Yes, you heard it right! Instagram’s influencer marketing is now a billion dollar industry.
This is according to Mediakix, an influencer marketing agency that connects brands with socially-engaged audiences, or, if you like — influencers.
An Instagram Influencer Milestone
In a recent post, Mediakix puts Instagram’s influencer market at 1.07 billion dollars and projects that by 2019, the market will have grown to a whopping 2.38 billion dollars.
To estimate how much money advertisers spend on influencer marketing on Instagram, Mediakix tracked the number of sponsored Instagram posts over a year. The agency started by tracking the FTC required hashtags, including #spon, #sp, #ad and #sponsored. In the past year, the agency realised that there was a 4.8 million increase in use of these hashtags compared to the previous years. The company also recorded 2,788,963 sponsored posts.
The agency also found out that the average follower size of accounts posting sponsored content was 32,000. With an estimated cost of $10 per a thousand impression, the agency ended up with an estimated $320 per post and a monthly spending of about $90 million, which puts the overall spending to a little over a billion dollars. These figures just go to show that more and more businesses are now fully discovering the viral growth potential and the far-reaching impact of marketing with top social media influencers.
Since its launch in 2010, Instagram has managed to amass over 400 million engaged users, making it one of the best platforms to promote your business, execute high-reach influencer marketing campaigns and even develop long-term influencer collaborations. And as long as Instagram remains a preferred discoverable place for influences, the influencer market will continue to grow.
Source: Small Biz Trends