What was once experimental media has now become the new normal. From short-form content capturing a large part of one’s day as they scroll through their time, influencers are no longer alternative media. They are the norm and have become the ultimate advertisements for any product or service.
As per Decoding Influence: The 2026 Influencer Marketing Report by Kofluence, an influencer marketing agency, India shelled out over Rs 3000 crore in 2025 in the industry. In fact, it is projected to rise to nearly Rs 5000 crore in 2027.
However, a significant rise has been observed in regional and vernacular creators. Connecting with their audience on a cultural and emotional level, creators from Tier 3 and 4 cities are topping the charts. Not only are their engagement rates higher than the metros, but a large section of campaigns dominate in vernacular execution, giving maximum audience to a brand in India.
The growth of influencers, though, is not limited to just brand campaigns and adverts. The Securities and Exchange Board of India (SEBI) recently cracked down on ‘finfluencers’. Its recent guidelines prohibited unregistered individuals from giving financial advice. While it was a regulatory action taken by the government body, it formally recognised the weightage influencers may have on their audience in India.
The monetisation gap behind 4.4 million creators
As per the Kofluence report, India has over 4 million creators, and nearly 9 in 10 active influencers have a presence on Instagram. While YouTube still dominates the monetisation engine, creators on the platform may be fewer with micro or nano followings, but their earning potential is much higher than on any other platform.
However, a staggering statistic revealed that 88% influencers can’t actually live off of their content. Behind every perfectly curated feed and cleanly cut videos is an overworked professional with a day job, an uncertain side hustle, and a monetisation gap nobody addresses.
While the industry is growing at a 22% CAGR, according to Kofluence, India became Meta‘s number 1 market for Reels in 2025. The viewership skyrocketed to 320 million, with 65% discovery captured from these short-form videos. In fact, more than half of the creators prefer the ideal format to monetise their content, opening up more revenue opportunities. But a significant share still earn less than 75% of their income from these platforms, underscoring the persistent monetisation gap – and the urgency of diversified revenue models.
From creators to owners – What it could look like in 2030
In an era where even actors are diversifying into entrepreneurial maestros and no longer relying only on their glamour, creators are rapidly expanding their portfolios. Be it Kusha Kapila‘s newfound innerwear brand or beauty creators’ make-up brands, this blueprint is not new. Creating an extension of their personality into monetised tokens for their followers has been around for the longest time.
Looking at the next decade to come, Kofluence predicts a world beyond AI for creators, something which AI can’t replicate – human influence. But the market is set to remain split between mega and nano influencers. Notably, even in 2025, creators from Tier 3 and 4 continue to dominate brand campaigns with an exponential engagement rate and a nominal cost of Rs 35,000-90,000 per campaign, as compared to Rs 3.8-4.5 lakh.
At the same time, the most significant shift that is set to change the trend is the shift in property rights. Not brands, not rosters, but intellectual property.
The Kofleunce report predicts that beyond short-form videos, creators are moving towards ecosystems. Amaresh Godbole – CEO of Publicis Digital Experience also said, “By 2027, three shifts are irreversible: from campaign line item to always-on budget pillar, as creators are now distribution, content, and credibility in one unit; from vanity metrics to accountable growth engine, with regulation and better attribution making influencer marketing measurable across the full funnel – an easier sell to the CFO; and from fragmented buying to platformised orchestration, where large advertisers treat creator ecosystems like media, with AI-led decisioning. The structural shift: influence is no longer external to the marketing system. It is the system for culture marketing.