By Sunder Venketraman
Over the past few years, the Indian creator economy has established and solidified its presence. At the outset, the reach of the industry was limited to tier-1 India. However, the pandemic-led proliferation of internet adoption and the growing access to affordable smartphones have given rise to the next wave of content creators, most of whom hail from Bharat. As brands increasingly place their trust in influencer marketing as opposed to traditional forms of marketing, content creators are now playing an increasingly important role in marketing strategies. This is one of the ways in which brands strive to connect with consumers in an authentic and effective manner.
The rise of India’s creator economy
The rise of homegrown social media platforms, mainly short-video apps, and creator management agencies is largely driving the boom in India’s creator economy. The evidence of it being on the path of relentless growth can be seen in the findings of the Redseer report, which states that India’s creator community is expected to reach 580 million by 2025.
The tremendous expansion of the community is translating to a growth in economic opportunity as seen in the recent Influencer Marketing report from INCA. India’s influencer market was valued at Rs 1247 crore in 2022, marking a 42% increase over Rs 900 crore in 2021 and is expected to reach INR 2800 crore by 2026. Brands and creators are poised to benefit immensely from this projected unparalleled growth.
These homegrown creators’ platforms, leveraging their intrinsic understanding of local culture and context, have played a key role in identifying the rising class of influencers from Bharat. They have been able to provide them with opportunities to enhance their skills and monetise their content. Consequently, Bharat is playing a vital role in the growth of India’s creator economy – not only in terms of numbers, but the opportunities it unlocks for brands and creators alike.
A growing trust in the creator
With today’s consumers being highly discerning, prioritising transparency and authenticity above all else, a content creator’s legitimacy becomes highly important, as it helps perceive them as relatable and reliable, thereby laying the foundation for trust. A certain charm in a content creator’s authenticity gives them an advantage over celebrities. Two-thirds of India’s digitally active population follows an influencer online. This speaks volumes of the relationship between an influencer and their followers – a relationship that is rooted in trust.
As consumers place their trust in creators, so are brands. We are witnessing a shift in preference to influencer marketing over celebrity endorsements, as brands now leverage the trust that creators have built with their audiences to provide their products or services with credibility.
Moreover, by taking the influencer marketing approach, brands are now gaining access to a wider audience. This becomes especially important for a country as geographically vast and diverse as India. Regional influencers are now playing a significant role as brands strive to engage with tier 2 cities across the country.
In 2022 alone, 54% of influencer marketing campaigns were led by micro and nano influencers while celebrities and mega influencers led only 20%. As these regional influencers step into the limelight, they position themselves as the doorway to Bharat’s audience, that is, an audience whose potential is yet to be tapped into and explored.
An abundance of potential
Dynamic and diverse, India’s influencer marketing landscape is brimming with a plethora of opportunities. With the ability to seamlessly blend content and branding, influencer marketing is satisfying stakeholders across the board. Influencers reach one in four consumers who are active in the digital space.
With younger generations now developing a growing preference for video content, short-form video is poised to play a key role in influencer marketing. This paves the way to further enhance the communication between brands, consumers, and creators by leveraging technology by introducing shoppable formats such as live and social commerce. These formats create a user experience that is immersive, interactive, and interesting while influencing positive purchase decisions and creating conversations. Redseer estimated that the gross merchandise value of live commerce through short videos would touch $4 billion to $5 billion in India by 2025, while social commerce alone has the potential to reach $60 billion to $70 billion by 2030. At the root of these trends lies the creator, creating content that drives the growth of these sectors.
The definition of a content creator has evolved tremendously over the past few years. Initially referred to as the ‘passion economy’, content creation is now becoming a viable career option for many. Amid an increasing focus on data privacy, we are fast heading toward a cookie-less world. As traditional advertising models are being reimagined, brands need to come up with ways to engage with audiences in an organic and non-intrusive manner. It is in such an environment that influencer marketing emerges as the most lucrative option in an increasingly flourishing creator economy.
The author is the head of creator and content ecosystem at Josh