Influencer marketing spends by brands expected to cross Rs 1,500 Cr in 2023

With influencer marketing becoming an integral part of the marketing mix of most advertisers, the spend on creators by brands is set to cross Rs 1,500 crore in 2023, states a recent report by GroupM. In its This Year Next Year (TTYNY) Adex report, the WPP-owned media agency says that it sees the influencer marketing industry leading to the growth of creators across different subjects like fashion, beauty, personal finance, current affairs, food, arts, entertainment, music and dance, emerging from across the country.

“Creators from smaller towns are building large audiences and brands are recognising their impact in connecting with the consumer in Tier 2 and 3 markets,” the report notes.

It highlights that influencer marketing will move from a test-and-learn model to becoming an integral part of the marketing mix of large consumer brands. This is reflected in the alignment of consumer companies with influencer marketing agencies on record.

“Clients are expecting scientific planning, as well as higher accountability and agencies like GroupM, have led the investments into planning tools like Inca that bring science and accountability in campaign planning as well as influencer selection. Inca is also collaborating with marketing science researchers to build a measurement model for campaign effectiveness,” GroupM says in the report findings.

The influencer content will be guided by the new guidelines from the Ministry of Corporate Affairs for influencers & celebrities which will also build transparency & credibility in the use of influencer marketing by brands.

Apart from advertisers, creators and influencers are moving from endorsing other brands to launching their own labels or brands, leveraging their connections with their followers.