Digital Influencers Pioneering The Creators Economy

Social media platforms have been transforming the global landscape, ever since its inception. Originally intended as a means to connect people digitally, this platform has now grown into a thriving internet revolution that provides a wide range of services, from delivering news and entertainment to serving as an online marketplace. Social media has become an essential tool for businesses to connect with their target audience. As a result, digital influencers have emerged as a popular choice for companies and brands to effectively engage with their desired demographic.

People who originally posted online videos for entertainment or educational purposes have now become influential figures in the digital realm. These digital influencers are being actively approached by companies and brands to endorse their offerings, marking a significant shift in the way businesses promote their products and services. This phenomenon has paved the way for the emergence of the creator economy, where content creators hold immense power and influence.

The ‘creator economy’ brings about a significant revolution in the creation, distribution and monetisation of online content, leveraging technological advancements and shifting consumer behaviors. In India, popular platforms like YouTube, Instagram and Facebook play a pivotal role in democratising content creation by providing creators with user-friendly tools that empower them to connect with global audiences.

A report by Mindshare and e4m reveals that approximately 80 per cent of individuals in India rely on social media influencers when making purchasing decisions. The study also underlines that 67 per cent of marketers’ view influencers as key figures in the discovery process, while 64 per cent of consumers trust influencers who demonstrate subject matter expertise. Additionally, 61 per cent of consumers claim to make three or more purchases based on endorsements from influencers.

Sohaa Kulkarni, the Creative Director of Programming at Sony Marathi, recognises the incredible growth of the creator economy as a fascinating development. She believes that at some point, “people will need to take a moment to reflect and find a balance between traditional and innovative marketing strategies.”

Managing The Shift: Digital Influencers Within India

The mentioned report provides an overview of the total number of influencers in India, which ranged from 3.5 to 4 million in 2023. According to the study, these influencers are categorised into three groups - mega, macro and micro. Among them, mega influencers, who have over 1 million followers, contribute to 1 per cent and engage with 0.5 to 1.5 per cent of users. On the other hand, macro influencers, with followers ranging from 1 lakh to 1 million, make up to 16 per cent in size and engage with 1.5 to 2 per cent of users. Lastly, micro influencers, with up to 1 lakh followers, represent the largest percentage at 83 per cent and engage with more than 3 per cent of online users.

Rahat Raj Sud, Head of Originals, India Lifestyle Network sharesthe Internet's expansion into tier two, tier three and tier four cities has brought about a remarkable transformation. Creators from places like Indore, Kanpur and smaller towns are emerging as native vernacular speakers, showcasing the true essence of India.

Sud adds as the Internet reaches deeper into smaller towns and villages, we can expect a surge in smaller influencers, nano creators, and micro-influencers from these areas. By embracing regional languages, these creators are revolutionising the communication landscape, challenging the dominance of English.

Amisha Gulati, the Business Head at Sociowash, emphasises the rapid expansion of the creator community, with each individual possessing distinct qualities.

She adds creators must maintain ethical standards and follow guidelines while promoting their work. By utilising their influence responsibly, they have the potential to become a formidable voice. An authentic connection is established when a brand and a creator share similar values and beliefs, resulting in a meaningful partnership.

Meanwhile, within the dynamic landscape of digital influencers, a unique category of content creators has emerged, referred to as 'metahuman influencers', who are virtual avatars. In India, these metahuman influencers made their first appearance in 2021 with Kyra, whohas already garnered a remarkable following of 273,000 on Instagram.