Mumbai: A recent report titled 'The State Of Influencer Marketing in India' by EY and Collective Artists Network’s Big Bang Social unveils a promising approach for influencer marketing in the country. Projections suggest a remarkable 25 per cent surge in 2024, reaching Rs 2,344 crore, with further expansion to Rs 3,375 crore by 2026.
The report showcases the integral role of influencer marketing across sectors, particularly in lifestyle, fashion, and beauty, as well as automobiles, e-commerce, and FMCG. With over 50 per cent of mobile usage dedicated to social media platforms, integrating influencer marketing into communication strategies is becoming imperative for marketers.
A blend of mega/macro influencers for brand awareness and micro/nano influencers for engagement is proving effective, with nano influencers exhibiting the highest engagement rates. Notably, 47 per cent of brands prefer micro and nano influencers due to their cost-effectiveness.
Challenges persist on both the brand and influencer fronts, with marketers grappling to determine the ROI of campaigns while influencers strive to maintain credibility and build loyal audiences.
The rising popularity of influencer marketing is evident, with 75 per cent of brands considering it an integral part of their marketing strategy. Smartphone users are driving this trend, with around 50 per cent of their time spent on social media platforms, predominantly Instagram and YouTube.
Looking forward, 86 per cent of influencers anticipate income growth of over 10 per cent in the next two years, reflecting the increasing demand for their services. Additionally, brands are poised to amplify their investments, with 70 per cent planning to maintain or increase budgets for influencer marketing in 2024.
Indiantelevision.com reached out to industry experts and digital creators on their thoughts on the state of Influencer marketing in India, what factors are contributing to its projected growth and the challenges anticipated in the evolving influencer marketing economy.
Edited excerpts
Chtrbox VP Karan Pherwani
The influencer marketing industry in India is expected to grow to Rs 3,375 crore by 2026 due to more people using social media, increased digital content consumption, and the rise of specialized influencers appealing to different audiences. The increasing adoption of influencer marketing by a wide range of industries, from fashion and beauty to technology and healthcare, is contributing to this growth. Furthermore, the trend towards personalized and authentic brand experiences is driving brands to invest more in influencer collaborations as a means of connecting with their target audiences on a deeper level.
Challenges in influencer marketing include ensuring genuine content in a crowded market, weeding out the influencers that 'buy followers', dealing with regulations.
Mint + Milk PR founders Komal Rukhana and Janvi Mankani
As an industry insider, it’s really fascinating to see how influencer marketing has evolved and exploded over the years. I think one of the big drivers behind this growth is the sheer number of influencers out there; and of course that’s paired with the way people consume news today. Post-covid, the audience relies on social media to know what's happening in the world (topically) - all the way from fashion to politics, social media has become an hourly routine for audiences to know what's happening in the world. It's not just the usual lifestyle influencers anymore; we've got people from all walks of life sharing their stories and recommendations. But with everyone trying to be an influencer, it raises the question - who are they actually influencing? It's become a bit overwhelming for audiences too, with so much content flooding their feeds every day. Therefore on the flip side, brands are facing a challenge in standing out amidst this sea of influencers and posts.
It's true, many influencers are expecting their incomes to shoot up in the coming years. But along with that growth comes some challenges. Traditional media channels are shrinking, and brands are turning to influencers to get their messages across. Influencer marketing offers brands a way to control their message while still letting influencers bring their own flair to it. This blend of brand messaging and influencer authenticity is what resonates with audiences and ultimately drives sales. Plus, with all these new tools for tracking influencers and their audiences, brands are getting savvier about who they work with. It's all about finding the right fit! And with influencers more accessible than ever, even smaller brands can jump into the game and grow their business without relying on big agencies.
Actor, model and digital creator Hamid Barkzi
With the growing internet penetration and smartphone usage in India, influencers have access to a larger audience, allowing brands to target a wider demographic. However, in a saturated market, navigating the right influencers can be challenging. Brands sometimes prioritize influencers based solely on their follower count, which may overlook content creators who offer genuine engagement and authenticity. This approach could limit opportunities for meaningful collaboration and reduce the impact of influencer marketing efforts.
Digital creator Hiba Hasan
Brands are now allocating more resources towards collaborating with micro and nano influencers. These influencers typically have smaller follower counts compared to macro-influencers but often possess highly engaged and loyal audiences. They provide brands with cost-effective and targeted avenues for marketing. Their ability to engage with niche audiences effectively contributes significantly to the overall growth of the industry.
Maintaining authenticity while adhering to brand guidelines can be tricky. Striking the right balance between creative freedom and brand expectations is crucial for content creators to preserve their credibility and resonate with their audience.
Content creator: Lifestyle and beauty Ria Amin
Consumers are increasingly valuing authenticity and trust, favoring influencers who can authentically endorse products and services, leading to higher engagement rates and ROI for brands.
The constant evolution of social media algorithms and platforms requires content creators to stay agile and adapt their strategies accordingly. Keeping up with the latest trends and algorithm changes while producing quality content remains a significant challenge in the ever-changing landscape of influencer marketing.
