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Advertising in India has long revolved around iconic celebrity and sports star endorsements across TV, cinema, billboards, and print. From Shah Rukh Khan bringing charm to LG TV ads or Akshay Kumar lending his charisma to Harpic campaigns, celebrities were the original influencers.
Even today, celebrities dominate traditional advertising . The TAM AdEx (Jan-Jun '24) report reveals that a whopping 32% of TV ads feature celebs , with film stars like MS Dhoni endorsing 42 brands and Akshay Kumar appearing in ads for 22 hours daily. The logic was simple: a familiar face would inspire trust, compelling consumers to buy what their idols endorsed.
But the game is changing.
India's influencer marketing sector is on a remarkable growth trajectory, projected to reach Rs 3,375 crore by 2026, growing at a CAGR of 18%. It is the modern evolution of what brands have always done: leverage popularity to drive sales. The advent of social media has democratised influence, turning everyday individuals into powerhouses of engagement.
With India’s internet penetration skyrocketing to 52.4%, the landscape of influence has shifted. Armed with just a good phone camera and a spark of creativity, today’s influencers are proving that anyone can pitch products, build brands, and even compete with Bollywood stars for attention.
Chandan Sharma, General Manager of Digital Media at Adani Group, underscores this transformation, stating, “Brands are no longer relying solely on big names to promote their products. Instead, they are focusing on authenticity and relatability by collaborating with influencers who have a smaller but more loyal following. This shift is crucial to connect with Gen Z, a cohort that values realness over flashiness.”
Gen Z’s influence and spending power
With Gen Z accounting for 43% of the global consumer population and possessing a spending power of over $860 billion, the stakes are high for brands, according to Snap Inc. & BCG report. This dynamic cohort is impacting significant spending across categories such as 50% of total spending on footwear, 48% on dining, 48% on out-of-home entertainment, and 47% on fashion and lifestyle. They are poised to play an increasingly vital role with their spending power projected to reach an astounding $2 trillion by 2035.
Yet, this generation’s buying behaviour is starkly different from previous ones. According to recent studies, 62% of Gen Z consumers are open to exploring other options even if they have a favourite brand. Additionally, they trust influencers 2.4 times more than celebrities.
“Gen Z demands a different kind of loyalty,” Sharma explains. “They want brands to be transparent, inclusive, and aligned with their values. For businesses, this means leveraging influencers who resonate with these principles.”
More niche, more reach
From food bloggers to beauty gurus, and even spiritual advisors, influencers cater to every imaginable niche. Want investment advice? There’s a finfluencer for that. Need dinner inspo? Scroll through food bloggers. This versatility has made influencers indispensable to brand strategies.
According to the Influencer.in report, by 2028, more than 80% of brands will likely direct up to 30% of their marketing expenditure towards influencer marketing, signalling a long-term shift in advertising strategies.
Brands, particularly in sectors like FMCG, e-commerce, and automobiles, are expected to ramp up their investments in this space, with 40-57% of companies in these industries projected to boost their influencer marketing budgets by 10% by 2026.
85% of the brands interviewed stated that influencers are an integral part of their digital marketing strategy. Additionally, 64.0% of brands allocate between 5% and 20% of their annual budget to influencer marketing, while 50% have increased their spending by up to 10X in 2024.
Furthermore, 58.5% of brands partner with mid-tier to micro-influencers. While Instagram remains the dominant platform for influencer marketing, 90% of brands use influencer marketing across platforms. LinkedIn has seen a notable rise, with 19.5% of brands now using it for influencer marketing.
Why influencers work better than celebs
Influencer marketing beats celebrity endorsements because it feels real and relatable. Unlike celebrities who might seem out of reach, influencers connect with their followers on a personal level. They talk directly to their audience, share their own experiences, and make products feel like a natural part of their lives.
Moreover, influencers reach specific groups—whether it's fitness enthusiasts, gamers, or skincare lovers—allowing brands to target their ideal audience with precision. Working with influencers can also be more cost-effective than hiring big stars, and the content they create—like reels or unboxings—feels more authentic, keeping people interested and engaged.
Take Darshan Magdum, for example. The Gen Z influencer gained fame for his karaoke-style music and impressive brand partnerships with Duolingo, Amazon, Visa, and YouTube. His relatable content—paired with an engagement rate of 3.15% and a jaw-dropping view rate of 161.87%—proves that smaller, authentic creators can pack a big punch.
Influencer content has a unique advantage: it’s live 24/7. Unlike celebrity endorsements, which might be limited to a TV spot or a billboard, influencer posts remain on their profiles, constantly generating views and engagement. Plus, with influencers, reach and engagement are trackable in real-time. Direct links in comments or DMs make it easy for followers to shop instantly, creating a seamless and personal consumer journey.
According to the EY report, 12% of influencers earn between Rs 1 lakh and Rs 10 lakh, while 77% have seen their income grow over the last two years. Optimism runs high, with 86% expecting a 10% income hike in the next two years.
This isn’t a battle between celebrities and influencers—it’s a collaboration. Social media platforms like Instagram and YouTube have turned micro- and nano-influencers into complementary forces for traditional campaigns.
The line between traditional celebrities and influencers is blurrier than ever. Big names are now collaborating with influencers to promote their projects. For example, blockbuster movies like Pushpa 2 and Liger turned to influencers to boost ticket sales, showcasing their knack for driving engagement and footfall.
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