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Marketing Featured South Asia
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India’s influencer marketing scene on upward 25% CAGR trajectory by 2025

by Teddy Cambosa

-

September 24, 2021

GroupM-INCA-India-Influencer-Marketing-Industry

Mumbai, India – With India slowly opening to the the influencer marketing scene to allow brands to connect directly to consumers, the sector is expected to be valued at ₹2200 crores by 2025, or a 25% CAGR trajectory increase from 2021’s ₹900 crores, according to the latest report provided by INCA, the influencer and content marketing solution arm of GroupM, shows.

Part of the reason influencer marketing is thriving in the country is due to the higher preference of brands of utilizing influencers for the campaigns. According to the insights, 75% of influencer marketing campaigns feature influencers such as social media stars, while 25% only for conservative celebrity personalities.

“Social media has given normal people an opportunity to build their own brand, create communities via content. Standard influencers have more authenticity and are more relatable than traditional celebrities.Specialist and niche influencers command a high degree of authority on the topic and bring in more credibility in comparison to mass celebrities,” the company said in a press statement.

In terms of categories being most active in the sector, personal care campaigns garnered the highest percentage of particular brands tapping heavily on the type of marketing, with 25% of respondents saying. These are followed by food and beverage (20%), fashion and jewelry (15%), and mobile and electronics (10%). In sum, these industries contribute to 70% of the volume of influencer marketing in India.

“In the last two decades, digital advertising growth has accelerated and has become ubiquitous. It’s been gaining share in the marketing pie by transforming its presence at the back of advertising technology platforms such as search, commerce, social, and programmatic. Marketing technology platforms such as analytics, CRM, and CMS have also contributed to this growth journey by enabling brands to understand consumer behavior and their journey on and off the internet,” INCA said in a press statement.

The evident growth of the influencer marketing scene in India is best seen with the report’s data stating that 84% of brand marketers are leaning towards launching one influencer campaign this year, and around 81% of brands who have already launched influencer campaigns are satisfied with the ROI it brought to them.

In addition, around 75% of marketers say that influencer campaigns had a positive impact on the consideration and purchase stage of the sales funnel, and 89% of marketers said the ROI from influencer marketing was better or comparable to other channels.

For Prasanth Kumar, CEO at GroupM South Asia, the pandemic has accelerated the adoption of influencer marketing by brands, as they are making it an integral part of the brand marketing strategy and is now an important part of the company’s media mix recommendation to brands.

“The key factor that has got brands interested is the bond of trust and authenticity that influencers share with their audiences, thus helping brands associate with an influencer to leverage the same. This report is our effort to help marketers understand various aspects of influencer marketing in the country. Consumer behavior is changing at a fast pace, and we want to empower marketers with the knowledge that can help them,” Kumar stated.

Meanwhile, Ashwin Padmanabhan, president for partnerships and trading at GroupM India, commented that the objective of their report was not only to quantify the industry but also attempted to define and standardize the various formats and industry terms. 

“Influencer marketing industry is at a point of inflection and can take off, subject to the industry initiating to measure, quantify and make investments in influencer marketing accountable. We hope this report will catalyze the industry and ensure the power of influencers is harnessed effectively,” Padmanabhan added.

Related Tags Social Media Influencer Marketing India INCA Campaign GroupM Market Report
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