The influencer marketing industry in India is poised for growth. It is expected to grow by 25% to reach Rs 2,344 crore in 2024 and further expand to Rs 3,375 crore by 2026, according to a report by EY and Collective Artist Network's Big Bang Social. ing.
This forecast highlights the growth and potential of the influencer marketing sector, creating opportunities for brands, marketers, and influencers.
The report notes that with 50% of mobile usage dedicated to social media platforms, it is important for marketers to incorporate influencer marketing into their communications strategies. India is expected to have 740 million active smartphones by 2030. Therefore, it is expected that three out of four of his brand strategies will include influencer marketing.
“Influencers are effectively taking on the role of modern-day heroes, stepping in to provide guidance, reassurance, and advice. It is clear that this is defining an era of unprecedented knowledge and influence, while at the same time presenting enormous opportunities for brands and marketers,” said Amiya Swarup, Marketing Advisory Partner, EY India.
Growth in influencer marketing is expected to be driven by the lifestyle, fashion, and beauty categories. According to the report, sectors such as automotive, e-commerce, and fast-moving consumer goods are expected to increase spending the most on influencer marketing.
“Brands are recognizing the potential of the creator economy and increasing investment in influencer marketing, with sectors such as FMCG, automotive and consumer durables leading the way,” said Collective Artist Network. said Vijay Subramaniam, Group CEO and Founder.
The report also found that nano-influencers have the highest engagement rate compared to other influencer categories. Around 47% of brands preferred to use micro and nano influencers to drive their campaigns due to lower cost per reach.
The biggest challenge for marketers was determining the return on investment for influencer marketing campaigns, while building a loyal audience and maintaining credibility were the top two challenges for influencers.
Other important report findings include:
-
Instagram and YouTube are the most preferred platforms for consuming content.
-
It is estimated that 75% of brands are considering influencer marketing as part of their marketing strategy.
-
56% of brands invested 2% or more in influencer marketing.
-
70% of brands plan to maintain or increase their influencer marketing budgets in 2024, with half planning to increase them by up to 10%.
-
77% of brands believe their agencies are well-equipped to drive influencer marketing campaigns.
-
71% of brands engage with influencers on a fixed fee model, and 29% are considering performance-linked models to drive influencer accountability.
-
77% of influencers report an increase in their income in the past two years, and 86% of influencers expect their income to increase by 10% or more in the next two years.
