India's influencer industry to touch Rs 10,750 crore by 2027

India's influencer industry is estimated to reach INR 5,500 crore in 2024, representing 11% of the overall digital media industry. It is expected to grow at 20% in 2024 and 25% annually from 2024 to 2026, according to ‘The Influencer Marketing Report 2024’ (IMR 2024), released by Influencer.in.

Becoming an essential part of the marketing mix of brands in the last five years, the country's influencer marketing industry is predicted to touch INR 6,875 crore by 2025, and reach INR 10,750 crore by 2027, the report further mentioned.

Based on a survey of over 100 brands and responses from over 500 creators and influencers, the report examined what makes influencer marketing successful and took a look at how this category will shape up shortly. It throws light on a many other trends in this industry segment. For instance, among social media channels, Instagram has emerged as the top choice for both, creators and brands, it observes.

Collaborative approach needed

As per the report, YouTube Shorts is underutilised by brands. Despite that, it sees a high 75% adoption by creators generating short-form content for audience engagement for this medium.

On the other hand, the low adoption of LinkedIn among creators at 4.4% contrasts with 19.5% of brands using it for influencer marketing. Brands, the report stated, may consider onboarding and educating creators about LinkedIn, especially those who are capable of delivering professional quality content.

Today, over 40% of brands spend more on influencer marketing, but influencers feel that budget constraints limit partnerships. This highlights a need for brands to move beyond transactional relationships, recognising the power of creators, and empowering them with creative freedom. Creators should align with brand objectives while showcasing their unique value proposition for more authentic, engaging campaigns, the report said.

Commenting on this need for collaboration between brands and influencers and creators, Arushi Gupta, business head, Influencer.in, said, “Both influencers and brands share the goal of building authentic connections with audiences. Influences seek long-term collaborations to maintain and enhance their credibility and engagement.”

Brands, according to her, aim to partner with influencers who can deliver high-quality content and align with their brand values enhancing overall campaign effectiveness. “There is a mutual aspiration for transparency, accountability and leveraging emerging opportunities such as influencer analytic tools,” she noted.

Suneil Chawla, co-founder, Social Beat and Influencer.in, said, “Challenges persist from a return of investment measurement to platform algorithms. But the growth opportunities are vast.”

By embracing trends like the rise of micro-influencers, leveraging dominant platforms like Instagram, YouTube, and Linkedin, and using influencer analytic tools effectively, brands and creators can continue to thrive in the influencer marketing space, Chawla said.

Staying adaptable, innovative, and aligning with the values of an increasingly discerning audience will prove to be the key to future success, according to Chawla.