India's influencer marketing industry to hit ₹34 billion by 2026
India's influencer marketing industry is projected to surge from ₹19 billion in 2023 to a staggering ₹34 billion by 2026, as per a recent FICCI EY report. This robust growth is attributed to widespread digitization, increased internet access, as well as high social media penetration. The report also underscores the emergence of regional and micro-influencers who are expected to be compensated, based on the specific outcomes their content generates, such as brand sales.
Influencers outperform traditional advertising
Tusharr Kumar, COO of OML Entertainment, emphasized that influencers are "uniquely positioned to provide audiences with exactly what they want compared to brand-led advertising." He observed that the conventional celebrity space in advertising and entertainment has broadened to incorporate creators and influencers. Brands are now frequently collaborating with these influencers on regular content creation and product launches, allocating special teams and budgets for this purpose.
Shift toward region-specific influencers
Rushabh Shah, lead of paid collaboration at OPPORTUNE, highlighted the shift from macro influencers to region-specific influencers who have a strong influence within a particular geographic area. Barcode founder Rahul Khanna added that influencer partnerships are cost-effective and reach the right audiences. He also noted that influencers are adept at creating stories that resonate with audiences and go viral.
Creator economy essential for multinationals
Vijay Subramaniam, founder and CEO of Collective Artists Network, suggested that as more multinational corporations recognize the importance of the creator economy, this segment could become essential for larger corporations. He also predicted an increase in creators from beyond the top 10 metros making their presence felt. Influencers are exploring emerging categories such as sustainable living, mental health advocacy, or digital wellness through partnerships with relevant groups and enterprises, according to Mayank Vora, co-founder of Logicloop.
Niche platforms gaining popularity among Indian influencers
Apart from Instagram and YouTube, niche platforms like Snapchat and Moj, are gaining popularity in the Indian influencer market, especially among younger audiences. Pranav Agarwal, co-founder of SW Network, noted that platforms like Reddit and Discord are becoming fast popular for gaming influencers and communities. Industry experts also highlighted the shift toward a performance-based remuneration model for influencers, with smaller influencers demanding an equitable chance based on results.
