How Instagram Influencer Marketing Will Exceed $1 Billion This Year [Infographic]

instagram influencer marketing is growing fast!


Instagram is the one the main social media platforms that businesses are conducting their marketing campaigns on, in part due to its vast user base of 600 million and plethora of content creators. Influencer marketing, advertising that utilizes social media stars, content creators, and influencers with sizable audiences and reach, is becoming more and more popular with the decline of traditional TV and the rise of mobile and time spent on social media. Naturally, advertiser dollars are flowing into the space, specifically to influencers on Instagram.

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In fact, the Instagram influencer marketing industry size is expected to exceed $1 billion by the end of 2017 and will more than double in 2019. Influencer marketing agency, Mediakix, projected these figures by studying the total number of sponsored posts on Instagram, tagged by FTC required hashtags, #ad, #sp, #spon, and #sponsored. In 2016, the number of brand sponsored influencer posts totalled at 9.7 million (Chart 2), and using growth rates from previous years, is expected to reach 14.5 million by the end of 2017. This means that there will be a total of 4.8 million tagged sponsored influencer posts by the end of this year. However, not all tagged posts were actually sponsored. Using a sample size of recent posts, it was found that 58% were actually sponsored posts. This means that in 2017, there will likely be nearly 2.8 million sponsored posts.

Next, the average compensation per sponsored post was found using industry estimates of 32,000 followers per account and $10 per thousand followers. Given these averages, the average payment per sponsored post is $320, leading to an estimated total monthly spend of nearly $90 million. Annually for 2017, this would be $1.07 billion. Using current annual growth, the market would be reaching $130 million per month in 2018 and $200 million per month in 2019, with at least 10.6 million brand sponsored influencer posts.

Sponsored influencer posts – How Instagram Influencer Marketing Will Exceed $1 Billion This Year

Instagram Influencer Marketing sponsored influencer posts