Revenue and sales have emerged as the top performance indicator (31.5%) for influencer marketing campaigns, indicating a shift in how brands evaluate success in this space, according to Later’s “Influencer Marketing Trends & Benchmarks” report. Content quality (28.2%), website traffic (24.9%), and ROI (22.5%) now outrank traditional metrics like post engagement (20.2%) and earned media value (19.2%), which have fallen lower in importance.
This pivot toward measurable business outcomes comes as the influencer marketing industry experiences significant growth, expanding by more than 35% in the past year. Global spending has increased from $24 billion in 2024 to $32.55 billion in 2025, with 80% of brands maintaining or increasing their influencer marketing budgets.
The research, which analyzed 2,500+ campaigns and surveyed 1,005 creators and 214 U.S.-based marketers ranging from managers to CMOs, reveals that 47% of brands are boosting their influencer marketing allocations by 11% or more this year.
“Influencer marketing is becoming more sophisticated. But even as rates get more competitive, it’s still one of the highest ROI investments a brand can make,” the report states.
Platform Performance
The shift toward performance metrics coincides with changing platform dynamics. Short-form videos dominate engagement, with Instagram Reels (41.5%) and TikTok videos (37.8%) generating the highest impression rates, far outperforming static posts (16.4%) and Stories (2.8%).
Reels, which constitute 30% of creator content on Later’s platform, continue to offer “the best combination of engagement and return, especially when used in tandem with paid amplification,” according to the report.
Creator Tier Performance
A key finding contradicts the assumption that larger followings deliver better results. The research reveals that engagement rates generally decrease as follower counts increase. Nano creators with fewer than 10,000 followers generate the highest engagement per follower at 6.15%, while mega creators with 1-3 million followers achieve only 1.83% engagement.
This inverse relationship extends to cost efficiency as well. Although nano creators command a higher CPM of $5.25 compared to mega creators’ $7.64, the substantially higher engagement rates make smaller creators more cost-effective for brands seeking active audience participation rather than passive views.
The data shows 73% of brands prefer working with micro and mid-tier creators, who consistently deliver the best engagement-to-cost ratio. This preference aligns with the finding that “follower count doesn’t dictate campaign success—strategic tier selection does.”
Performance by Objective
The research indicates different platforms excel in specific contexts. Instagram performs best for lifestyle, fashion, and wellness content with engagement rates ranging from 0.7% to 8%. TikTok drives discovery and higher engagement (4.4% average) particularly for food, entertainment, and direct-to-consumer products. YouTube delivers stronger long-term results for educational content in tech and health sectors, while Pinterest shows surprising strength in home, DIY, and seasonal content with a 4.7% engagement rate.
Facebook, despite declining popularity in some segments, maintains relevance for local events and older demographics with a solid 3.7% engagement rate. The report emphasizes that cross-platform campaigns consistently outperform single-channel efforts, with TikTok-Instagram combinations providing the strongest immediate impact and YouTube-Pinterest pairings delivering better long-term results.
Industry-Specific Performance Insights
Performance metrics vary significantly by industry, with entertainment and media achieving the highest impression rates (156%) but the lowest engagement (0.8%). Retail and e-commerce show strong impression rates (88.1%) but similarly low engagement (1%). The food and beverage sector demonstrates better balance with a 34% impression rate and 3.9% engagement.
Creator tier preferences also differ by sector. Health and wellness brands heavily favor micro creators (63%), while home and lifestyle companies more frequently partner with nano creators (44%). Fashion, beauty, retail, and hospitality sectors generally distribute their partnerships across micro and mid-tier creators, with very few industries prioritizing macro or mega influencers despite their greater reach.
Rising Costs and Changing Compensation Models
The report documents increasing costs across all creator tiers, with the sharpest rise at the micro level. Median CPMs for 2025 show nano creators commanding $211, micro creators $119, mid-tier creators $83, macro creators $54, and mega creators $22.
Several factors contribute to rising costs. Content complexity has increased as deliverables now often include allowlisting, usage rights, and content bundling. Cross-platform presence has become more valuable, with creators active across multiple platforms offering brands more versatility and bundled reach. There’s also growing demand for exclusivity, with brands increasingly seeking to lock in creators for campaign periods or competitive blackout windows.
Format-specific costs show Instagram Reels with a $2.65 average CPE, TikTok videos at $14.61, and static grid posts at $1.52.
Trends and Recommendations
The report identifies several emerging trends that are shaping the future of influencer marketing. AI-powered pricing models are gaining traction, providing real-time pricing guidance through the analysis of metrics. Creators are cautiously integrating AI as a creative collaborator rather than a replacement. Virtual creators and CGI talent are experiencing limited adoption, particularly in the fashion and entertainment industries.
Meanwhile, interactive formats are transforming passive viewers into active participants, while increased regulation is driving greater transparency around paid content.
Later anticipates more performance-based compensation models, with creators negotiating hybrid fee and bonus structures. Long-term relationships through retainers and ambassador programs are expected to become more common, while metrics like shares, saves, and replies will increasingly outweigh traditional engagement indicators like likes and comments.
The report concludes with strategic guidance for brands: diversify platform strategies based on campaign goals; balance creator tiers appropriately; adopt media buyer thinking with multi-post campaigns; invest in long-term creator relationships; and measure meaningful metrics beyond vanity numbers.
All images are credited to Later. The full report is available here.
Nii A. Ahene is the founder and managing director of Net Influencer, a website dedicated to offering insights into the influencer marketing industry. Together with its newsletter, Influencer Weekly, Net Influencer provides news, commentary, and analysis of the events shaping the creator and influencer marketing space. Through interviews with startups, influencers, brands, and platforms, Nii and his team explore how influencer marketing is being effectively used to benefit businesses and personal brands alike.
Revenue and sales have emerged as the top performance indicator (31.5%) for influencer marketing campaigns, indicating a shift in how brands evaluate success in this space, according to Later’s “Influencer Marketing Trends & Benchmarks” report. Content quality (28.2%), website traffic (24.9%), and ROI (22.5%) now outrank traditional metrics like post engagement (20.2%) and earned media value (19.2%), which have fallen lower in importance.
This pivot toward measurable business outcomes comes as the influencer marketing industry experiences significant growth, expanding by more than 35% in the past year. Global spending has increased from $24 billion in 2024 to $32.55 billion in 2025, with 80% of brands maintaining or increasing their influencer marketing budgets.
The research, which analyzed 2,500+ campaigns and surveyed 1,005 creators and 214 U.S.-based marketers ranging from managers to CMOs, reveals that 47% of brands are boosting their influencer marketing allocations by 11% or more this year.
“Influencer marketing is becoming more sophisticated. But even as rates get more competitive, it’s still one of the highest ROI investments a brand can make,” the report states.
Platform Performance
The shift toward performance metrics coincides with changing platform dynamics. Short-form videos dominate engagement, with Instagram Reels (41.5%) and TikTok videos (37.8%) generating the highest impression rates, far outperforming static posts (16.4%) and Stories (2.8%).
Reels, which constitute 30% of creator content on Later’s platform, continue to offer “the best combination of engagement and return, especially when used in tandem with paid amplification,” according to the report.
Creator Tier Performance
A key finding contradicts the assumption that larger followings deliver better results. The research reveals that engagement rates generally decrease as follower counts increase. Nano creators with fewer than 10,000 followers generate the highest engagement per follower at 6.15%, while mega creators with 1-3 million followers achieve only 1.83% engagement.
This inverse relationship extends to cost efficiency as well. Although nano creators command a higher CPM of $5.25 compared to mega creators’ $7.64, the substantially higher engagement rates make smaller creators more cost-effective for brands seeking active audience participation rather than passive views.
The data shows 73% of brands prefer working with micro and mid-tier creators, who consistently deliver the best engagement-to-cost ratio. This preference aligns with the finding that “follower count doesn’t dictate campaign success—strategic tier selection does.”
Performance by Objective
The research indicates different platforms excel in specific contexts. Instagram performs best for lifestyle, fashion, and wellness content with engagement rates ranging from 0.7% to 8%. TikTok drives discovery and higher engagement (4.4% average) particularly for food, entertainment, and direct-to-consumer products. YouTube delivers stronger long-term results for educational content in tech and health sectors, while Pinterest shows surprising strength in home, DIY, and seasonal content with a 4.7% engagement rate.
Facebook, despite declining popularity in some segments, maintains relevance for local events and older demographics with a solid 3.7% engagement rate. The report emphasizes that cross-platform campaigns consistently outperform single-channel efforts, with TikTok-Instagram combinations providing the strongest immediate impact and YouTube-Pinterest pairings delivering better long-term results.
Industry-Specific Performance Insights
Performance metrics vary significantly by industry, with entertainment and media achieving the highest impression rates (156%) but the lowest engagement (0.8%). Retail and e-commerce show strong impression rates (88.1%) but similarly low engagement (1%). The food and beverage sector demonstrates better balance with a 34% impression rate and 3.9% engagement.
Creator tier preferences also differ by sector. Health and wellness brands heavily favor micro creators (63%), while home and lifestyle companies more frequently partner with nano creators (44%). Fashion, beauty, retail, and hospitality sectors generally distribute their partnerships across micro and mid-tier creators, with very few industries prioritizing macro or mega influencers despite their greater reach.
Rising Costs and Changing Compensation Models
The report documents increasing costs across all creator tiers, with the sharpest rise at the micro level. Median CPMs for 2025 show nano creators commanding $211, micro creators $119, mid-tier creators $83, macro creators $54, and mega creators $22.
Several factors contribute to rising costs. Content complexity has increased as deliverables now often include allowlisting, usage rights, and content bundling. Cross-platform presence has become more valuable, with creators active across multiple platforms offering brands more versatility and bundled reach. There’s also growing demand for exclusivity, with brands increasingly seeking to lock in creators for campaign periods or competitive blackout windows.
Format-specific costs show Instagram Reels with a $2.65 average CPE, TikTok videos at $14.61, and static grid posts at $1.52.
Trends and Recommendations
The report identifies several emerging trends that are shaping the future of influencer marketing. AI-powered pricing models are gaining traction, providing real-time pricing guidance through the analysis of metrics. Creators are cautiously integrating AI as a creative collaborator rather than a replacement. Virtual creators and CGI talent are experiencing limited adoption, particularly in the fashion and entertainment industries.
Meanwhile, interactive formats are transforming passive viewers into active participants, while increased regulation is driving greater transparency around paid content.
Later anticipates more performance-based compensation models, with creators negotiating hybrid fee and bonus structures. Long-term relationships through retainers and ambassador programs are expected to become more common, while metrics like shares, saves, and replies will increasingly outweigh traditional engagement indicators like likes and comments.
The report concludes with strategic guidance for brands: diversify platform strategies based on campaign goals; balance creator tiers appropriately; adopt media buyer thinking with multi-post campaigns; invest in long-term creator relationships; and measure meaningful metrics beyond vanity numbers.
All images are credited to Later.
The full report is available here.
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