TikTok will 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 short term, it’s still far behind when it comes to influencer marketing dollars being spent on its platform in the United States. 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 is doing well against TikTok on this front, Meta’s other app, Facebook, isn’t so lucky.
The new data, which comes from analysts at Insider Intelligence (formerly eMarketer), indicates that TikTok is now on track to overtake Facebook in influencer marketing spend this year and will overtake the No. 2 platform. , YouTube, by 2024.
Currently, YouTube sees $948.0 million in influencer marketing dollars spent on its platform in the United States, ahead of Facebook’s $739.0 million. Additionally, TikTok has already overtaken YouTube based on the use of marketers for influencer-based marketing, the report notes.
Instagram has regularly adjusted its algorithm and feed to highlight content from creators, recommended posts and advertising, despite complaints from users who want to see more photos and videos of their friends. But as Instagram changes the ranking of content in its main feed, some creators worry that their reach will be affected by the constant changes.
Instagram last week agreed to roll back some recent updates that saw the app turn into a TikTok with a full-screen home feed and increased number of recommended posts, after two of the Kardashians posted a complaint on their Instagram profiles. Of course, mega-influential celebrities like the Kardashians could stand to lose if Instagram changes its algorithm to feature more smaller creators.
The report also points out that this could be the eventual plan for Instagram, adding that the mix of influencers benefiting from this form of monetization has evolved over time.
Specifically, Instagram’s feed tweaks would allow smaller “micro” and “nano” influencers, as they’re called, to take a big slice of the pie, he says. Nano-influencers are defined as individuals with 1,000-4,999 followers, while micro-influencers are individuals with 5,000-19,999 followers. These influencers are already taking advantage of TikTok, which is part of the app’s appeal to creators.
The report also notes that marketing spend for smaller influencer partnerships has grown rapidly. This year, spending by “nano” influencers will increase by 220.5%, analysts predict, while spending by “mega” influencers will only increase by 8.0%. (Mega-influencers have at least 1 million followers, depending on the company’s definition.)
Marketers may also prefer working with smaller creators for a variety of reasons, including the fact that their rates are cheaper, but their posts may have higher engagement rates.
They may also be less likely to have their view count artificially increased through the use of fake views or bots.
For what it’s worth, TikTok is often accused of inflating view counts and is known to have lower limits for what counts as a view for marketers’ purposes. It is said to count a view as soon as the video is played and counts views as views. (Also, some believe there are questions as to how complicit TikTok itself might be in inflating views, given that its owner ByteDance has been directly involved in setting up fake accounts in a previous app which was sort of a precursor to TikTok.)
“TikTok is growing in popularity for influencer marketing, but it still falls short of Instagram in terms of spend or marketer adoption,” said Jasmine Enberg, principal analyst at Insider Intelligence. “This is partly due to the higher prices Instagram creators charge for content, but also because of its wide range of content formats, most of which are now purchasable. Yet Instagram is trying to be more like TikTok in order to be able to attract smaller creators, which TikTok is known for. This is essential for Instagram to maintain its lead in the influencer marketing space, especially since many creators on TikTok are now showing a number of followers that rival or exceed those of Instagram and YouTube.
In total, the report estimates that 74.5% of US marketers will use influencer marketing in 2022, and influencer marketing spending will grow 27.8% to $4.99 billion this year.