Influencer marketing on Instagram has not suffered the consequences of COVID-19 lockdowns as much as previously thought, according to research from HypeAuditor.
A comparison of marketing budgets for sponsored posts between Q1 2019 and Q1 2020 found that market size grew 3.9% between quarters to $1.2 billion.
Instagram influencer marketing is predicted to reach between $5 billion to $6.5 billion in market value in 2020.
However, lockdowns did have an effect on budget cuts, reducing the market 3.8% in March 2020 compared to the previous year. This translates to $16 million in global spending.
At the same time, brands are looking for new ways to engage with consumers in a post-COVID world. Collaborating with content creators and influencers is seen as a viable alternative to boost brand awareness.
In other words, the market may have temporarily slowed but is set to make a quick comeback later this year.
The results are based on an analysis of more than three million sponsored posts.
According to the data, around 47% of sponsored posts are Stories on Instagram.
