Market Insights Advertising & Media Advertising

Influencer Advertising - Europe

Europe

Ad spending in the Influencer Advertising market in Europe is forecasted to reach €4.43bn in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.46%, leading to a projected market volume of €6.65bn by 2029.
The average ad spending per internet user in the Influencer Advertising market is estimated to be €5.96 in 2024.
When compared globally, the highest ad spending is anticipated to come from China (€17,770.00m in 2024).
Influencer Advertising in the European market, particularly in the United Kingdom, is seeing a shift towards micro-influencers for more targeted and authentic brand collaborations.

Key regions: Australia, Germany, France, Europe, United States

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Analyst Opinion

In recent years, the Influencer Advertising market in Europe has experienced significant growth and development. This can be attributed to several factors, including changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Europe are increasingly turning to social media platforms for entertainment, information, and inspiration. As a result, they are more likely to follow and engage with influencers who align with their interests and values. This has created a demand for influencer advertising, as brands recognize the power of influencers in reaching and engaging with their target audience. Additionally, customers in Europe value authenticity and transparency, and are more likely to trust recommendations from influencers they perceive as genuine and relatable.

Trends in the market: One of the key trends in the Influencer Advertising market in Europe is the rise of micro-influencers. These are individuals with smaller but highly engaged followings, often within niche industries or communities. Brands are increasingly partnering with micro-influencers to target specific segments of the European market and drive higher levels of engagement and conversion. This trend is driven by the desire for more authentic and relatable content, as well as the potential cost savings associated with working with micro-influencers. Another trend in the market is the increasing use of video content. Platforms such as YouTube and TikTok have gained popularity in Europe, and influencers who create video content on these platforms have seen significant growth in their following. Brands are capitalizing on this trend by partnering with influencers to create video content that showcases their products or services in an engaging and entertaining way. This trend is driven by the preference of European customers for visual content, as well as the potential for videos to go viral and reach a wider audience.

Local special circumstances: Europe is a diverse region with different languages, cultures, and consumer behaviors. This presents both opportunities and challenges for influencer advertising. Brands need to carefully select influencers who have a strong presence and influence within specific European countries or regions. This requires an understanding of local cultures and consumer preferences, as well as the ability to adapt marketing strategies to different markets. Additionally, regulations regarding influencer advertising vary across European countries, and brands need to ensure compliance with local laws and guidelines.

Underlying macroeconomic factors: The growth of the Influencer Advertising market in Europe can also be attributed to underlying macroeconomic factors. Europe has a strong digital infrastructure and high internet penetration, which has facilitated the growth of social media platforms and the rise of influencer culture. Additionally, the increasing popularity of e-commerce in Europe has created new opportunities for influencer advertising, as brands seek to reach customers through online channels. The overall economic growth and stability in Europe have also contributed to the willingness of brands to invest in influencer advertising as a marketing strategy. In conclusion, the Influencer Advertising market in Europe is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Brands that understand and adapt to these factors are well-positioned to capitalize on the opportunities presented by influencer advertising in Europe.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.