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With the trend of peddling brands over social media platforms catching up, influencer marketing is pegged to be a Rs 900 crore market in India by the end of the year, according to a report by media buyer Groupm.
The fledgling category is expected to grow 25 per cent annually to become a Rs 2,200 crore industry by 2025, the INCA India Influencer Report said.
It can be noted that with the growth in internet penetration, the proliferation of social media platforms has grown, which has been seized up by brands by engaging with influencers to push their message.
A self-regulatory body of advertisers has also come out with operating guidelines for such ”influencers”.
The influencer marketing industry is undergoing a transformation triggered by the pandemic as well as the rise of brands looking to connect with consumers directly, the Groupm report said.
Even before the pandemic, India had 400 million people on social media platforms and the number has skyrocketed during the last 18 months, it said, adding there is a shift in consumer behaviour as well.
“The key factor that has got brands interested is the bond of trust and authenticity that influencers share with their audiences, thus helping brands associate with an influencer to leverage the same,” Groupm”s chief executive for South Asia Prasanth Kumar said.
The report said top four categories – personal care (25 per cent), food and beverages (20 per cent), fashion and jewellery (15 per cent) and mobile and electronics (10 per cent)- contribute 70 per cent volume of influencer marketing.
Interestingly, celebrities corner only 27 per cent of the marketing dollars while a bulk 73 per cent are taken by influencers, it said.
Nearly two-thirds of the Indian population follow an influencer, it said.
Brands are able to interpret that influencers and creative storytelling correlate with brand differentiation, a key advantage as attention spans get shorter, the report said.
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