The digital talent management industry (DTMI) expanded by 15% in 2024, with influencer marketing spend hitting an all-time high of $24 billion, according to a report from July and Behind The Influence.
The study polled over 2,000 managers and brand marketers, focusing on agencies managing digital-first talent and brand marketers specializing in influencer marketing & creator paid partnerships.
With 70% of U.S. brands now investing or planning to invest in influencer marketing, the space is transforming from a supplemental channel to a central component of modern advertising strategies.
Market Expansion and Shifting Budgets
The Total Addressable Market (TAM), or revenue potential, for influencer marketing is projected to reach $41 billion by 2030, growing at a 10% compound annual growth rate.
This expansion coincides with significant movements in brand spending patterns, with 26% of brands now allocating 40% or more of their marketing budgets to influencer collaborations.
U.S. brands alone spent $7.14 billion on influencer marketing in 2024, representing a 16% increase from the previous year. This growth occurs as social media officially surpasses paid search to become the world’s largest advertising channel, with $247.3 billion in global ad spend. Industry forecasts suggest this figure will rise to $266.92 billion by 2025, driven largely by creator partnerships, short-form video content, and live shopping experiences.
The ROI continues to justify increased spending, with brands earning $5.78 for every $1 spent on influencer marketing. Consumer behavior reinforces this value proposition: 74% of consumers report purchasing products based on influencer recommendations, while 49% rely on influencer input for purchase decisions. Among younger demographics, 70% of teens trust influencers more than traditional celebrities.
Agency Performance and Platform Dynamics
The industry’s financial foundation increasingly relies on concentrated, high-value brand relationships rather than numerous smaller deals.
According to the report, 47% of agencies generated their entire paid partnership revenue from just 25 or fewer brand partners. This trend toward fewer but larger deals indicates a maturation of the market and growing emphasis on strategic, long-term collaborations.
Despite the proliferation of multiple social platforms, Instagram maintains its position as the primary revenue driver for creators, with 73% earning most of their commission from Instagram deals. The continued dominance of short-form video content across TikTok, YouTube Shorts, and Instagram Reels further shapes the platform space, with nearly half of TikTok users making purchases based on platform recommendations.
For agencies, sourcing new deals represents the greatest operational challenge, with 77% identifying dealflow as their primary concern. Agencies representing creators report their talent earns approximately twice as much as independent creators, highlighting the value of professional representation in securing higher-paying partnerships, negotiating favorable contract terms, and maintaining consistent deal flow.
Real-World Activations Gain Momentum
Influencer marketing is increasingly extending beyond digital content to include real-world experiences and events.
Art Basel Miami Beach emerged as a major venue for influencer activations in 2024, with brands including Ulta Beauty, Celsius, Stanley, Sol de Janeiro, and Maybelline leveraging the event for creator-driven experiences and product launches.
The report cites Poppi‘s Coachella activation with creator Alix Earle—branded as “Casa Poppi”—as a case study in the effectiveness of event-based influencer collaborations. The campaign generated over 4.5 million engagements and reached 275 million people, demonstrating the potential scale of creator-led experiential marketing.
Industry Forecast for 2025
The report identifies several key trends likely to shape the industry in 2025.
Technology adoption stands out as a critical differentiator, with agencies increasingly turning to AI and specialized software platforms to streamline operations, from asset management and payments to deal tracking and negotiation.
Brand priorities are shifting away from follower count as the primary metric, with only 33% of brand marketers citing it as a top decision-making factor. Instead, brand alignment, content quality, and pricing structure have emerged as the leading considerations when evaluating potential creator partnerships. This benefits creators with highly engaged, niche communities who can deliver strong results regardless of audience size.
The report forecasts continued growth in brand spending, with 69% of companies planning to increase their influencer marketing budgets in 2025. This investment is expected to focus on long-term creator partnerships, larger campaign budgets, and increased allocation to short-form video, where ad spending is predicted to reach $111 billion in 2025.
Merger and acquisition activity is also accelerating across the industry. Recent notable transactions include Whalar Group’s acquisition of Sixteenth, Live Nation’s purchase of Timeline Management, Wasserman’s acquisition of Long Haul Management, and Night’s expansion through acquiring Bottle Rocket Management. The report suggests this consolidation trend will continue in 2025, led by social publishers, digital marketing agencies, and social-native consumer brands, with traditional media companies and financial investors increasingly entering the space.
The digital talent management industry (DTMI) expanded by 15% in 2024, with influencer marketing spend hitting an all-time high of $24 billion, according to a report from July and Behind The Influence.
The study polled over 2,000 managers and brand marketers, focusing on agencies managing digital-first talent and brand marketers specializing in influencer marketing & creator paid partnerships.
With 70% of U.S. brands now investing or planning to invest in influencer marketing, the space is transforming from a supplemental channel to a central component of modern advertising strategies.
Market Expansion and Shifting Budgets
The Total Addressable Market (TAM), or revenue potential, for influencer marketing is projected to reach $41 billion by 2030, growing at a 10% compound annual growth rate.
This expansion coincides with significant movements in brand spending patterns, with 26% of brands now allocating 40% or more of their marketing budgets to influencer collaborations.
U.S. brands alone spent $7.14 billion on influencer marketing in 2024, representing a 16% increase from the previous year. This growth occurs as social media officially surpasses paid search to become the world’s largest advertising channel, with $247.3 billion in global ad spend. Industry forecasts suggest this figure will rise to $266.92 billion by 2025, driven largely by creator partnerships, short-form video content, and live shopping experiences.
The ROI continues to justify increased spending, with brands earning $5.78 for every $1 spent on influencer marketing. Consumer behavior reinforces this value proposition: 74% of consumers report purchasing products based on influencer recommendations, while 49% rely on influencer input for purchase decisions. Among younger demographics, 70% of teens trust influencers more than traditional celebrities.
Agency Performance and Platform Dynamics
The industry’s financial foundation increasingly relies on concentrated, high-value brand relationships rather than numerous smaller deals.
According to the report, 47% of agencies generated their entire paid partnership revenue from just 25 or fewer brand partners. This trend toward fewer but larger deals indicates a maturation of the market and growing emphasis on strategic, long-term collaborations.
Despite the proliferation of multiple social platforms, Instagram maintains its position as the primary revenue driver for creators, with 73% earning most of their commission from Instagram deals. The continued dominance of short-form video content across TikTok, YouTube Shorts, and Instagram Reels further shapes the platform space, with nearly half of TikTok users making purchases based on platform recommendations.
For agencies, sourcing new deals represents the greatest operational challenge, with 77% identifying dealflow as their primary concern. Agencies representing creators report their talent earns approximately twice as much as independent creators, highlighting the value of professional representation in securing higher-paying partnerships, negotiating favorable contract terms, and maintaining consistent deal flow.
Real-World Activations Gain Momentum
Influencer marketing is increasingly extending beyond digital content to include real-world experiences and events.
Art Basel Miami Beach emerged as a major venue for influencer activations in 2024, with brands including Ulta Beauty, Celsius, Stanley, Sol de Janeiro, and Maybelline leveraging the event for creator-driven experiences and product launches.
The report cites Poppi‘s Coachella activation with creator Alix Earle—branded as “Casa Poppi”—as a case study in the effectiveness of event-based influencer collaborations. The campaign generated over 4.5 million engagements and reached 275 million people, demonstrating the potential scale of creator-led experiential marketing.
Industry Forecast for 2025
The report identifies several key trends likely to shape the industry in 2025.
Technology adoption stands out as a critical differentiator, with agencies increasingly turning to AI and specialized software platforms to streamline operations, from asset management and payments to deal tracking and negotiation.
Brand priorities are shifting away from follower count as the primary metric, with only 33% of brand marketers citing it as a top decision-making factor. Instead, brand alignment, content quality, and pricing structure have emerged as the leading considerations when evaluating potential creator partnerships. This benefits creators with highly engaged, niche communities who can deliver strong results regardless of audience size.
The report forecasts continued growth in brand spending, with 69% of companies planning to increase their influencer marketing budgets in 2025. This investment is expected to focus on long-term creator partnerships, larger campaign budgets, and increased allocation to short-form video, where ad spending is predicted to reach $111 billion in 2025.
Merger and acquisition activity is also accelerating across the industry. Recent notable transactions include Whalar Group’s acquisition of Sixteenth, Live Nation’s purchase of Timeline Management, Wasserman’s acquisition of Long Haul Management, and Night’s expansion through acquiring Bottle Rocket Management. The report suggests this consolidation trend will continue in 2025, led by social publishers, digital marketing agencies, and social-native consumer brands, with traditional media companies and financial investors increasingly entering the space.
The full report is available here.