European brands are accelerating influencer marketing investments in 2026 while reshaping how they compensate creators and measure success, according to new research from Kolsquare and NewtonX conducted between September and October 2025 and surveying 613 marketing decision-makers across 12 countries.
The findings from the “State of Influencer Marketing in Europe 2025” report reveal an industry moving past experimentation into strategic expansion – but one that is simultaneously abandoning affiliate models and solving for operational complexity rather than performance justification.
Budget Growth Accelerates After Year of Recalibration
A total of 72% of European brands plan to increase influencer marketing budgets in 2026, up sharply from 54% who predicted growth for 2025, according to the report.
The scale of planned increases is notable. 57% of European marketers expect budget growth of more than 10%, with nearly half (47%) forecasting increases of 10% to 49%. Six percent expect growth above 50%.
The UK leads in growth ambition, with 27% of brands expecting to substantially increase the number of influencers they work with by 50% or more in the next 12 months, compared to a market average of 17%. Eighty-one percent of UK brands anticipate overall budget growth in 2026.
Spain shows even higher confidence levels, with 80% of marketers expecting influencer marketing budgets to increase, though budgets remain modest: 18% spend under €25,000, the highest proportion at that level across surveyed markets.
The median annual spend on influencer marketing across Europe is €175,000, with 11% of marketers investing €1 million or more. Germany and the UK tie for the highest proportion of big spenders, with 14% of brands and agencies in each market spending upwards of €1 million.
Investment priorities are concentrated in three areas: 57% of marketers plan to increase spending on paid media and influencer content, 54% will focus on long-term partnerships, and 51% are prioritizing user-generated content (UGC).
“We want to use the right form of content that is native to the platforms it is advertised on, but used in a longer period of time to get the most out of the partnership and build long-term brand awareness,” said a Global Manager of Digital Marketing at a Food & Beverage Manufacturing company in the Netherlands with a budget spend of €150,000-€200,000.
Italy demonstrates particularly strong confidence, with 78% of marketers expecting budget increases and 31% forecasting rises of over 20%, above the 27% market average. Most Italian brands operate within mid-level budgets of €100,000-€500,000, reflecting strategic rather than excessive investment.
Affiliate Marketing Faces Sharp Decline
While most influencer marketing formats are gaining investment, affiliate marketing is experiencing a notable reversal. Affiliate marketing shows a major confidence gap, with only 23% planning to increase spend versus 34% planning cuts.
This decline contrasts sharply with rising investment in other compensation models. Fixed fees per post remain the dominant payment method at 74%, confirming that most brands and agencies prefer clear, standardized compensation. Long-term contracts are used by 31% of marketers, commission-based models by 28%, and hybrid gifting/fee approaches by 28%.
The regional variations are instructive. Germany (81%) and France (77%) lead in fixed-fee usage, reflecting mature, structured markets. The UK shows higher adoption of product gifting (36%) and affiliate-based payments (34%), pointing to a traditionally stronger performance-driven mindset, yet even UK marketers are pulling back from pure affiliate models.
The shift reflects broader changes in how brands are structuring creator relationships. Content co-creation has become the top activation format, used by 64% of marketers, signaling stronger brand-creator partnerships. Sponsored posts remain popular with 61% of marketers across all funnel stages.
Product gifting campaigns are also losing traction, used by just 28% of marketers overall, though the UK (40%) and Germany (31%) show higher retention of gifting programs than other markets.
“As with marketing, a 360 view and full integration of all platforms is one of the keys to success. Same with the integration of these individuals, their work, and their channels. The more integrated we are with creators, the more efficient and surgical we can be,” said a Campaign Director at an IT/SaaS/Telco company in Spain with a budget spend of €75,000-€100,000.
Two-thirds of brands work with new influencers either mainly or always, reflecting a strong trend toward influencer renewal. Italy leads in creator rotation, with 37.5% of brands working exclusively with new influencers. However, 46% of brands maintain a balanced mix of both short-term and long-term collaborations, with France showing the strongest preference for this approach at 55%.
The decline in affiliate models occurs alongside a growing emphasis on long-term partnerships and relationship depth. Spanish brands favor ongoing partnerships: 46% prioritize long-term collaborations, compared to 32% who prefer short-term campaigns.
Industry Pain Points Shift From Performance to Process
An important shift in the findings is that measuring Return on Investment (ROI) has become less of a concern. Measuring ROI, which topped the list of challenges in 2024 at 50%, has dropped to 37% in 2025; a 13-point decline that suggests the industry has moved past the fundamental question of whether influencer marketing delivers returns.
The new pain points center on operational complexity. Rising costs now trouble 31% of brands, up from previous levels. Twenty-seven percent cite issues with influencer agents acting as intermediaries, and 28% point to opaque fee structures. A lack of reliable data affects 39% of marketers.
“Customer attention spans: longer full videos on platforms like TikTok aren’t doing as well, and with the new subscription models with content being gated, you really need to track the right balance,” said a Head of Paid and Digital at a Banking and Insurance company in the UK with a budget spend of £1.01M-£3M.
The measurement capabilities are maturing. Engagement rate (70%) and reach (57%) remain the most commonly used KPIs (Key Performance Indicators), but performance-driven metrics are gaining ground. Thirty-one percent of marketers now track Return on Investment/Return on Ad Spend (ROI/ROAS), 32% monitor conversions and lead generation, and 34% measure cost per 1,000 impressions.
Germany shows the most analytical approach, with 44% of marketers tracking ROI/ROAS, above the European average. Italy also demonstrates strong performance focus, with 35% of marketers prioritizing ROI measurement.
Regional differences in challenges are pronounced. France leads with 37% of marketers citing agent friction as a top concern. UK marketers struggle most with balancing influencer freedom and brand control at 42%. Spain feels cost inflation most acutely at 36%, while Nordic marketers report the greatest concern about data reliability at 51%.
“More companies are entering online marketing, AI is generating more content, and users are becoming increasingly desensitized due to the growing flood of formats and providers. Therefore, content must become faster, more authentic, and cheaper,” said a Senior Advisor in Growth Marketing at a Retail company in Germany with a budget spend of €100,000-€150,000.
Tech adoption remains uneven, but is growing. Thirty-nine percent of brands and agencies across Europe use a dedicated influencer marketing platform, with France and Italy leading at 49% and 44% respectively. The primary uses are influencer discovery and matching (68%), audience quality and authenticity checks (68%), and reporting and performance tracking (55%).
Barriers to platform adoption include lack of internal resources or expertise (38%), perceived lack of added value (36%), and cost constraints (33%). Thirteen percent cite implementation complexity as a concern.
Looking ahead, marketers expect greater transparency and standardization. Forty-three percent anticipate clearer, more detailed contracts with influencers, 41% expect greater use of third-party verification tools, and 41% foresee more transparency with creators about how fees are set. The UK shows the firmest belief in standardized pricing models at 44%, while Germany and Italy display more skepticism about industry-wide improvements.
Dragomir is a Serbian freelance blog writer and translator. He is passionate about covering insightful stories and exploring topics such as influencer marketing, the creator economy, technology, business, and cyber fraud.
European brands are accelerating influencer marketing investments in 2026 while reshaping how they compensate creators and measure success, according to new research from Kolsquare and NewtonX conducted between September and October 2025 and surveying 613 marketing decision-makers across 12 countries.
The findings from the “State of Influencer Marketing in Europe 2025” report reveal an industry moving past experimentation into strategic expansion – but one that is simultaneously abandoning affiliate models and solving for operational complexity rather than performance justification.
Budget Growth Accelerates After Year of Recalibration
A total of 72% of European brands plan to increase influencer marketing budgets in 2026, up sharply from 54% who predicted growth for 2025, according to the report.
The scale of planned increases is notable. 57% of European marketers expect budget growth of more than 10%, with nearly half (47%) forecasting increases of 10% to 49%. Six percent expect growth above 50%.
The UK leads in growth ambition, with 27% of brands expecting to substantially increase the number of influencers they work with by 50% or more in the next 12 months, compared to a market average of 17%. Eighty-one percent of UK brands anticipate overall budget growth in 2026.
Spain shows even higher confidence levels, with 80% of marketers expecting influencer marketing budgets to increase, though budgets remain modest: 18% spend under €25,000, the highest proportion at that level across surveyed markets.
The median annual spend on influencer marketing across Europe is €175,000, with 11% of marketers investing €1 million or more. Germany and the UK tie for the highest proportion of big spenders, with 14% of brands and agencies in each market spending upwards of €1 million.
Investment priorities are concentrated in three areas: 57% of marketers plan to increase spending on paid media and influencer content, 54% will focus on long-term partnerships, and 51% are prioritizing user-generated content (UGC).
“We want to use the right form of content that is native to the platforms it is advertised on, but used in a longer period of time to get the most out of the partnership and build long-term brand awareness,” said a Global Manager of Digital Marketing at a Food & Beverage Manufacturing company in the Netherlands with a budget spend of €150,000-€200,000.
Italy demonstrates particularly strong confidence, with 78% of marketers expecting budget increases and 31% forecasting rises of over 20%, above the 27% market average. Most Italian brands operate within mid-level budgets of €100,000-€500,000, reflecting strategic rather than excessive investment.
Affiliate Marketing Faces Sharp Decline
While most influencer marketing formats are gaining investment, affiliate marketing is experiencing a notable reversal. Affiliate marketing shows a major confidence gap, with only 23% planning to increase spend versus 34% planning cuts.
This decline contrasts sharply with rising investment in other compensation models. Fixed fees per post remain the dominant payment method at 74%, confirming that most brands and agencies prefer clear, standardized compensation. Long-term contracts are used by 31% of marketers, commission-based models by 28%, and hybrid gifting/fee approaches by 28%.
The regional variations are instructive. Germany (81%) and France (77%) lead in fixed-fee usage, reflecting mature, structured markets. The UK shows higher adoption of product gifting (36%) and affiliate-based payments (34%), pointing to a traditionally stronger performance-driven mindset, yet even UK marketers are pulling back from pure affiliate models.
The shift reflects broader changes in how brands are structuring creator relationships. Content co-creation has become the top activation format, used by 64% of marketers, signaling stronger brand-creator partnerships. Sponsored posts remain popular with 61% of marketers across all funnel stages.
Product gifting campaigns are also losing traction, used by just 28% of marketers overall, though the UK (40%) and Germany (31%) show higher retention of gifting programs than other markets.
“As with marketing, a 360 view and full integration of all platforms is one of the keys to success. Same with the integration of these individuals, their work, and their channels. The more integrated we are with creators, the more efficient and surgical we can be,” said a Campaign Director at an IT/SaaS/Telco company in Spain with a budget spend of €75,000-€100,000.
Two-thirds of brands work with new influencers either mainly or always, reflecting a strong trend toward influencer renewal. Italy leads in creator rotation, with 37.5% of brands working exclusively with new influencers. However, 46% of brands maintain a balanced mix of both short-term and long-term collaborations, with France showing the strongest preference for this approach at 55%.
The decline in affiliate models occurs alongside a growing emphasis on long-term partnerships and relationship depth. Spanish brands favor ongoing partnerships: 46% prioritize long-term collaborations, compared to 32% who prefer short-term campaigns.
Industry Pain Points Shift From Performance to Process
An important shift in the findings is that measuring Return on Investment (ROI) has become less of a concern. Measuring ROI, which topped the list of challenges in 2024 at 50%, has dropped to 37% in 2025; a 13-point decline that suggests the industry has moved past the fundamental question of whether influencer marketing delivers returns.
The new pain points center on operational complexity. Rising costs now trouble 31% of brands, up from previous levels. Twenty-seven percent cite issues with influencer agents acting as intermediaries, and 28% point to opaque fee structures. A lack of reliable data affects 39% of marketers.
“Customer attention spans: longer full videos on platforms like TikTok aren’t doing as well, and with the new subscription models with content being gated, you really need to track the right balance,” said a Head of Paid and Digital at a Banking and Insurance company in the UK with a budget spend of £1.01M-£3M.
The measurement capabilities are maturing. Engagement rate (70%) and reach (57%) remain the most commonly used KPIs (Key Performance Indicators), but performance-driven metrics are gaining ground. Thirty-one percent of marketers now track Return on Investment/Return on Ad Spend (ROI/ROAS), 32% monitor conversions and lead generation, and 34% measure cost per 1,000 impressions.
Germany shows the most analytical approach, with 44% of marketers tracking ROI/ROAS, above the European average. Italy also demonstrates strong performance focus, with 35% of marketers prioritizing ROI measurement.
Regional differences in challenges are pronounced. France leads with 37% of marketers citing agent friction as a top concern. UK marketers struggle most with balancing influencer freedom and brand control at 42%. Spain feels cost inflation most acutely at 36%, while Nordic marketers report the greatest concern about data reliability at 51%.
“More companies are entering online marketing, AI is generating more content, and users are becoming increasingly desensitized due to the growing flood of formats and providers. Therefore, content must become faster, more authentic, and cheaper,” said a Senior Advisor in Growth Marketing at a Retail company in Germany with a budget spend of €100,000-€150,000.
Tech adoption remains uneven, but is growing. Thirty-nine percent of brands and agencies across Europe use a dedicated influencer marketing platform, with France and Italy leading at 49% and 44% respectively. The primary uses are influencer discovery and matching (68%), audience quality and authenticity checks (68%), and reporting and performance tracking (55%).
Barriers to platform adoption include lack of internal resources or expertise (38%), perceived lack of added value (36%), and cost constraints (33%). Thirteen percent cite implementation complexity as a concern.
Looking ahead, marketers expect greater transparency and standardization. Forty-three percent anticipate clearer, more detailed contracts with influencers, 41% expect greater use of third-party verification tools, and 41% foresee more transparency with creators about how fees are set. The UK shows the firmest belief in standardized pricing models at 44%, while Germany and Italy display more skepticism about industry-wide improvements.
Image credits: Kolsquare
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