Decoding creator economy: 45 lakh strong, just 6 lakh monetise; Reels and Shorts drive earnings

influencer

India is home to 35 to 45 lakh influencers and the creator economy continues to scale at around 22 percent CAGR (Compound Annual Growth Rate) year on year, according to Kofluence's 2025 inlfuencer marketing report.

The Nikhil Kamath-backed influencer marketing platform also highlighted how the gap between going viral and viability remains wide, as the vast majority of creators struggle to turn content into cash.

An estimated 4.5 lakh to 6 lakh content creators in India are monetising their content.

Insights from over 2 million creators noted that 9 in 10 creators do not rely on social media for a full-time income source. A staggering 88 percent of creators earn less than 75 percent of their income from social media, with over half of them making under 25 percent of their income from content creation.

Not a full-time gig

For most creators influencing is not yet a full-time income source.

Only 12 percent of creators make most of their income from social media. About 10 percent influencers earn between 50-75 percent of their income from it. Nearly 25 percent earn 25-50 percent of their income from social platforms. Overall, 88 percent of creators don’t rely heavily on social media for their earnings, choosing to diversify instead.

Monetization challenges make it tough for creators to rely solely on social media for income. One in three creators struggle with limited brand deals and 13 percent of creators struggle with competition, while 11 percent are impacted by algorithm changes. Another 10 percent find monetization rules confusing, and 3 percent face other challenges.

While overall pool of creators monetising content has been increasing year on year, the creator pool itself has been expanding and the monetization one still is lagging the expansion because the supply is increasing but the demand is not keeping up pace, said Ritesh Ujjwal, Co-founder at Kofluence. "Also, 20-30 percent of monetisation deals are based on barter than a purely cash monetization."

He added that in India for a creator to replace a salary of Rs 50,000 per month with theb earnings form content creation will take 5 to 7 years. "For Rs 2 lakh per month an influencer's content should be able to hit 500,000 kind of views. Before that it's very difficult for content creation to replace full time gigs."

Where are creators earning?

Short-form video has emerged as the most preferred format for monetization. More than half of all creators now prefer shortform videos for monetization, citing their ability to drive engagement and open up more revenue opportunities. It is expected that shortform ad spending will double by 2026.

Ujjwal brokedown the cost of a Reel. "Macro creators can charge Rs 3 lakh to 5 lakh for a Reel while micro influencers charge Rs 30,000 to Rs 1.5 lakh. Nano creators charge in the range of Rs 500 to Rs 10,000."

Earnings for branded short-form content start upward of Rs 2 lakh for mega and celebrity creator categories and anywhere from Rs 500 to Rs 5,000 for creators with less than 10,000 followers.

However, income from Reels on Instagram saw market correction in FY25. Revenue from Instagram Reels plummeted slightly across most creator tiers last financial year due to an influx of creators entering the market and brands becoming increasingly ROI (Return On Investment)-conscious, leading to growing scrutiny on cost-per-view (CPV) and actual impact delivered.

Earning through Reels of a Nano creator with a following of 1,000-10,000 dropped to Rs 300-Rs 5,000 in FY25 from Rs 500-Rs 5,000 in FY24. Similarly, a Micro influencer with a following of 10,000-100,000 saw revenue reducing to Rs 2500-80,000 from Rs 3,000-100,000. Mega or celebrity influencers' revenue via Instagram Reels declined to around Rs 180,000 from Rs 200,000 in FY24.

On the other hand, YouTube Shorts showed stable or rising earnings, especially for Nano and Macro creators. A Nano influencer with a following of 1,000-10,000 saw revenue increasing to Rs 1,000-10,000 in FY25 from Rs 1,000-7,000 in FY24. Macro influencers' revenue through Shorts increased to Rs 50,000-600,000 in FY25 from Rs 75,000-500,000 in FY24. Its native monetization features, such as AdSense and Super Thanks, coupled with expanding Shorts viewership, make it a profitable platform for most creators.

“YouTube Shorts found their footing, and with the new ad revenue share, creators finally achieved some real rewards for their short-form content,” Utkarsh Tripathi, actor and an influencer, said.

Overall, Instagram emerged as the top-most source for creator income, with more than 75 percent creators reporting that it’s their primary source of revenue. Instagram’s visual-first approach, shortform video reign, and brand-oriented features, all contribute to solidifying this position. YouTube, very active in structured revenue sharing ranks second at 13 percent, but newer platforms such as X, which are still testing payment systems, remain yet to make significant inroads.

Who is spending?

E-commerce brands were the top spenders last financial year, contributing 23 percent of the annual spend in the sector, followed by FMCG (Fast Moving Consumer Goods) brands at 19 percent, FMCD (Fast Moving Consumer Durables) at 10 percent, Auto and BFSI at 9 percent respectively.

E-commerce with 36 percent brands leads the trend of leveraging local influencers to drive last-mile conversions. The strategy has accelerated further because of the rapid adoption of quick commerce, where brands are using influencers to fuel impulse purchases and instant gratification. BFSI is next at 29 percent, where financial brands depend on local influencers, particularly ‘finfluencers’, to demystify complicated offerings and build trust among diverse consumer pockets.

Industries like E-commerce and FMCG are focusing on scalability and cost-efficiency, investing in a higher volume of campaigns to drive performance. By contrast, sectors such as Media & Entertainment and BFSI are moving to less, but more expensive campaigns.

E-commerce sector annually spends about Rs 700-800 crore on influencer marketing with cost per influencer campaign amounting to Rs 7-11 lakh. FMCG spends Rs 560-650 crore annually and cost per influencer campaign amounts to Rs 6-10 lakh. FMCD spends Rs 300-350 crore annulally with cost per influencer campaign of Rs 4-6 lakh.

While Media And Entertainment spends Rs 210-245 crore annually on influencer marketing, its cost per influencer campaign amounts to Rs 12-18 lakh.

Ujjwal noted that average spends by brands on influencer marketing has increased from Rs 1-5 lakh in FY24 to Rs 2-7 lakh in FY25.

In addition, new product or service launches drive increased influencer investments. Over 25 percent of brands increase influencer spends during launch campaigns.

Where are the creators?

Instagram remains the most concentrated social media platform, home to an estimated 30-38 lakh Indian creators. In contrast, YouTube houses anywhere between 500,000 and 700,000 creators, while all other platforms including Twitter, LinkedIn and Facebook combined account for 90,000 to 120,000 creators.

India’s creator base is led by the 18–25 age group. They make up to 48 percent of creators on Instagram and 44 percent on YouTube, setting content trends and cultural influence. Sponsored content tops creator monetization preferences. In contrast, a mere 15 percent rely on ad revenue from platforms like YouTube and Meta.

How and where influencer marketing is growing?

India’s influencer marketing sector is one of the fastest-growing segments in digital AdEx (Advertising Expenditure), valued at anywhere between Rs 3,000 to 3,500 crore in the first half of 2025.

Instagram also leads in influencer marketing spend. With more than 50 percent of influencer marketing budgets allocated to Instagram, it remains the top platform. YouTube, X, and Facebook follow in the ranking, respectively.

Micro-influencers are the most preferred influencer category for regional outreach. 52 percent of marketers find creators with 10,000-100,000 followers best suited for hyper-localized influencer efforts.

Diwali sees the highest influencer activity among Indian regional festivals. 42 percent of brands report increased influencer spending during the Diwali season.