TikTok to overtake Facebook in influencer marketing spending this year, YouTube by 2024

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Instagram may be worried about TikTok’s threat to its business, but in the short term, it’s still way ahead when it comes to dollars spent on influencer marketing on its platform in the US. According to a new analyst report, Instagram is on track to capture almost 3 times more influencer marketing spending compared to TikTok in 2022 — or $2.23 billion spent on Instagram, up from $774.8 million. spent on TikTok.

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However, while Instagram is doing well with TikTok on that front, Meta’s other app, Facebook, hasn’t been as lucky.

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New data from Insider Intelligence (formerly eMarketer) analysts shows TikTok is currently on track to overtake Facebook in terms of influencer marketing spending this year and will overtake the No. 2 platform, YouTube, by 2024. .

YouTube currently spends $948.0M on influencer marketing on its platform in the US, which is more than $739.0M for Facebook. In addition, TikTok has already overtaken YouTube in the use of influencer marketing by marketers, the report notes.

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Image credits: insider intelligence

Instagram has been steadily tweaking its algorithm and feed to highlight authored content, featured posts and ads despite complaints from users who want to see more of their friends’ photos and videos. But as Instagram adjusts the ranking of content in its main feed, some creators worry that the constant change could hurt their reach.

Last week, Instagram agreed to rollback some recent updates that turned the app into a TikTok with a full-screen home feed and an increased number of featured posts after two Kardashians posted a complaint on their Instagram profiles. Of course, celebrities like the Kardashians could lose out if Instagram changes its algorithm to attract more smaller creators.

The report also points out that this could be the ultimate plan for Instagram, adding that the makeup of influencers who benefit from this form of monetization is changing over time.

Specifically, it says the Instagram feed adjustments will allow smaller “micro” and “nano” influencers, as they are called, to get a big piece of the pie. Nano-influencers are defined as people with 1,000-4,999 followers, while micro-influencers are people with 5,000-19,999 followers. These influencers are already capitalizing on TikTok, which has become part of the app’s appeal to creators.

The report also notes that marketing spending on small-scale partnerships with influencers is rising rapidly. Analysts predict that spending on “nano” influencers will grow by 220.5% this year, while spending on “mega” influencers will only grow by 8.0%. (By the firm’s definition, mega-influencers have at least 1 million followers.)

Marketers may also choose to work with smaller contributors for a variety of reasons, including the fact that their rates are lower but their posts may have higher engagement rates.

They may be less likely to artificially boost views through the use of fake views or botsalso.

Be that as it may, TikTok often accused due to inflated views and are known to have lower caps for what counts as a view for marketing purposes. It is said that a view is counted as soon as the video is played, and repeat views are counted as views. (Furthermore, some believe there are questions as to how much TikTok itself might be complicit in inflating views, given its owner ByteDance. direct participation yourself with creating fake accounts in a previous app that was sort of a precursor to TikTok.)

“TikTok is growing in popularity for influencer marketing, but it is still a long way from Instagram in terms of spending or adoption by marketers,” said Jasmine Enberg, chief analyst at Insider Intelligence. “This is partly due to the higher prices Instagram creators charge for content, but also due to the wide range of content formats, most of which are now available for purchase. However, Instagram is trying to be more like TikTok in order to attract the smaller creators that TikTok is known for. This is key to ensuring Instagram maintains its lead in influencer marketing, especially since many creators on TikTok now boast follower counts that rival or surpass those of Instagram and YouTube.”

Overall, the report estimates that 74.5% of U.S. marketers will use influencer marketing in 2022, and influencer marketing spend will rise 27.8% to $4.99 billion this year.

Credit: techcrunch.com /

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