How Much Do Firms Spend on Influencer Marketing in 2024?

If you’ve been anywhere near the internet in the past couple of years, you’ve definitely heard about how popular influencer marketing (IM) has become. Influencers have taken over social media, and many of today’s users aspire to become one themselves. 

This, in reality, is not surprising. 

People admire influencers, seek advice from influencers, and they’re very popular. They can even monetize their social media through promotion and brand partnerships. Marketers, for this reason, have taken a strong liking to them as well. 

After all, isn’t the life of an influencer the dream life? 

While that’s all well and good, we’re here to focus on the numbers— is influencer marketing a worthwhile investment, and can it help you to generate more interest and profitability through your Instagram account? 

Massive Spending on Influencer Marketing 


Let’s check out some of the most striking statistics right off the bat. 

  • Marketing managers consider influencer marketing the “fastest-growing online customer-acquisition method.”
  • 49% of customers look to influencers for advice 
  • Global influencer marketing is at a record $13.8 billion
  • By 2022, influencer spending will reach a projected $15 billion 
  • 90% of marketers plan to increase their influencer marketing budgets 
  • In 2020, the average ROI for influencer marketing per dollar spent was $5.78
  • Influencer marketing campaigns were deemed successful by 94% of marketers.
  • Almost half (49%) of influencer marketing budgets were $10k and under

Those are some heavy-hitting numbers. 

Now that we’ve got a quick overview, we’re on our way to a deeper understanding of just how valuable influencer marketing can be. Let’s start with a definition— what is an influencer, and what other terms do you need to know? 

What are Influencers? 


An influencer is a person with a large social media following. They have a strong relationship with their followers, earning their trust and having influence over the way they behave and the decisions that they make. 

Influencers are able to connect with users on a level that celebrities can’t, as many of them have lost their influence over the general consumer. 

Spending the majority of their time curating their online presence and image, influencers are authentic and reputable enough in that they focus on promotions that align with the values they’ve created on their platform. 

This is the reason why users trust them and find value in their advice. Their content is engaging and reaches their audience on a personal level. 

What Is the Role of Instagram Influencers in The Marketing World? 

Because of this credibility and relatability, influencers have quickly become the staple of the social media marketing world. Marketers can gain exposure and boost revenue through new clients brought to them through the influencer marketing campaign. 

Influencers’ Are the Source of Advice for Roughly 49% of Customers 

As we can see from the above statistic, influencers have won the heart of their audience and that has become the main reason to partner with influencers. 

When you collaborate with an influencer that has a strong following, their reputation connects you with those users and generates brand awareness. The influencer’s credibility transfers to your brand through their endorsement. 

The cost per post is agreed upon between the marketer and the influencer. Other factors like the number of posts, type of content, as well as the length of contract also gets discussed. 

Is Influencer Marketing Big? 

This is what all marketers and businesses are asking themselves. 

Many marketing managers have identified influencer marketing as the “fastest-growing online customer-acquisition method.” 

After all, there’s been a 465% increase in Google searches for the phrase “influencer marketing.”

Another thing to keep in mind is that IM has continued to grow, and it’s reached a record high recently (more on that later). 

Because social media is constantly expanding, influencers are consistently solidifying their importance and reputation on their respective platforms, leading to more engagement, which leads to more conversions and clients for businesses who partner with influencers. 

This is one of the drivers of interest in influencer marketing. 

Currently, 90% of marketers have a planned increase in IM budgets. Why, exactly? 

How Much Does Instagram Influencer Marketing Cost? 


One of the main considerations when looking at influencer marketing as an option is the cost. It can vary depending on a few factors: 

  • Chosen social media platform 
  • Type of influencer (nano, micro, mid-tier, mega— these “titles” are defined by follower count) 
  • Number of posts 
  • Types of posts (photos, videos, posts, stories, IGTV content, etc.) 
  • Length of partnership 
  • Cost of production 

Influencer Marketing Global Ad Spend at An All-Time High in 2021 

Currently, the global ad spend on influencer marketing has reached $13.8 billion, which is the highest it has ever been. 

This is a good sign that influencer marketing will continue on the rise and gain traction as one of the top marketing strategies for social networks. 

By 2022, Influencer Spending Will Reach a Projected $15 Billion 

Based on current trends and demands for IM, the global ad spend is expected to rise even further in 2022, hitting yet another record of around $15 billion. 

If the numbers from 2021 are any indication, as well as the increased interest from marketers in the strategy, it could be very viable that IM will reach this marker. 

Instagram Is the Most Popular for Influencer Marketing

Out of all the different ad spend, Instagram has been the most popular for influencer marketing. The number one format is the Instagram post, and 78% of marketers chose this as the most effective option. 

Coming in second place is Instagram stories, with a 73% consensus that it was the most effective for influencer marketing. The platform also holds the number 4 spot at 54%, only slightly edged out by YouTube video at 56%. 

Why are Instagram influencer marketing strategies the most popular, deemed the most effective? 

One reason may be credited to the visual nature of Instagram. It’s been acknowledged that users of social media prefer visual content over text. 

With so many different content formats, including Instagram in-feed posts, Instagram stories, Instagram live, IGTV, reels, and shoppable posts, there is a wide range of formats that can be extremely beneficial for marketing campaigns. 

Shoppable posts were truly a game changer when they were released on the platform, and business accounts can tag these photos with their products, allowing users to buy directly from within the app. 

So, how much are people spending on Instagram influencer marketing? 

49% of Influencer Marketing Budgets Were $10k and Under 

Out of the total ad spend, Instagram captured a whopping $8 billion of it in 2020, showing just how powerful influencer marketing can be on Instagram.

49% of those using the strategy spent less than $10k in Q4 of 2020. The next bracket was between $10k-$50k, and 23% of respondents confirmed that they budgeted within this range. Figures increase after that, up to $500k+. 

Sponsored Posts on Instagram in 2020 Hit 6.12 Million 

Another reason for the preference of Instagram for marketers is likely the popularity of sponsored posts on the platform. There were a whopping 6.12 million sponsored posts on Instagram in 2020, a huge increase from the 1.2 million it registered in 2016. 

It’s clear that marketers are loving Instagram for their campaigns. So, if you’re looking to take advantage of Instagram in this way, how much can you expect to pay? 

To get a rough idea, let’s take a look at Matt Crump’s fee guide, which he shared with Later

Follower countPrice range for posts 
5 – 10k $100 – $500 
10 – 25k $500 – $800
25 – 50k$800 – $1500 
50 – 100k $1500 – $2000
100k – 250k$2000 – $6000
250k – 1 million$6000 – $10000
1+ million $10000+

There is a lot of room for variation because of the different deals and what the influencer is prepared to offer you. 

According to one lifestyle blogger with a follower count of 118k and an engagement rate of 2.5%, different package options were shared with Later. For instance, the following are monthly packages with a minimum commitment of 3 months: 

  • 5 photos per month: $2500
  • 5 photos + blog post: $3000 
  • 2 photos per month: $1200 
  • 2 photos + blog post: $2000
  • 1 photo per month: $700 
  • 1 photo + blog post: $1500 
  • Shop page feature: $500/month 

It can be difficult to estimate what exactly you’d be looking at in terms of cost, as it all has to be discussed with the influencer and agreed upon based on their terms. That said, the typical formula for calculating cost is $10 per 1,000 followers. 

Instagram Influencer Marketing Spend by Industry 

Depending on the industry you’re in, you’ll also be looking at fluctuating prices. Below are the numbers for different Instagram influencers and what they earn on their posts. The findings are based on a research study conducted in 2017.

  • Travel influencers make the most per sponsored posts: $220
  • Entertainment influencers like gamers and comedians, etc., get roughly $209 per post
  • Home and lifestyle influencers come in third with a cost of $204
  • Health and fitness influencers ask $193/post on average 
  • Fashion influencers charge $173.  
  • Photography influencers offer sponsored posts at $171. 
  • Food and drink influencers look for about $169 per post. 
  • Beauty influencers earn $160 per post. 
  • Art and design influencers seek $148.
  • Business influencers take the final spot in the top ten at $134 per post. 

With all of this information in mind, you now have a better idea of what you may be looking for in terms of your Instagram influencer marketing budget. 

What can you expect in return after you invest? 

Return on Investment for Influencer Marketing 


As you may have already seen based on the stats presented, influencer marketing is pretty much taking over. In fact, 94% of those who engage in the strategy agree that their marketing campaigns were successful. 

As of 2020, the average ROI per dollar spent on influencer marketing comes out to $5.78 according to Influencer Marketing Hub. The media value earned per dollar spent is up to $18. 

Based on a study from SocialMediaToday in 2018, as much as 11x more ROI can be gained through IM as opposed to traditional ads like TV, magazines, and others. 

Influencers with roughly 42k followers who post eight stories and posts per month are looking at an annual earning of $37k, according to Backlinko. 

TikTok has also given rise to more options for influencer marketing, and it can be incredibly profitable for those who have established a strong presence on the platform. TikTok influencers with 270 million views annually and 10,00 followers can make a cool $100k/year. 

Video Reigns King 

While Instagram posts were identified by many as the top content format, there are plenty of other possibilities, and video is coming in hot. 

Instagram stories ranked the second most effective, followed by both YouTube videos and Instagram videos. All three of those formats take advantage of video. 

Why is this? 

It’s long been asserted that 80% of people find video content more memorable than any other kind, which makes it a logical investment. 

YouTube Influencer Marketing

YouTube is the leading global video sharing platform with over 2 billion monthly active users. 

Video content creation can be daunting for many, as it takes more time and effort than simply snapping some photos, editing, and calling it a day. For this reason, you’ll find that vloggers and influencers who create video content charge more. 

Instead of the $10 per 1k formula, YouTubers will gain $20 for every 1k subscribers. That’s not all, though— YouTube also capitalizes on views, as that’s the main driver of success for campaigns. 

Marketers are typically paying between $50 to $100 per 1k views. This is an important metric to keep in mind when selecting an influencer on YouTube. 

Facebook and Twitter Influencer Marketing

While Facebook is the leading global social network with almost 3 billion monthly active users, it’s surprisingly lacking in influencer marketing. Influencers don’t typically invest their time on these social networks, which may be one reason. 

These two platforms are more common for brands and businesses to implement cross-promotion strategies and drive traffic to their other social networks and to connect with customers.  

Twitch — Influencer Marketing? 

If you’re not in the gaming world, you may not have paid much mind to the platform. Twitch is a video streaming platform that has gained serious traction amongst gamers. 

Can Twitch be used for influencer marketing? 

The answer is yes. 

Twitch influencers have a large amount of followers; they are typically an extremely loyal fan base. They have a different way to promote your content than you might expect on other social networks. 

While Twitch influencers are broadcasting their livestream, they can mention your product or use product placement to have your product in frame for viewers to see. 

Brands can also become sponsors for the streamers and gain more exposure that way. 

Depending on your niche and your target audience, it may be an incredibly valuable channel to expand your reach and connect with new live viewers. 

In terms of cost, there’s no set formula like we’ve mentioned above. It’s difficult to say, which means you’ll have to put out your feelers and talk to influencers directly to get a ballpark figure. 

Final Thoughts: The Future of Influencer Marketing

Influencer Marketing

So, where are we left after this numerical examination of influencer marketing? 

Well, it’s clear that the strategy has consistently gained traction in recent years, and it’s predicted to continue doing just that. With such solid footing in the marketing game, it’s difficult to imagine it going anywhere anytime soon. 

Remember, $13.8 billion was spent on Influencer marketing in 2021, with a predicted $15 billion coming in 2022. 94% of marketers agree that it leads to successful campaigns. 

If you haven’t explored influencer marketing as of yet, you may want to take a look and get your feet wet. 

We hope you enjoyed learning all of the stats about this very popular marketing technique. If you’re looking for alternative ways to expand your reach and connect with more users in your target audience, let Growthoid help. Try our 3-day trial today. 

Frequently Asked Questions 

Before we say goodbye, here are four of the most commonly-asked questions related to IM. 

Which Platforms Are Best Suited for Influencer Marketing?  

As per our stats above, Instagram has been deemed the most popular (and successful) network for influencer marketing. It’s basically the OG platform, and it continues its stronghold with over half of all IM dollars invested on the platform. 

What Kind of Budget Do I Need for Influencer Marketing? 

It’s tough to nail down as there are many variables that can impact the cost. Remember, the factors that dictate the price of IM include your choice of influencer, platform, number of posts, types of posts, and length of partnership. 

How Big Is Influencer Marketing? 

Influencer marketing is huge and it’s only getting bigger. It’s been identified as the “fastest-growing online customer-acquisition method,” and based on the stats above, we can see why. 

Is Influencer Marketing Effective? 

Based on findings, 94% of marketers who have participated in influencer marketing find campaigns to be successful. ROIs are averaging roughly $5.78 per dollar spent, which is a return of about 5x the initial investment on each dollar. 

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