Brands bet big on influencers to stay active, virtually
Consumer goods companies such as Hindustan Unilever (HUL), Dabur, and Godrej Consumer Products (GCP) are amping up their influencer marketing strategies to boost customer engagement, brand loyalty, and awareness, underscoring the growing role of influencers in purchasing decisions of consumers.
In their FY24 annual reports, these companies highlighted the rising role of influencers in the overall marketing mix as consumers are spending more time on short-form snackable content on platforms like Instagram and YouTube. This scenario has led companies to engage with macro, micro, and nano influencers for driving brand visibility.
A recent EY report predicted that India's influencer marketing industry will reach ₹3,375 crore by 2026, from ₹2,344 crore in 2024, largely due to the growing use of social media influencers for sales and brand engagement.
A marketing expert noted that large companies typically allocate 8-10% of their digital budgets for influencer marketing if digital accounts for 30% of their total budget. «However, influencer marketing budgets will be a small percentage of total marketing budgets due to the short-lived nature of these campaigns, which last a maximum of 1-10 days,» the expert said.
HUL, one of the largest advertisers in India, expanded its new-age capabilities with a dedicated influencer management team. The company's advertising and promotion expenses rose 31% to ₹6,380 crore in FY24.
The consumer goods giant said it has improved brand visibility through strategic partnerships, a
