Influencer marketing in 2025 has entered a smarter, AI-driven phase focused on outcomes. Global spending now exceeds $32.5 billion, driven by performance-focused strategies, deeper creator-brand partnerships, and smarter platform use.

According to Later’s latest research, influencer marketing success in 2025 hinges on ROI, not vanity metrics. Micro and mid-tier creators continue to dominate brand partnerships due to stronger engagement and lower costs.

The 2025 Influencer Marketing Report from Later is based on input from over 1,000 creators, 200+ U.S. marketers, and more than 2,500 campaigns across eight industries. It delivers one of the most detailed snapshots of how this space is evolving.

“Influencer marketing is no longer experimental; it’s essential,” said Scott Sutton, CEO of Later. “Brands now value performance over popularity. AI is streamlining decisions. Creators are building real businesses. The most effective marketers don’t chase trends, they build repeatable value.”

The Modern Brand Playbook

In 2025, brands focus on long-term partnerships, bundled deliverables, and cross-platform campaigns. AI supports every step from creator discovery to reporting.

Key insights from the report include:

80% of brands increased or maintained their influencer marketing budgets

47% raised budgets by over 11%

73% prefer working with micro or mid-tier creators

92% use or plan to use AI in influencer workflows

Creator participation dropped to 78% as many now manage diversified income streams

Creator Rates & Performance Metrics

As influencer marketing grows, so do creator rates. Micro influencers now charge a median CPM of $119. Nano creators see even higher rates-up to $211-due to top-tier engagement levels.

Top content formats by performance:

Instagram Reels – Best engagement, $2.65 avg CPE

Instagram Posts – Great for lifestyle brands, $1.52 avg CPE

TikTok Videos – Strong for discovery, $14.61 avg CPE

Short-Form Video Dominates

Short videos are still king. Reels now account for 30% of all creator content. TikTok continues to lead in trend creation and discovery. Pinterest stands out for long-lasting content trends last twice as long compared to other platforms.

Here’s how major platforms stack up:

PlatformAvg CPMEngagement RateBest Use Case
Instagram$30.310.7-8%Fashion, lifestyle, wellness
TikTok$76.974.4%Food, entertainment, product demos
YouTube*$13–$15.341.5%Tech, education, deep dives
Pinterest*~$3.504.7%Home, décor, wellness
Facebook*$7.192.5%Local, parenting, community

*YouTube, Pinterest, Facebook data collected externally

Industry-Specific Highlights

Influencer marketing now varies by industry. Precision matters more than ever:

Retail: Mid-tier creator bundles show stronger ROI and extended content value

Home & Lifestyle: Pinterest drives 11% engagement, increasing content longevity

Entertainment: Dallas Mavericks gained 4x reach using a mix of macro and micro influencers

The Road Ahead: AI and Authenticity

The landscape of influencer marketing is shifting towards being driven by AI and focused on real outcomes. Brands are increasingly turning to AI tools to help with pricing and tracking performance. Nowadays, metrics like shares and saves are taking precedence over just likes.

Creators are stepping into the role of entrepreneurs, juggling campaigns across various platforms while securing better deals for themselves. In this evolving space, transparency and ethics have become essential in the relationships between brands and creators.

Research from Later suggests that brands that prioritize genuine partnerships and set measurable goals are the ones that will thrive in the influencer marketing arena in the future.

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News Source: prnewswire.com