Influencer marketing is thriving in 2024, with brands increasingly investing in creators and recognizing their value. According to industry sources, the creator economy has experienced its ups and downs, but influencer marketing stands out as a key growth area. Eleven industry insiders, including influencer firms, told Business Insider how the category has evolved this year, highlighting various influencer marketing benefits.
Brands are now favoring long-term, recurring partnerships over one-time deals, a core component of an effective influencer marketing strategy. Olivia McNaughten, senior director of product marketing and partnerships at Grin, emphasized this shift. Influencer-marketing firm Fohr reported a 36% year-over-year increase in deal volume and a 47% rise in overall dollar value for deals in the first quarter of 2024 compared to the same period in 2023. Similarly, London-based Billion Dollar Boy saw deal volume rise by 16% and revenue from deals jump 89% in the first half of this year compared to the first half of 2023.
Other agencies reported more modest growth in creator payouts for the first half of the year but maintained an optimistic outlook on the trend in 2024. Lindsey Lugrin, founder of the influencer-pay-transparency platform FYPM, noted that brand deals and creator payouts continue to grow, highlighting the robustness of influencer marketing in the creator industry.
The growth of influencer marketing contrasts with struggles in other parts of the creator economy, where startups have faced challenges like platform algorithm changes, layoffs, and restructurings. Influencer marketing, however, is expected to attract billions of dollars this year. Influencer marketing statistics from Emarketer projected that US marketer spending on sponsored content for social media will rise 16% to $8.14 billion in 2024.
The industry’s momentum in 2024 follows a challenging couple of years when many brands cut ad budgets in anticipation of a recession. Fohr’s VP of Strategy, Grace Murray Vazquez, described 2023 as difficult, but noted that the first quarter of 2024 was their best ever.
Influencer marketing news often highlights how creators post content across multiple platforms, allowing marketers to commit larger budgets to their campaigns. Brands are also prioritizing longer-term partnerships with creators, who have improved the quality of their content and become more savvy at setting prices. This professionalization has led to higher rates for sponsored posts and a dedicated track at major advertising festivals like Cannes Lions and South by Southwest.
The sector’s growth is driven by its alignment with traditional marketing, tapping into an existing market rather than creating something new. As ad spending shifts from traditional media to platforms like TikTok and YouTube, influencer marketing benefits. Goldman Sachs analysts forecasted that influencer marketing and creator advertising would help grow the creator economy to a $480 billion industry by 2027.
While there are still challenges to address, such as standardizing deal rates, the influencer marketing sector has become more professionalized and is experiencing rapid growth, according to Ed East, global CEO and cofounder of Billion Dollar Boy.
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