How Influencer Marketing on Instagram Became a $1B Market
Instagram is one of the fastest growing social media platforms today, having reached over 600 million global users by the end of 2016. Its growth is significant, and can be attributed to the addition of new features, such as Instagram Stories, as well as a massive base of content creators and social media influencers.
Users are flocking to Instagram to view what the top social media influencers are posting on their accounts, and brands are just starting to get in on the action. To reach these vast and diverse audiences, brands often partner with social media influencers through sponsored posts and advertisements.
The influencer marketing trend is present across all social media platforms, but Instagram's share in the industry is absolutely remarkable. Mediakix found that influencer marketing on Instagram is set to reach over $1 billion in 2017 alone, and will more than double by 2019.
In order to get an idea of how big the influencer marketing industry was on Instagram, we found the number of sponsored posts on Instagram by tracking common sponsored hashtags, including #ad, #sponsored, #spon, and #sp.
In 2016, the total number of sponsored influencer posts was 9.7 million and is estimated to be 14.5 million in 2017. This means in 2017 an estimated 4.8 million influencer posts on Instagram will be tagged as “sponsored”. However, only about 58% of tags represent real sponsorships, which leaves more than 2.7 million sponsored posts by social media influencers.
The average number of followers per influencer was estimated to be 32,000 and an average cost of $10 CPM industry average amounts to an estimated $320 compensation for each sponsored post. This amounts to a total monthly spend of approximately $90 million, placing total annual spend at $1.07 billion for 2017. Assuming consistent growth in the next two years, the influencer marketing industry on Instagram will be worth nearly $2.4 billion.
One thing is clear: the Instagram influencer market is immense and its growth won’t be slowing anytime soon.
Mediakix is a leading influencer marketing agency which connects the world’s top brands with social audiences through influencer marketing.