Brands to focus on in-house teams to drive influencer marketing in India
A recent EY report on influencer marketing in India states that brands are evolving their in-house teams to drive influencer marketing, while simultaneously engaging with the agencies.
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Highlighting the influencer marketing trends in India, the latest report by EY and Collective Artists Network’s Big Bang Social indicates that the industry is poised for significant growth.
Influencer marketing in India is expected to surge by 25 percent in 2024, reaching Rs 2,344 crore, and further expand to Rs 3,375 crore by 2026, according to the 'The State Of Influencer Marketing in India' report.
These projections underscore the continued growth and immense potential of the influencer marketing industry, presenting ample opportunities for brands, marketers, and influencers alike.
The report highlights a crucial insight: with 50 percent of mobile usage dedicated to social media platforms, integrating influencer marketing into communication strategies is essential for marketers. In addition, it is expected that there will be 740 million active smartphones in India by 2030. Consequently, three out of our brand strategies are expected to include influencer marketing.
Brands prioritize engagement rate and the quality of the target audience when selecting influencers, recognizing the importance of authentic connections in reaching their desired audience.
Marketers are leveraging both large/macro and micro/nano influencers equally, and brand ambassadors and influencers are significantly influencing purchase decisions. Instagram and YouTube emerged as the top choices for consuming content from influencers, although they utilize several other platforms for specific purposes. Lifestyle, fashion and beauty are poised to propel the growth of influencer marketing, with categories characterized by a profound personal connection reaping the greatest benefits from this strategy.
Agencies are playing a pivotal role in executing influencer marketing strategies with 77 percent of brands expressing confidence in their agencies’ capability to effectively manage influencer marketing campaigns.
The report states that marketers should collaborate with agencies that prioritize authentic, data-driven influencer strategies, offer real-time monitoring and insights, and prioritize brand safety.
However, brands are also evolving their in-house teams to drive influencer marketing, while simultaneously engaging with the agencies.
Other key insights:
Seventy-five percent brands are expected to consider influencer marketing as part of their marketing strategy.
Fifty-six percent of the brands invested more than 2% on influencer marketing.
Seventy percent 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 percent.
Seventy-seven percent brands believe that their agencies are fairly equipped to drive influencer marketing campaigns.
Seventy-one percent of brands engage with influencers on a fixed fee model and 29% are exploring performance linked models to drive influencer accountability.
Seventy-seven percent 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.
