The influencer marketing industry in India is projected to reach Rs 3,375 crore by 2026, with a compound annual growth rate (CAGR) of 18 per cent. According to EY’s Collective Artists Networks Big Bang Social Report, influencer marketing in India is expected to grow by 25 per cent in 2024, reaching Rs 2,344 crore compared to Rs 1,875 crore in the previous year.
This growth can be attributed to the significant amount of time smartphone users spend on various social media platforms, with around 50 per cent of their time spent on social media. Instagram and YouTube are the preferred platforms for consuming influencer-created content among mobile phone users.
The popularity of influencer marketing is on the rise, with 75 per cent of brands expected to include it in their marketing strategies. Additionally, 86 per cent of influencers are forecasted to see a growth of more than 10 per cent in their income over the next two years.
Furthermore, the report reveals that 56 per cent of brands allocate more than 2 per cent of their budget towards influencer marketing. In 2024, 70 per cent of brands plan to maintain or increase their budgets for influencer marketing, with half planning to increase their investment by around 10 per cent.
When choosing influencers as brand ambassadors, brands consider factors beyond just follower count. Engagement rate, quality of target audience, industry specialization, and followers are key criteria for brands. The report also highlights the trend of using both large and nano influencers, with 47 per cent of brands preferring nano influencers due to their lower cost per reach and higher engagement rates.
Approximately 61 per cent of brands use influencers for awareness and engagement, with 32 per cent using influencer marketing for brand awareness and 29 per cent for social media engagement. Some brands also utilize influencer marketing for lead generation and sales conversion.
The growth of influencer marketing in India is expected to be driven by sectors such as lifestyle, fashion, beauty, automobiles, e-commerce, and FMCG. Amiya Swarup, Partner, Marketing Advisory, EY India, commented on the report, emphasizing the role of influencers in providing guidance and advice in today’s rapidly changing society, and the vast opportunities they present for brands and marketers.
