Why Advertiser Spending on Influencers Will Reach $4 Billion

We got an early look at new data from eMarketer/Insider Intelligence that shows just how much money advertisers are spending on sponsored posts from influencers. 

Influencer marketing on social networks in the U.S., including Instagram, YouTube and TikTok, is projected to rise to $3.7 billion this year, up 34% from last year. By 2023, spending should rise to $4.6 billion, nearly double its level in 2019. 

While influencer endorsements were already popular before the pandemic, the lockdowns accelerated demand. The shutdowns prevented advertisers from shooting traditional video ads and also cut budgets, prompting more to turn to influencers.

“What started out as necessity has now proven to be a reliable tactic,” said Jasmine Enberg, an eMarketer/Insider Intelligence analyst.