019 HypeAuditor analyzed over 3M posts that were marked as sponsored. A “sponsored post” is an influencer’s post with brand mentions that was posted on a paid or a barter basis when an influencer receives a product or services from a brand in return for publication.
The global advertising budgets are declining due to COVID-19.
However, HypeAuditor compared the money spent on sponsored posts and stories in the first quarter of 2019 and the first quarter of 2020 and we can see that Influencer Marketing didn’t suffer as much as other industries.
The market size in the first quarter of 2019 was approximately $1185M and in 2020 this figure rose by 3.9% to $1232M.
The largest budget cuts occurred in March. If we compare March 2019 to March 2020, we will see that market size was reduced by $16M (-3.8%)
COVID-19 made its adjustments and slowed down the growth of the industry but Influencer Marketing didn’t suffer as much as other industries.
“In a time of the disaster, people rely more on social services. We are seeing surges in traffic, especially in areas most affected,” Mark Zuckerberg said during a conference call. “People want to stay connected while being asked to maintain social distancing and eliminate loneliness.”
The use of social networks is growing, and therefore the amount of advertising money that is being redirected from offline to online is also growing.
HypeAuditor is Instagram and YouTube analytics and influencers’ Discovery tool
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