As per the latest Redseer report, 3.5 to 4 million influencers have emerged in the ecosystem of influencer marketing as a result of the democratisation of celebrity. Due to the fact that user-generated content (UGC) receives two times as much interaction as professionally generated content (PGC), influencers are now the focal point of any digital advertisement. The data reveals that influencer brand expenditure, which accounts for 5% of all digital spending as of 2022, has the potential to increase at a compound annual growth rate (CAGR) of 45% and reach 13% by 2027.
Commenting on the current scenario, Mukesh Kumar, associate partner, Redseer, said, “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. Simultaneously, influencers often encounter difficulties in achieving price transparency and securing favorable deals. The advent of emerging models, such as creator marketplaces, holds significant potential in resolving these challenges.”
Redseer estimates that influencer marketing would be worth $2.8 – 3.5 billion in 2028 as more brands are leveraging the credibility of influencers to promote their products. Additionally, the number of Internet users in India is set to cross 1 billion by the end of the decade, and as engagement of these users across internet platforms increases, digital ad spends will grow steadily to $21 billion by FY28.
According to the analysis, video will be the digital ad format that drives development since more and more viewers prefer video material, particularly UGC and social media influencers are in charge of producing highly engaging UGC that millions of people watch. The survey also reveals that roughly 74% of firms expressed a propensity to utilise the influencer marketplace favourably.
The report states that Influencers are agents of brand-centric, discovery-driven commerce from the standpoint of companies, influencing consumers’ purchasing decisions. 54% (420 million) of India’s 780 million internet users use social media. Of them, 28% have tried the goods or services advertised by influencer ads, and 67% follow at least one influencer.
The report further highlights that the influencer marketing ecosystem has room for improvement in terms of influencer matching, price transparency, real-time communication, and real-time campaign analytics with over 3.5 million influencers in the nation.