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Influencer marketing sector to grow dramatically
A new report by HypeAuditor predicts that the Influencer marketing sector on Instagram will grow by $8.4 billion over the next three years and reach $22.2 billion by 2025.
This growth is being driven by a number of factors, including the increasing popularity of Instagram, the growing number of Influencers on the platform, and the increasing effectiveness of Influencer marketing campaigns.
This is no surprise. Instagram is the most popular social media platform in the world, with over 1 billion active users. This large and engaged audience makes it an ideal platform for marketing campaigns. In 2023, marketers will increasingly rely on digital platforms, particularly social media, to leverage personalized advertising options.
When brands increase their digital ad spending on social media platforms, creators have more chances to earn money. Besides receiving payment from brands, creators can now also receive a portion of the ad revenue on platforms like YouTube and TikTok.
In May 2022, TikTok introduced its TikTok Pulse revenue-sharing program, which offers monetization opportunities to the top 4% of creators who consistently produce highly engaging videos in categories ranging from beauty and fashion to cooking and books.
The number of influencers on Instagram is also growing rapidly. In 2022, there were over 50 million Influencers on the platform, and this number is expected to reach 100 million by 2025. The sector will continue to boom and change at a rapid pace and marketers, brands, and creators will all need to keep up if they want to maximize their gains.
However, marketers and brands must navigate digital platforms carefully to fully benefit from them, especially by adhering to rules and regulations. UAE requires Influencers who are paid to promote products on social media to have a license. First introduced in 2018, it is meant to introduce a sense of transparency, legitimacy, and well-being for everyone involved in the process of promoting and buying products. Violation of this can result in a fine of AED 5,000.
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