‘Influencer marketing to be ₹3,400 cr industry by 2026’
India’s influencer marketing industry is expected to swell to ₹3,400 crore by 2026, from ₹1,900 crore in 2023, as businesses increasingly turn to social-media influencers to drive sales and deepen brand connect, a recent Ficci-EY report said.
While Instagram and YouTube are the platforms of choice, smaller platforms such as Snapchat will also increasingly be used to reach out to niche audiences.
Massive digitization, a surge in internet access and high social media penetration have all fuelled growth in consumer affinity to influencer marketing. However, with the growth of regional and microinfluencers, the stage is set for these creators to start receiving compensation based on how individual posts and videos drive specific outcomes like, say, brand sales.
“Influencers are uniquely positioned to provide audiences with exactly what they want compared with brand-led advertising. The space of celebrity-hood in the world of advertising and entertainment that was primarily dominated by actors, sportspeople, models, musicians and so on, has given way to include people who started their careers as creators and influencers,” said Tusharr Kumar, chief operating officer of media and entertainment organization OML Entertainment.
Brands are working with influencers to create regular content and collaborate on product launches, with dedicated teams and budgets for influencers, said Rushabh Shah, lead, paid collaboration at OPPORTUNE, a datadriven influencer-marketing platform. Instead of solely focusing on macro influencers, brands are now tapping into the power of region-specific influencers who hold a strong sway within a particular geographic area, Shah said.
“Brands and streaming platforms are fully embracing influencer partnerships. They’re cost-effective, reach the right audiences, and feel genuine—like receiving recommendations from a friend,” Rahul Khanna, founder of influencer marketing agency Barcode, said. While influencers are already reaping the benefits of social e-commerce, gifting, subscription-based content and livestream shopping, there could also be an increase in offline communities that come together thanks to online conversations, such as health and fitness groups.
Mayank Vora, co-founder of digital marketing agency Logicloop, said influencers can explore emerging sectors such as sustainable living, mental health advocacy... and eco-friendly enterprises.
To be sure, apart from Instagram and YouTube, several niche platforms are gaining popularity in the Indian influencer market.
Apps like Snapchat, and Moj are making waves, especially among younger audiences of different niches by offering short-form video content and augmented reality filters.
“Additionally, platforms like Reddit and Discord are becoming increasingly popular for gaming influencers and communities,” said Pranav Agarwal, co-founder, SW Network (Sociowash), a digital marketing agency.
Industry experts point out that currently, brands typically evaluate influencers based on several key metrics, including the influencer’s audience demographics, views, average engagement rate, likes, and comments.
However, as competition heats up, the revenue model is pivoting towards performance and smaller influencers are demanding an equitable chance with a focus on results, Mitesh Kothari, co-founder and chief creative officer at digital agency White Rivers Media, said.
While Instagram and YouTube are the platforms of choice, smaller platforms will also be used to reach niche audiences