Influencer marketing in India poised to reach $3.5 bn by 2028text_fields
New Delhi: Influencer marketing in India is projected to be valued at $2.8-$3.5 billion in 2028, driven by the growing number of social media influencers who are being utilized by brands to enhance product promotion and capitalize on their credibility, a recent report has revealed.
Over the past 12 months, influencer marketing has gained significant momentum, enabling brands to effectively expand their reach to target audiences.
Redseer Strategy Consultants estimates that India's influencer marketing ecosystem consists of approximately 3.5 to 4 million influencers (accounts with over 10,000 followers).
“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,” said Mukesh Kumar, associate partner at Redseer.
“Simultaneously, influencers often encounter difficulties in achieving price transparency and securing favourable deals. The advent of emerging models, such as creator marketplaces, holds significant potential in resolving these challenges,” he added.
Redseer estimates that the number of Internet users in India is set to cross 1 billion landmark by the end of the decade.
As engagement of these users across internet platforms increases, digital ad spending to grow steadily to $21 billion by FY28.
Most of the influencers in the Mid-tier, Micro, and Nano categories start out as hobbyists and aspiring influencers.
“Influencers are becoming the centrepiece 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 noted.