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Primary Blog/Online Business/Why Influence Marketing is becoming the #1 tool for Modern Brands?

Why Influence Marketing is becoming the #1 tool for Modern Brands?

Friday, February 24, 2023

 / Akassh Ashok Gupta

30 sec summary

Influencer marketing has rapidly grown as an effective method of promoting brands in the digital age. Indian brands have doubled their spending on influencer marketing in just a year, with the industry projected to reach $290 million by 2025. Startups and niche industries find influencers crucial in targeting specific audiences for higher conversions and return on investment. For instance, a mobile app startup targeted the 10-15-year-old demographic through an influencer, resulting in better conversions than traditional marketing methods. However, influencers must be selective to maintain credibility in the long run.

The Rise of Influencer Marketing in India

In India, the influencer marketing industry has witnessed remarkable growth, with brands increasingly recognizing the power of influencers in reaching a larger audience at a lower cost. According to Kroll's report, more than a third of Indian brands have doubled their budgets for social media influencers in the past year, and this trend is expected to continue. In fact, the valuation advisory firm predicts that the Indian influencer marketing industry will reach a value of $290 million by 2025.

The Impact of Micro and Nano Influencers

While bigger brands still rely on mainstream celebrities like cricketers and Bollywood stars, startups and niche industries are turning to micro and nano influencers for effective marketing campaigns. These influencers, with their smaller but highly engaged audiences, offer higher returns on investment and can effectively target specific market segments.

For example, Rupal Singh Chauhan, a nano-influencer in the fashion, lifestyle, and food sectors, boasts an engagement rate of 178% with 23,100 followers on Instagram. Similarly, Yash Chokshi, a micro-influencer in travel and lifestyle photography, has an impressive engagement rate of more than 145% on Instagram. These micro and nano influencers have proven to be more influential in driving engagement and conversions among their niche audiences.

The Effectiveness of Influencer Marketing

Studies have shown that influencer marketing is highly effective in promoting brands and driving sales. Businesses that invest in influencer marketing campaigns earn an average of $5.78 for every dollar spent, with some experiencing an even higher return on investment of up to $18. This makes influencer marketing a cost-effective strategy for brands to boost brand awareness and generate revenue.

Moreover, 90% of marketers believe that influencer marketing is an effective form of marketing. This widespread belief in the efficacy of influencer marketing is leading to increased budgets for such campaigns. In fact, 71% of marketers plan to increase their influencer marketing budgets, with some allocating up to 40% of their total marketing budget to influencer campaigns.

The Importance of Authenticity and Credibility

While influencer marketing can yield impressive results, it is essential for influencers to maintain their authenticity and credibility. Influencers must be selective about the brands they endorse and should only promote products they genuinely believe in. This ensures that their audience continues to trust their recommendations, leading to long-term success in the influencer industry.

The Trap of Blind Endorsements

Many creators and influencers fall into the trap of blindly endorsing any brand that comes their way, often leading to a loss of credibility and influence in the long run. It is crucial for influencers to lead by example and prioritize their audience's trust over short-term gains. By being selective and endorsing products with positive reviews and strong value propositions, influencers can sustain a steady revenue stream and maintain their influence in the digital space.


Influencer marketing has emerged as a powerful tool for modern brands, especially startups and niche industries, to reach their target audiences and achieve higher conversions. The rapid growth of the influencer marketing industry in India and worldwide reflects its effectiveness in driving sales and brand awareness. By leveraging the authenticity and reach of influencers, brands can establish stronger connections with their audiences and build a positive brand image. However, influencers must be cautious about blindly endorsing brands and prioritize maintaining credibility to ensure their long-term success in the ever-evolving digital landscape. As the influencer marketing industry continues to expand, brands and influencers must work together to create authentic and impactful campaigns that resonate with their audiences.

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Hi, I Am Akassh

Founder & CEO Of Peepoyenetwork

Akassh Ashok Gupta brings 19+ years in the corporate world and 5+ years doing YouTube who’s currently one of the top influencers in the Social Activism space with the Brand Peepoye’

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