Study: Global influencer ad spending expected to jump by 13% in 2024

As we step into 2024, the influencer advertising industry is poised to prosper after growing its revenue by 17% to over US$30 billion in 2023, according to recent studies.

While some consumers have started to lose trust in influencers, 2024 market projections suggest that global influencer ad spending is expected to jump by 13% to hit US$35 billion in 2024. This comes as brands and companies continue to pour billions into influencer advertising.

Don’t miss: Study: 82% in SEA make purchasing decisions based on influencers and celebrities

These were the findings from data presented by Onlyfans accounts finder and search engine, OnlyAccounts.io. As paid ads become expensive and less visible, more brands are planning to allocate their budgets to influencer marketing.

Citing research by influencer and affiliate partnership management platform, Impact.com, OnlyAccounts.io stated that close to 65% of brands will increase their influencer budgets for 2024, indicating that the advertising form remains a top choice for marketers.

Data from Statista further showed that the total ad spending in the influencer advertising industry is expected to jump to US$39.3 billion in 2025, increasing by 12% annually. By 2028, it projected that the entire market would hit over US$ 52 billion in total ad spending, while the annual growth rate drops to less than 9%.

In 2024, the study also found that United States (US) and Chinese brands will generate 70% of total influencer ad spending in 2024, based on Statista data. Chinese ad spending is set to hit US$ 19.1 billion in total, a US$2.3 billion growth from 2023. Meanwhile, the US is projected to see a quarter of that growth, with US$ 5.6 billion in total ad spending in 2024.

The United Kingdom (UK) were also ranked as the third largest market globally in Statista’s findings, with brands spending US$1.1 billion on influencer ads in 2024. Japan and Germany follow with US$862 million and US$ 702 million respectively.

Closer to home, these projections are unsurprising given recent findings that a large percentage of consumers in Southeast Asia make purchasing decisions based on influencers and celebrities.

According to impact.com, 82% of Southeast Asian participants in an October 2023 report admitted to being influenced by recommendations from influencers or celebrities in their purchasing decisions.

The report also highlighted that consumers have diverse connection preferences, with TikTok and YouTube being go-to platforms for engaging with celebrities and influencers. Consumers also tended to diversify their choices of influencers to follow, with approximately 33.6% of respondents following a range of one to ten influencers and celebrities regularly. 31.8% indicated a broader engagement with 11 to 30 of them.

Trust significantly outweighed other factors as reasons for following influencers. 72% of surveyed consumers cited authenticity behind their reasons to trust influencer recommendations, demonstrating how genuine and trusted recommendations are pivotal in shaping consumer behaviour.

However, the study also highlighted the rising popularity of artificial intelligence (AI) influencers, with consumers equally divided on their opinions towards them. While some expressed reservations towards AI influencers, others demonstrated more readiness to trust content created by generative AI.

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