From mega to micro: How nano creators are making it big this festive season

As India embraces "Brand Bharat," brands are turning to regional and hyperlocal influencers for festive season campaigns. This shift is driven by the desire for personalised content and the growing influence of local creators.  Experts predict influencer marketing spending will reach Rs 1,000 crore by 2026, highlighting the increasing popularity of this strategy in India.

Shudeep Majumdar, CEO & Co-Founder of Zefmo, forecasts, "As brands are expected to spend Rs 500 crore on influencers this Diwali, with annual growth projected at 25-30%, potentially reaching Rs 1,000 crore by 2026."

The nano revolution

This shift is driven by a combination of hyper-personalised content, multi-platform engagement, and the surge in festival-driven consumer behaviour, marking a new era in brand-influencer partnerships.

Nano influencers , typically with fewer than 10k followers, are emerging as the unsung heroes of this shift. The demand for these creators has skyrocketed as brands realize their potential to form intimate connections with their audiences.

Majumdar expects a 40-50% rise in the use of medium and nano influencers during the festive season , particularly Diwali, thanks to their relatability and engagement.

Strategic shift

Brands are now moving away from mega influencers and turning to smaller creators who offer better ROI.

Vaibhav Gupta, Co-Founder and CPO of KlugKlug, explained how: “This festive season, there is a significant shift in spending from mega and macro creators to micro and nano creators . Brands are optimizing their influencer marketing strategies to connect more authentically with audiences.”

This strategic shift is amplified by the realisation that 65% of total creators in India have a significant portion of fake followers, driving brands to focus on more effective, data-driven campaigns.

Earlier this week, Qoruz published a report that highlighted a 21% increase in influencer partnerships in 2023, showing their effectiveness in driving measurable ROI.

Over 22,000 influencers generated 67,000 posts during festivals, contributing to enhanced brand visibility and engagement.

Tier 2 and 3 cities: The new frontier

With 50 million shoppers from Tier 2 and Tier 3 cities, this festive season is proving to be a golden opportunity for brands to extend their reach beyond metro markets. Furthermore, 53% of shoppers preferred regional language content, further emphasizing the need for localized campaigns.

In fashion, nano influencers have been pivotal in driving higher engagement rates.

Amazon, for instance, partnered with 205 influencers and achieved an impressive 2.85% engagement rate during Diwali 2023. Fashion brands such as Libas and Myntra also found success by leveraging smaller, targeted influencer bases. Libas collaborated with 179 influencers, yielding a 2.02% engagement rate, while Myntra engaged 1,700 influencers, achieving a 1.73% rate. In contrast, Biba and Flipkart, despite utilizing large numbers of influencers, saw lower engagement due to a lack of content authenticity and audience alignment.

The rise of nano influencers is not limited to fashion. Food brands are also capitalizing on their high engagement rates. Nano influencers outperformed their macro and mega counterparts, with engagement rates as high as 3.93% compared to 1.79% for micro and 0.48% for mega influencers. Domino’s, for example, partnered with 839 influencers and achieved a 2.65% engagement rate, proving that large-scale influencer collaborations can still deliver strong results when the content resonates with the audience.

Home decor brands are similarly benefitting from influencer marketing, particularly in Bengaluru. Pepperfry led the charge, partnering with 433 influencers and securing a 4.63% engagement rate. Amazon Home India followed closely, with 325 influencers and a 2.83% rate.

However, brands like FabIndia and IKEA saw more moderate results, highlighting the importance of refining influencer alignment to boost interaction.

Tanvi and Rohan, couple-creators from Pune with 305K followers, shared how the festive season has brought them a surge of opportunities.

“We’ve experienced a significant increase in deals compared to regular days. Brands like Wakefit, Samsung, and Bosch have approached us for festive collaborations. These Diwali partnerships tend to be more lucrative than usual,” they said, underscoring the growing appeal of regional influencers for major brands.

Barter collaborations

This festive season, brands have increasingly embraced barter collaborations, where influencers receive products in exchange for content creation. Aanchal Mandani, a nano fashion influencer, shared that this approach is motivating and adds a feel-good factor. “Brands like Giva and Freakins have empowered smaller influencers like me by valuing authenticity over follower numbers. They've given us the opportunity to showcase their products in a way that feels genuine and natural,” she said.

As Vaibhav Gupta further emphasized, “Many brands are re-evaluating their influencer marketing expenditures, realizing the value of nano creators who offer more ROI-driven campaigns.” At KlugKlug, the adoption of technology to optimize influencer marketing has seen a 10x growth in recent quarters, signalling a broader shift in the industry.

Music influencers are also finding success during the Diwali season. Sagar Kari, a music curator with 253K followers on Instagram, shared that he’s working with Amazon Music on a Diwali campaign, promoting their Diwali playlist. “The commercials for Diwali campaigns are slightly higher than usual,” Sagar revealed, indicating the premium brands are willing to pay for effective campaigns during this high-impact period.

As influencer marketing continues to evolve, the focus on nano and regional influencers will only intensify, reflecting a broader change in how brands approach their campaigns. Traditional advertising channels, such as TV and print, are experiencing declines in spending, while influencer marketing delivers 11x ROI. With brands increasingly favouring more authentic, localized content, this festive season will be a turning point, setting new benchmarks for the future of influencer marketing in India.