The fast-moving consumer goods (FMCG) sector leads the pack in leveraging influencer marketing, accounting for 18.5% of industry involvement, closely followed by BFSI (banking, financial services, and insurance) at 16.6%, and automobiles at 15.9%, shows the latest report Recogn - Dentsu India, Boomlet Group and Digital Behaviour Initiative at IIT-Delhi.
The Dentsu Insights report titled 'Impact of Influencer Marketing in India’ delves into the various aspects of influencer marketing -- shedding light on its transformative potential for businesses.
The fashion industry ranks fourth in line at 12.1% when it comes to using influencer marketing and is expected to grow exponentially in the next few years. "Independent brands will soon be at par with e-commerce giants."
Influencer categories can be distinguished into three groups -- large (more than 5 lakh followers), medium (2-5 lakh), and small (50,000-2 lakh followers).
"Reels remain a popular deliverable among all genres. Influencers from the entertainment, gaming, travel, and automobile genres procure the highest engagement rates. Lifestyle, fashion, and beauty genres are relatively cost-effective to collaborate with and spread the word to larger audiences compared to the niche genres."
Among all platforms, Instagram has been found to be the most preferred platform for brands at 73.6%, following that was YouTube at 17% because of a larger user base and engagement percentage as compared to other platforms, the report adds. Twitter and LinkedIn account for 4% each, while 2% of influencers use blogs as their preferred medium.
Danish Malik, co-founder and CEO, Boomlet Group said the influencer marketing space has emerged as a favoured component of brand promotion. “Our report serves as an indispensable resource, equipping businesses with the knowledge to navigate the dynamic world of influencers and illuminating consumer behavior within this ecosystem.”
Harsha Razdan, CEO, Dentsu South Asia said influencer marketing has revolutionised the approach to connecting with potential customers and elevating brand awareness. “The potential for brands to connect with their target audience has never been more exciting.”
The data shows 60% of the respondents are aware of the influencers on social media platforms. Among influencers, Instagram remains the most popular place at 45%, followed by YouTube at 40%, Snapchat at 27%, and Facebook at 20%.
The report says the increased social media usage in rural India, especially among housewives and kids, serves as an important development of empowerment and is a growing channel to enhance brand awareness.
People like to follow influencers whose content falls in the following categories: entertainment (37%), lifestyle (28%), fashion (28%), and food (21%). This is followed by health and fitness (20%), technology and gadgets (20%), photography (19%), and beauty (19%).
It says most brands indulge in influencer marketing to raise brand awareness (62%), increase brand engagement (49%), and acquire new customers (49%).
In its future roadmap of influencer marketing, the report says as technology continues to advance, it is likely that we will see further innovation in influencer marketing such as the use of virtual and augmented reality experiences.
“The future of influencer marketing holds great promise with emerging technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). These innovations will revolutionise influencer marketing, captivating millennials and Gen Z, who avidly follow social media influencers. As AR and VR gain traction, brands and marketers will leverage these technologies to engage their target audiences through tech-driven influencer marketing strategies,” the report said.
