E-commerce leads in influencer marketing with 27% spend followed by FMCG: Report, ET Retail

E-commerce companies are leading in influencer marketing with 27 per cent spending, followed by FMCG, says the Kofluence Influencer Marketing Report 2024.

Kofluence, leading social media influencer marketing-tech platform, on Wednesday released its annual benchmarking report — Decoding Influence: The 2024 Influencer Marketing Report.

From tracing the genesis of influencer marketing to delving into the psychology underpinning consumer behavior, and from analyzing the total market size to examining compelling case studies, the report comprehensively illuminates key trends, challenges, and opportunities within the ‘creator economy‘. By offering strategic recommendations and actionable data-backed insights, readers can be equipped with the necessary tools to effectively navigate and capitalize on the opportunities presented by this evolving industry.

Ritesh Ujjwal, Co-Founder of Kofluence, emphasized the report’s significance, stating, “In today’s digital age, customer acquisition costs are constantly spiralling and, combined with customer retention D30 retention rates at 5 per cent, brands are facing formidable challenges across customers lifecycle. They are responding strategically by leveraging trust through influencer collaborations, a marked departure from traditional approach, particularly in an online environment where ad-fatigued consumers allocate a substantial portion of their time. Our report meticulously examines platform dynamics and the evolving preferences of creators and brands, offering readers a centralized resource containing exclusive insights and proven strategies sourced from top brands and industry experts.”

In recent years, the influencer marketing industry has matured significantly, emerging as a global billion-dollar market. The transition from traditional celebrity endorsements on platforms such as television, radio, and newspapers has evolved towards social media creators, emphasizing a strategic focus on the “5 Ws” – addressing who, what, when, where, and why the specific target audience comprises. According to the report, India’s creator economy is thriving, with 2.5-3.5 million creators predominantly engaging on platforms such as Instagram and YouTube. Notably, between 110-170K creators on YouTube are actively monetizing their content, solidifying YouTube’s position as the leading platform for creator monetization in India.

Sreeram Reddy Vanga, CEO & Co-Founder of Kofluence, remarked, “At Kofluence, we hold steadfast in our belief in the influence wielded by content creators as they shape the very fabric of online engagement. The growing emphasis on creator monetization over the last few years underscores that sentiment. I envision a future where standardized metrics and regulatory guidelines will bolster transparency and efficiency, with data-driven platforms at the helm. In this 2024 edition of the Influencer Marketing Report, we draw upon the insights of over 1,000 content creators, brands, and industry professionals, encapsulating the prevailing sentiments within the current Indian influencer marketing industry.”