TikTok to overtake Facebook in influencer marketing spend this year, YouTube by 2024 – TechCrunch

Instagram may be worried about TikTok’s threat to its business, but in the near term, it’s still way ahead when it comes to influencer marketing dollars spent on its platform in the US. According to a new analyst report, Instagram is on track to capture nearly 3x the amount of influencer marketing spend compared to TikTok in 2022 – or $2.23 billion spent on Instagram compared to $774.8 million spent on TikTok.

However, while Instagram fares well against TikTok on this front, Meta’s other app, Facebook, isn’t so lucky.

The new data, sourced from analysts at Insider Intelligence (formerly eMarketer), suggests that TikTok is now on track to overtake Facebook in terms of influencer marketing spend this year and overtake the No. 2 platform, YouTube, by 2024.

Currently, YouTube sees $948.0 million in influencer marketing spent on its platform in the U.S., ahead of Facebook’s $739.0 million. In addition, TikTok has already overtaken YouTube based on marketer usage for influencer-based marketing, the report notes.

Image credit: internal intelligence

Instagram has steadily adjusted its algorithm and feed to highlight content from creators, featured posts and ads, despite complaints from users who want to see more photos and videos of their friends. But as Instagram adjusts how content is ranked on its main feed, some creators have worried that their reach could be adversely affected by the constant changes.

Last week, Instagram agreed to roll back some recent updates, prompting the app to transform itself into a TikTok with a full-screen home feed and an increased number of featured posts, after two of the Kardashians posted a complaint on their Instagram profiles. Of course, mega-influencer celebs like the Kardashians could lose out if Instagram changes its algorithm to feature a greater number of smaller creators.

The report also notes that may be the plan eventually for Instagram, adding that the mix of influencers who benefit from this form of monetization has changed over time.

Specifically, Instagram’s feed adjustments will allow smaller “micro” and “nano” influencers, as they’re called, to take a big slice of the pie, it said. Nano-influencers are defined as people with 1,000 to 4,999 followers, while micro-influencers are people with 5,000 to 19,999 followers. These influencers already enjoy TikTok, which was part of the app’s draw for creators.

The report also notes that marketing spending on smaller influencer partnerships has grown rapidly. This year, spending on “nano” influencers will increase by 220.5%, analysts predict, while spending on “mega” influencers will increase by just 8.0%. (Mega influencers have At least a million followers, as the ministry defines it).

Image credit: internal intelligence

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

It is likely that their views will be artificially inflated through the use of fake views or bluntAs well.

For what it’s worth, TikTok often is accused of inflated view counts and is known to have lower bounds for What qualifies as a view for marketing purposes. They say that a view is counted as soon as the video is played and repeated views are counted as views. (Additionally, some believe there are questions about how complicit TikTok itself might be in inflating views, given that owner ByteDance is directly involved with Making fake accounts In a previous application that was a kind of precursor to TikTok.)

“TikTok is growing in popularity for influencer marketing, but it’s still nowhere near Instagram in terms of spend or marketer adoption,” said Insider Intelligence Principal Analyst Jasmine Enberg. “This is partly due to the higher prices that Instagram creators charge for content, but also because of the wide variety of content formats, most of which are now shoppable. Still, Instagram is trying to be more like TikTok so that it can attract smaller creators, which TikTok is known for. It The key for Instagram to maintain its leadership in influencer marketing, especially as many creators on TikTok now boast following numbers that rival or surpass those on Instagram and YouTube.”

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

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