Yes, you heard it right! Instagram’s influencer marketing is now a billion dollar industry.
This is according to Mediakix, an influencer marketing agency that connects brands with socially-engaged audiences, or, if you like — influencers.
An Instagram Influencer Milestone
In a recent post, Mediakix puts Instagram’s influencer market at 1.07 billion dollars and projects that by 2019, the market will have grown to a whopping 2.38 billion dollars.
To estimate how much money advertisers spend on influencer marketing on Instagram, Mediakix tracked the number of sponsored Instagram posts over a year. The agency started by tracking the FTC required hashtags, including #spon, #sp, #ad and #sponsored. In the past year, the agency realized that there was a 4.8 million increase in use of these hashtags compared to the previous years. The company also recorded 2,788,963 sponsored posts.
The agency also found out that the average follower size of accounts posting sponsored content was 32,000. With an estimated cost of $10 per thousand impressions, the agency ended up with an estimated $320 per post and monthly spending of about $90 million, which puts the overall spending to a little over a billion dollars. These figures just go to show that more and more businesses are now fully discovering the viral growth potential and the far-reaching impact of marketing with top social media influencers.
Since its launch in 2010, Instagram has managed to amass over 400 million engaged users, making it one of the best platforms to promote your business, execute high-reach influencer marketing campaigns and even develop long-term influencer collaborations. And as long as Instagram remains a preferred discoverable place for influencers, the influencer market will continue to grow. Some of the places that you could look for influence marketers for your business include Grin, Intellifluence and Mediakix.
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Instagram is growing. It is coupled with Youtube when it comes to influencer marketing and it is expected to grow over time.
Instagram is here to stay. There are many businesses selling there as well. It is a really effective medium.
Establishing mutually beneficial with influence is definitely not an easy or quick process, but it’s proven to be beneficial when done right. There are already many tools that ease the work and I expect more of them are about to see daylight. I believe the vetting process will become more extensive and complex since these type of marketing is maturing. Relationships between influences and marketers are going to change a lot in future, it’s gonna be interesting.