Influencer growth 3.5x faster than social ad spend

Issue #117 | Your reading time this week is 3 mins. 45 secs.

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Influencer marketing spend to grow 3.5x faster than social ad spend in US

Influencer marketing spend in the US will grow around 3.5 times faster in 2023 than social ad spend - according to a new report from Insider Intelligence.

More budgets are being switched from ad to influencer.

NOTE: While the positive growth for influencer marketing is obviously encouraging influencer is building from a smaller position. Insider Intelligence estimates that US social ad spending will reach $83.72 billion in 2023 (incl. YouTube) making it around 17x larger than influencer marketing. Statista places influencer marketing’s US market size at $4.92m for the year.

Influencer spending growth by platform

Snapchat and Facebook show the largest influencer marketing spending growth compared with ad revenue. Ad revenue on Snapchat declined -1.8% whilst its influencer marketing spend grew 3.5%.

Influencer marketing spend growth on Facebook grew 11.6% against flat ad revenue growth (0.1%).

TikTok Europe’s revenues jump 164.3% to $2.6 billion

TikTok Information Technologies UK Limited - the parent company of TikTok’s operations in Europe, South and Central America and Africa - recorded revenues of $2,618.1 million for the year ended 31 December 2022 according to company filings posted last night.

• Turnover rose 164.3% on the previous year (2021: $990.5m).

• Livestreaming made a significant contribution to revenues.

• Yet the group still made an operating loss of $512.1m. However this marks a significant reduction on operating losses from the previous year ( 2021: $895.6m).

• Employee headcount swelled from 4,396 in 2021 to 7,009 in 2022.

Social media bosses face jail time and fines of 10% global revenue if they fail to block the accounts of under-13s

The UK’s communications regulator, Ofcom, is set to gain the power to fine social media platforms up to 10% of their global turnover - and prosecute the company directors with a maximum penalty of two-years’ jail time - if they fail to include effective checks to enforce age limits in their terms and conditions under the new Online Safety Bill.

The OSB is scheduled to complete its passage through parliament on 19 October.

UK medical influencers can now get YouTube verification

YouTube has extended its verification system for healthcare workers in the UK as it battles disinformation online.

Successful doctors, nurses and other healthcare workers with a YouTube channel can now apply to get a badge under their name identifying them as a genuine, licensed healthcare worker.

The move by YouTube is a bid to counter misinformation on its platform by verifying professionals to enable viewers to make judgements on the trustworthiness of health-related content.

Under the scheme healthcare professionals are validated through a "multi-step process" based on collaboration with the Academy of Medical Royal Colleges (AoMRC) and the NHS, along with other stakeholders such as the Royal College of Nursing.

YouTube has run the scheme in the US since last November -- See Creator Briefing #80

LinkedIn pushes influencer marketing compliance with a new tool

LinkedIn has launched a new brand partnership labelling tool. The business-focused social network tells users “If you share content in an exchange for value (including monetary payment, endorsements, free products or services, or other benefit), you must label the post as a brand partnership and comply with our Advertising Policies and applicable local laws.”

B2B influencer marketing is enjoying its moment in the sun. A 2022 survey by Top Rank Marketing revealed:

• 86% of B2B brands consider their influencer marketing successful.

• 72% of B2B marketers say influencer marketing improves brand reputation

• 70% of B2B marketers say influencer marketing has improved awareness of their brand

On this week’s podcast …

scottguthrieco

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Esme Rice, Worldwide Influencer Practice Lead at Mindshare tells me how the influencer marketing industry has shifted within six years from a time when she had to battle with academics trying to dissuade her from focusing her degree dissertation on influencers to a sector moving to the heart of multi-channel, integrated marketing programmes.

We also discuss the

• Regional differences in the influencer marketing landscape

• Consumer behaviour towards virtual influencers in different parts of the world

• Near future of our channel

The full show will be uploaded tomorrow (14 September) and will be available in all the usual places.

Boast post: I made it onto performance marketing’s power list

I made it onto PMW’s inaugural powerlist which aims to showcase the 100 most influential people in the UK performance marketing sector, as nominated by their industry peers.

🛒INDONESIA CHOPS TIKTOK SHOP Indonesia has attacked TikTok Shop for its “monopolistic” business practices according to the FT. TikTok had been banking on the southeast Asian country to build its social commerce business after seen keen early results.

💻YOUTUBERS LOSE AD CHOICE YouTube creators are set to lose the ability to individually select if pre-roll, post-roll, skippable, and non-skippable ads appear in new videos. Starting November new uploads by creators will only have the option to have ads that appear before or after a video either On or Off, but all previously uploaded videos will retain their existing ad format selections.

🤖LAME AVATAR Khaby Lame has been given his own Fortnite avatar. He features in Chapter 4: Season 4, dubbed “Last Resort”.

🪦CMO DEATH ROW Prof. Scott Galloway gives the trad. CMO role just 18 months in which to limp into the sunset. The survivors will be “focused on supply chain and incorporating innovation”. Galloway was speaking to Australian marketers at the Association for Data-driven Marketing and Advertising’s (ADMA) Global Forum conference.

🧵THREADS KEYWORDS Keyword search comes to Threads in the UK, US, Spain, Argentina, India, Mexico, the U.K., and the U.S.