Influencer marketing sees Rs 3,600-crore push in 2024 as brands double down: Report

The global influencer marketing industry was worth $21.1 billion in 2023, reflecting a 29 percent growth from $16.4 billion in 2022, the report highlighted.

Influencer marketing top priority

It added that most brands see influencer marketing as their top priority, signifying a growing shift towards digital-first strategies, with more brands recognising the effectiveness of social media influencers in driving sales and engagement.

While influencer marketing has largely focused on B2C (business-to-consumer) campaigns, 2024 saw an increase in B2B influencer collaborations. In 2020, only 31 percent of B2B marketers used influencer marketing. This has moved up to 82 percent with B2B marketers emphasising the importance of influencer marketing. It is increasingly becoming a crucial part of the B2B marketing mix. Ninety four percent of B2B marketers also said influencer marketing is a successful strategy.

The increasing significance of niche micro influencers and their growing traction amid brands was one of the notable trends last year. More brands tapped into micro-influencers—those with 10,000 to 100,000 followers -- last year due to their highly engaged and super-niche audiences. Notably, a majority of the micro influencers are from non-metros or towns with less than 40 lakh population.

On the other hand, macro-influencers—those with 100,000 - 1 million followers -- are proving invaluable due to their wide community. Given the need for brand safety, building trust and saliency, marketers prefer to work with macro influencers.

Content quality over follower count

The report noted that one of the most significant shifts is the move beyond follower count to content quality and creator relevance, especially among manufacturing brands, where 85 percent now prioritise content quality when selecting influencers.

There is also a growing preference for long-term influencer partnerships and a strong inclination towards macro influencers, driven by increasing concerns around content control and brand safety. Meanwhile, niche micro-influencers are gaining traction across high-consideration categories such as automotive and consumer durables, with 85 percent of marketers in these verticals planning increased investments.

Despite rising optimism, the report highlights persistent challenges, particularly around influencer discovery, with 83 percent of marketers and 95 percent in BFSI struggling to find the right talent. Marketers are now prioritising engagement rates and content quality over vanity metrics to gauge RoI (return on investment).

Notably, 70 percent of the brands cited trust and credibility as top reasons to engage with influencers, led by 77 percent in BFSI and 76 percent in FMCG, affirming the growing role of authentic, insight-driven storytelling in today’s marketing landscape.

4-5% Facebook accounts, 9-10% Instagram accounts fake

The challenge of fake followers persists and is growing.

Over 4-5 percent of all Facebook accounts and 9-10 percent of Instagram accounts are fake. This means that millions of followers on social media could belong to bots or inactive accounts, distorting the actual reach of influencers, the report added.

An estimated $1.3 billion in marketing spend is wasted on fake followers every year, according to cybersecurity firm CHEQ. This makes distinguishing real engagement from fake interactions more important than ever for brands. Platforms are responding to this crisis. Instagram alone has implemented machine learning-based tools that can detect fake followers and accounts with impressive accuracy, and other platforms like YouTube and X have adopted similar systems.

From a consumer lens, creators continue to influence the purchase funnel significantly, with over two-thirds of Indian users turning to influencers for product discovery, information and action.

The report also highlighted the increasing number of influencers in the country.

From 9.6 lakh influencers in 2020, it has grown a staggering 322 percent to 40.6 lakh in 2024. With over a million odd creators, most fall under the nano- creator list, whereas around 30,000 influencers fall under the mega influencer or celebrity category list.

Around 59 percent of users follow between 1 to 5 influencers, 18 percent follow 6 to 10, and 13 percent follow more than 20 influencers not just for product discovery and information but also for knowing what the influencers recommend.

On the total base of people on social media, an average of 7.6 influencers are followed. People from towns, with a population of less than 10 lakh, follow more influencers than from a town with a population of 10-40 lakh and above, and, on an average, follow more than 11 influencers.