Influencer Marketing In India Expected To Rise 25%, Reach Rs 3,375 Crore By 2026: Report
The report also found that nano influencers had the highest engagement rate compared to other influencer categories.
The influencer marketing industry in India is poised for growth. It is expected to increase by 25% in 2024, reaching Rs 2,344 crore and further expand to Rs 3,375 crore by 2026, a report by EY and Collective Artists Network’s Big Bang Social showed.
The projections highlight the growth and potential of the influencer marketing sector, presenting opportunities for brands, marketers and influencers.
With 50% of mobile usage dedicated to social media platforms, integrating influencer marketing into communication strategies is important for marketers, the report noted. It is expected that there will be 740 million active smartphones in India by 2030. Hence, three out of four brand strategies are expected to include influencer marketing.
“Influencers are stepping in to provide guidance, reassurance and advice, effectively assuming the role of contemporary heroes. Coupled with the projected growth in influencer marketing, it's clear that influencers now define an unprecedented era of knowledge and impact, while also unlocking vast opportunities for brands and marketers,” said Amiya Swarup, partner, marketing advisory, EY India.
The growth of influencer marketing is anticipated to be driven by lifestyle, fashion and beauty categories. According to the report, sectors such as automobiles, e-commerce and fast-moving consumer goods are expected to increase spending on influencer marketing the most.
“Brands are recognising the potential of the creator economy and are increasingly investing in influencer marketing, with sectors like FMCG, automobiles and consumer durables leading the way,” said Vijay Subramaniam, group CEO and founder, Collective Artists Network.
The report also found that nano influencers had the highest engagement rate compared to other influencer categories. Around 47% of brands preferred driving influencer campaigns with micro and nano influencers due to the lower cost per reach.
The biggest challenge for marketers was determining the return on investment of their influencer marketing campaigns, whereas building a loyal audience and maintaining credibility were the top two challenges for influencers.
Other key report findings include:
Instagram and YouTube are the most preferred platforms for consuming content.
75% brands are expected to consider influencer marketing as part of their marketing strategy.
56% brands invested more than 2% on influencer marketing.
70% brands plan to keep their influencer marketing budget the same or increase it in 2024, with half planning to increase it by up to 10%.
77% brands believe that their agencies are fairly equipped to drive influencer marketing campaigns.
71% of brands engage with influencers on a fixed fee model and 29% are exploring performance-linked models to drive influencer accountability.
77% of influencers reported income growth in the past two years and 86% of influencers expected over 10% increase in their income over the next two years.
