India in recent years has presented itself as a land of opportunities, be it Bollywood, or online content creation. Following the same pattern India is expected to see growth of 25% by 2026 in the influencer marketing industry, according to a joint report by EY and Collective Artists Network’s Big Bang Social. That means the projected value of the industry is estimated to be around Rs 3,375 crore. Currently, the value of the industry is 2,344 crore. This projection highlights the increasing impact of Influencer marketing on brand strategies.
This report attributes the expansive use of social media by mobile users. Over half of all mobile phone usage in India is dedicated to social media platforms, the same trend is expected to cover 740 million active smartphones expected in India by 2030. Consumers rely on social media for information and recommendations and Influencers are seen as interesting sources, which enables businesses to generate trust and brand loyalty when promoted by influencers.
Commenting on the findings of the report, Amiya Swarup. Partner, Marketing Advisory, EY India, emphasized the evolving role of influencers in modern society. “Influencers are stepping in to provide guidance, reassurance, and advice, effectively assuming the role of contemporary heroes,” Swarup stated. “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.”
The report underscores the increasing adoption of influencer marketing among brands, with 75% expected to incorporate it into their marketing strategies, Notably, 70% of brands plan to maintain or increase their influencer marketing budgets in 2024, with half of them intending to boost spending by up to 10%. This trend reflects the growing recognition of influencer marketing’s effectiveness in driving brand awareness, engagement, and sales conversion.
Vijay Subramaniam, Group CEO and the founder of Collective Artists Network highlighted the expanding role of influencers in driving consumer engagement across various sectors.”It is heartening to see that brands are recognizing the potential of the creator economy and are increasingly investing in influencer marketing,” He also stated, “ Sectors like FMCG, automobiles, and consumer variables are leading the way.”
The report also sheds light on the strategic approach adopted by brands in leveraging influencer marketing. Marketers are increasingly relying on a mix of macro and nano influencers to achieve their marketing objectives. While macro-influencers are instrumental in driving brand awareness and loyalty, non-influencers with smaller groups of followers offer higher engagement rates at a lower cost per reach. Estimatedly, 47% of brands prefer collaborating with micro and nano influencers due to these advantages.
Anurag Iyer, CEO of Big Bang Social, emphasized the unparalleled creativity of influencers capturing consumer attention in the digital age. “In the world of digital marketing, where getting 2-3 minutes of attention from consumers is a massive challenge, creators can capture undivided attention with their creativity,” Iyer explained.
