Brands to spend INR 500 crores on influencers for Diwali sales: Report

Brands are likely to spend over INR 500 crores on influencer marketing during Diwali, indicating the growing importance of influencers in driving festive sales. This was revealed in ‘Diwali Festive Report 2024: Insights from influencer marketing’ released by Qoruz, an influencer marketing platform.

The report finds that the traditional advertising has seen a decline, with television ads dipping by 4.4% and print ads by 10%. Influencer marketing, on the other hand, has demonstrated 11 times greater return on investment (RoI), and a 21% annualised rise in spending during the recent past.

The report also noted a noticeable change in consumer engagement. During the festive season of 2023, 22,000-plus influencers created about 67,000 posts. About 80% of Diwali shoppers were engaged through influencer campaigns last year, with millennial-targeted content proving 1.5 times more effective.

With 53% of shoppers preferring content in their local languages, regional content has emerged as a crucial aspect this year. This trend is prompting brands to increase their localisation efforts to improve sales conversions. The report points to a key opportunity for brands in tier-2 and tier-3 towns with nearly five crore shoppers driving high influencer engagement in these areas.

Stating that the micro- and nano-influencers have proved effective in the fashion category, the report mentioned that Amazon leads with 205 influencers achieving a 2.85% engagement rate, while Libas, despite fewer influencers, maintains 2.02% engagement rate. In food sector, Domino’s 839 influencers helped it achieve 2.65% consumer engagement rate.

Home décor campaigns have found success in Bengaluru, with Pepperfry leading the category. The brand’s 433 influencers achieved 4.63% engagement rate, surpassing the brands like Ikea India and H&M Home.

Consumer spending patterns reveal diverse priorities, with food and grocery accounting for 13% of consumer spends, followed by textiles and garments at 12%, and jewellery at 9%. Electronics, cosmetics, and gift items also feature as key categories in festive shopping.

Prominent e-commerce platforms have reported success with their Diwali influencer marketing campaigns of 2023. Amazon’s #DeliverTheLove campaign achieved a 6.5% engagement rate on Instagram and YouTube, resulting in a 15% increase in Diwali sales, especially in electronics and home décor categories. The campaign effectively positioned Amazon as a top destination for festive shopping by leveraging influencers to showcase thoughtful gifting options.

Myntra’s #MyntraBigFestiveSale campaign recorded a 7.5% engagement rate across platforms driving 25% rise in app traffic and sales. The campaign hashtag was used over six lakh times, with macro- and micro-influencers showcasing festive looks and exclusive discounts.

The shift towards influencer marketing is supported by consumer trust data, with 66% of shoppers preferring influencers’ recommendations over traditional advertisements. This trend is in line with the decline in the share of television and print in overall advertising.

The Qoruz report indicates that brands are moving beyond reach metrics, focusing instead on creating meaningful relationships with consumers through targeted, culturally relevant content. This strategy appears to be paying dividends, with influencer marketing emerging as a crucial tool for brands seeking to build trust and loyalty during the festive season.

Aditya Gurwara, co-Founder at Qoruz, emphasised the importance of authentic connections. “This Diwali season, we’re seeing a real shift in how consumers are engaging with content. Influencers who speak in regional languages are forming deeper connections because they feel more relatable and genuine to their audiences,” he said.