Advertisement

Updated December 19th, 2023 at 12:59 IST

Business of social: Inside the financial world of social media influencers

In 2022, Indian influencer marketing was valued at over Rs 1,200 crore and expected to reach Rs 2,800 crore by 2026, with a 25% annual growth rate.

Leechhvee Roy
Know how social media influencers monetise their influence
Know how social media influencers monetise their influence | Image:Shutterstock
Advertisement

Clicks to cash: Social media influencers, as disclosed by the influencers themselves, can earn as much as Rs 3.5 lakh per post, enjoying a lifestyle that rivals, and in some cases, surpasses that of many corporate employees. As per Statista, the industry is expected to reach Rs 2,800 crore by 2026. Republic gathered insights from prominent influencers shedding light on the industry's evolution, earnings, collaboration opportunities, and campaign success metrics.

"Follower count and niche play a significant role in influencer earnings. Creators with 200k to 1 million followers typically secure brand deals worth Rs 1.5 lakh to Rs 3.5 lakh," Simran Balar Jain, Content Creator and Co-founder, UnBound told Republic.

Advertisement

 

Influence on the Rise

In 2022, the Indian influencer marketing industry was valued at over Rs 1,200 crore and it was projected to grow at an annual rate of 25 per cent over the next five years. 

"Influencers have evolved into pivotal channels for brands, fostering genuine connections with their audiences through engaging content. They influence consumer purchasing decisions and product research across various sectors, including food, fashion, jewellery, and mobile/electronics," Anushka Rathod, a fin-fluencer told Republic.

Advertisement

Short-form videos like reels have emerged as the most popular content format, offering influencers a platform to deliver concise and impactful messages to their followers.

"Additionally, live-streaming has gained significant momentum, leading e-commerce giants like Amazon and Flipkart to introduce live commerce features on their platforms," she emphasised.

Advertisement

 

Indian influencer marketing set to double by 2026 | Image credit: Pexels

Advertisement

Income sources for influencers

Anushka Rathod revealed that most of her income comes from social media activities, given her full-time commitment to the field. She also generates income by leveraging her network to promote other products and services, creating a diversified revenue stream.

Advertisement

Shift in trends

In recent years, there has been a shift in the types of brands collaborating with influencers. At the start of 2021-2022, start-ups dominated the influencer marketing scene. However, the landscape has evolved, with traditional organisations increasingly recognising the impact of social media marketing. Well-funded start-ups have also significantly increased their spending on social media marketing strategies.

Advertisement

Measuring influencer campaign success

Creators highlighted the importance of tailoring key performance indicators (KPIs) to the specific goals of each brand collaboration. For branding-focused campaigns, they monitor impressions, views, and engagement on their content. In contrast, campaigns aimed at conversion are evaluated based on metrics such as link clicks and downloads.

Advertisement

Aditya Jangid, Founder, Voohoo Live provided additional insights into influencer earnings. He mentioned that earnings can vary significantly based on factors such as follower count and niche.

"For a creator it's essential to diversify income streams beyond brand deals, such as merchandise sales, affiliate marketing, and content creation," Finfluencer Rathod said.

Advertisement

Indian influencer marketing set to double by 2026 | Image credit: Pexels

Financial realities

The compensation structure for influencer partnerships often includes fees for sponsored posts, affiliate commissions, and product exchanges. Long-term partnerships may involve monthly retainers or performance-based bonuses.

"Maintaining a social media presence and influencer career entails expenses such as equipment, software, and potentially outsourcing tasks like content creation or management. Creators also need to consider taxes and legal fees as part of their financial responsibilities," Balar highlighted.

Advertisement

Avenues of monetising influence

Influencers have various options to monetise their influence, including sponsored posts, affiliate marketing, brand ambassadorships, product reviews, creating and selling their own products, earnings from social platforms, paid speaking engagements, offering consulting services, selling advertising space, and creating sponsored content featuring brands.

Advertisement

Earnings on different social media platforms

Facebook: To be eligible for monetisation, creators should have a Page with a minimum of 10,000 followers for live videos or 5,000 for video on-demand and maintain 5 active videos on their Page.

Advertisement

YouTube: To begin monetising on YouTube, creators need a minimum of 1,000 subscribers, along with either 4,000 public watch hours on long-form videos in the last 365 days or 10 million public Shorts views in the last 90 days.

Twitter: Twitter introduced a subscription model where influencers can offer exclusive content to subscribers, providing a new avenue for monetisation.

Advertisement

Instagram: Instagram remains a lucrative platform for influencers. Revenue depends on factors like follower count, engagement rates, niche, and posting frequency, with influencers potentially making Rs 5,000 to Rs 3 lakhs or more per post.

"The world of social media influencers in India is not just about likes and followers; it's a thriving business with multiple revenue streams, offering influencers a path to fame and significant financial rewards," Rathod emphasised.

Advertisement

Published October 11th, 2023 at 16:47 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo