Despite India’s estimated 3.5 to 4.5 million influencers and a thriving digital ecosystem, a vast majority cannot rely on content creation for a full-time living, reveals Kofluence’s Annual Research Report 2024-25. Over half make under 25% of their income from social platforms, with only 12% earning the bulk (75% or more) of their livelihood through social media.
The report presents a nuanced view of India’s rapidly growing influencer landscape. Instagram dominates the space with more than 50% of all influencer marketing budgets, home to over 2 million creators. Yet, monetisation remains skewed: 47% of creators depend on sponsored collaborations, while only 15% earn mainly through platform ad revenue.
Short-form video continues to reign, with 52% of creators favouring it for monetisation. However, earnings vary widely by follower size. Nano influencers (1–10K followers) may earn as little as Rs 500 per Instagram reel, whereas mega or celebrity creators can command upwards of Rs 2 lakhs for a single branded short-form video.
The creator economy is growing at an estimated 22% CAGR, but financial success is far from guaranteed. One in three creators reports limited brand deals as their top challenge. Algorithm changes, low engagement, and unclear monetisation rules also contribute to instability.
Meanwhile, brands are pouring significant budgets into influencer campaigns, especially during product launches and festive seasons like Diwali. E-commerce alone accounts for 23% of all influencer marketing spend in India. Yet even as the market matures, creators face growing competition and cost pressures, particularly on platforms like Instagram, where revenue per view has declined due to content saturation and heightened ROI expectations from brands.
Still, there’s optimism. New monetisation tools, AI-powered content creation features, and platform-backed initiatives (like Meta’s Creator Marketplace and YouTube Shorts monetisation) are beginning to reshape how creators earn. But for now, the dream of “quitting your day job” to become a full-time influencer remains elusive for most.
That being said, the influencer economy is still a sought-after one. “In 2025, influencer marketing has evolved far beyond its early challenges of fragmentation and inefficiency,” Ritesh Ujjwal, Co-founder of Kofluence, told financialexpress.com. “Manual negotiation frameworks, inconsistent pricing, and limited measurability were some of the common pitfalls… Today, the industry has become more streamlined and data-driven as 42% of brands are leveraging AI-powered platforms for influencer discovery, better engagement, and scalable multichannel execution.”
With platforms offering access to real-time analytics and creative tools, AI is playing a growing role in campaign management. “One of the most compelling use cases for AI in influencer marketing is content ideation and creation,” Ujjwal added. “More than 26% of marketers and 29% of creators now use AI to generate caption ideas, brainstorm video formats, and maintain creative momentum.”
Meanwhile, regional creators are emerging as a key asset for brands targeting hyperlocal markets. “What we’re witnessing is not a passing phase but the beginning of a sharper, more localised future for marketing, where influence could be mapped down to the pincode,” Sreeram Reddy Vanga, CEO and Co-founder of Kofluence, said. He noted that 36% of marketers prefer user-generated content for reaching Gen Z, while over half now focus on micro-influencers for regional outreach. “Creators are becoming central to how consumers discover and evaluate brands,” he said.