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Influencer ad spend is now growing faster than traditional ad investment

Influencer ad spend is accelerating faster than investment in traditional adverts.

Brands were advised to consider adjusting their campaign strategies to align with the rising popularity of influencers after this finding was revealed in Insider Intelligence’s Influencer Marketing 2023 report.

Why we care. As more businesses embrace influencer marketing, the way people consume ads is shifting. This suggests that traditional ads might not work as well anymore. Advertisers should stay updated on these changes to ensure they get the most out of their ad investments.

Income breakdown. The report included a detailed breakdown of how influencers are generating incomes on their platforms (% of respondents):

Sponsored content – 82%

Affiliate – 56%

Advertising revenue – 33%

Creatore funds – 25%

Paid content subscriptions – 16%

Selling merchandise – 15%

Influencer opportunities on the rise. The Hollywood writers’ strike could create more chances for influencer marketing, which may accelerate influencer ad spend even further, according to the report. This is because content creators are likely to seek alternative ways to make money during the strike. Additionally, social platforms are actively trying to attract top creative talent, which is likely to open up more possibilities for brand partnerships.

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What has Insider Intelligence said? A spokesperson from Insider Intelligence said in the report:

“The time to act is now. Influencer marketing spending will rise roughly 3.5 times faster in 2023 than social ad spending will. That’s a testament to the resilience of creators, even amid economic concerns and major competition.”

Deep dive. Download the complete Insider Intelligence report and read it in full for more information.

The post Influencer ad spend is now growing faster than traditional ad investment appeared first on Search Engine Land.

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