Explosive social media penetration has taken India by storm as there are reportedly over 4 million influencers in the country and as many as 100 million people trying to push their products through digital channels. No wonder there are.
A new report titled 'The State of Influencer Marketing in India' by EY and Collective Artist Network's Big Bang Social predicts that India's influencer marketing sector will grow by 25% in 2024 and It is expected to reach 2,344 million rupees. This surge is primarily driven by the lifestyle, fashion, and beauty industries.
Automotive, e-commerce, and FMCG sectors, known for their close connections with consumers, are also expected to significantly increase their investment in influencer marketing. As per the report's projections, the sector is expected to expand to Rs 3,375 crore by 2026.
This report is based on an EY survey of 2,053 participants, including 86 brands, 556 creators and 1,411 industry experts, and explores the current state and future outlook for influencer marketing. provides a comprehensive overview of
With India expected to have 740 million active smartphones by 2030 and 50% of mobile usage dedicated to social media, it is important for marketers to integrate influencer marketing into their communication strategies. has become essential.
The report also revealed that 56% of brands have already invested more than 2% in influencer marketing. Looking forward, three-quarters of brand strategies are likely to include influencer marketing, with 70% of brands planning to maintain or increase their influencer marketing budgets in 2024, with half of those planning to increase their influencer marketing budget by up to 10%. We are planning a % increase.
“The emergence of transactional live video commerce and short videos has provided new avenues for brands to connect with their audiences, simplifying the purchasing process. Horizon in the creator economy, driven by entertainment and comedy,” entrepreneur, comedian and Youtuber Tanmay Bhat commented in the report.
Selecting influencers based on engagement rate and quality of target audience has become standard for brands, prioritizing awareness and engagement over direct sales conversions. Interestingly, even though nano-influencers have the highest engagement rate of all categories, 47% of brands indicated they prefer micro- and nano-influencers due to their cost-effective reach. I am. This report advises a balanced strategy of leveraging mega/macro influencers for awareness and brand loyalty, and micro/nano influencers for enhanced engagement.
Brand ambassadors and influencers play a key role in influencing purchasing decisions, and 77% of brands are confident that their agency can effectively execute influencer marketing campaigns.
Emerging platforms like Chingari and MXTakaTak are advancing and introducing novel ways to engage with new consumer segments. Despite this, Instagram and YouTube remain the top platforms for influencers' content consumption, according to the report.
Influencer compensation models are evolving, with 71% of brands favoring a fixed fee approach, while others are exploring performance-based models to ensure accountability.
This is also a critical time for influencers in India. The rise of short video platforms, especially popular among users in non-metropolitan areas, has introduced a new dimension to content consumption. These platforms are dominated by young, male demographics and are vastly expanding the range of creators. About 12% of content creators in India have a monthly income between Rs 100,000 and his Rs 10 million, and 86% expect their income to increase by his 10% in the next two years. Meanwhile, 77% of creators reported an unspecified increase in income over the past two years.
“In the world of digital marketing, getting a few minutes of a consumer's attention is a big challenge, but creators can continually grab attention with their creativity,” said Anurag Iyer, CEO, Big Bang Social. states. “India's 'heroes' are more accessible, diverse, knowledgeable and influential than ever before. ”
While marketers cite determining the ROI of influencer campaigns as their biggest challenge, influencers are focused on building loyal audiences and maintaining credibility.
