Influencer marketing to surge to Rs 3,375 crore by 2026: report
The report by EY and Collective Artists Network’s Big Bang Social also said 3 out of 4 brands are expected to include influencer marketing in their communication strategies.
Influencer marketing in India is expected to grow 25% in 2024 and reach Rs 2,344 crore. It is also poised to expand to Rs 3,375 crore by 2026, according to a report by EY and Collective Artists Network’s Big Bang Social.
The report titled 'The State of Influencer Marketing in India' says that with 50% of mobile phone usage dedicated to social media platforms, it is essential for marketers to integrate influencer marketing with their communication strategies. There will be 740 million active smartphones in India by 2030. As a result, 3 out of 4 brands are expected to include influencer marketing in their strategies, said the report.
Instagram and YouTube are the most preferred platforms for content consumption, while lifestyle, fashion, and beauty are the top categories that will drive influencer marketing.
"Categories with a deep personal connection benefit the most from influencer marketing," states the report.
Sectors such as automobiles, e-commerce and FMCG are expected to increase spending on influencer marketing.
The report reflects the findings from a survey of CMOs, creators, agencies, and individuals.
As per the survey, 77% of influencers reported income growth in the past two years; 86% of influencers expect a 10% in their pay in the next two years.
"I see more media monies going into this [influencer marketing] ... also I see a shift from being a pure reach-based business to an engaged business model which means it's not going to be about hoarding on digital and more about engagement and interactivity," Vijay Subramaniam, Group CEO and Founder, Collective Artists Network told YourStory.
Subramaniam also sees influencers becoming distribution networks and not just advertising networks in future.
Commerce, which includes white-label products and affiliate commerce, is likely to be the next frontier for the influencer market, he noted.
EY is a global organisation offering assurance, tax, strategy, transactions and consulting services. Big Bang Social is a creator super-app from the talent management agency Collective Artists Network.
Edited by Swetha Kannan