With the decline of traditional TV and the growth of social media, influencer marketing has become one of the fastest growing advertising mediums. A recent study by Mediakix found that Instagram alone is expected to be a $1.07 billion market this year and $2.38 billion in 2019.
In the past six months alone, Instagram added over 100 million users and growth shows no signs of slowing. With over 600 million global users and over 400 million of whom check Instagram every day, Instagram is one of the most far-reaching and highly engaged social media networks in existence today, according to Mediakix.
Though there is no official number on the size of the Instagram influencer market, the study tracked common sponsored hashtags, including #ad, #sponsored, #spon, and #sp. In the past year, there was an increase of 4.8 million uses of these hashtags over years prior.
In looking at a sample size of 500 recent sponsored posts, 58% were from accounts with more than 1,000 followers. The average follower size for accounts posting sponsored content was 32,000. Applying an average $10 cost per thousand impressions (CPM), an estimated $320 per post and an estimated total monthly spend of approximately $90 million resulted. This would put the overall total annual spend at over $1 billion.
With the current annual growth, the market could reach a $130M/month spend by March 2018 and up to a $200M/month spend by March 2019 (nearly $2.4B spent on influencer marketing on Instagram alone).