CHENNAI: The influencer marketing industry’s value is estimated to grow at a compound annual growth rate of 25 percent over the next five years to reach Rs. 2,200 crore by 2025 from Rs 900 crore in 2021. The projected meteoric rise of the industry can be attributed to the steep growth in the number of creators and the increasing partnerships between brands and creators to deliver compelling, relatable story-telling content to the target audience.
The Influencer Marketing Report 2022 was released by Influencer.in, an influencer marketing platform and an initiative by Social Beat, to provide insights on how influencer marketing has become one of the most important channels that big brands are leveraging as part of their digital marketing.
The report is based on over 500+ survey responses by Indian content creators, and over 60 marketers in the April to June period of this year.
Suneil Chawla, co-founder, Social Beat, said on the launch of the report, “We were ahead of the curve in launching Influencer.in, and these trends confirm our belief that this industry is integral to digital marketing. For, we foresaw that content across multiple platforms, video content and story-telling in regional languages will gain traction with growth in devices and Internet access. We were confident that influencers across the spectrum, irrespective of their size, will be in demand from brands based on their style, specialty and content. While video content is the preferred form of content due to its story-telling potential, the emergence of new social media tools is something to watch out for.”
Today, 61.2% of all brands recognise the power of influencer marketing to tap into a newer audience pool to boost brand awareness. Larger organisations have recognized influencer marketing as integral to their digital marketing strategies, while smaller organizations recognise its importance, but are yet to invest significant resources into influencer marketing.
According to the report, 50 per cent of marketers stated that they spend up to 10 per cent of their digital marketing budget on influencers annually. While 10 per cent of the respondents dedicate over 40 per cent of their annual digital marketing budget to influencer marketing.
Instagram is most used by content creators, who are leveraging content formats such as reels to expand their reach. Around 36.9 per cent of brands rely on Instagram for their dedicated influencer marketing efforts. YouTube has 20.6 per cent of brands relying on long-form video content on the platform. Facebook continues to be popular, with 18.7 per cent of brands using it for influencer marketing.
Although many short video platforms such as Josh (1.9 per cent), ShareChat (2.3 per cent), MX Takatak (2.8%) are emerging, they are still way behind Instagram and YouTube.
Snapchat and Moj are becoming popular with content creators with 17.79 per cent of them on Snapchat and 8.53 per cent on Moj. Brands leveraging their product or service through influencers on these platforms can help them create brand awareness and engagement, educate users about their product or service, drive incremental revenue via conversions or target a niche audience.
Speaking about the report, Arushi Gupta, head, Influencer.in, said, “Instagram, YouTube and Facebook continue to be the preferred platforms for most creators. Short-form videos account for the largest pie of content at 33.8 per cent, carousel posts/videos account for 25.8 per cent of content, statics account for 24 per cent and long-form videos account for only 15.7 per cent of content. It will be interesting to see how influencers adapt their content to emerging short video platforms. As the market evolves, we will continue to make Influencer.in the most technologically advanced platform for ease of use, verified creator profiles, analytics, and reporting for both brands and creators.”
The report also throws up some interesting insights about how both brands and influencers approach collaborations. While brands choose influencers that resonate and amplify the brand’s essence, influencers too are increasingly discerning about the collaborations they do. Established content creators make consistent efforts to build an audience base who trusts them, so they are looking for quality, relevant and meaningful collaborations.
Another interesting insight is how brands and creators are looking at collaborations. While 58 per cent of brands prefer working with an influencer for an average duration of one month doing short term promotions, 91 per cent of influencers are looking for a long-term relationship. Some brands such as SnapDeal, TataCliq, BharatMatrimony, Jupiter, Dhani, Gamezy, have understood the value of long term collaborations and entered into long-term contracts with influencers. (ANI/NewsVoir)