Influencer Marketing in 2025: New Data Reveals What Works, What Costs, and What's Next

Spend Surges to $32.55B as ROI, AI Tools, and Micro and Mid-Tier Influencers Drive the Future of the Industry

BOSTON, June 25, 2025 /PRNewswire/ -- Influencer marketing is in a new era marked by smarter strategies, deeper partnerships, and widespread adoption of AI. In 2025, global spend has surged to $32.55 billion, driven by a measurable shift toward ROI-first strategies, AI integration across workflows and a strong preference for micro and mid-tier creators. New research from Later shows brands are moving beyond vanity metrics, while creators are evolving into multi-platform entrepreneurs.

Later's 2025 Influencer Marketing Report surveyed over 1,000 creators and 200+ U.S. marketers and analyzed more than 2,500 campaigns on Later's platform across 8 core industries, offering one of the most comprehensive views available of how the industry is evolving and what's to come.

"Today, influencer marketing can be seen as a core growth engine as we witness its transformation from experimental to essential," said Scott Sutton, CEO of Later. "We're seeing a major shift: brands are getting smarter about spend, creators are building sustainable businesses, and AI is accelerating the entire ecosystem. The most successful marketers in 2025 aren't chasing virality, they're building systems that deliver repeatable, measurable value."

The New Brand Playbook
The days of chasing follower counts are behind us. In 2025, brands are leaning into long-term creator partnerships, bundled deliverables, and multi-platform campaigns designed to drive measurable returns. AI is now baked into every layer of the influencer marketing workflow, from creator discovery and pricing to performance prediction and automated reporting.

Key findings from the report show:

• 80% of brands either maintained or increased their influencer marketing budgets in 2025, with 47% raising budgets by 11% or more
• 73% of brands prefer to work with micro and mid-tier creators, who offer the strongest engagement-to-cost ratio
• 92% of brands are already using or open to using AI to support influencer marketing workflows
• Creator participation in brand deals dropped from 94% in 2024 to 78% in 2025, not because the tactic is declining, but as more creators diversify their income streams

Creator Costs & Engagement Metrics
As the industry grows, creators are raising their rates to reflect their value. Micro creators now command a median CPM of $119, while nano creators can reach up to $211, driven by standout engagement rates between 6.15% and 6.76%.

Top-performing content formats include:

• Instagram Reels: Highest engagement; $2.65 average CPE
• Instagram Posts: Strong performance for lifestyle verticals; $1.52 average CPE
• TikTok Videos: Best for discovery and product demos; $14.61 average CPE
  

Short-Form Video Dominates
Video continues to dominate, particularly short-form content blending education and entertainment. Instagram Reels now make up 30% of creator content, while TikTok continues to fuel product discovery and trend creation. Pinterest stands out for evergreen content, with its trends lasting 2x longer than other platforms.

*YouTube, Pinterest and Facebook data reflects paid CPMs and was collected externally

Industry Highlights
Influencer marketing strategies are becoming increasingly tailored by specific verticals, with creators and formats selected for precision and performance:

• Retail: Mid-tier creator bundles deliver better ROI and longer content lifespan
• Home & Lifestyle: Pinterest delivers 11% engagement, letting content have a longer shelf life
• Entertainment: A mix of macro and micro helped the Dallas Mavericks reach 4x more users than branded posts alone

What's Next: AI-Powered Influencer Marketing
The future is already taking shape as brands embrace AI-powered pricing models and performance-based incentives. Engagement metrics like shares, saves, and replies are replacing likes as core ROI indicators, while creators are becoming self-taught negotiators managing cross-platform businesses.

As transparency and ethical practices become non–negotiable in brand–creator partnerships, the next chapter of influencer marketing will be shaped by authenticity, agility and responsibility. Later's research indicates that brands prioritizing authentic partnerships and measurable outcomes will capture the greatest share of this growing market.

Marketing leaders can access the complete report, including platform-specific benchmarks and industry breakdowns, here.

Media Contact: Brittany Landau, [email protected]

SOURCE Later