Ecommerce Leads Influencer Marketing Spends With 27%, Followed By FMCG: Report

From tracing the genesis of influencer marketing to delving into the psychology underpinning consumer behaviour, from analysing the total market size to examining compelling case studies, the 'Decoding Influence: The 2024 Influencer Marketing Report' by Kofluence illuminates key trends, challenges and opportunities within the creator economy.

In recent years, the influencer marketing industry has matured significantly, emerging as a global billion-dollar market. The transition from traditional celebrity endorsements on platforms such as television, radio and newspapers has evolved towards social media creators, emphasising a strategic focus on the '5 Ws' – addressing who, what, when, where, and why the specific target audience comprises. According to the report, India's creator economy is thriving, with 2.5 - 3.5 million creators predominantly engaging on platforms such as Instagram and YouTube. Notably, between 110-170K creators on YouTube are actively monetizing their content, solidifying YouTube's position as the leading platform for creator monetisation in India.

Key Findings:

-3.5M+ content creators make up the Indian creator economy with a substantial majority on Instagram, followed by YouTube

-170K+ Youtube content creators are actively monetising their content out of a vast community of more than 600k creators

-Ecommerce leads in influencer marketing spends with 27 per cent, followed by FMCG at 20 per cent

-Instagram takes the lead with 47 per cent platform adoption for influencer marketing spends by top Indian brands

Ritesh Ujjwal, co founder of Kofluence, states, "In today's digital age, customer acquisition costs are constantly spiralling and, combined with customer retention D30 retention rates at 5 per cent, Brands are facing formidable challenges across customers lifecycle. They are responding strategically by leveraging trust through influencer collaborations, a marked departure from the traditional approach, particularly in an online environment where ad-fatigued consumers allocate a substantial portion of their time. Our report meticulously examines platform dynamics and the evolving preferences of creators and brands, offering readers a centralised resource containing exclusive insights and proven strategies sourced from top brands and industry experts."

Sreeram Reddy Vanga, CEO and co founder of Kofluence adds, "At Kofluence, we hold steadfast in our belief in the influence wielded by content creators as they shape the very fabric of online engagement. The growing emphasis on creator monetisation over the last few years underscores that sentiment. I envision a future where standardised metrics and regulatory guidelines will bolster transparency and efficiency, with data-driven platforms at the helm. In this 2024 edition of the Influencer Marketing Report, we draw upon the insights of over 1000 content creators, brands, and industry professionals, encapsulating the prevailing sentiments within the current Indian influencer marketing industry."