Influencer Platforms’ use by brands is changing with UGC and microinfluencers as critical factors. The influencer marketing market size is expected to grow to $17.4 Billion in 2023. This is a 14.47% increase from 2022 when the influencer marketing market size was $15.2 Billion, according to recently published study by Collabstr.
In 2022, TikTok was the most popular influencer platform for marketing, with 45% of paid collaborations taking place on the platform. Instagram comes second, with 39% of paid influencer collaborations in 2022 taking place on the platform.
For 2023, Collabstr is seeing more advertisers put an emphasis on the quality of their ad creatives, user-generated content (UGC), and community building in order to offset their customer acquisition cost (CAC).
Collabstr’s study included user-generated content (UGC) in this year’s breakdown due to its incredible rate of growth, and brands are allocating budgets specifically for UGC, just as they would for a platform like TikTok or Instagram.
According to the report, 14% of all paid collaborations were not specific to any particular platform, but instead they were UGC collaborations where the influencer delivered some content in exchange for a payment. The number of UGC collaborations in 2022 is higher than ever observed in the past.
2% of paid collaborations took place on YouTube in 2022. While this may seem low, it’s also important to note that YouTube differs dramatically from platforms like TikTok and Instagram, where there are much more creators and content is not as evergreen. YouTube influencers tend to invest more time into the production of their content, and the content typically stays relevant for much longer, which leads to higher prices for collaborations.
Influencer Platforms: User-Generated Content Becomes an Expense Item
While user-generated content may not fit into the traditional mold of influencer marketing, it still requires that advertisers hire UGC creators and influencers to create the content for them, which ultimately boosts the spending flowing into the influencer marketing market.
Influencer platforms like Instagram and TikTok have also put in a lot of effort to accommodate advertisers that prefer to leverage their UGC and they’ve done this by implementing features for whitelisting and dark posting.
Influx of Micro-Influencers
People that become influential in their associated niche are increasing. Micro-influencers can loosely be defined as anyone with a following of less than 50,000.
Short-video influencer platforms like TikTok are known for their viral aspect. A big part of the reason these platforms are able to attract so many content creators is the fact that they offer more organic exposure to content creators than traditional methods, such as posting photos on Instagram.
As a result of this, everybody is becoming a content creator, and with this, you get more people that become influential in their associated niche.
With more micro-influencers on the market than ever before, there is more selection for advertisers and brands that are looking for someone to be the face of their product.
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