This is the power of influencers, big consumer goods companies will now take advantage of them like this
Nowadays, everyone uses social media platforms. Many people also use them professionally and earn good income from them. Many businesses make money solely through social media. When the followers of such people increase continuously, they are called social media influencers. Businesses also get in touch with such people and they post posts related to the company’s products or services for a certain amount. This not only benefits the influencers but also increases the brand value of the businesses.
As influencers are growing, the consumer goods industry has also realized their power. Consumer goods companies are now looking to increase their brand value through these influencers. In such a situation, let us tell you how companies are taking advantage of them.
What is influencer marketing?
The influencer economy is a digital marketing ecosystem where social media influencers work with brands to promote their products and services. As influencers grow, the FMCG industry has also realized their power. FMCG companies are now looking to increase their brand value through these influencers. Reliance Industries owner Mukesh Ambani has already taken this initiative. He had invited the world’s top influencers to his son Anant’s wedding so that the global identity of his Reliance brand could be further increased.
How big is the industry?
If we talk about the influencer industry, according to a recent EY report, India’s influencer industry is set to reach Rs 3,375 crore by 2026, which will rise to Rs 2,344 crore by 2024. FMCG companies like Hindustan Unilever (HUL), Dabur and Godrej Consumer Products (GCP) are enhancing their influencer marketing strategies to drive consumer engagement, brand loyalty and brand advocacy. According to the companies, influencers are of great use to them in this job.
In their FY24 annual report, these companies also mentioned the growing influencer market. Today’s consumer is more influenced by watching things on platforms like Instagram and YouTube. In such a situation, companies may have to increase their dependence on macro, micro and nano influencers to increase brand visibility.
How much do companies spend on advertising?
In the Economics Time report, citing an advertising expert, it is said that large companies typically spend 8-10% of their digital advertising budget on hard advertising, if this is 30%. HUL, one of the largest advertisers in India, has extended its new-age capabilities to its influencer management team. The company’s advertising and promotion spend rose 31% to Rs 6,380 crore in FY24.
According to Dabur, the company has engaged with over 2,400 influencers in the last fiscal year. The company created 135 digital videos that generated 4.45 billion impressions and 1.45 billion views. The company’s advertising and promotion spend in FY24 increased by 33% to Rs 849 crore.
Mukesh Ambani has also taken the initiative
Top Asian businessman Mukesh Ambani had invited top influencers from abroad to his younger son Anant’s wedding. This has helped them a lot in giving global recognition to their brand Reliance. However, there is no clear information on whether he has joined hands with anyone or not.
