The influencer marketing industry in India is on the rise, with a recent study by Statista valuing the industry at over Rs 12 billion in 2022. This trend is expected to continue, with projections estimating a compound annual growth rate of 25% over the next five years, reaching Rs 28 billion by 2026.
According to Yulia Aslamova, Head of Asia at DRIM, an online influencer marketing agency, the majority of brands will continue to work with micro and nano influencers in the coming years. However, the focus of influencer marketing will shift from brand building to performance building.
DRIM has seen maximum performance from tier-1 cities and metros such as Delhi NCR, Mumbai, Bengaluru, Chennai, and Hyderabad. Pune and Jaipur, both tier-2 cities, also perform well in terms of influencer activities. Aslamova notes that while cities such as Kerala and Kolkata are interesting markets, they require language-specific hyperlocal influencers, making them more challenging for the agency.
Overall, the growing influence of influencer marketing in India presents new opportunities for brands to connect with consumers. However, the shift to performance building from brand building will require companies to adapt and tailor their strategies accordingly.
