Market Study: Influencer Marketing in India

Influencer marketing is expected to grow by 25% in 2024, reaching INR 2,344 crore.
By 2026, the market is projected to reach INR 3,375 crore, growing at a CAGR of 18%.

Top criteria for selecting influencers: engagement rate and quality of target audience.
61% of brands focus on driving awareness and engagement.
47% of brands prefer using micro and nano influencers due to lower cost per reach.
Nano influencers (~4% of total) have the highest engagement rate.

Mega Influencers (1%, ~7K+ influencers, 1M+ followers, ~2% engagement rate): ₹10.5 per ad impression
Macro Influencers (10%, ~92K+ influencers, 100K-1M followers, ~2% engagement rate): ₹8 per ad impression
Micro Influencers (54%, ~331K+ influencers, 10K-100K followers, ~2.5% engagement rate): ₹6 per ad impression
Nano Influencers (47%, ~500K+ influencers, <10K followers, ~4% engagement rate)

71% of brands use a fixed fee model with influencers, while 29% use a performance-linked model.

Brands: ROI, finding the right influencers, ensuring authentic content.
Influencers: Building a loyal audience, gaining authentic followers, securing brand partnerships.

General Consumers: Most popular topics are Food & Drink, Beauty, and Fashion.
Gen Z (18-24): Fashion, Beauty, and Food & Drink.
Millennials (25-40): Beauty, Food & Drink, and Fashion.
Gen X (41-56): Beauty, Food & Drink, and Movies & TV (tied for 3rd).
Men: Gaming, Sports, Music, and Food & Drink.
Women: Beauty, Fashion, and Food & Drink (tied for 3rd).

70% of influencer marketing volume comes from personal care (25%), food and beverage (20%), fashion and jewellery (15%), and mobile and electronics (10%).

Focus on teenagers and young adults with significant purchasing power.
Products such as clothing, shoes, accessories, gadgets, and makeup resonate well with this audience.
Encourage authentic content, seamless product integration, and emotional storytelling.

Define KPIs such as engagement rate, reach, and conversions.
Monitor metrics like average reach, engagement, reel views, impressions, likes, and audience demographics.

Impressions: Number of times an ad is seen.
CTR (Click Through Rate): Ratio of clicks to impressions.
Conversion: Achieving a campaign goal such as website visits, form submissions, or app downloads.

Fashion and Beauty: Clothing, accessories, cosmetics, and skincare.
Fitness and Wellness: Fitness routines, workout gear, health supplements, and wellness products.
Travel and Tourism: Destination experiences, hotels, local cuisines.
Food and Beverage: Recipes, restaurants, food products, cooking techniques.
Technology and Gadgets: Reviews of gadgets, software, apps, and electronic devices.
Gaming: Video game reviews, gaming consoles, accessories, and tips.
Home and Decor: Home decor ideas, interior design tips, furniture, and DIY projects.
Automotive: Car and motorcycle reviews, driving experiences, maintenance tips.
Parenting and Family: Parenting tips, child care advice, family activities, and product recommendations.
Financial Services: Personal finance, investing, budgeting, and financial planning.

Mega Influencers: 100,000 to 1 million followers; broad reach.
Macro Influencers: 500,000 to 1 million followers; balance of reach and engagement.
Micro Influencers: 10,000 to 100,000 followers; high engagement and strong community ties.
Nano Influencers: Under 10,000 followers; hyper-local reach and very high engagement.

Note: Rates depend on influencer popularity, niche, personal achievements, reach, and engagement.