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Business News/ Brand Stories / India’s surging influencer marketing industry to hit 3,375 cr by 2026
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India’s surging influencer marketing industry to hit ₹3,375 cr by 2026

The growth of influencer marketing is anticipated to be driven by lifestyle, fashion, and beauty categories. Sectors such as automobiles, e-commerce and FMCG are expected to increase spending on influencer marketing the most.

56% of the brands have already invested more than 2% on influencer marketing, and 70% of brands plan to keep their influencer marketing budget the same or increase it in 2024, with half planning to increase it by up to 10%. (Photo: Getty)Premium
56% of the brands have already invested more than 2% on influencer marketing, and 70% of brands plan to keep their influencer marketing budget the same or increase it in 2024, with half planning to increase it by up to 10%. (Photo: Getty)

With the digital landscape evolving rapidly, India's influencer marketing industry is poised for exponential growth. Recent projections indicate a remarkable surge, with three-quarters of brand strategies prioritizing influencer marketing as a pivotal component. 

Anticipated to grow by 25% in 2024, reaching 2,344 crore, this dynamic sector is forecasted to expand even further, soaring to 3,375 crore by 2026.

According to a report by professional services network EY and Big Bang Social, the creator marketplace owned by talent management agency Collective Artists Network, 56% of the brands have already invested more than 2% on influencer marketing, and 70% of brands plan to keep their influencer marketing budget the same or increase it in 2024, with half planning to increase it by up to 10%. 

The report says 71% of brands engage with influencers on a fixed fee model and 29% are exploring performance linked models to drive influencer accountability. It also says 77% of influencers reported income growth in the past two years and 86% of influencers expected over 10% increase in their income over the next two years.

“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," Amiya Swarup, partner, marketing advisory, EY India said in a statement.

The growth of influencer marketing is anticipated to be driven by lifestyle, fashion, and beauty categories. Sectors such as automobiles, e-commerce and FMCG are expected to increase spending on influencer marketing the most.

“It is heartening to see that brands are recognizing the potential of the creator economy and are increasingly investing in influencer marketing, with sectors like FMCG, automobiles and consumer durables leading the way," Vijay Subramaniam, group CEO and founder, Collective Artists Network said in a statement.

It was found that marketers must strike a strategic balance between mega or macro influencers to drive awareness and brand loyalty, while also tapping into the power of micro or nano influencers to drive engagement. Micro or nano influencers often create content in regional languages and may be used for regional, niche brand promotions.

Interestingly, nano influencers had the highest engagement rate compared to other influencer categories with 47% of brands preferring driving influencer campaigns with micro and nano influencers due to the lower cost per reach.

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ABOUT THE AUTHOR
Lata Jha
Lata writes about the media and entertainment industry for Mint, focusing on everything from traditional film and TV to newer areas like video and audio streaming, including the business and regulatory aspects of both. She loves movies and spends a lot of her free time in theatres, which makes her job both fun and a bit of a challenge given that entertainment news often just talks about the glamorous side of things. Lata, on the other hand, tries to find and report on themes and trends in the entertainment world that most people don't notice, even though a lot of people in her country are really into movies. She’s a graduate of the Columbia School of Journalism.
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Published: 02 Apr 2024, 02:34 PM IST
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