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From FMCG to food and nutrition, to beauty and wellness, to fashion and lifestyle, to entertainment, to BFSI companies and companies operating in the B2B space, almost most industries and companies have used influencer marketing

By Nitin Sabharwal

That Covid has caused unprecedented disruption for brands, companies and individuals can never be emphasized enough. While this upheaval has triggered a major shift towards a “digital lifestyle” for individuals, brands have also struggled to keep pace and align their operations, marketing and sales with the emerging digital all-round ecosystem. Indeed, the increasingly digitized landscape has proven to be a more convenient and timely meeting point for businesses and end users. It is no wonder that the increased use of online delivery and payment services caused by Covid and the higher consumption of OTT, gaming and video entertainment in connection with the increasing social media presence of end consumers has led to the emergence of influencer marketing as have triggered essential components in a company’s digital marketing strategy. Although influencer marketing has been on trend for a number of years now, especially in recent times, there has been considerable attraction to Indian brands and their digital marketing strategies.

Digital transformation inevitable for Indian companies and brands

It is no longer a question of whether brands would tackle digitization, but when they would do so. Several surveys and studies show that brands and companies are, in some ways, taking the digital path. According to the Dell Technologies Digital Transformation Index, 94.7% of Indian companies had accelerated digital transformation to some extent, with 92.3% of them reporting having overhauled their business models in the past year. Similarly, in another study, more than 50% of the companies surveyed said they had plans to drive their digital transformation one to three years.

Most Industries Interested In Influencer Marketing: An Easy Choice For Indian Brands

Over the past year and a half, Indian brands across all industries and sectors have been found to have made extensive use of influencer marketing as part of their digital marketing toolkit. From FMCG to food and nutrition, to beauty and wellness, to fashion and lifestyle, to entertainment, to BFSI and B2B companies, almost most sectors and companies have used influencer marketing to some extent . Driven by the Covid-driven financial and mobility restrictions as well as the decreasing trust of end consumers in the traditional advertising route by celebrities, it was a pretty easy choice for Indian brands as well. According to a study, 78% of marketing executives engaged in influencer marketing in 2020, with around 13% of them engaging in influencer activities for the first time last year. Similarly, according to eMarketer, 84% of marketers had considered starting at least one campaign with an influencer. From the consumer’s point of view, a significant 71% of consumers stated that they made purchases based on a social media recommendation.

Social media democratizes space: phenomenal increase in the number of new influencers

In the recent past during Covids, again due to the fact that most Indians were locked indoors, there has been a phenomenal and almost spontaneous proliferation of new social media influencers in the country, giving brands and companies many options in implementing their influencer- Offer marketing strategy. Virtually overnight, thousands of ordinary people but with experience and expertise in a niche topic became social media influencers and digital opinion leaders on topics as wide as ranging from food, health and fitness to beauty, fashion and lifestyle and many other rich. Their opinion and advice through their posts on a product or service quality were valued and respected, which increased their profile as well as the number of their followers. While the involvement of influencers for brands was not only timely, but also saved their budget compared to working with traditional celebrities, while at the same time the ROI and revenue were improved. There is no doubt that the open and democratic nature of social media, allowing anyone to express or share their opinion, has enabled these influencers to rise and flourish. Additionally, the format that allows for 24/7 connection, video posting, live video sessions, and two-way interactive conversations has accelerated the rise of new influencers. In fact, with brands using influencer marketing, social media has not just stayed social anymore; it has definitely become commercial too.

Influencer marketing: the not-so-old kid in the performance marketing ecosystem

Not that long ago, advertisers spent millions getting the right branding endorsement from celebs and in return spoke to those celebs audiences. With social media spawning new local celebs who have a large to very small fan base, support is breaking new ground in the history of brand support. While there have been overnight successes for some brands, many come under peer pressure without a platform to help coordinate, research, provide and evaluate measurability as a one-window solution. With performance marketing taking over visibility and commission-based models now filling influencers’ pockets, it becomes an encouraging future platform for brands to leverage reach and reach a more active audience with faster results-driven marketing spend.

Influencers who do a quick pivot while exploring the opportunities

For their part, influencers have quickly adapted to the physical and professional environment caused by Covid. After ditching outdoor video shoots with heavy equipment and paraphernalia, they decided to settle for simple phone cameras from home. Some of them have also undergone a relative shift in terms of content, for which they were previously known. For example, a seasoned chef known for his usual Indian cuisine switched to a western cuisine, an entertainer began to work on a different genre, unlike his earlier appearances. At the same time, those who have been in business relatively longer and chastened by the cancellation of sponsored travel and outdoor event-based programs have been more realistic in their negotiations with brands and companies given the slowdown in the larger economy and the resulting scarcity of opportunity. As such, this has been a win-win for everyone in the business. In fact, during the second wave, a section of influencers had also emerged as a kind of Covid-related information lifeline for ordinary people desperate for information and medical help. While sharing people’s requests with their followers, they also monetized in the process where companies that collected data on people sponsored their posts.

Even if influencer marketing has gotten really big for the Indian brands, a more ROI-driven concrete performance-based relationship would develop in the future. Brands would no longer be satisfied with mere impressions and likes, but would also expect actual conversions and sales when negotiating their conditions with influencers. So a mere number of followers wouldn’t mean much. Activity and engagement rates would be more important.

The author is Chief Operating Officer, India Operations, Optimize Media

Also read: How are offline retailers fighting the pandemic with digitization?

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