Market Insights Advertising & Media Advertising

Influencer Advertising - India

India

Ad spending in the Influencer Advertising market in India is forecasted to reach US$294.30m in 2024.
The annual growth rate (CAGR 2024-2029) is expected to be 11.35%, leading to a projected market volume of US$503.80m by 2029.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$0.21 in 2024.
In global comparison, China is anticipated to have the highest ad spending with US$19,160.00m in 2024.
In India, Influencer Advertising is rapidly growing, with brands leveraging local influencers to tap into diverse and culturally rich audiences.

Key regions: France, China, United Kingdom, United States, India

Market

Region

Region comparison

Currency

Analyst Opinion

The Influencer Advertising market in India is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in consumer behavior in India, with more and more people turning to social media platforms for information and entertainment. This has led to a rise in the popularity of influencers, who have a strong presence on these platforms and can effectively reach and engage with their followers. Customers in India are increasingly looking for authentic and relatable content, and influencers are seen as trustworthy sources of information and recommendations. As a result, brands are leveraging influencer advertising to reach their target audience and build brand awareness.

Trends in the market: One of the key trends in the Influencer Advertising market in India is the rise of micro-influencers. These are individuals who have a smaller but highly engaged following on social media platforms. Brands are recognizing the value of working with micro-influencers as they are often seen as more relatable and trustworthy compared to macro-influencers who have a larger following. Additionally, micro-influencers are often more affordable for brands, making influencer advertising accessible to a wider range of businesses in India. Another trend in the market is the increasing use of video content. With the widespread availability of high-speed internet and the growing popularity of platforms like YouTube and TikTok, video content has become a preferred format for both influencers and consumers. Brands are leveraging this trend by partnering with influencers to create engaging video content that showcases their products or services. This allows brands to effectively communicate their message and capture the attention of their target audience.

Local special circumstances: India is a diverse country with multiple languages and cultures. This presents a unique challenge for brands and influencers in terms of creating content that resonates with a wide audience. To overcome this, many influencers in India are creating content in regional languages, allowing them to connect with their followers on a deeper level. Brands are also recognizing the importance of localizing their influencer advertising campaigns to cater to the specific preferences and needs of different regions in India.

Underlying macroeconomic factors: India is experiencing rapid digitalization, with increasing internet penetration and smartphone usage. This has led to a larger online audience and a growing number of social media users. As more people join social media platforms, the potential reach and impact of influencer advertising in India continue to expand. Additionally, the rise of e-commerce in the country has created new opportunities for brands to leverage influencer advertising to drive sales and increase online visibility. In conclusion, the Influencer Advertising market in India is flourishing due to changing customer preferences, the rise of micro-influencers, the increasing use of video content, the need for localized campaigns, and the underlying macroeconomic factors of digitalization and e-commerce. Brands in India are recognizing the value of influencer advertising in reaching and engaging with their target audience, and this trend is expected to continue in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.