How Much Do Brands Spend on Influencer Marketing?
Over the past few years, the global influencer marketing market size has been growing year after year, as more companies invest in the strategy and others ramp up their investment.
This comes as no surprise, as the latest influencer marketing statistics show that nine out of 10 marketers consider it to be an effective marketing tactic. As many as 71% of them also plan to increase their influencer marketing budget.
So, just how much do brands spend on influencer marketing these days?
Influencer marketing spend by amount spent
The soaring popularity of influencer marketing in recent years has resulted in brands of all shapes and sizes engaging with the strategy. Since they all have different financial capabilities and budgets, there’s a rather huge difference in their influencer marketing spending.
According to recent data on influencer marketing spend, most brands keep their expenditure on the lower end. Thirty-seven percent of businesses are expected to spend less than $10,000 on influencer marketing this year. This is lower than the 49% registered last year, which analysts say may be a result of the world reopening after the COVID-19 pandemic.
Thirty percent of brands say their influencer marketing spend this year will be between $10,000 and $50,000. In other words, nearly two out of every three businesses collaborating with influencers are expected to spend a maximum of $50,000 this year on influencer marketing.
The general trend of influencer marketing spend by businesses shows an inverse relationship between the number of brands engaging with influencer marketing and their expected expenditure. Nineteen percent of businesses are expected to spend between $50,000 and $100,000 on influencer marketing this year. This number falls to 10% for influencer marketing spends of between $100,000 and half a million. Just 4% of brands will be spending upward of $500,000 on influencer marketing this year.
Influencer marketing spend budget source
The research also shows that not all brands’ influencer marketing spend comes out of their marketing budget. Data from the same study shows that while the majority (82.3%) of businesses use their marketing budget on influencer marketing campaigns, a significant number (17.7%) of them have their influencer marketing budget within their company’s PR fund.