Influencer Marketing Platform Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Category Overview

“Cost-effectiveness, scalability and better conversions are fueling the growth of the category.”

The global influencer marketing platform category is expected to grow at a CAGR of 31.9% from 2023 to 2030. Factors that are driving the growth of the category include reduced effectiveness of social media ads and traditional media platforms, better customer acquisition through influencer communities, higher trust of potential customers on influencer reviews of products/services, higher return on investments, scalability and better conversions, and cost-effectiveness. The solutions have turned into crucial part of mainstream branding strategies for numerous business enterprises across the globe. It combines content-driven marketing techniques with traditional celebrity endorsements. 

The rising use of the internet for advertising has drastically changed the business strategies of numerous organizations and given advertisers new ways to connect with their target markets. The consumer experience is improved by these promotional activities that enable marketers to deliver personalized adverts. Social networking sites like YouTube, Facebook, Instagram, Pinterest, etc. have seen tremendous growth as marketing tools. The market outlook for the category is anticipated to improve in the coming years as a result of these new branding and promotion strategies.

Customers are continuously being forced to acquire things through conventional marketing and advertising strategies. The conventional methods could result in a negative brand impression. In addition, the consumer base has also been decentralized among channels as a result of the consumer shift towards OTT and numerous social media platforms, which has resulted in expensive marketing costs with low Return on Investment (ROI). As a result, businesses are increasingly implementing efficient marketing strategies such as category solutions that reach consumers without upsetting them.

The global influencer marketing platform category was valued at USD 13.8 billion in 2022. This can be attributed to brands' shifting preference towards using online influencers rather than the traditional approach of hiring celebrities to promote their product offerings. As per a recent survey conducted on over 3,490 people, over 81.9% of the respondents admitted that they will dedicate over 39% of their marketing budget on these services. The percentage of marketing fund a business enterprise allocates to the service offered in the category depends on how much of its overall marketing budget it spends. Brands who choose to collaborate with mega-influencers and celebrities forgo smaller budgets in favor of larger budgets. The ones which have witnessed the positive outcomes have increased their budget dedicated to the service, however, the ones with negative feedback have either eliminated or decreased their spending.

Continuous rise in the competition has led to the increased demand for the services offered in the category. This has created a challenge for the brands to identify the influencers who are authentic as many of them leverage bots to add fake followers with the objective to attract bigger brands for collaborations. To overcome this challenge, businesses are utilizing auditing platforms to discover fraudulent accounts by scanning the accounts of influencers and displaying data on real and fake followers.

North America region dominates the global category, holding a substantial share of revenue. Growth of the services in the region can be owed to increased engagement of consumers on OTT and social media platforms, particularly during the pandemic as people were supposed to maintain social restrictions. This provided the businesses with a chance to market their goods and services through influencers. In addition, the existence of talented workforce in the region who are working in AI-based analytics, digital marketing, and platform development is helping the market grow.

The European region is anticipated to witness the fastest rate of growth over the projected timeframe as the top fashion brands such as Versace, Christian Dior, Chanel, etc. which are based out of Europe are widely adopting branding practices. These firms are concentrating on expanding their market penetration and gaining a sizable consumer base through micro- and nano-influencers. In addition, the continued use of automated systems in the Nordic nations is fostering market expansion by enabling them to identify influencers and purchase traffic.

Supplier Intelligence

“What best describes the nature of the influencer marketing platform category? Who are some of the main participants?”

The category is highly competitive and has a number of participants, making it moderately fragmented. Majority of the key market players offer comprehensive solutions with a wide variety of features. They are required to stand out from the competition and offer distinctive value propositions to compete in the industry. In addition, players are increasingly utilizing strategic joint ventures with an objective to diversify and enhance their services, to boost their market dominance and profitability.

Key features that the suppliers of the platforms offer in their products include API integration (to access information on influencers and their audiences that has been collected from several social media platforms), campaign action automation (for developing automated process for targeting distinct audience, direct message account, and boost posts), real-time insights (number of times a post have been saved, number of comments, and number of likes), etc. Buyers in the industry possess higher negotiation capability due to the presence of large number of suppliers, which helps them to switch easily to the one who offer better value in terms of price and services.

Key suppliers covered in the category:

• AspireIQ, Inc.

• CreatorIQ

• Grin Technologies Inc.

• JuliusWorks, LLC

• Klear.com Ltd.

• Kolsquare

• Mavrck LLC

• NeoReach

• Onalytica Ltd

• Traackr, Inc.

• Upfluence

• Webfluential Global Limited

Pricing and Cost Intelligence

“What is the cost structure for influencer marketing platform? What variables affect the prices?”

The total cost of ownership for the category constitutes of license cost / subscription fee, personnel, maintenance & upgradation, training & certification costs, and support as the key cost components. Other expenses can be further bifurcated into utility costs, administrative expenses, renewal costs, data migration costs, and security.

Players in the category generally use subscription based-pricing and competition-based pricing models. They charge significantly different prices for the services and have distinct pricing plans for different media / platform and different type of influencer. Prices can also differ significantly based on the level of influencer a brand is working with, the industry it operates in, and the number of campaigns it needs to get launched.

The influencers can be bifurcated into various subcategories based on the number of followers they have, such as Nano (possessing 1k - 10k followers), Micro (possessing 10k - 100k followers), Macro (possessing 100k - 1million followers), and Mega (possessing over 1million followers). Prices for each of these subcategories varies. Key factors that determine the price of the influencers are timeframe of the campaign, type of content that is sponsored, rate of engagement, exclusiveness, and count of the followers.

When all these variables are taken into account, the typical rate for influencer might range from $10 to $10,000 or more. The cost of an influencer on platforms like Instagram and TikTok will differ, and similarly micro & nano-influencers will be less expensive than macro & mega-influencers. Mega and macro influencers aren't always the greatest option, despite being the most expensive and having the biggest viewership because they possess notably lower engagement rates and less likely to result in sales. Partnering with nano & micro-influencers can produce excellent results for smaller firms or brands aiming at niche markets.

The cost structure is broken down in the accompanying chart. Other costs can depend on multiple cost components, which have been illustrated below.

The report provides a detailed analysis of the cost structure and the pricing models adopted by prominent suppliers in this category.

Sourcing Intelligence

“How do influencer marketing platform providers engage? What is the type of engagement model?”

In terms of influencer marketing platforms’ sourcing intelligence, companies are increasingly using a full-service outsourcing strategy wherein majority of the services are outsourced to a third-part solution provider. Setting up an internal team enables having all the costs associated with the services in-house, except for the compensation paid to the influencer. However, the process of assembling such team gets expensive. Whereas outsourcing do not have to account for salaries, cost-per-hire, or training fees. Agencies frequently charge brands a set fee in order to produce a turnkey campaign. This charge might cover both the influencer and the agency, though it varies from agency to agency.

“In the full services outsourcing model, the client outsources the complete operation/manufacturing to single or multiple companies.”

Business enterprises prefer performance-based model when selecting the player in this category. Dedicated service providers are aware of the objectives of the brands they represent. They comprehend their needs, principles, and other distinctive features. They are skilled at what they do, which is helpful when picking the best influencers for the brands they deal with.

India is the preferred low-cost/best cost country for sourcing category solutions. As the nation's digital infrastructure is getting better and more Indians have access to the internet, numerous opportunities are opening up for both businesses and marketers. The solutions offered in the category has emerged as a potent method to interact with this sizable and young audience in this quickly evolving marketplace. Platforms like YouTube, Facebook, Instagram, etc. are becoming a significant element of young Indians' daily lives.

As per a recent report, over 54.9% of brands in India utilize the solutions offered in the category for marketing. The report further states that the penetration of social media in the nation is 40%, with over 499 million users of internet. Solutions offered in the category is being used by brands in many different ways. For instance, fashion bloggers and influencers are working with beauty and fashion firms to promote their goods. In contrast, to advertise their locations, travel brands are working with travel bloggers.

The report also provides details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis.

Influencer Marketing Platforms Category Procurement Intelligence Report Scope