Highlighting the influencer marketing trends in India, the latest report by EY and Collective Artists Network’s Big Bang Social indicates that the industry is poised for significant growth.
The report titled 'The State of Influencer Marketing in India', states that influencer marketing in India is expected to surge by 25 per cent in 2024, reaching Rs 2,344 crore, and further expand to Rs 3,375 crore by 2026. These projections underscore the continued growth and immense potential of the influencer marketing industry, presenting ample opportunities for brands, marketers, and influencers alike.
The report highlights a crucial insight: with 50 per cent of mobile usage dedicated to social media platforms, integrating influencer marketing into communication strategies is essential for marketers. In addition, it is expected that there will be 740 million active smartphones in India by 2030. Consequently, 3 out of 4 brand strategies are expected to include influencer marketing. Brands prioritise engagement rate and the quality of the target audience when selecting influencers, recognising the importance of authentic connections in reaching their desired audience.
Reflecting on the key findings of the report, Amiya Swarup, Partner, Marketing Advisory, EY India, said, “In today's rapidly changing Indian society, citizens face transformations in various aspects, be it societal norms, career paths, financial strategies, or cultural shifts. 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.”
Anurag Iyer, CEO, Big Bang Social, said, “In the world of digital marketing, where getting 2-3 minutes of attention from a consumer is a massive challenge, creators are able to capture undivided attention with their creativity.”
The report further reveals that the growth of influencer marketing is anticipated to be driven by lifestyle, fashion, and beauty categories. Further insights from the survey indicate that sectors such as automobiles, e-commerce, and FMCG are expected to increase spending on influencer marketing the most.
It was found that marketers must strike a strategic balance between mega- and macro-influencers to drive awareness and brand loyalty while also tapping into the power of micro- and nano-influencers to drive engagement. Interestingly, nanoinfluencers had the highest engagement rate compared to other influencer categories. It is important to note that 47 per cent of brands preferred driving influencer campaigns with micro and nano influencers due to the lower cost per reach.
Challenges were reported from both the brand side and the influencer side. The biggest challenge for marketers was determining the ROI of their influencer marketing campaigns, while building a loyal audience and maintaining credibility were the top two challenges for influencers.
