The evolution of influencer marketing in India | WARC | The Feed
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The evolution of influencer marketing in India
The influencer marketing industry in India is projected to grow at a compound annual growth rate (CAGR) of 25% over the next five years to reach Rs 22 billion by 2025, during which time there will also be a growing shift away from celebrity endorsers to engaging influencers for product placements.
Why it matters
Influencer marketing took off in India during the pandemic, when brands found it difficult to create the sort of content they would normally do and turned to alternative channels. What’s happening now, says Ashwin Padmanabhan, GroupM's president of partnerships and trading, is that brands are including influencers as part of their overall marketing strategy rather than using them just because they had no other options – and spending is being allocated accordingly.
From reach to action
Padmanabhan tells IndianTelevision.com that brands are using influencers for more than just reach and consideration. Influencer content is driving engagement as well, and, increasingly, the tech infrastructure is enabling action as consumers can click on a link to buy a service or product.
Spending allocation
Padmanabhan identifies three “buckets” of clients:
- Brands native to influencer marketing – DTC brands especially – allocate 25-30% of budgets to influencer marketing, while smaller FMCG brands without large media budgets may devote 15-20% of spending in order to drive Share of Voice.
- Mature brands allocate 10-25% of budgets. They often use this channel tactically, around events for example, with influencers amplifying the other work they do.
- Curious brands, who are interested in using influencer marketing, but are looking for data and metrics to justify any investment.
ASCI guidelines
ASCI’s guidelines are “a good thing”, says Padmanabhan. “As long as the content remains true to what the influencer makes regularly there’s no difference. On the other hand, even without that paid content tag if you stray away from this principle you’ll not get the required reach.”
Sourced from IndianTelevision.com
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