Finance & Economics

TikTok to eclipse Facebook in influencer marketing spend this year, YouTube by 2024

While Instagram is the leader in attracting the influencer marketing dollars, TikTok will outshine both Facebook and YouTube in the nearest future

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TikTok to eclipse Facebook in influencer marketing spend this year, YouTube by 2024.

A new analyst report from Insider Intelligence (previously eMarketer) shows that Instagram is on track to capture nearly 3x the amount of influencer marketing spend compared to TikTok in 2022, however Facebook won’t stand the competition from the Chinese platform this year, YouTube – as soon as 2024. 

The new data indicates that Instagram spend will reach $2.23 billion compared to $774.8 million on TikTok.

At present, the top 2 platform – YouTube – faces $948.0 million in influencer marketing dollars spent on its platform in the U.S., ahead of Facebook’s $739.0 million. However, TikTok has already overtaken YouTube based on marketer usage for influencer-based marketing.

Instagram has been gradually adjusting its algorithm and feed to highlight creator content over friends’ photos and videos. At the same time, the media platform agreed to roll back some recent updates, bringing it closer to TikTok-like feed. Mega influencer celebrities like the Kardashians are worried about the algorithm shifts. Namely, featuring a greater number of smaller creators would impact their reach negatively. 

Nevertheless, the report points out that could be the eventual plan for Instagram, taking into account how the mix of influencers benefiting from this form of monetization has changed over time. Besides, marketing spend on smaller influencer partnerships is growing quickly. This year, “nano” influencer spending will rise 220.5%, the analysts predict, while spending on “mega” influencers with millions of followers will grow only 8.0%. 

“TikTok is surging in popularity for influencer marketing, but it’s still nowhere near Instagram in terms of spending or marketer adoption. That’s in part due to the higher prices Instagram creators charge for content, but also because of its wide array 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. That’s key for Instagram to retain its lead in the influencer marketing space, especially as many creators on TikTok now boast follower counts that rival or surpass those on Instagram and YouTube.”rn
Jasmine Enberg
Insider Intelligence principal analyst

Overall, the report estimates that 74.5% of U.S. marketers will use influencer marketing in 2022. Furthermore, total influencer marketing spend will rise by 27.8% to $4.99 billion this year.

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Nina Bobro

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