The future of the influencer industry

 

Someone presciently said or did not say way back in the 1960s that in the future everyone will be world-famous for fifteen minutes. It is also said-be careful what you wish for, it may come true. Here we are at the end of the first quarter of the 21^st century when everyone and their uncle is an influencer or wants to be. In fact, you can't seem to get rid of them as they have a nasty habit of popping out of nowhere like pesky flies.

Complain all you want, but the influencer economy is a roaring success being worth $250 billion and slated to almost double to $480 billion in 2027.[1] India mirrors this global growth trajectory with the 2024 projection for the nation’s influencer marketing economy being Rs 2344 crores (USD 280 million), which is expected to hit Rs.3375 crores (USD 405 million) by 2026.[2]

Now, if that isn’t a sunrise industry, then what is?

Genesis of Influencer Marketing

 

Influencers have existed since the days of the Romans with people making decisions on the basis of what someone they looked up to recommended to them. If a king or a religious leader who held sway over vast numbers of people ordained that certain rules be followed, these were followed, often upon the pain of death.  The modern era saw the growth of the advertising industry that cleverly proclaimed the desirability of certain products and services, often by getting famous people to endorse them. Fascist and dictatorial leaders like the ones in Nazi Germany went several steps further with the use of clever propaganda that sought to make outright lies appear as the gospel truth.

The democracies of the world had the PR industry, as well as lobbyists who helped shape perceptions about products, brands, government policy or whatever they set their minds on. Often, famous figures like actors, sports people and entertainers would be roped in to use their influence over the masses to help plug a brand, product or agenda.

The arrival of the internet upended everything.

The genesis of modern internet-driven influencer marketing lay in bloggers posting their content online and interacting with people who sent them messages in response to what they had written. This resulted in the creation of online communities on whom they exercised influence. This phenomenon was truly unique in that these bloggers with their bands of trusted followers were the regular kind of people who lived down your street, yet began to attract brand sponsorships in their field of excellence, which was the preserve of film stars, sportsmen and the like in the past.  A travel luggage maker would approach an intrepid travel blogger with a loyal fan following to plug their products than say a Hugh Grant. So successful were these blogs that many of these began to rival the readerships boated by mainline traditional media. The success of the Huffington Post is a good example of this.

The advent and rise of myriad social media channels with their ability to facilitate real-time interactive engagement made influencers all the more impactful in their outreach. Though traditional celebrities like sports people, TV and movie stars and pop stars were the first ones to popularize social media by amassing millions of followers, the regular people were quick to catch on and began to grow huge audiences by sharing very engaging content that resonated deeply with people across niches.

They emerged as authority figures in their respective fields of specialization making them very attractive to businesses who saw a synergy between the influencers' content and their product and service offerings. Anybody can be an influencer marketer and attract brand endorsement if they can effectively serve up social proof about how good a particular product or service is. Someone who runs a successful YouTube trekking channel for instance would likely be approached by brands making outdoor camping equipment, or trekking shoes.

Is there an influencer marketing overload?

Is there such a thing as influencer marketing overload, already? There is some evidence there is with so many people becoming a little wary of popular social media platforms on account of privacy concerns, unbridled misinformation, unhealthy impact on people's mental health and their sheer omnipresence. Many marketers are actually questioning the efficacy of influencer marketing given that most of their traffic seems to be coming from search engines.

In a fast-spinning digital universe with dwindling attention spans and content overload whatever good that an influencer causes to a brand or product is likely to be very short-lived indeed. How useful influencer marketing is for a brand's long-term growth is something a marketer will have to consider before taking a call on whether to persist with it or revert to classical advertising and PR to achieve real brand growth. Also, greater regulatory control of influencer ads is making brands avoid influencer endorsement out of an abundance of caution.

The path ahead for influencer marketing

 

While influencer marketing is growing at a healthy clip in India with the industry expected to hit about Rs. 34 billion by 2026, there is likely to be more emphasis on offering remuneration based on performance in terms of precise outcomes in the shape of clicks, conversions and actual sales conversions. This is going to be truer of the hordes of mini influencers who have proliferated in the influencer marketing space. That being stated influencer marketing is still a sunrise industry in the country what with 75% of brands likely to consider it as part of their marketing strategy and 47% of brands favouring micro and nano influencers to propel their influencer campaigns on account of low cost per reach.[3]

Conclusion

Though influencer marketers are coming under increasing scrutiny on account of how much bang they provide for a buck, we are not likely to see the last of them- at least for the foreseeable future. Till then steel yourselves to receive wisdom from an assortment of self-important gentlemen and ladies about the desirability of using brands ranging from flip flops to umbrellas and holiday excursions to herbal cosmetic products that promise the sun and the moon.

 

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[1] https://digiday.com/marketing/in-a-booming-influencer-economy-creators-seek-standardization-for-payment-terms/

[2] https://www.ey.com/en_in/news/2024/04/indias-influencer-marketing-industry-estimated-to-reach-inr-3375-crore-by-2026-ey-collective-artists-networks-big-bang-social-report

[3] https://www.ey.com/en_in/news/2024/04/indias-influencer-marketing-industry-estimated-to-reach-inr-3375-crore-by-2026-ey-collective-artists-networks-big-bang-social-report