Influencer marketing industry projected to be worth $2.8 - 3.5 Bn by 2028: Redseer report
Influencer marketing has gained much momentum in last 12 months as it helps brand improve its reach to their target audience more effectively. With an estimated 3.5 to 4 Mn influencers to choose from, brands need a robust solution to discover and engage with the right influencers and overcome existing challenges in the market.
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Social media influencers have taken over influencer marketing by storm. What was once a domain mostly limited to mainstream celebrities is now shared by millions of social media celebrities who create relatable content tailored to their niche audiences. In a recent report, Redseer estimates that influencer marketing would be worth $2.8 – 3.5 Bn in 2028 as more brands are leveraging the credibility of influencers to promote their products.
InfluenceAccording to the report, the size of the influencer community, which ranges from 3.5 to 4 Mn influencers, presents a challenge of discoverability for the brands. To connect with influencers, brands have to wade through value chain intermediaries like marketing agencies, influencer platforms, and talent management agencies. While these intermediaries come with own set of advantages, the ecosystem could be more transparent. Consequently, the Influencer Marketplace, a fourth model in the value chain, is fast growing due to its low cost to engaging with influencers and high transparency.
Commenting on the current scenario, Mukesh Kumar, Associate partner at Redseer, adds, “One of the primary challenges in influencer marketing is the effective matching of influencers with the specific campaign requirements of brands, along with the ability to accurately assess influencer engagement metrics. Simultaneously, influencers often encounter difficulties in achieving price transparency and securing favorable deals. The advent of emerging models, such as creator marketplaces, holds significant potential in resolving these challenges.”
Influencer marketplace as a self-serve tech solution becomes more crucial for brands and influencers as the industry matures. Redseer estimates that the number of Internet users in India is set to cross 1 Bn landmark by the end of the decade, and as engagement of these users across internet platform increases, digital ad spends to grow steadily to $21 Bn by FY28. The report continues that video will be the digital ad format driving the growth as an increasing number of users show a preference towards video content, especially User Generated content (UGC), and social media influencers are at the helm of creating highly engaging UGC consumed by millions.
Most of these influencers in the Mid-tier, Micro, and Nano categories start out as hobbyists and aspiring influencers. “With the democratization of fame, 3.5- 4 Mn influencers have emerged in the influencer marketing ecosystem. Influencers are becoming the centerpiece of digital advertisement as UGC generates 2X more engagement than PGC. These new age celebrities have a direct connection to their followers, and the relationship is a crucial tool for advertisers.” the report adds.
While it’s a struggle to keep up with the rising costs of popular influencers, the nano (1K-10K followers), micro (10k-100K followers), and macro (100k-1Mn followers) categories of influencers offer brands a high chance of reaching their target audience effectively and deliver better return to marketing spends. However, in the current situation, discoverability and influencer fraud are key challenges associated with these three influencer categories.
Influencer marketplace is emerging as a self-serve model aimed at facilitating seamless connect between brands and influencers. It can bridge the gap in current ecosystem between brands and influencers by improving discoverability and communication while increasing transparency in payment and campaign metrics. Redseer’s survey also shows that about 74 percent of brands responded positively to their willingness to use the influencer marketplace. Furthermore, hobbyists and aspiring influencers are particularly drawn to the prospect of improved discoverability and transparent payouts, making them more likely to utilize these platforms. The report emphasizes the importance increasing awareness and adoption of influencer marketplaces. By doing so, brands and influencers can fully unlock its full potential.
