Influencer Marketing Is A $5-$10 Billion Dollar Global Market

Influencer Marketing Is A $5-$10 Billion Dollar Global Market

In just over half a year, the average monthly search for "influencer marketing" has increased nearly five-fold (from 500 to 2,400 U.S. Google searches). According to Google Trends, interest in influencer marketing has more than doubled within the year. This is a significant increase from the previous year which saw almost a 40% increase (Google Trends).

For many brands in 2015, influencer marketing has proven to be an effective marketing channel supplementing or replacing other channels affected by the growing ad blocking movement. With key demographics spending significantly less time in front of a TV, these "cord-cutters" (many of whom will never consider traditional cable service "cord-nevers") receive their everyday media content solely through social media channels, apps, and platforms.

Although influencer marketing seemingly became popular overnight, many brand-influencer advertising sponsorships started as early as 10 years ago. What started with popular bloggers and blog advertising has now spread into other influencer channels including Snapchat, Instagram, and YouTube. As viewership, audiences, and social platform growth continues to rise, so too will ad dollars seeking to capitalize on the untapped reach and exposure of these marketing channels. 

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Here are the overarching trends affecting growth in the global influencer marketing market:

At present, we estimate the existing influencer marketing spend to be roughly $500 million. Based on the existing TV advertising to digital ad spend market ($70 billion), the reallotment of ad dollars available from ad blocked channels, and the existing rate of increase in influencer marketing, we conservatively estimate the total ad spend in influencer marketing to increase to $5 to $10 billion dollars in the next 5 years.

As more of today's audiences become "cord-cutters," declining TV viewership is quickly being replaced with mobile screen time.

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