In 2024, the market size for UGC was USD 7.62 Billion. It's estimated to grow towards USD 27.44 billion with a compound annual growth rate (CAGR) of 29.20%
With marketing budgets under pressure, brands are increasingly turning to more affordable options like user-generated content and employee-generated content, or EGC. This shift is driven by the realization, largely demonstrated through influencer marketing, that authentic, relatable content resonates better with audiences than traditional brand-produced campaigns. As influencer marketing has shown, audiences prioritize trust and relatability, making UGC and EGC powerful tools for building genuine consumer connections.
How Many UGC Creators Are There?
Collabstr found that 66% of all creators are open to UGC work, and offer UGC services to brands. This is up from last year, when only 26% of creators were open to offering UGC services to brands. Creators are likely seeing an opportunity to diversify their sources of income as brands are learning that UGC creators can be more cost-effective than traditional marketing methods.
What Is the Average Number of Social Media Accounts for a Creator?
On average, creators have two social media accounts that they are actively monetizing. Last year, the number was roughly the same. Being present in more than one social channel helps them build a brand, while still being able to nurture engagement and repurpose content.
How Long Does it Take to Finish an Influencer Collaboration?
On average, it takes brands 14 days to complete a collaboration with an influencer, a turnaround time that remains unchanged from last year.
It's important to note that turnaround time depends on both influencers and brands. Factors such as the type of collaboration, the number of deliverables, specific requirements from the brand or influencer, and whether the brand needs to send out products for reviews can all impact how quickly a campaign is executed. For example, product send-outs may rely on traditional supply chains, adding extra days to the process, while simpler campaigns with fewer demands may move more quickly.
According to creative agency Linney, "Influencer marketing is extremely reactive. Campaign deadlines can change at the drop of a hat. To adapt to changing campaign or trend needs, brands must embrace agility. By adjusting the process based on the campaign type and turnaround time, brands can serve timely content to content creators, getting their brand noticed while resonating with their audience."
Influencer Marketing Platforms are helping streamline this process by connecting brands and influencers more efficiently, reducing the time it takes to start collaborations. Such platforms are addressing the need for agility, making it easier for brands and influencers to meet tight deadlines and deliver timely, trend-responsive content. As these tools become more widely adopted, turnaround times are likely to decrease in the coming years.
Influencer Marketing Predictions for 2025
Keeping a Vigilant Eye on AI
AI has remained a bustling topic ever since ChatGPT exploded in January 2023. In 2024, it still holds its spot among the top trends of the year.
In 2025, things won't be any different.
From streamlining manual work to its ability to generate "fake" influencers, AI is set to change the scene for influencer marketing.
AI's time-saving role in influencer marketing
Saving time with scouting, campaign briefs, campaign management, content optimization, visual strategy and ideation, and more.
The market potential for AI influencers
AI influencers closely resemble real influencers. Popular examples include Lu do Magalu, Lil Miquela, and ROZY. They post their brand deals, vacations, daily life, and collaborations with other AI influencers.
The question is: Will brands want to work with AI-generated influencers instead of human influencers?
The answer is yes. Virtual influencers can be cost-effective in comparison to human influencers. "Switching from human to AI influencers can lower campaign costs by up to 30%, eliminating fees, travel and logistics expenses," David López López, a senior lecturer and associate dean at Esade Business & Law School, writes in Forbes, citing data from Gartner. "This makes AI a viable option for large companies requiring round-the-clock audience engagement."
Influencers like ROZY are already closing profitable brand deals:
"Photorealistic and seamlessly integrated into social media, Rozy is nearly indistinguishable from a human," writes Gloria Maria Cappelletti, editor in chief & creative director at RED-EYE. "Her jet-setting lifestyle and partnerships with fashion brands like Max & Co. and CAHIERS create an illusion of authenticity so compelling that it's hard not to feel connected to her."
That said, there are several downsides to keep in mind:
- Despite their impressive human-like appearance and ability to engage with an audience, AI influencers often struggle to maintain the genuine authenticity that audiences crave. While they can mimic human behaviors, their lack of true life experience and emotions can create a disconnect, making it harder for audiences to form a real connection.
- With the rise of AI influencers and deepfake videos, legal questions are emerging around copyright, ownership, and the regulation of AI-generated content. As AI laws evolve, brands and creators will need to tackle these complex issues, potentially facing challenges around transparency, disclosure, and ethical practices.
Furthermore, creating a sophisticated AI influencer like Lil Miquela requires significant resources, including proprietary technology development, 3D rendering, motion capture, and machine learning. While this process isn't cheap, the rise of AI influencer generators and subscription-based tools has made it more accessible and cost-effective for brands to create their own virtual personas.
This democratization of AI influencer creation raises the question: is the high cost still a valid concern when these tools can streamline the process for much lower investment? Is the investment worth it for the output? That's up for brands to decide.
Other Predictions to Keep In Mind
Bluesky has seen an increase in users since the US presidential election in November 2024, climbing to 24 million users. Text-centered platforms are very similar to Twitter, but still not as popular as TikTok and Instagram in the influencer scene.
Speaking of TikTok, TikTok Shop has had a year of massive growth, challenges, and uncertainties. In 2023, it quickly became a large e-commerce player, leveraging the platform's massive user base and algorithm-driven discovery to connect buyers and sellers seamlessly. The numbers speak for themselves: 81.3% of purchases on TikTok Shop came from repeat customers by early 2024, signaling strong buyer satisfaction and loyalty. Additionally, social commerce sales are projected to more than double by 2027, with TikTok positioned to capture a significant share.
While fast fashion and wellness brands thrived on the platform, the looming threat of a U.S. ban on TikTok created uncertainty for sellers and buyers alike. Yet, despite this potential disruption, TikTok Shop shows no signs of slowing down. The platform expects U.S. commerce sales to grow tenfold to $17.5 billion by the end of 2024, demonstrating strong confidence in its ability to weather regulatory headwinds.
Looking ahead, TikTok Shop will likely continue evolving, driven by repeat buyer loyalty, rising merchant adoption, and its algorithmic advantage. Whether it becomes a long-term staple of e-commerce or remains a short-lived trend will depend on how it navigates both consumer preferences and political landscapes in the coming years.
Wrapping Up: Key Trends Shaping Influencer Marketing in 2025
Looking ahead, influencer marketing is becoming more cost-effective for brands. Lower collaboration fees across platforms and the increasing availability of UGC creators mean campaigns are more accessible, even for smaller budgets.
At the same time, the growing number of creators across diverse niches makes it easier for brands to find the right fit for their campaigns, allowing for more personalized and impactful partnerships.
To manage this expanding talent pool, many brands are turning to AI in order to streamline influencer campaigns, handling everything from administrative tasks to content delivery. With tools that automate workflows, reduce logistical delays, and enhance content creation, brands can execute campaigns more efficiently and at scale.
Together, affordable pricing, a wider pool of creators, and AI-driven efficiencies are setting the stage for a more dynamic and adaptable influencer marketing scenario. Brands that embrace these shifts will be better positioned to create meaningful connections with their audiences and achieve measurable results.