What is Influencer Marketing? – The Ultimate Guide for 2025

Gone are the days when brands could rely solely on flashy endorsements and mega-followers to drive sales.

Today, authenticity, niche engagement, and trust are the new currencies in an increasingly saturated digital landscape.

The influencer ecosystem is evolving, and brands that fail to adapt risk being left behind.

According to our industry-leading Influencer Benchmark Report 2024, the industry is evolving rapidly, with a notable 60% of marketers planning to increase budgets allocated to influencer marketing. Our State of Marketing Report 2024 found that 43% of brands are shifting budgets towards smaller influencers for more authentic audience engagements.

As marketers pour billions into digital channels, a new wave of influencer strategy is emerging; one that prioritizes genuine connections over follower counts.

Yet, while many recognize the shift, few understand its implications. In a world where every voice can shape perceptions, the ability to leverage influencers at scale and AI-driven insights is becoming a critical advantage. Our data shows that brands investing in these strategies are seeing engagement rates soar, while those clinging to outdated tactics watch their budgets stretch thinner.

• Rapid Industry Growth: Influencer marketing is booming, with an expected industry value of $24 billion by the end of 2024.
• Continued Effectiveness: Around 85% of marketers affirm the effectiveness of influencer marketing as a strategy, an increase from previous years’ results.
• Budget Expansion: A majority of brands (25%) are not just adopting influencer marketing but plan to spend 40% of their marketing budgets on it.

Influencer Marketing Hub is now an established website with hundreds of articles explaining the guiding and informing brands towards the best influencer marketing agencies and platforms. The original version of this post was the first article we wrote for the site back in 2016. We know, however, that there are still people who come here for the first time, wondering what influencer marketing is. So, we have updated this article to focus on the basics of influencer marketing for 2025.

Influencer Marketing Statistics

• Influencer marketing is predicted to be valued at $24 billion by the end of 2024, a massive increase from $16.4 billion in 2022.
• Influencer ad spending is forecasted to grow at a compound annual growth rate (CAGR) of 10.36% between 2024 and 2028, bringing its market volume to $52 billion by 2028.
• Instagram is the most used social media platform for US influencer marketing spend, with $2.2 billion spent on the platform in 2024. TikTok is in second place with $1.2 billion and YouTube with 1.07 billion.
• On average, the influencer marketing ad spending per internet user is $6.3 in 2024.
• Over 37% of brands have worked with up to 10 influencers, while 14.7% have worked with more than 1,000 influencers.
• The main purpose of influencer marketing campaigns is to create user-generated content, as  56% of marketers claim. Generating sales is the second most used purpose for the campaigns, with 23% of marketers using it as a goal.

The Landscape of Influencer Marketing in 2024

The marketing discipline of influencer marketing is undergoing a shift in 2024, driven by rapid technological advancements and evolving audience behaviors. With AI-driven avatars and grassroots nano-influencers leading the charge, the industry is set to redefine engagement, authenticity, and global reach.

Our latest survey of 399 marketing professionals sheds light on these transformative trends, revealing a significant rise in budgets and a strategic pivot towards niche influencers. Dive into our findings to discover how brands are leveraging these innovations to stay ahead in the dynamic landscape of influencer marketing.

In our article What is an Influencer, we defined an influencer as being someone who has:

• The power to affect the purchasing decisions of others because of his or her authority, knowledge, position, or relationship with his or her audience
• A following in a distinct niche, with whom he or she actively engages. The size of the following depends on the size of his/her topic of the niche.

One of the biggest mistakes that traditional media makes is a failure to see the difference between celebrities and online influencers.

It is also important to realize that most influencers have systematically built a keen and enthusiastic audience. It is not accidental that these people follow influencers rather than a brand. The audience doesn't really care less about your brand.

They only care about the opinions of the influencers. Don't try to force rules and business practices onto your influencers. The audience is theirs, and they can simply walk away, taking their followers with them.

There's been some recent noise about the trend of "deinfluencing," in which influencers and regular people "deinfluence" people to not use certain products that are currently hyped. Due to this trend, some people are concerned that influencer marketing may have peaked already and is now headed towards its decline.

That's not true, though. Taylor Lorenzo, a tech journalist at The Washington Post, says,

These trends are not limited to the B2C space. The B2B industry has also adopted influencer marketing, but their influencers are professional and corporate figures. B2B influencers discuss industry trends, offer career advice, share their insights and knowledge, and show behind-the-scenes of the corporate processes to keep their audiences engaged.

They are also present on different platforms than their B2C counterparts, such as LinkedIn, X, and specialized industry forums like Substack and Reddit.

What Is the Premise Behind Influencer Marketing?

At its core, influencer marketing is about leveraging the trust and authenticity influencers have built with their audiences to drive awareness, engagement, and ultimately, consumer behavior. Unlike traditional advertising, influencer marketing thrives on genuine, relatable content created by individuals who resonate deeply with their followers. This connection allows brands to tap into communities that are already engaged and invested, making campaigns more impactful.

Authenticity and Trust

Influencer marketing works because audiences view influencers as trustworthy figures who offer real opinions and experiences. Whether it's a beauty influencer sharing their skincare routine or a fitness creator reviewing a new supplement, their endorsements feel authentic and relatable.

Dunkin’s collaboration with TikTok star Charli D’Amelio is an example of how authenticity and trust impact purchase behaviors. By introducing “The Charli” drink and pairing it with TikTok challenges, Dunkin’ capitalized on Charli’s authentic connection with her audience. The campaign led to a 60% increase in app downloads and a 45% boost in cold brew sales, demonstrating the power of trust-driven marketing.

@dunkin Song is straight 🔥. Show us your moves to ‘The Charli’ while you drink ‘The Charli’- using #CharliRunsOnDunkin @charlidamelio #dunkin ♬ The Charli - Dunkin'

Niche Engagement

Influencers often specialize in specific niches, allowing brands to target highly relevant audiences. This focus ensures marketing efforts resonate with the right demographics, driving better results. For instance, Moncler’s #MonclerBubbleUp challenge on TikTok brilliantly leveraged creators to showcase creative transitions into Moncler products. By tapping into TikTok’s highly visual and trend-driven user base, the campaign amplified brand visibility and encouraged niche, user-generated content that felt organic and fun.

@bellapoarch I joined the #MonclerBubbleUp challenge 💭🖤 Are you ready to bubble up? @moncler #ad ♬ Bubble (feat Ty Dolla $ign) - 24hrs

Content Creation as a Value Add

Influencers are not just marketers; they are skilled content creators who know how to produce platform-appropriate and engaging material. For brands, this translates into access to high-quality content that feels native to social media, making it more likely to grab attention.

Whether it’s beauty influencers winning audiences through #OOTD content (Outfit of the Day) or lifestyle creators running challenges that align with their followers’ interests, these creators produce content that blends seamlessly into the user experience.

@josefmiichael You know how we do #fits #ootd ♬ original sound - Josef

Cost-Effectiveness

Brands are increasingly finding that working with micro and nano-influencers delivers excellent results at a fraction of the cost of mega-influencers or traditional ads. This cost-effective approach not only increases return on investment but also ensures deeper engagement with smaller, highly targeted audiences.

Influencer marketing continues to thrive because it centers on relationships—between creators and their audiences, and between brands and consumers. By harnessing influencers' trust, niche expertise, and creative skills, brands can build campaigns that not only capture attention but also drive measurable results in an authentic, engaging way.

What is an Influencer?

Influencer marketing involves a brand collaborating with an online influencer to market one of its products or services. Some influencer marketing collaborations are less tangible than that – brands simply work with influencers to improve brand recognition.

So, what is an ''online influencer?'' It's someone who has an online presence and a significant following on their platforms. They have built a connection with their audience and have the power to sway their opinions and behaviors.

Influencers typically specialize in a particular niche, such as fashion, beauty, travel, food, etc. Their audiences are interested in their niches, which allows brands in that industry to leverage the influencer's reach to market their products.

An early example of influencer marketing involved YouTube celebrity PewDiePie. He teamed up with the makers of a horror film set in the French catacombs under Paris, creating a series of videos in which he underwent challenges in the catacombs. It was pitch-perfect content for PewDiePie's 111 million subscribers and received nearly double the views as the movie's trailer. Everybody won.

That's a simple example. It's easy to imagine a celebrity teaming with a company to pitch a product—even if the pitch is a series of 10-minute videos instead of a 30-second television ad.

But people wouldn't be talking about influencer marketing—you wouldn't be at a website called the Influencer Marketing Hub reading about it, either—if it didn't have a much broader set of applications. And the key is in that word, influencer.

Influencers, unlike celebrities, can be anywhere. They can be anyone. What makes them influential is their large followings on the web and social media. An influencer can be a popular fashion photographer on Instagram, or a well-read cybersecurity blogger who tweets, or a respected marketing executive on LinkedIn.

Within any industry, there are influential people—you just have to find them.

Some will have hundreds of thousands (if not millions) of followers. But many will seem more like ordinary people. They may only have 10,000 followers, less in some cases. Yet, they will have developed a reputation for being the experts in their field. They are the go-to people who provide the answers to people's questions.

Depending on their sphere of expertise, they are the people who make the most engaging social posts on their specialist topics. They share the best pictures, make the most entertaining videos, and run the most informative online discussions.

What Types of Influencers Are There?

Influencers can be of different types based on their industries and expertise. However, the most popular way to categorize influencers is by their follower count.

Influencer Marketing Hub's report has found that brands have a strong preference for smaller influencers. It's likely due to the lower cost of working with these influencers while enjoying high engagement.

In our survey, 44% of brands reported choosing nano-influencers as their most likely influencer marketing partners, whereas 25.7% went with micro-influencers. The preference for mega influencers was at 12.9%, while only 17.4% reported working with macro-influencers.

Influencer preferences by brands

Our Influencer Marketing July 2024 report also showed the same trend. In our survey, 43% of marketers reported increasing their use of nano-influencers, while 24.9% said that they plan to reallocate their budget from bigger to smaller influencers. The demand for nano and micro-influencers comes in the wake of the need for niche targeting and authenticity, both of which are imperative in today's saturated digital landscape.

How Much Do Influencers Earn?

According to Statista, as of Feb 2024, 22.4% of businesses spend 10 to 20% of their marketing budgets on influencer marketing. In our Influencer Marketing Benchmark Report, we found that 26% of respondents actually spend well over 40% of their total marketing budget on influencer marketing.

With businesses spending so much in this area, it's only natural to wonder how much influencers actually earn. The answer varies based on several factors such as audience size, industry niche, engagement rates, and social media platforms used. For example, Sprout Social data provides an average estimate of how much influencers earn per 1,000 followers on major social media platforms.

Influencer marketing costs by platform

Generally speaking, influencers with a smaller following (nano and micro-influencers) tend to charge less than those with a larger following (macro and mega-influencers). There have been reports of some influencers charging as high as $50,000 for a single post. However, businesses are usually happy to churn out this amount due to the high return on investment (ROI) of influencer marketing.

For every $1 spent on influencer marketing, businesses generate $6.50 in revenue. The top 13% of businesses get up to $20 or more in revenue for every dollar spent.

Here's a comparison of how much different influencers earn based on their follower count:

• Nano Influencers: These influencers charge the least, usually averaging between $20 to $200 per post. However, the payout can definitely be much higher. A report from Izea, an influencer marketing agency, found that the payout growth has been the highest for nano-influencers compared to their larger counterparts. In 2015, nano-influencers earned an average of $25 per sponsored post, a figure which increased to $901 by 2021.
• Micro Influencers: These influencers earn anywhere from $100 to $500 per post. Again, their earnings may be higher, depending on the type of deliverables and niche. For example, Aisha Beau Frisbey, a lifestyle creator with over 46,000 Instagram followers, made $42,090 from brand deals in just one quarter.
• Macro Influencers: Due to their larger following sizes, macro influencers can command higher rates, anywhere from $1,000 to $10,000 per post. An example is Natasha Greene, a food and lifestyle influencer, who made $18,500 in just one month through TikTok and Instagram brand deals.
• Mega Influencers: With over a million followers, mega influencers have the highest earning potential. They can earn anywhere from $10,000 to millions of dollars per post.

You can learn more in our guide about influencer rates. Or you can use one of our calculators to estimate your potential earnings based on your following size, engagement rate, and platform.

• Instagram Money Calculator
• TikTok Money Calculator
• YouTube Money Calculator

What Are the Common Influencer Marketing Channels?

Contrary to what some might believe, influencer marketing is not limited to social media platforms. It also extends to blogs and forums, where influencers often have loyal and engaged followings.

However, social media is still the most popular channel for influencer marketing. According to our Influencer Marketing Benchmark Report, TikTok is the most popular channel for influencer marketing, used by nearly 69% of businesses.

It is followed by Instagram, which is used by 46.7% of businesses, and Facebook, which is used by 27.5%. YouTube, X, LinkedIn, Twitch, and forums are also commonly used platforms.

Influencer marketing channels used by brands

Each channel has its own potential use and audience demographic, which makes it important for brands to choose avenues for influencer marketing wisely. For example, brands that want to reach Gen Z and millennial buyers should opt for influencer marketing on Instagram and TikTok.

Facebook has a wider age range and is suitable for products or services that cater to a broader audience. LinkedIn and YouTube are popular for B2B marketing, while Twitch is ideal for reaching gaming enthusiasts. Our YouTube influencer marketing guide provides more insights into how to use the video platform for influencer marketing.

Forums, on the other hand, can be effective for niche targeting and building brand advocacy within specific communities. Our list of community-building tools will help you in this regard.

What Are the Popular Influencer Marketing Content Types?

Influencer marketing content may be of the following types:

• Social Media Content: Most influencers create content for their clients' social media channels. According to a report by Later, Instagram posts are the most popular influencer content format, as 84.2% of influencers report being paid by brands to create them. In second place is Instagram Reels, made by 63.8% of influencers as sponsored posts. Similarly, 27.4% of influencers have created TikTok videos for brands, while another 26.8% have produced Facebook posts.
• Product Reviews: Brands send their products to influencers for them to use and review on their channels. This content offers a first-hand account of the product's effectiveness, which can be more persuasive than traditional advertisements. According to eMarketer, product reviews are the most common type of influencer content, created by 41% of influencers.
• Unboxing Videos: Like reviews, this content is also quite common. Influencers open and show products from their brand partners, giving viewers an inside look at the product's packaging and features.
• Tutorial Videos: Sometimes, brands partner with influencers to create tutorial videos that demonstrate how to use a product or service. For example, Filipa Jackson, an Instagram influencer, was sponsored by Dyson to show how their Wash G1 vacuum cleaner works.

• User-Generated Content: Influencers, particularly small-scale ones, often create user-generated content for brands. They use products from the brand and share their experience with their followers, who then become more likely to try out the product themselves.
• Virtual Events: When brands run virtual events or giveaways, they partner with influencers to create various forms of content, such as live streams and Q&As.

How to Create an Influencer Marketing Strategy?

The current expanse of the creator economy has made it important for most businesses to have an influencer marketing strategy. Here's a brief overview of how you can create one.

Step 1: Set Your Goals for the Campaign

First up, set your campaign goals. For most brands, their goal for influencer marketing is brand awareness or product promotion.

But that's not always the case. Many brands also partner with influencers to reach a new audience or increase engagement on social media channels. You can also launch a new product in collaboration with an influencer.

Step 2: Select Influencers

The second step is typically the most challenging one. It's not as simple as choosing the ones with the most followers. Instead, you need to select an influencer based on your audience and campaign goals. Our Influencer Recruitment Strategy Playbook provides detailed guidance in this regard.

As for finding influencers, you can search for them directly on social media platforms or use dedicated creator marketplaces where you can filter influencers by factors like:

• Niche
• Engagement
• Follower size
• Geographical location
• Audience demographics

Some social media platforms also have built-in tools to identify influencers. For example, the TikTok Creator Marketplace connects brands and influencers with similar interests or goals.

Step 3: Reach Out Appropriately

After identifying influencers, the next step is to reach out to them. Nano and micro-influencers usually handle their brand partnerships on their own, while mid-tier and macro-influencers may have a manager or agency representing them.

When collaborating with the former, you can drop them a Direct Message or an email. Most influencers have details on how to contact them in their bio. ChatGPT can help you craft this message.

ChatGPT output

As for larger influencers, you will need to go through their manager or agency. You can find this information on their social media profiles or by contacting them for inquiries. Since these influencers usually have more partnership opportunities, it might take them some time to get back to you. So, be patient.

If you've found an influencer through a marketplace, you can reach out to them through the same platform. Most influencer marketing platforms have built-in features for communication, deliverables management, and payments.

Step 4: Create a Collaboration Structure

Before you can start working on a campaign with an influencer, you need to create a collaboration structure that spells out all the details of your collaboration. Some of these elements are:

• Time Frame: How long will the campaign be? If it's just a one-time thing, like a single TikTok video, specify that. But if you're looking for a longer-term partnership, mention the duration.
• Deliverables: These are the content pieces the influencer will create for you. Instagram Stories, Reels, TikTok videos, Facebook posts, and X posts are some examples.
• Content Usage: Where will the influencer post their content? On their feed, stories, or both? Will they tag your brand and use specific hashtags? If you want to repurpose the content on your social media or website, include that in this section.
• Payment Terms: You also need to specify the payment terms. Will you pay in advance, upon completion, or split it into multiple installments? More importantly, how much will you pay?
• Sponsored Hashtags: By law, influencers are required to disclose sponsored content by using a specific hashtag. It could simply be #ad or #XYZPartnership, with XYZ being the brand's name.
• Campaign Goal: The influencer should be on the same page as you when it comes to the ultimate goal of the campaign. You should communicate the goal to them beforehand so that they can create content accordingly.

If all of this seems to be too much to do yourself, you can always partner with influencer marketing agencies. They'll manage all these steps based on your campaign objectives.

Step 5: Maximize the Use of Influencer Content

Influencer content is not merely for your social media. You can do more with it.

For example, on TikTok, you can run Spark Ads on the influencer's video, targeting their followers. Similarly, you can post influencer content on your website product pages as social proof. The key is to repurpose the content for multiple use cases.

Our selection of content marketing tools can be of use in this regard.

Step 6: Measure Campaign Performance

An overview of your influencer marketing campaign is incomplete if you do not track its performance. You must know how well certain influencers and content types performed. Also, did they meet your campaign's goals?

You can measure the success of your campaign using influencer analytics tools. These tools show you everything from basic metrics to advanced insights that help you plan future campaigns and decide if you want to work with the same influencers or not.

What Are the Common Influencer Marketing Campaign Payment Structures?

When negotiating with influencers, here are a few common ways to structure payment.

1. Rights to Content Use

In this structure, influencers give you the right to reuse their content in exchange for monetary compensation. You can communicate with them to decide if this payment will be a one-time fee or an ongoing commission based on the performance of their content.

2. Pay per Post

This is a more straightforward and simple payment method. Basically, you pay influencers for every post they create. For example, an influencer may charge $1,000 for an Instagram story and $3,000 for a video.

Pay-per-post is a suitable option for short-term campaigns or collaborations with micro-influencers.

3. Pay per Campaign

If you plan to run a long-term campaign and keep influencers on board throughout the duration, this payment structure is the way to go. You pay them a fixed amount for their services throughout the campaign's duration.

Let's say you want to run a holiday campaign with influencers. The deliverables include four Instagram posts, two Instagram Stories, two TikTok videos, and one Facebook post. You can agree on a fixed fee for the entire campaign and pay it in installments as they fulfill each deliverable.

4. Free Product or Service as Payment

You can also compensate influencers via a product or service, although our report found that more brands are offering monetary compensation compared to free products or discounts.

Ways to pay influencers

However, if you plan to collaborate with smaller influencers or those just starting out, you can still take this approach. Give them free products or services in exchange for their content and promotion.

It's a win-win for both parties. The influencer gets a free product or service that they may otherwise have to pay a lot for, while the brand gets exposure and potential sales without spending money upfront.

5. Commissions

Commission-based payment is a form of affiliate marketing that you can use with influencers. They promote your products or services, and for every sale made through their code or link, they receive a percentage as a commission.

This system incentivizes influencers to do their best to promote your brand because they directly benefit from the sales they generate. It's also a low-risk option for brands, as they only pay when a sale is made.

Examples of Influencer Marketing Campaigns: Case Studies 

EA Sports and Apex Legends

EA Sports, renowned for its sports video games, leveraged TikTok to promote its title, Apex Legends. Recognizing TikTok's reach in the gaming community, they collaborated with gaming influencers like Brent Rivera, whose engaging content received 900k likes. This strategic move allowed EA Sports to tap into a younger audience, significantly boosting the game's popularity.

Cake App

The Cake app, which facilitates English and Korean learning, turned to YouTube influencers in Latin America to expand its user base. By partnering with five influencers who creatively showcased the app's features, the Cake app reached 1.2 million viewers, demonstrating the power of educational content in influencer marketing.

Huddles App

Formerly known as Clash app, Huddles is a short-form video platform that gained traction by engaging influencers on Twitter and Instagram. Amidst the uncertainty of TikTok's status in the US, Huddles seized the opportunity to attract TikTok users, resulting in over 20 million impressions and 250k downloads, ranking it #17 on the App Store.

Instories App: Dominating Brazilian Markets with Instagram Reels

Instories, an app for creating visual stories, utilized Instagram influencers to penetrate the Brazilian market. Fifteen influencers created reels that not only showcased the app's capabilities but also resonated with beauty, fashion, and lifestyle audiences. This campaign's success was reflected in the app's surge to the top of the App Store and a significant increase in downloads.

Gamee App: Engaging Gamers with Social Challenges

Gamee, a casual gaming platform, expanded its reach by involving YouTube and Instagram influencers who could challenge their followers in games. This interactive approach led to half a million to a million additional installs and showcased the effectiveness of direct engagement in influencer marketing.

These examples illustrate the diverse strategies and outcomes of influencer marketing campaigns across various industries and platforms. Each case study highlights the importance of selecting the right influencers and platforms to reach and engage the target audience effectively.

Things to Know: Quick Takeaways

Pay

How much should I pay for influencer marketing?

• Nano-influencers: 1,000–10,000 followers ($10-$100 per post)
• Micro-influencers: 10,000–50,000 followers ($100-&500 per post)
• Mid-tier influencers: 50,000–500,000 followers ($500-$5,000 per post)
• Macro-influencers: 500,000–1,000,000 followers ($5,000-$10,000 per post)
• Mega-influencers: 1,000,000+ followers($10,000+ per post)
• Celebrities: Varies, but $1+ million isn't unheard of

Rates vary based on factors such as:

• social media platforms used
• influencer reach
• follower engagement
• industry or specialization
• types of content wanted
• influencer demand
• usage rights to repurposed content
• exclusivity

Our research revealed that 43% of businesses allocate under $10K annually to influencer marketing. Additionally, 22% budget between $10K-$50K, 14% set aside $50K-$100K, and 11% invest as much as $500K.

Requirements

How to get into influencer marketing?

If you want to get into influencer marketing, consider the following steps:

1. Identify your campaign goals.
2. Budget realistically
3. Know the target audience you hope to reach.
4. Research suitable influencers attracting your target audience
5. Reach out to them
6. Collaborate to create effective content

Pros and Cons

Pros and cons of influencer marketing:

How to Make

How to make money with influencer marketing?

Good influencer marketing can be a win-win. Influencers make money by making sponsored posts for brands. They can even become brand ambassadors once they have proved their worth. Brands make money when they pick dedicated influencers with sizable target audiences matching the brand’s preferred customer base. 

Wrapping Up

Influencer marketing, with its vast potential reach and high engagement rates, can be a valuable addition to your marketing strategy. However, you can only expect to see results with a well-planned and executed campaign.

If your focus is on engagement, go for micro and nano-influencers. For more brand awareness, you can work with macro and mega influencers. Pay these influencers based on the structure that works best for you and them, be it commission-based, product-based, or monetary compensation.

Influencer campaigns can be run on a variety of platforms, including social media sites and industry forums. As for content types, they can be images, videos, text posts, giveaways, or influencer appearances.

Our guide has given you all the necessary information and tips to start your influencer marketing journey. Research potential influencers thoroughly using the creator marketplaces and tools we've mentioned. More importantly, measure campaign performance from time to time. If you're just getting starting, you can use free influencer marketing tools to save costs.

About the Author

Influencer Marketing Hub

Writer

The Influencer Marketing Hub Team brings together a diverse group of experts with a passion for influencer marketing, digital trends, and social media strategies. Each piece of content crafted by this team is researched and written to provide valuable insights, tips, and updates for our readers. Our authors are dedicated to delivering high-quality, informative, and engaging articles that help businesses and influencers thrive in this rapidly changing digital world.