Influencer marketing is no longer an add-on; it is becoming the core of digital strategy. As Bloomberg reports, global influencer marketing spend is projected to grow 36% between 2024 and 2025, reaching $33 billion. Brands are responding to tightening ad budgets and evolving consumer expectations by turning to social-first strategies.

According to Bloomberg, consumer goods companies like Unilever are leading that shift. The multinational plans to dedicate up to 50% of its advertising budget to social media, up from 30%, and hire 20 times more influencers. Its CEO, Fernando Fernandez, says consumers are increasingly skeptical of traditional corporate branding. “People trust people more than they trust brands,” said Rahul Titus, global head of influence at Ogilvy, a WPP-owned agency, quoted by Bloomberg.

Influencer marketing is gaining budget share as traditional ads lose appeal. Brands and advertisers are investing in influencer marketing at a faster rate. In the U.S. alone, influencer marketing spending is expected to cross the $10 billion mark this year.

Creator-led commerce is working across categories

Influencer-led product discovery is no longer limited to beauty or fashion. Brands across categories like bottled water and handbags are seeing results on platforms like TikTok, Instagram, and YouTube.

Take the case of Saratoga Spring Water. The brand got a viral boost from a fitness influencer’s unsponsored video showing his icy morning routine. According to Bloomberg, the brand’s CEO credited that exposure for getting them “on the map.”

Coach, a brand historically tied to discount shopping, also found new life among Gen Z due to influencers showcasing its bags. This kind of user-generated content tends to outperform glossy, corporate creative in both engagement and trust.

Kate Scott-Dawkins, WPP Media’s global president of business intelligence, told Bloomberg this will be the first year that revenue from ads placed on user-generated content will surpass that of professionally produced media. 

Influencer spending is outpacing traditional media buys

Deloitte research cited by Bloomberg shows that influencer partnerships topped social media marketing budgets in 2024, accounting for about 25% of total spending on average. Across sectors, brands increased influencer spending by 49% compared to the previous year.

This surge comes at a time when TV ads, billboards, and other traditional formats are losing ground. “With the expense of TV advertising, brands are starting to look at maximizing their reach more effectively,” said Alex Burgess of The Goat Agency, which works with Unilever.

Content creators offer flexibility. Campaigns can be tweaked in real time, messages tested and reshaped, and performance tracked instantly. That’s a major advantage over traditional formats with longer lead times and higher production costs.

Platforms like TikTok and Instagram drive creator-led commerce

TikTok’s short-form video format, Instagram’s Reels, and YouTube’s long-form plus Shorts all allow for native integration of product placements and affiliate links.

Instagram remains the most-used platform for influencer marketing in the U.S., closely followed by TikTok. Engagement is especially high on TikTok: micro-influencers with under 15,000 followers average 18% engagement. YouTube also remains valuable for longer-form sponsored content. Ad tech tools now allow brands to integrate shopping experiences on these platforms, especially TikTok Shop.

Agencies are scaling influencer marketing through acquisitions

The growth of influencer marketing is also reshaping agency strategy. Publicis Groupe recently acquired Influential, the top influencer marketing firm by revenue, as well as BR Media Group in Latin America, which manages campaigns for 80% of the region’s leading influencers.

According to Oliver Lewis, CEO of The Fifth, this acquisition spree signals that influencer marketing is no longer a niche tactic. It is now seen as a required capability within major ad networks.

However, many brands still prefer smaller agencies that specialize in specific topics and offer access to creators with loyal, well-defined audiences. That focus on authentic, topic-specific engagement is especially critical when targeting Gen Z.

Gen Z prefers authenticity and micro-influencers

Gen Z is shaping what works in advertising. According to Bloomberg, this demographic — with $450 billion in global spending power — is especially receptive to influencer marketing. These digital natives value realness and relatability over polish and prestige. Micro-influencers, especially those with 10,000 to 100,000 followers, are proving particularly effective because their content feels more personal and honest.

As Jay Sinha, a marketing professor at Temple University, told Bloomberg, it’s this closeness that drives impact. These creators often maintain more personal connections with followers, and their recommendations come across as honest, not staged.

Jessica Tamsedge of Dentsu explained that social commerce is shaping this behavior. Platforms like TikTok Shop make it easier to move from content to checkout, giving brands a direct line from influencer posts to product sales.

AI influencers are gaining ground but raise new questions

According to Bloomberg, AI-generated influencers are starting to draw brand attention too. These virtual personalities can be deployed across various platforms, offering brands more control over content, tone, and scheduling.

Some advertisers see this as a risk-free alternative to human influencers, who can sometimes stir up unexpected controversy. But even with that control, marketers are cautious. “How much value is there in being human?” asked Ruben Schreurs of Ebiquity. This reflects a broader industry question Bloomberg raised. 

For now, many advertisers believe authenticity still drives results, and that’s something algorithms haven’t quite nailed. Jessica Tamsedge from Dentsu pointed out that tools like TikTok Shop make content instantly shoppable, but it’s the human connection that actually moves the needle.

Influencer marketing is now at the center of media strategy. It is where ad budgets are going, where performance is being tracked in real time, and where consumers — especially younger ones — are paying attention.

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