Influencer marketing has become an essential component of any brand’s marketing strategy. When a social media content creator goes viral or engages a significant audience with their content, businesses capitalise on this traction by collaborating with them. The question arises, are influencers worth the hype, or does their brand value fade over time? “The world of online influence has exploded in recent years, with more creators than ever sharing their passions and ideas. Several factors have fueled this boom. First, new platforms such as TikTok have made it easier for individuals to build a following and reach a wide audience. Second, there is growing brand interest, with companies increasingly partnering with creators to connect with audiences more personally and engagingly. Lastly, being a content creator or influencer has become a viable full-time career path for many, further contributing to the expansion of this digital landscape,” Gautam Madhavan, founder and CEO, Mad Influence, told BrandWagon Online.
According to a recent report by EY, influencer marketing is expected to grow by 25% in 2024, reaching Rs 2,344 crore. The sector is further expected to reach Rs 3,375 crore by 2026. Additionally, 56% of the brands invested more than two percent in influencer marketing and 75% of brands consider influencer marketing as part of their marketing strategy. “Influencer marketing has been adopted across various industries, with significant annual spending in sectors including e-commerce, FMCG, white goods, and others. Additionally, the platform-wise adoption of influencer marketing by brands demonstrates a diverse range of platforms utilised, with Instagram leading the way followed by YouTube, Facebook, Twitter, LinkedIn, and Homegrown Short-Video Platforms,” Sreeram Reddy Vanga, CEO and co-founder, Kofluence, said.
The report further highlighted that 73% of influencers work less than 10 hours a week in India, compared to up to 39 hours abroad, and 86% of influencers expected an over 10% increase in their income over the next two years. Experts believe that with more consumers turning to social media platforms for product recommendations and information, brands allocate more of their marketing budgets toward influencer partnerships.
Viral Fever!
Anything can go viral on social media, it is believed that one can never estimate the nature of content that gets the masses’ attention. As per the EY report, categories with a deep personal connection benefit the most from influencer marketing. Lifestyle, fashion, and beauty will drive the growth of influencer marketing. Yet, there are times when such videos fail to grab viewers’ attention. Not to mention, the biggest challenge for marketers is determining the return-on-investment (RoI) of their influencer marketing campaigns. Interestingly, a few brands claimed to have cracked the code on it. “Denver has a robust influencer strategy, we use varied tactics for optimum results. Broadly Performance and Non-Performance plans have varied and differentiated metrics to track. While awareness is more views and engagement-driven traffic or sales is more CPC (cost-per-click) and CTR (click-through rate) driven. Quality of association matters, it varies with agenda and target consumer base. Inspiration and aspiration build well using relevant faces and personas,” Aditya Yadav, brand manager, Denver, HSPL, said.
Meanwhile, influencers claim to maintain quality in their content which further helps to uphold their brand value. “I try to provide value to brands by giving them quality content for their promotions, which helps to get more brand deals and organic audience reach. Over the years, my income, and lifestyle have upgraded,” Dhiraj Sanap, social media content creator, said.
In an overly saturated market, there are millions of influencers and this number is growing only day by day. As a result, the report stated that 61% of the brands focus on driving awareness and engagement through influencers. Moreover, the engagement rate and the quality of the target audience were the top reasons behind the selection of any influence. “I create my brand value or vision through an authentic lens. This means that I highlight those brands and activations that excite me. I have always liked creating visual poetry and being a part of stories that brands continue to develop,” Rahi Chaddha, fashion influencer and model, said.
Interestingly, influencers have been segregated between mega, macro, micro and nano. As per the EY report, a mega influencer has more than one million followers with an engagement rate of more than two percent. There are about 7,000 such mega influencers currently. However, 47% of brands preferred driving influencer campaigns with micro and nano influencers due to lower cost per reach Nano influencers had the highest engagement rate compared to other influencer categories. “Influencer marketing data is measured using both quantitative and qualitative analysis. We employ an array of measures to provide brands with a 360-degree perspective on influencer selection and marketing, such as audience characteristics, metrics for engagement, content quality, and brand allegiance,” Sonalika Pawar, founder and CEO, Bold & Beyond, said.
In the meantime, influencers claim that increasingly brands have become conscious of RoI, hence the virality factor is not the only thing that matters anymore. “We understand that audience attention can quickly shift. Therefore, we strive to create different intellectual properties (IPs) during our peak fame to sustain momentum and remain relevant over the long term. This is why celebrities and influencers often venture into entrepreneurship, creating alternate career paths for themselves,” Sanap highlighted.
Brand ambassadors versus influencers
To be sure, brand ambassadors and influencers play an extremely important role in purchase decisions. The report further stated that celebrity brand ambassadors account for 35% effectiveness in terms of mediums in driving purchase decisions. Sponsored content by influencers affects 34% of shoppers and lastly, 31% of consumers make purchase decisions while shopping on e-commerce sites. This indicates that the lines of influence between influencers and celebrities have blurred. “Denver targets audiences from varied cultural and demographical backgrounds, influencers help us obtain focused reach and engagement with these groups. This builds multifold trust and awareness among consumer groups. Sometimes we also do this to kickstart a trend or virality. Celebrities are known to be an influencer of influencers. They have the power to pull up an entire campaign organically. Both deliver optimal results if planned well,” Yadav highlighted.
While some may argue that brands prefer influencers over celebrity actors, perhaps in this case there is more that meets the eye. For instance, popular brands for mass audiences which view campaigns on traditional media may opt for celebrity actors due to their large fan following, where to get the attention of Gen-Zs, the same brand may opt for an influencer for its ads on social media platforms. Experts believe that the value of a deal with a celebrity compared to an influencer hinges on several key factors. Celebrity endorsements are particularly relevant when a brand seeks to align itself with a specific image or values embodied by a well-known personality. “One of the biggest issues a large and established brand faces is the credibility of the face chosen for promotion. While celebrities have been known to have earned credibility over the years, in the case of influencers this remains a challenge. And at times brands are forced to drop them, due to a scandal,” a media planner said on the condition of anonymity.
Additionally, celebrity endorsements can generate significant buzz and media coverage for initiatives such as product launches or rebranding efforts, driving awareness and engagement. Today, 75% of brands consider influencer marketing as part of their marketing strategy. For Akash Anand, co-founder, Bellavita Organic, influencers provide a much more targeted reach when compared with celebrities, “Onboarding influencers also gives the brand more UGC (user-generated content), which makes the ad reach more organic.”
Furthermore, in terms of fees, 71% of brands engage with influencers on a fixed fee model and 29% are exploring performance-linked models to drive influencer accountability. “We use influencer marketing to create more organic content which we can further use for our performance marketing as there is no direct ROI,” Anand highlighted.
While industry experts believe that the future of influencers remains uncertain, they assert that influencers can be replaced. Moreover, they opine that brands are focused on mass campaigns rather than a particular influencer as content creators are readily available in the market, reaching out to a certain demographic. Due to this, influencers adapt to recent trends trying to make their content as relatable as possible for the masses to resonate with them. “To stand out in this oversaturated market, it’s important to be culturally and socially aware, but mainly to avoid focusing on other influencers. We all have our niches; sometimes we cross over, but none of us are the same. I stand out by simply being myself – it is the best advice out there,” Chaddha concluded.
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