The Future of Influencer Marketing: New Data Unveils Surging Trends and Costs
BOSTON, June 25, 2025 /PRNewswire/ — Welcome to a transformative era in **influencer marketing**! As we step into 2025, we’re witnessing an unprecedented **surge in global spending**, now soaring to a remarkable **$32.55 billion**. This growth is fueled by smarter, ROI-driven strategies, the **integration of AI tools**, and a rising preference for **micro and mid-tier influencers**. According to groundbreaking research from Later, brands are shifting away from mere vanity metrics, while creators evolve into entrepreneurial mavens.
The 2025 Influencer Marketing Report surveyed over 1,000 creators and 200+ U.S. marketers, analyzing more than 2,500 campaigns across eight core industries. This report offers one of the **most comprehensive insights** into the evolving landscape of influencer marketing.
“Influencer marketing has now become a core **growth engine**,” said Scott Sutton, CEO of Later. “From experimental to essential, brands are becoming savvy about their budgets, creators are building sustainable ventures, and **AI is fast-tracking the entire ecosystem**. The most successful marketers in 2025 aren’t merely chasing virality—they’re constructing systems that yield **repeatable and measurable value**.”
The New Brand Playbook
The era of merely chasing follower counts is behind us. Brands in 2025 are embracing long-term partnerships with creators, bundling deliverables, and adopting multi-platform campaigns that are strategically designed to drive _measurable returns_. AI is now interwoven throughout the influencer marketing workflow, overseeing everything from creator discovery and pricing to performance prediction and automated reporting.
Key Findings from the Report
- 80% of brands maintained or increased their influencer marketing budgets in 2025, with 47% raising budgets by 11% or more.
- 73% of brands prefer collaborations with micro and mid-tier creators, who offer the **strongest engagement-to-cost ratios**.
- 92% of brands are incorporating or open to using AI to enhance influencer marketing workflows.
- Creator participation in brand deals dropped from 94% in 2024 to 78% in 2025. This shift underscores the diversification of creators’ income streams rather than a decline in influencer marketing.
Creator Costs & Engagement Metrics
As the influencer marketing landscape expands, creators are justifying their worth by raising rates. Micro creators now demand a **median CPM of $119**, while nano creators can command up to **$211**, reflecting standout engagement rates between **6.15% and 6.76%**.
Top-Performing Content Formats
- Instagram Reels: Highest engagement; **$2.65 average CPE**.
- Instagram Posts: Deliver strong performance for lifestyle content; **$1.52 average CPE**.
- TikTok Videos: Excellent for discovery and product demos; **$14.61 average CPE**.
Short-Form Video Dominates
Video continues to reign supreme. Particularly, short-form content that blends education with entertainment is highly effective. Instagram Reels now account for **30% of creator content**. Meanwhile, TikTok remains a beacon for product discovery and trendsetting, and Pinterest excels with evergreen content, boasting trends that last **twice as long** as those on other platforms.
Platform Analysis
| Platform | Avg CPM | Engagement Rate | Best Use Case |
$30.31 | 0.7–8% | Lifestyle, wellness, fashion | |
TikTok | $76.97 | 4.4% | Food, entertainment, product demos |
YouTube* | $13.03–15.34 | 1.5% | Education, tech, deep dives |
Pinterest* | ~$3.50 | 4.7% | Home, decor, wellness |
Facebook* | $7.19 | 2.5% | Local, parenting, community |
*YouTube, Pinterest, and Facebook data reflects paid CPMs collected externally
Industry Highlights
The strategies in influencer marketing continue to evolve, becoming increasingly customized by specific verticals. Here are noteworthy highlights:
- Retail: Mid-tier creator bundles provide superior ROI and extended content lifespan.
- Home & Lifestyle: Pinterest boasts an **11% engagement** rate, significantly prolonging content relevance.
- Entertainment: A mix of macro and micro influencers enabled the Dallas Mavericks to reach **four times more users** than traditional branded posts.
What’s Next: AI-Powered Influencer Marketing
The future of influencer marketing is here, driven by AI! Brands are increasingly adopting AI-powered pricing models and performance-based incentives. Core ROI indicators are shifting away from likes to more meaningful engagement metrics like shares, saves, and replies. Creators are stepping up as self-taught negotiators, expertly managing their cross-platform enterprises.
As **transparency and ethical practices** become non-negotiable in brand-creator partnerships, the next chapter of influencer marketing will prioritize **authenticity**, **agility**, and **responsibility**. According to Later’s research, brands that focus on genuine partnerships and measurable outcomes are poised to seize a significant share of this thriving market.
Marketing leaders eager to delve deeper into these insights can access the complete report, including platform-specific benchmarks and industry breakdowns, here.
Media Contact: Brittany Landau, [email protected]
SOURCE Later
