Market research company eMarketer has released a new report titled “The State of Influencer-Brand Deals 2024,” examining the evolving landscape of influencer marketing as brands invest more strategically in partnerships with creators in 2024.

According to the findings, the number of income-earning creators in the U.S. has soared to 27 million as of July 2023, creating intense competition for brand deals. At the same time, many brands are prioritizing long-term partnerships with a smaller number of creators they know and trust.

As eMarketer reveals, the average number of influencers brands collaborated with per campaign decreased from 11-20 in 2021 to a more focused 1-5 in 2023. This shift signifies the growing significance of committed creator relationships, which provide stability for creators and underscore their value to brands.

As brands take a more data-driven approach, they are focused on driving measurable results from influencer campaigns. Top metrics include audience growth, awareness, conversion rates, and sales. Just 21% of brands cite consideration as a critical influencer metric, indicating a pullback in mid-funnel creator campaigns.

The landscape is not just about big-name creators. Niche ‘nano’ and ‘micro’ influencers, with their intimate and engaged audiences, are proving to be a goldmine for brands, offering the highest engagement rates and return on investment, as per the report.

Creators in the middle are feeling the squeeze, though. No longer operating in a niche but without mainstream fame, mid-tier influencers face intense competition for brand deals even as their rates rise.

To drive performance, brands are exploring low-cost alternatives to sponsored content collaborations. According to the research, affiliate marketing programs with commissions on sales have exploded in popularity. User-generated content licensing and boosting creator posts as paid ads also allow marketers to reuse organic creator content for targeted campaigns.

While overall U.S. spending on sponsored influencer content will surpass $9 billion in 2025, eMarketer’s analysis indicates growth is slowing as brands evaluate the bottom-line impact.

The report’s findings were based on interviews with influencer marketing experts and analysis of industry data. The complete study is available here.