According to a recent report by Redseer, the Indian market boasts 3.5 to 4 million influencers with more than 10,000 followers each. However, brands face significant challenges in identifying and connecting with the right influencers, alongside combating issues such as opacity and influencer fraud.
To address these hurdles, the influencer marketplace has emerged as a pivotal solution within the industry’s value chain. This marketplace provides brands with a robust platform to discover and engage with well-suited influencers who can effectively promote their products or services, says a report from the company.
Redseer’s report predicts that the influencer marketing industry will achieve a value ranging from $2.8 to $3.5 billion by 2028.
As the industry matures, the importance of the influencer marketplace as a self-serve tech solution becomes even more apparent for both brands and influencers, according to the company. Redseer’s analysis estimates that India’s internet user base will exceed 1 billion by the end of the decade, leading to steady growth in digital ad spends, projected to reach $21 billion by FY28.
The report highlights video content as the driving force behind this growth, with an increasing number of users preferring engaging user-generated content (UGC), often created by social media influencers.
Mukesh Kumar, Associate Partner, Redseer, said, “One of the primary challenges in influencer marketing is the effective matching of influencers with the specific campaign requirements of brands, along with the ability to accurately assess influencer engagement metrics. Simultaneously, influencers often encounter difficulties in achieving price transparency and securing favorable deals. The advent of emerging models, such as creator marketplaces, holds significant potential in resolving these challenges.”
The report reveals that while nano (1k-10k followers), micro (10k-100k followers), and macro (100k – 1 mn followers) influencers are on offer for brands, the current situation presents challenges related to discoverability and influencer fraud across these three influencer categories.
Many influencers within the mid-tier, micro, and nano categories begin their journey as hobbyists and aspiring influencers. With the democratisation of fame, the influencer marketing ecosystem has seen the emergence of 3.5 to 4 million influencers.
The report emphasises that these influencers have become the centerpiece of digital advertising, as user-generated content generates twice as much engagement as professionally-generated content. As per the report, the direct connection influencers establish with their followers proves to be a crucial tool for advertisers.
Redseer’s survey indicates that approximately 74 pc of brands responded positively to the prospect of using influencer marketplaces. Furthermore, hobbyists and aspiring influencers are particularly attracted to these platforms due to improved discoverability and transparent payouts. The report stresses the importance of increasing awareness and adoption of influencer marketplaces, as doing so will unlock the full potential for brands and influencers alike.
