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Influencer
Marketplace
A silver bullet for influencer
marketing success
© 2023 Redseer Strategy Consultants Confidential and Proprietary Information
Dubai. Bangalore. Delhi. Mumbai. Singapore. New York
June 2023
© Redseer 02
Table of Content
1.1
1.2
1.3
Influencer marketing set to grow to $ 2.8- 3.5 Bn in 2028
Influencer marketing’s targeted approach is more effective
F&B, BPC, and Fashion brands are the top 3 sectors leveraging the power of influencers
2.1
2.2
2.3
Emergence of Influencers: New Disruption in Digital Advertisement Planning and Delivery
3.1
3.2
3.3
3.3.1
3.4
3.5
Influencer Marketplace: The Game-Changing Tech Solution for All Things Influencers!
Hobbyists & aspiring creators are more likely to use the influencer marketplace model
Brands favor influencer marketplace due to existing challenges in the ecosystem
Case Study: The TikTok Creator Marketplace
Influencer marketplace as a self-serve tech solution for Indian brands and influencers
4.1
4.2
4.3
4.4
Opportunity for Influencer Marketplace in India & way forward!
Mainstreaming Influencer Marketplace: A Path Forward
Currently influencer marketing landscape is complex and inefficient
Influencer marketing value-chain has 4 emerging models
Influencer marketplace resolves challenges and enables better discoverability of Macro & Micro influencers
Better engagement and ROI prompt brands to leverage Micro & Macro influencers
Influencer marketplace increases transparency: a win-win for brands and creators
Impactful messaging and optimized campaigns on the influencer marketplace
Riding the Wave: Expanding Internet Funnel and Sky-High Online
Engagement Fuel Digital Ad Spend Surge
By 2030, Internet users in India will cross 1 Bn with 2X as many transactors
Increasing internet users and online engagement to drive digital ads spending to $21 Bn by FY28
Ad spending on alternate digital channels growing faster than on Alphabet and Meta ecosystems
1.0
2.0
3.0
4.0
5.0
Executive Summary
Digital advertising in India experienced a significant boost towards the end of the last
decade with an exponentially growing number of internet and smartphone users. Spend
on digital advertising in FY22 was at $8 Bn as brands and retailers concentrated on
digital channels to maximize reach across 780 million internet users in the country. The
market also experienced a shift from incumbents such as Alphabet and Meta
Ecosystem to channels such as entertainment, eCommerce, Gaming, and Digital media
platforms.
As digital media democratized fame, internet celebrities or influencers are becoming
the centerpiece of a growing trend in influencer marketing. The ‘discovery-driven &
brand-centric’ agents drive the purchase decisions of consumers. Better ROI from
influencer marketing makes it attractive to brands of all sizes, and it is expected to grow
to $ 2.8- 3.5 Bn by 2028.
Currently, four models connect influencers with brands, two of which require
intermediary support. The shortcomings in three of these models can be mitigated by
the nascent influencer marketplace - the fastest growing model with the potential to
serve the needs of over 3 million creators in India. Brands and influencers show a high
propensity towards the influencer marketplace for a number of advantages it has over
the rest of the models.
© Redseer 03
The explosion of internet users also led to a surge in
digital advertising spends across platforms, with
brands finding new ways to reach their target
audience and increase marketing ROI.
Riding the Wave: Expanding Internet Funnel and
Sky-High Online Engagement Fuel Digital Ad Spend Surge
India experienced an exponential growth of internet
and smartphone users in the second half of the last
decade - a trend which still continues with the
internet userbase at 780 Mn users.
The ubiquity of the internet and smartphones will
pave the way for the rest of the population in lesser
connected parts of the country to enter the digital
economy. In the next 7-8 years, we expect India to
add 250 million internet users to its existing user
base and touch the 1 billion landmark by 2030.
With internet users maturing, the number of
transactors is expected to double from ~360 Mn in
CY2022 to ~750 Mn by the end of the decade. As it
stands, consumer user segments have already
amassed large userbases, with most of the sectors
dominated by users in the Tier 2+ cities. Driving
further online engagement is User Generated
Content (UGC), which is emerging as the favorite
content type across these userbases. People spend
2X as much time on UGC as Platform Generated
Content (PGC).
A large number of eyeballs on digital devices and
increased engagement on content platforms have
given digital advertisements a significant boost.
Growing faster than traditional ad mediums it takes
up about 55% of the total spending on ads in India.
By FY 2028, we expect that number to go higher to
65-70% and touch ~ $21 Bn.
Video will be the digital ad format driving this growth
as an increasing number of users show a preference
towards video content. Brands are already
leveraging OTT (over-the-top) video and CTV
(connected TV) to attract more eyeballs.
1.2 Increasing internet users and online
engagement to drive digital ads spending
to $21 Bn by FY28
1.1 By 2030, Internet users in India will cross
1 Bn with 2X as many transactors
1.0
In a market dominated by Alphabet and Meta
Ecosystem, ad spending on alternate digital
channels such as eCommerce, gaming, content, and
others is growing faster. While the incumbents grew
at a 37% CAGR from FY19 - FY23F, content, gaming,
and eCommerce grew at 46%, 48%, and 37%,
respectively.
1.3 Ad spending on alternate digital channels
is growing faster than on Alphabet and
Meta ecosystems
© Redseer 04
Emergence of Influencers: New Disruption in
Digital Advertisement Planning and Delivery
2.0
The popularity of User Generated Content ushered
in a new age of social media celebrities called
influencers, with followers ranging from a few
thousand to millions. Although many of the
most-followed influencers are existing celebrities,
most in the Mid-tier, Micro, and
With the democratization of fame, 3.5-4 Mn
influencers have emerged in the influencer
marketing ecosystem. Influencers are becoming the
centerpiece of digital advertisement as UGC
generates 2X more engagement than PGC.
Nano categories start as hobbyists and aspiring
influencers. Their popularity grows organically as
more users online gravitate to their original and
relatable content making the process more
democratic.
These celebrities have a direct connection to their
followers, and the relationship is a crucial tool for
advertisers.
2.1 Influencer marketing is set to become $ 2.8- 3.5 Bn market in 2028
Marketing Spend ¹ on Influencers- India
CY 22- CY28P, in USD Bn
Marketing Spend1 on Influencers- by sector
CY 22, in USD Bn
$ 0.35- 0.4 Bn
2022 2028P
Base Case
100%
24%
Aggressive
Case
CAGR (22- 28P)
$ 2.8- 3.5 Bn
$ 2.8 Bn
$ 0.7 Bn ~45%
20%
16%
12%
10%
10%
8%
Total Personal
Care
Food and
Beverage
Fashion &
Jewelry
Gaming Media &
Entertainment
Mobile
& EL
Others
Source(s): Expert Interactions, Influencer Marketplace websites, Redseer IP, Redseer Analysis
Note(s): 1. Includes a. Influencer led Brand Campaigns b. Content Promotions by Influencers for the Media & Entertainment Industry c. Live Commerce payout to Influencer d. E-sports &
Gaming promotion by Influencers e. Commission & fees added over the influencer earnings going to Agencies & talent managers 2. It does not include celebrity endorsements
~40%
As brands increasingly adopt influencer-led
marketing, we expect influencer marketing to be
$2.8-3.5 Bn in 2028. Spending on influencers
brands
which is at 5% of digital spending as of 2022, can
grow at a CAGR of 45% to reach 13% by 2027.
© Redseer 05
It also enables micro-targeting of the audience to
generate warmer leads. Finally, the influencer’s
authentic content fosters trust and ensures the
right context making it more relevant.
From the perspective of brands, influencers are
agents of discovery driven and brand centric
commerce, driving the purchase decision of
customers. Of the 780 Mn internet users in India,
54% (420 Mn) use social media. Of these, 67% (281
Mn) follow at least one influencer, and 28% (118 Mn)
tried products or services promoted by influencer
ads.
2.2 Influencer marketing’s targeted approach
is more effective
Paid digital ads have limitations in terms of factors
such as flexibility in the budget, targeted reach,
authentic content, and contextual ad placement.
Celebrity endorsement can be very expensive.
Lesser ad space also makes sharing impactful
messaging challenging, while irrelevant ad
placement leads to poor performance.
Influencer marketing can overcome all of the above
challenges by allowing flexibility of budget. Brands
can pick the right fit of influencer, platform, and
product based on the available budget.
Social Media users & influencer relationship
2023
~420 Mn
(54% of internet users)
~281 Mn
(67% of social media users)
~118 Mn
(28% of social
media users)
Internet users ~780 Mn
Social Media Users¹
Users follow at least one
influencer
People who saw influencer
ads tried products and service
Source(s): INCA, Kantar, Redseer IP, Redseer Research
Note(s): 1. Social media users include YouTube users
© Redseer 06
Brands across multiple consumer sectors are
leveraging influencer marketing for its quality of
reach and better ROI. While native sectors such as
F&B, BPC, and fashion brands are leading,
progressive sectors such as FinTech, Travel, RFSI,
Automobile, and Consumer Electronics are closely
following behind.
Nascent sectors such as Real Estate, Healthcare,
and Education are entering the space with the intent
of increasing awareness.
Large organizations, on the other hand, have been
able to reach and appeal to new target audiences by
hiring more influencers while still achieving effective
ROI.
2.3 Brands across scale & sectors leverage influencer marketing with
F&B, BPC, and Fashion being the top three
Case Study of Influencer marketing by selected companies
Descriptive
Amazon Live - eCommerce HUL- FMCG
Result
Impressions Reach Views
OpenBook - FinTech
Amazon Live leveraging influencers
for their hyper-engaged audiences
from their Blogs, YouTube, Social
Media & more
Influencers across genres &
archetypes leveraged based on
Product category
Parent Influencers used across
genres like celebrities, bloggers,
Youtubers
Regional and vernacular finance
content makers
Surf Excel leveraging
influencers to encourage outdoor
play as India prepared to ease
restrictions & create Brand Recall
Leveraging Influencers to familiarize
brand’s new product with its target
audience (Businesses &
entrepreneurs in Tier 2, Tier 3) &
increase user base
Fashion & BPC
Momfluencers, celebrities with
kids playing outdoors & promoting
surf excel
Chosen influencers educating &
providing demo of the new product to
>1Mn subscribers in regional language
Electronics
11M+ 10M+ 5M+ Result
Impressions Avg. click
to install rate
Clicks
123k+ 35.7% 3k+
Source(s): Good Creator agency case studies, Redseer Analysis
Recent trends have witnessed extensive utilization
of influencer marketing by eCommerce & retail
incumbents and niche-focused digital brands. Small
organizations with limited ad budgets have been
successful in achieving effective ROI working with
small creators.
© Redseer 07
Influencer Marketplace: The Game-Changing Tech
Solution for All Things Influencer!
3.0
With an ever-increasing number of influencers
entering the market, brands find it challenging to
discover the right ones out of the mix. Influencer
marketing agencies, platforms, and talent managers
also create a challenge in terms of transparency
and influencer discovery. The Influencer
Marketplace is a game-changing tech solution that
is coming out as an effective tool across
international platforms to be highly effective.
The existing landscape of influencer marketing is
complex and feeble because of the multiple
intermediaries between brands and influencers. The
challenges begin at the level of influencer matching,
and extends all the way to price opacity and
communication. Brands also have no foolproof way
to track and measure real-time campaign
effectiveness .
3.1 Currently influencer marketing landscape is
complex and inefficient
Challenges in the prevalent
influencer value chain
Prevalent Influencer marketing ecosystem and its challenges
Descriptive
Brand
Intermediaries
Ad Agency
Talent Manager
and Agencies
Influencer
Finding the right influencer with
vetted social metrics & its
audience metrics
Own Influencer
Database
Parties involved in the process
Influencer
Platform
1 3
2
1. Influencer Matching
Lack of Price Standardization
leading to no transparency &
high commissions
2. Price Transparency
Communication decay due to
multiple intermediaries, leading
to process inefficiency
3. Real-time Communication
Inefficient Real time tracking
of campaign metrics
4. Real-time Ad Performance
x
Source(s): Expert Interactions, Advertiser Interviews, Redseer Analysis
© Redseer 08
3.2 Influencer marketing value-chain has 4 emerging models
Looking closely at the influencer marketing
value-chain, there are 4 models at play that are
beginning to emerge. Agencies charge high
commissions, while subscription platforms have
technical ambiguity. Influencer Marketplaces are
self-serving tools offering end-to-end influencer
marketing solutions, starting from easy influencer
discoverability to centralized communication,
transparent payment and real-time campaign
analytics. They’re the fastest-growing solution due
to their low cost and high transparency. Given its
value proposition, we anticipate this to be the
fastest-growing influencer marketing solution.
Models supporting creators marketing in India
Descriptive
Description
and Value
Proposition
Influencer Marketing
Agencies
Influencer Platforms Influencer talent
management Agencies
Influencer- brand
Marketplaces
End-to-end influencer
marketing
Reduce operational
work from Brand side
Self-serve tools aiding
in right influencer
discovery
Data driven algorithms
for influencer insights
Represent influencers
Provide career
management services &
deal with brands
Self-serve tools & End-to
end influencer marketing
Data driven algorithms
for influencer insights
Brands looking for a
flexible and cost-effective
solution to influencer
marketing
Target
Audience
Brands looking for a
full-service approach to
influencer marketing
Brands and Agencies Brands and Agencies
Commission fee- 8%-12%
of the influencer's fee
Business
Model
Commission fee -
15%- 30% of influencer's
fee or campaign budget
Subscription model based
on the number of user
accounts and features
included
Commission fee - ~10%
ofinfluencer fee
Indicative
companies
1 2 3 4
Source(s) Company websites, In-Depth Interviews, Redseer Research
Influencer marketplace is the fastest emerging solution due to its cost
effectiveness, transparent metrices and wide selection of influencers
© Redseer 09
However, the brands are held back by challenges
regarding discovery and influencer fraud.
The rising costs of celebrity influencers put them
out of reach of brands with limited marketing
budgets. These brands adopt macro and
micro-influencers, who give a high ROI and come
with greater advocacy power.
3.3 Influencer marketplace resolves challenges and enables better discoverability
of Macro & Micro influencers
“As the prevalence of fraudulent followers grows, tools to
verify the legitimacy of influencer followers and the
percentage of active followers are required.”
- Influencer marketing manager, FoodTech
Elite
~ 300
Mega
~21k
Macro
~0.5-0.6 Mn
Micro
2.5-3 Mn
Creator Archetypes & Size
(>10Mn
Followers)
(1Mn-10Mn
Followers)
(100k-1Mn
Followers)
(10k-100k
Followers)
Brands struggle to keep
up with rising costs of
Popular creators
Brands adopting micro &
macro creators owing to
Challenges in hiring Micro &
Macro Influencers-
Affordability
Higher engagement & ROI
Niche audience & higher
advocacy power
Discoverability Challenges
Influencer Fraud
Influencer marketplace running on AI/ML greatly improves influencer discovery by analyzing user behavior to
detect fraudulent activities such as fake followers.
Social media API of influencer marketplaces also integrate features that enable brand discovery of influencers
based on demographics, interests, and behavior.
Source(s): Expert Interactions, Brands and Influencer IDIs, Redseer Analysis
“Discovery platforms save a lot of time in finding Micro,
regional, skill-based niche influencers while agencies take a lot
of time to get them.”
- Influencer marketing manager, FoodTech
© Redseer 10
and cost/ad impression brings out the value of Micro
and Macro influencers in ROI.
Micro influencers are also more popular with tier-2
users, making them a gateway to the demographic.
© Redseer 11
3.3.1 Better engagement and ROI prompt brands to leverage Micro &
Macro influencers
3.4 Influencer marketplace increases
transparency: a win-win for brands and
creators
Breaking the numbers down across celebrity archetypes
in terms of average engagement, total impressions,
The niche audience, greater engagement, and higher
advocacy power of these influencers make them
attractive for low-budget marketing campaigns.
“When influencers promote a brand, it resonates with who
they are. That's why typical engagements on an influencer
post are 4x that of a celebrity.“ - Marketing, FMCG
Transparency of pricing is a key differentiator of the
influencer marketplace from other models as it has the
potential to unlock direct price alignment between
brands and influencers. coupled with upfront
standardized platform commission, the clear numbers
enable brands to optimize budgets. Brands with lesser
ad budgets can also have flexibility and leverage
influencer marketing with agency fees and markup
costs. On the influencer’s end, marketplace
transparency enables higher earnings and fosters
better relationships with the brand.
ROI Analysis for Influencer marketing
By Archetype
Campaign Budget
Average Follower/
Influencer
Influencers Hired
Average Follower/
Influencer
Total following reach
Average Engagement
Total Impressions
Cost/Ad Impression
₹1,000,000
₹1,000,000
1
50,000,000
50,000,000
0.5%
250,000
₹4
₹1,000,000
₹5,000
200
250,000
50,000,000
2%
1,000,000
₹1
₹1,000,000
Celebrity
Macro
Influencers
Micro
Influencers
₹1,000
1,000
50,000
50,000,000
4%
2,000,000
₹0.5
Micro Influencers provide better economics to Brands & are hence
suitable for organizations across scale
Source(s): Redseer Analysis
Notes: 1. Engagement includes likes & comments
3.5 Impactful messaging and optimized
campaigns on the influencer marketplace
Brands communicating with influencers through
intermediaries often face the challenge of
information decay, diminishing the impact of
their messaging. With the influencer
marketplace, brands can directly communicate
with influencers enabling clarity in objective
setting and shortening the duration of campaign
delivery.
Influencer marketplace also automates the
existing manual analytics allowing brands to
view campaign metrics in real-time. The
all-in-one campaign analytics solution provides
vetted analytics, dynamic dashboards, and
high-quality insights, which help brands to
adjust their strategy and achieve better results.
Earnings in Influencer marketing with prevalent model vs
Influencer marketplace
Descriptive
Brand Budget Intermediary
commissions
Influencer
earnings
Brand Budget Marketplace Influencer
earnings
100
45- 50%
88-92%
50-65%
8-12%
Marketplace
Model
Prevalent
Model
Influencer marketplace enables higher
influencer earnings
Low High
© Redseer
Opportunity for Influencer Marketplace
in India & way forward!
4.0
With over 3.5 million influencers in the country, the
influencer marketing ecosystem has plenty of
scope for improvement in terms of influencer
matching, price transparency, real-time
communication, and real-time campaign analytics.
The influencer marketplace can overcome existing
challenges in the ecosystem and deliver value to
both brands as well as influencers.
Influencers on most platforms can be divided into 4
archetypes: Hobbyists, Aspiring Creators (skill
based), Aspiring Creator (opinion based), and
Matured Creators. The hobbyists and the aspiring
creators together constitute the bulk of the
influencer population online at about 3 Mn. They
face similar challenges with discoverability;
however, the hobbyists lack paid deals, unlike
aspiring creators who have a fixed payout.
Matured creators with high following are
comparatively fewer in number, and have lesser
propensity to use the marketplace as they’re often
represented by talent managers.
4.1 Hobbyists & Aspiring creators are more
likely to use the influencer marketplace model
“ I have no idea about how much my agency charges
because I have fixed payouts based on my number of
followers.” - Macro Creator, Business
Creator Archetypes
Profile
Details
Influencer
marketplace
sentiment
Description
Part time influencers
Focus to increase
follower base
Consistent creators
Part time influencers
Focus on posting
relevant and quality
content for fans
Seasoned influencers
Focus on career growth
Co- create with peer
influencers to raise
reach
Top most influencers
Very selective in
working on projects
with brands
Focus to build r
eputation
Average Following 10K- 50K 50K- 500K 50K- 500K >500K
Size of the
influencer cohort 1.8 - 2 Mn 0.8 - 1 Mn ~200K ~10K
Challenges faced
in sourcing brand
deals
Discoverability issue
Lack of Paid deals
Fixed pay-out by
agencies
Low brand deals
Discoverability issue
Fixed pay-out by
agencies
No time for
operational
management
Currentawareness
of Influencer
marketplace
Likeliness to use
influencer
marketplace
Hobbyist
Aspiring Creator –
Skill based Niche
Aspiring Creator –
Opinion based Niche
Matured Creator
Low High
Lower propensity to use marketplace as Talent manager
representation is high
Source(s): Expert Discussions, Influencer In-depth Interviews, Primary Research
With the prospect of better discovery and transparent
payouts, hobbyists and aspiring creators are most
likely to use the influencer marketplace.
12
© Redseer 13
4.2 Brands have indicated to use Influencer Marketplace due to existing
challenges in the ecosystem
About 74% of the brands in our survey responded
positively to their willingness to use influencer
marketplace. The top reasons for their willingness
were the discovery of niche influencers, price
standardization & transparency, direct
communication with influencers,
and ROI tracking with verified metrics. 26% were not
willing because of factors related to the support
offered by agencies, such as operational effort,
quality, and fraud screening.
26%
74%
Yes
No
Top Reasons for willingness to use Influencer Marketplace
Reasons for not willing to use Influencer marketplace
Discovering
Niche Influencers
High Operational
Effort
Ensuring Content
quality difficult
Fear of adopting due
to influencer fraud
Price standardization
& transparency
Direct Communication
with Influencers
ROI Tracking with
verified metrics
~80%
~60%
~60%
~50%
~40%
~40%
~40%
Brands with lower
budgets preferred
marketplace
Brands with lower
budgets preferred
marketplace
Willingness to use Influencer marketplace
In %, N = 271
Q: Are you willing to try Influencer marketplace, if not tried before?
Source(s): In Depth Interviews
Note(s): 1. Interview of Consumer Internet Brands across sectors (FinTech, Lifestyle, BPC, Health Tech, Gaming, EdTech, Fashion) & Traditional companies (BFSI, FMCG)
TikTok, which pioneered the creator marketplace,
overcame challenges that led to brand hesitancy in
adoption of the model. The content platform offers
large clients with account managers to reduce
operational workload. TikTok is also working to
boost their influencer response rate, which is
currently around 8-10%. Going forward, we expect 4
key trends in influencer marketing spend in India:
Standardization in influencer marketing which
increases transparency and consistency in pricing
and commissions
Higher influencer professionalism which involves
greater transparency in sponsored content and
avoidance of conflicts of interest
Increased guidelines and regulations as the
industry continues to grow
Brands prioritizing cost and optimizing strategies
to work with extreme cost efficiency
© Redseer 14
As a self-serve tech solution, the influencer
marketplace would solve existing challenges in the
ecosystem, effectively bridging the gap between
brands and influencers. At each step, the
marketplace would add value to the brands as
follows:
Social Filters
(Views, Followers, Engagement)
Profiles Shortlist basis filters
(Views, Followers, Engagement)
4.4 Influencer marketplace as a self-serve tech solution for Indian brands and influencers
Discovery & Shortlisting
Access to plenty of influencers in the ecosystem
Easy discoverability through filters based on
influencer attributes and their audience
Vetted social metrics from social media API
Discovery & Shortlisting
Access to plenty of influencers in the ecosystem
Easy discoverability through filters based on
influencer attributes and their audience
Vetted social metrics from social media API
Communication & Negotiation
Centralized communication system
Fast and seamless collaboration on a single platform
Deployment & Payment
Payment integration with dashboard
Affordable and transparent pricing
Invoice and payment tracking
Campaign Measurability & Optimization
Real-time analytics on influencer campaign
Ability to modify campaign based on feedback
Re-target consumers through influencers
A
B
C
D
Case Study (A): Solving the discoverability and fraud challenges
Creator marketplaces sourcing APIs from social
media platforms create a database of verified
influencers. Credible information gathered from
social media sites such as Instagram, YouTube, and
Twitter verifies social metrics such as views,
followers, and engagement.
Metrics such as creator demographic, audience
demographics, and past performance trends also
act as authenticity indicators to avoid influencer
fraud.
Creator Demographic
(Location, Content Category)
Audience Demographics
(Age, location, gender, affinities)
Source (s): Redseer Analysis
© Redseer 15
Source (s): Redseer Analysis
Source (s): Redseer Analysis
Case Study (B&C): High efficiency in campaign delivery through integrated
communication & payment tools
Brands communicating directly with influencers
lead to higher transparency and better
communication of campaign objectives. It shortens
campaign delivery time and boosts the efficiency of
the whole process.
A centralized dashboard with end-to-end assistance
from proposal to shortlisting, campaign delivery,
and payments makes it transparent and seamless
for both brands and influencers.
accurate picture of how the campaign is performing.
This allows brands to make course corrections when
needed.
B.1. Centralized Communication Dashboard
End-to end assistance provision from shortlisting to
reaching out to proposal on the self serve platform
D.1 Tracking & Reporting Dashboard
Updates real time metrics on views, likes, engagement, and audience demographic.
Also compares how different creators performed within a campaign.
C.1. Payment Integration
Price cards for influencers, fixed commission rates of the
marketplace improving transparency & tracking of process
enabling trust & efficiency
C.2. Price
Transparency
Overall Campaign reporting
(Views, shares, engagement rates)
C.3. Payment
Tracking
Key Performance Metrics
(Top creators, Audience
breakdown)
Case Study (D): Real-time campaign tracking for strategy adjustments
Real-time analytics on campaign performance, such
as views, likes, engagement, and audience
demographics, offer an
Mainstreaming Influencer Marketplace:
A Path Forward
5.0
© Redseer 16
Going ahead, it’s essential for the influencer marketplace to increase awareness and acceptance in the influencer
ecosystem through education and indemnification strategies. To that end, the path forward entails:
Educating influencers & brands
to unlock the potential of the
marketplace
Through education, it is possible to resolve brand
apprehensions regarding the quality of influencers,
fraudulent metrics, lack of transparency, and ROI
concerns. Case studies, analytics, and customer
testimonials are crucial to offer proof for the
effectiveness of influencer marketplaces.
Ensuring indemnity for brands and
influencers
Thoroughly vet both brands and influencers to ensure they are not
working with fake entities or engaged in illegal or unethical activities. A
robust screening process in place and contracts that are detailed and
clear in expectations, deliverables, and consequences are critical to
building trust.
Introducing dedicated
managers for large brands
Leading cause of major brands opting for agencies
over the self-serve model is operational support
and hassle-free campaign execution. Assigning
dedicated campaign managers to large clients
ensures a single point of contact for brands and
makes it smoother to execute successful
influencer campaigns through the marketplace.
Improving response rates of
influencers for better
campaign execution
Low response rates can create bottlenecks in
campaign execution, leading to delayed timelines
and unsatisfied clients. Boosting response rates
can help in matching the best-fit influencer with
the campaign and build reputation among brands.
Glossary (1/2)
Advertisement is a form of marketing communication that promotes
or sells a product, service, or idea. Advertisements can be delivered
through various media, including television (TV), radio, print, outdoor
and digital media
Terms Description
Advertising
Beauty & Personal care
BPC
Digital Advertising refers to advertising via digital channels
(advertising on the internet).
Digital Advertising
Google Search and others, Google Network and YouTube Ad
Google Ecosystem
Professionally Generated Content (PGC) is content generated by the
brand itself
PGC
Display advertisements refers to banner advertisements or classified
advertisements published on websites across the internet. Display
advertisements can be images, GIFs, or videos. Display
advertisements can be static or dynamic.
Display
Advertisements
A type of social media marketing that uses endorsements and
product mentions from influencer
Influencer
Marketing
Users who have access to the internet. This includes only wireless
connections.
Internet
Users
Live commerce is the act of selling products online through live video
while shoppers interact with the brand in real-time.
Live Commerce
Includes Family of accounts (Facebook, Instagram, Messenger, and
third-party affiliated websites or mobile applications)
Meta Ecosystem
OTT refers to Over-the-top media service or content offered directly
to viewers via the internet. It is an on-demand video or audio content
provided. It can be provided as subscription based, advertisement
supported or on a pay-per-view basis.
OTT Platform
© Redseer 17
Glossary (2/2)
Response rate means the no. of influencers responding to Brand
outreach by the total outreach by brands
Terms Description
Response Rate
Search advertising is a method of placing online advertisements on
the results page resulting from queries posted on a search engine
platform. Search advertisements are targeted to match key search
terms (called keywords) entered on search engines.
Search
Advertisement
Digital Advertising refers to advertising via digital channels
(advertising on the internet).
Digital Advertising
Social commerce is the use of social media platforms to promote and
sell products and services.
Social Commerce
Platforms which support any type of video content that’s less than
60 seconds in length.
Shortform Video
Platforms
Social Media refers to websites and applications which allow users to
a) create and share content, and/or b) participate in social networking
by features such as direct chat/like/comment/share etc.
Social Media
User Generated Content (UGC) is digital content that is produced and
shared by end users
UGC
Video advertisement refers to advertisements that occur before,
during, and/or after a video stream on the internet.
Video
Advertisement
© Redseer 18
Authors
Anil Kumar Founder and CEO
Anil Kumar is the Founder of Redseer Consulting. He has been part of
engagements in Internet, Private Equity, Retail CPG and Healthcare
among others. He specializes in growth and investment strategies. Anil is
a believer of the data-driven approach in solving business problems. His
consulting approach leverages Data IP, sector expertise and the client’s
core hypothesis. He holds a B-tech from IIT Delhi. He can be reached at
anil@redseerconsulting.com
Mukesh Kumar Associate Partner
Mukesh Kumar is the Associate Partner at Redseer Consulting and has
9+ years of experience in growth strategy engagement across internet,
education, healthcare, and consumer products clients across India,
MENA, and North America. He holds a B.Tech from IIT Delhi.He can be
reached at mukesh@redseerconsulting.com
Saloni Sancheti Associate Consultant
Saloni is an Associate Consultant at Redseer. She has worked on
engagements in the travel, retail & media space. She holds an MBA degree
from IIM Kozhikode & a B.A in Economics from Miranda House, Delhi
University She can be reached at saloni.s@redseerconsulting.com
Wasim Khan Business Analyst
Wasim has worked on consumer engagement and market reports in the
digital media and entertainment, online mobility, and Insurtech spaces.
He has graduated from SRCC and hold B.Com (H). He can be reached at
Wasim@redseerconsuling.com
© Redseer 19
Disclaimer
Copyright © RedSeer Management Consulting Private Limited
(“RedSeer”). All rights reserved.
While we have made every attempt to ensure that the information contained in this report has
been obtained from reliable sources, all data and information provided in this report is intended
solely for information purposes and general guidance on matters of interest for the personal use
of the reader, who shall accept full responsibility for its use. The names, photographs and
consumer quotes used are only for indicative / informational purposes and does not have any
significance to a particular person.
RedSeer does and seeks to do business with companies covered in its research reports. As a
result, readers should be aware that RedSeer may have a conflict of interest that could affect
the objectivity of the report.
All information in this report is provided “as is”, with no guarantee of completeness, accuracy, of
the results obtained from the use of this information, and without warranty of any kind, express
or implied, including, but not limited to warranties of performance, merchant ability and fitness
for a particular purpose. Given the changing nature of laws and the inherent hazards of
electronic communication, there may be delays, omissions or inaccuracies in the information
contained in this report. Accordingly, the information in this report is provided with the
understanding that the authors herein are not engaged in rendering legal, accounting, tax, or
other professional advice or services. As such, it should not be used as a substitute for
consultation with professional advisers. This report cannot be sold for consideration, within or
outside India, without the express written permission of RedSeer.
In no event shall RedSeer or its partners, employees or agents, be liable to you or anyone else
for any decision made or action taken in reliance on the information in this report or for any
errors, omissions, or delays in the content of this report or any losses, injuries, or damages
including any incidental or any consequential, special or similar loss or damages, arising out of,
or in connection with the use of this report.
Consequential, special or similar loss or damages, arising out of, or in connection with the use of
this report.
© Redseer 20
query@redseer.com
© 2023 Redseer Strategy Consultants Confidential and Proprietary Information

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Exploring the Lucrative Future of Influencer Marketing

  • 1. Influencer Marketplace A silver bullet for influencer marketing success © 2023 Redseer Strategy Consultants Confidential and Proprietary Information Dubai. Bangalore. Delhi. Mumbai. Singapore. New York June 2023
  • 2. © Redseer 02 Table of Content 1.1 1.2 1.3 Influencer marketing set to grow to $ 2.8- 3.5 Bn in 2028 Influencer marketing’s targeted approach is more effective F&B, BPC, and Fashion brands are the top 3 sectors leveraging the power of influencers 2.1 2.2 2.3 Emergence of Influencers: New Disruption in Digital Advertisement Planning and Delivery 3.1 3.2 3.3 3.3.1 3.4 3.5 Influencer Marketplace: The Game-Changing Tech Solution for All Things Influencers! Hobbyists & aspiring creators are more likely to use the influencer marketplace model Brands favor influencer marketplace due to existing challenges in the ecosystem Case Study: The TikTok Creator Marketplace Influencer marketplace as a self-serve tech solution for Indian brands and influencers 4.1 4.2 4.3 4.4 Opportunity for Influencer Marketplace in India & way forward! Mainstreaming Influencer Marketplace: A Path Forward Currently influencer marketing landscape is complex and inefficient Influencer marketing value-chain has 4 emerging models Influencer marketplace resolves challenges and enables better discoverability of Macro & Micro influencers Better engagement and ROI prompt brands to leverage Micro & Macro influencers Influencer marketplace increases transparency: a win-win for brands and creators Impactful messaging and optimized campaigns on the influencer marketplace Riding the Wave: Expanding Internet Funnel and Sky-High Online Engagement Fuel Digital Ad Spend Surge By 2030, Internet users in India will cross 1 Bn with 2X as many transactors Increasing internet users and online engagement to drive digital ads spending to $21 Bn by FY28 Ad spending on alternate digital channels growing faster than on Alphabet and Meta ecosystems 1.0 2.0 3.0 4.0 5.0
  • 3. Executive Summary Digital advertising in India experienced a significant boost towards the end of the last decade with an exponentially growing number of internet and smartphone users. Spend on digital advertising in FY22 was at $8 Bn as brands and retailers concentrated on digital channels to maximize reach across 780 million internet users in the country. The market also experienced a shift from incumbents such as Alphabet and Meta Ecosystem to channels such as entertainment, eCommerce, Gaming, and Digital media platforms. As digital media democratized fame, internet celebrities or influencers are becoming the centerpiece of a growing trend in influencer marketing. The ‘discovery-driven & brand-centric’ agents drive the purchase decisions of consumers. Better ROI from influencer marketing makes it attractive to brands of all sizes, and it is expected to grow to $ 2.8- 3.5 Bn by 2028. Currently, four models connect influencers with brands, two of which require intermediary support. The shortcomings in three of these models can be mitigated by the nascent influencer marketplace - the fastest growing model with the potential to serve the needs of over 3 million creators in India. Brands and influencers show a high propensity towards the influencer marketplace for a number of advantages it has over the rest of the models. © Redseer 03
  • 4. The explosion of internet users also led to a surge in digital advertising spends across platforms, with brands finding new ways to reach their target audience and increase marketing ROI. Riding the Wave: Expanding Internet Funnel and Sky-High Online Engagement Fuel Digital Ad Spend Surge India experienced an exponential growth of internet and smartphone users in the second half of the last decade - a trend which still continues with the internet userbase at 780 Mn users. The ubiquity of the internet and smartphones will pave the way for the rest of the population in lesser connected parts of the country to enter the digital economy. In the next 7-8 years, we expect India to add 250 million internet users to its existing user base and touch the 1 billion landmark by 2030. With internet users maturing, the number of transactors is expected to double from ~360 Mn in CY2022 to ~750 Mn by the end of the decade. As it stands, consumer user segments have already amassed large userbases, with most of the sectors dominated by users in the Tier 2+ cities. Driving further online engagement is User Generated Content (UGC), which is emerging as the favorite content type across these userbases. People spend 2X as much time on UGC as Platform Generated Content (PGC). A large number of eyeballs on digital devices and increased engagement on content platforms have given digital advertisements a significant boost. Growing faster than traditional ad mediums it takes up about 55% of the total spending on ads in India. By FY 2028, we expect that number to go higher to 65-70% and touch ~ $21 Bn. Video will be the digital ad format driving this growth as an increasing number of users show a preference towards video content. Brands are already leveraging OTT (over-the-top) video and CTV (connected TV) to attract more eyeballs. 1.2 Increasing internet users and online engagement to drive digital ads spending to $21 Bn by FY28 1.1 By 2030, Internet users in India will cross 1 Bn with 2X as many transactors 1.0 In a market dominated by Alphabet and Meta Ecosystem, ad spending on alternate digital channels such as eCommerce, gaming, content, and others is growing faster. While the incumbents grew at a 37% CAGR from FY19 - FY23F, content, gaming, and eCommerce grew at 46%, 48%, and 37%, respectively. 1.3 Ad spending on alternate digital channels is growing faster than on Alphabet and Meta ecosystems © Redseer 04
  • 5. Emergence of Influencers: New Disruption in Digital Advertisement Planning and Delivery 2.0 The popularity of User Generated Content ushered in a new age of social media celebrities called influencers, with followers ranging from a few thousand to millions. Although many of the most-followed influencers are existing celebrities, most in the Mid-tier, Micro, and With the democratization of fame, 3.5-4 Mn influencers have emerged in the influencer marketing ecosystem. Influencers are becoming the centerpiece of digital advertisement as UGC generates 2X more engagement than PGC. Nano categories start as hobbyists and aspiring influencers. Their popularity grows organically as more users online gravitate to their original and relatable content making the process more democratic. These celebrities have a direct connection to their followers, and the relationship is a crucial tool for advertisers. 2.1 Influencer marketing is set to become $ 2.8- 3.5 Bn market in 2028 Marketing Spend ¹ on Influencers- India CY 22- CY28P, in USD Bn Marketing Spend1 on Influencers- by sector CY 22, in USD Bn $ 0.35- 0.4 Bn 2022 2028P Base Case 100% 24% Aggressive Case CAGR (22- 28P) $ 2.8- 3.5 Bn $ 2.8 Bn $ 0.7 Bn ~45% 20% 16% 12% 10% 10% 8% Total Personal Care Food and Beverage Fashion & Jewelry Gaming Media & Entertainment Mobile & EL Others Source(s): Expert Interactions, Influencer Marketplace websites, Redseer IP, Redseer Analysis Note(s): 1. Includes a. Influencer led Brand Campaigns b. Content Promotions by Influencers for the Media & Entertainment Industry c. Live Commerce payout to Influencer d. E-sports & Gaming promotion by Influencers e. Commission & fees added over the influencer earnings going to Agencies & talent managers 2. It does not include celebrity endorsements ~40% As brands increasingly adopt influencer-led marketing, we expect influencer marketing to be $2.8-3.5 Bn in 2028. Spending on influencers brands which is at 5% of digital spending as of 2022, can grow at a CAGR of 45% to reach 13% by 2027. © Redseer 05
  • 6. It also enables micro-targeting of the audience to generate warmer leads. Finally, the influencer’s authentic content fosters trust and ensures the right context making it more relevant. From the perspective of brands, influencers are agents of discovery driven and brand centric commerce, driving the purchase decision of customers. Of the 780 Mn internet users in India, 54% (420 Mn) use social media. Of these, 67% (281 Mn) follow at least one influencer, and 28% (118 Mn) tried products or services promoted by influencer ads. 2.2 Influencer marketing’s targeted approach is more effective Paid digital ads have limitations in terms of factors such as flexibility in the budget, targeted reach, authentic content, and contextual ad placement. Celebrity endorsement can be very expensive. Lesser ad space also makes sharing impactful messaging challenging, while irrelevant ad placement leads to poor performance. Influencer marketing can overcome all of the above challenges by allowing flexibility of budget. Brands can pick the right fit of influencer, platform, and product based on the available budget. Social Media users & influencer relationship 2023 ~420 Mn (54% of internet users) ~281 Mn (67% of social media users) ~118 Mn (28% of social media users) Internet users ~780 Mn Social Media Users¹ Users follow at least one influencer People who saw influencer ads tried products and service Source(s): INCA, Kantar, Redseer IP, Redseer Research Note(s): 1. Social media users include YouTube users © Redseer 06
  • 7. Brands across multiple consumer sectors are leveraging influencer marketing for its quality of reach and better ROI. While native sectors such as F&B, BPC, and fashion brands are leading, progressive sectors such as FinTech, Travel, RFSI, Automobile, and Consumer Electronics are closely following behind. Nascent sectors such as Real Estate, Healthcare, and Education are entering the space with the intent of increasing awareness. Large organizations, on the other hand, have been able to reach and appeal to new target audiences by hiring more influencers while still achieving effective ROI. 2.3 Brands across scale & sectors leverage influencer marketing with F&B, BPC, and Fashion being the top three Case Study of Influencer marketing by selected companies Descriptive Amazon Live - eCommerce HUL- FMCG Result Impressions Reach Views OpenBook - FinTech Amazon Live leveraging influencers for their hyper-engaged audiences from their Blogs, YouTube, Social Media & more Influencers across genres & archetypes leveraged based on Product category Parent Influencers used across genres like celebrities, bloggers, Youtubers Regional and vernacular finance content makers Surf Excel leveraging influencers to encourage outdoor play as India prepared to ease restrictions & create Brand Recall Leveraging Influencers to familiarize brand’s new product with its target audience (Businesses & entrepreneurs in Tier 2, Tier 3) & increase user base Fashion & BPC Momfluencers, celebrities with kids playing outdoors & promoting surf excel Chosen influencers educating & providing demo of the new product to >1Mn subscribers in regional language Electronics 11M+ 10M+ 5M+ Result Impressions Avg. click to install rate Clicks 123k+ 35.7% 3k+ Source(s): Good Creator agency case studies, Redseer Analysis Recent trends have witnessed extensive utilization of influencer marketing by eCommerce & retail incumbents and niche-focused digital brands. Small organizations with limited ad budgets have been successful in achieving effective ROI working with small creators. © Redseer 07
  • 8. Influencer Marketplace: The Game-Changing Tech Solution for All Things Influencer! 3.0 With an ever-increasing number of influencers entering the market, brands find it challenging to discover the right ones out of the mix. Influencer marketing agencies, platforms, and talent managers also create a challenge in terms of transparency and influencer discovery. The Influencer Marketplace is a game-changing tech solution that is coming out as an effective tool across international platforms to be highly effective. The existing landscape of influencer marketing is complex and feeble because of the multiple intermediaries between brands and influencers. The challenges begin at the level of influencer matching, and extends all the way to price opacity and communication. Brands also have no foolproof way to track and measure real-time campaign effectiveness . 3.1 Currently influencer marketing landscape is complex and inefficient Challenges in the prevalent influencer value chain Prevalent Influencer marketing ecosystem and its challenges Descriptive Brand Intermediaries Ad Agency Talent Manager and Agencies Influencer Finding the right influencer with vetted social metrics & its audience metrics Own Influencer Database Parties involved in the process Influencer Platform 1 3 2 1. Influencer Matching Lack of Price Standardization leading to no transparency & high commissions 2. Price Transparency Communication decay due to multiple intermediaries, leading to process inefficiency 3. Real-time Communication Inefficient Real time tracking of campaign metrics 4. Real-time Ad Performance x Source(s): Expert Interactions, Advertiser Interviews, Redseer Analysis © Redseer 08
  • 9. 3.2 Influencer marketing value-chain has 4 emerging models Looking closely at the influencer marketing value-chain, there are 4 models at play that are beginning to emerge. Agencies charge high commissions, while subscription platforms have technical ambiguity. Influencer Marketplaces are self-serving tools offering end-to-end influencer marketing solutions, starting from easy influencer discoverability to centralized communication, transparent payment and real-time campaign analytics. They’re the fastest-growing solution due to their low cost and high transparency. Given its value proposition, we anticipate this to be the fastest-growing influencer marketing solution. Models supporting creators marketing in India Descriptive Description and Value Proposition Influencer Marketing Agencies Influencer Platforms Influencer talent management Agencies Influencer- brand Marketplaces End-to-end influencer marketing Reduce operational work from Brand side Self-serve tools aiding in right influencer discovery Data driven algorithms for influencer insights Represent influencers Provide career management services & deal with brands Self-serve tools & End-to end influencer marketing Data driven algorithms for influencer insights Brands looking for a flexible and cost-effective solution to influencer marketing Target Audience Brands looking for a full-service approach to influencer marketing Brands and Agencies Brands and Agencies Commission fee- 8%-12% of the influencer's fee Business Model Commission fee - 15%- 30% of influencer's fee or campaign budget Subscription model based on the number of user accounts and features included Commission fee - ~10% ofinfluencer fee Indicative companies 1 2 3 4 Source(s) Company websites, In-Depth Interviews, Redseer Research Influencer marketplace is the fastest emerging solution due to its cost effectiveness, transparent metrices and wide selection of influencers © Redseer 09
  • 10. However, the brands are held back by challenges regarding discovery and influencer fraud. The rising costs of celebrity influencers put them out of reach of brands with limited marketing budgets. These brands adopt macro and micro-influencers, who give a high ROI and come with greater advocacy power. 3.3 Influencer marketplace resolves challenges and enables better discoverability of Macro & Micro influencers “As the prevalence of fraudulent followers grows, tools to verify the legitimacy of influencer followers and the percentage of active followers are required.” - Influencer marketing manager, FoodTech Elite ~ 300 Mega ~21k Macro ~0.5-0.6 Mn Micro 2.5-3 Mn Creator Archetypes & Size (>10Mn Followers) (1Mn-10Mn Followers) (100k-1Mn Followers) (10k-100k Followers) Brands struggle to keep up with rising costs of Popular creators Brands adopting micro & macro creators owing to Challenges in hiring Micro & Macro Influencers- Affordability Higher engagement & ROI Niche audience & higher advocacy power Discoverability Challenges Influencer Fraud Influencer marketplace running on AI/ML greatly improves influencer discovery by analyzing user behavior to detect fraudulent activities such as fake followers. Social media API of influencer marketplaces also integrate features that enable brand discovery of influencers based on demographics, interests, and behavior. Source(s): Expert Interactions, Brands and Influencer IDIs, Redseer Analysis “Discovery platforms save a lot of time in finding Micro, regional, skill-based niche influencers while agencies take a lot of time to get them.” - Influencer marketing manager, FoodTech © Redseer 10
  • 11. and cost/ad impression brings out the value of Micro and Macro influencers in ROI. Micro influencers are also more popular with tier-2 users, making them a gateway to the demographic. © Redseer 11 3.3.1 Better engagement and ROI prompt brands to leverage Micro & Macro influencers 3.4 Influencer marketplace increases transparency: a win-win for brands and creators Breaking the numbers down across celebrity archetypes in terms of average engagement, total impressions, The niche audience, greater engagement, and higher advocacy power of these influencers make them attractive for low-budget marketing campaigns. “When influencers promote a brand, it resonates with who they are. That's why typical engagements on an influencer post are 4x that of a celebrity.“ - Marketing, FMCG Transparency of pricing is a key differentiator of the influencer marketplace from other models as it has the potential to unlock direct price alignment between brands and influencers. coupled with upfront standardized platform commission, the clear numbers enable brands to optimize budgets. Brands with lesser ad budgets can also have flexibility and leverage influencer marketing with agency fees and markup costs. On the influencer’s end, marketplace transparency enables higher earnings and fosters better relationships with the brand. ROI Analysis for Influencer marketing By Archetype Campaign Budget Average Follower/ Influencer Influencers Hired Average Follower/ Influencer Total following reach Average Engagement Total Impressions Cost/Ad Impression ₹1,000,000 ₹1,000,000 1 50,000,000 50,000,000 0.5% 250,000 ₹4 ₹1,000,000 ₹5,000 200 250,000 50,000,000 2% 1,000,000 ₹1 ₹1,000,000 Celebrity Macro Influencers Micro Influencers ₹1,000 1,000 50,000 50,000,000 4% 2,000,000 ₹0.5 Micro Influencers provide better economics to Brands & are hence suitable for organizations across scale Source(s): Redseer Analysis Notes: 1. Engagement includes likes & comments 3.5 Impactful messaging and optimized campaigns on the influencer marketplace Brands communicating with influencers through intermediaries often face the challenge of information decay, diminishing the impact of their messaging. With the influencer marketplace, brands can directly communicate with influencers enabling clarity in objective setting and shortening the duration of campaign delivery. Influencer marketplace also automates the existing manual analytics allowing brands to view campaign metrics in real-time. The all-in-one campaign analytics solution provides vetted analytics, dynamic dashboards, and high-quality insights, which help brands to adjust their strategy and achieve better results. Earnings in Influencer marketing with prevalent model vs Influencer marketplace Descriptive Brand Budget Intermediary commissions Influencer earnings Brand Budget Marketplace Influencer earnings 100 45- 50% 88-92% 50-65% 8-12% Marketplace Model Prevalent Model Influencer marketplace enables higher influencer earnings Low High
  • 12. © Redseer Opportunity for Influencer Marketplace in India & way forward! 4.0 With over 3.5 million influencers in the country, the influencer marketing ecosystem has plenty of scope for improvement in terms of influencer matching, price transparency, real-time communication, and real-time campaign analytics. The influencer marketplace can overcome existing challenges in the ecosystem and deliver value to both brands as well as influencers. Influencers on most platforms can be divided into 4 archetypes: Hobbyists, Aspiring Creators (skill based), Aspiring Creator (opinion based), and Matured Creators. The hobbyists and the aspiring creators together constitute the bulk of the influencer population online at about 3 Mn. They face similar challenges with discoverability; however, the hobbyists lack paid deals, unlike aspiring creators who have a fixed payout. Matured creators with high following are comparatively fewer in number, and have lesser propensity to use the marketplace as they’re often represented by talent managers. 4.1 Hobbyists & Aspiring creators are more likely to use the influencer marketplace model “ I have no idea about how much my agency charges because I have fixed payouts based on my number of followers.” - Macro Creator, Business Creator Archetypes Profile Details Influencer marketplace sentiment Description Part time influencers Focus to increase follower base Consistent creators Part time influencers Focus on posting relevant and quality content for fans Seasoned influencers Focus on career growth Co- create with peer influencers to raise reach Top most influencers Very selective in working on projects with brands Focus to build r eputation Average Following 10K- 50K 50K- 500K 50K- 500K >500K Size of the influencer cohort 1.8 - 2 Mn 0.8 - 1 Mn ~200K ~10K Challenges faced in sourcing brand deals Discoverability issue Lack of Paid deals Fixed pay-out by agencies Low brand deals Discoverability issue Fixed pay-out by agencies No time for operational management Currentawareness of Influencer marketplace Likeliness to use influencer marketplace Hobbyist Aspiring Creator – Skill based Niche Aspiring Creator – Opinion based Niche Matured Creator Low High Lower propensity to use marketplace as Talent manager representation is high Source(s): Expert Discussions, Influencer In-depth Interviews, Primary Research With the prospect of better discovery and transparent payouts, hobbyists and aspiring creators are most likely to use the influencer marketplace. 12
  • 13. © Redseer 13 4.2 Brands have indicated to use Influencer Marketplace due to existing challenges in the ecosystem About 74% of the brands in our survey responded positively to their willingness to use influencer marketplace. The top reasons for their willingness were the discovery of niche influencers, price standardization & transparency, direct communication with influencers, and ROI tracking with verified metrics. 26% were not willing because of factors related to the support offered by agencies, such as operational effort, quality, and fraud screening. 26% 74% Yes No Top Reasons for willingness to use Influencer Marketplace Reasons for not willing to use Influencer marketplace Discovering Niche Influencers High Operational Effort Ensuring Content quality difficult Fear of adopting due to influencer fraud Price standardization & transparency Direct Communication with Influencers ROI Tracking with verified metrics ~80% ~60% ~60% ~50% ~40% ~40% ~40% Brands with lower budgets preferred marketplace Brands with lower budgets preferred marketplace Willingness to use Influencer marketplace In %, N = 271 Q: Are you willing to try Influencer marketplace, if not tried before? Source(s): In Depth Interviews Note(s): 1. Interview of Consumer Internet Brands across sectors (FinTech, Lifestyle, BPC, Health Tech, Gaming, EdTech, Fashion) & Traditional companies (BFSI, FMCG) TikTok, which pioneered the creator marketplace, overcame challenges that led to brand hesitancy in adoption of the model. The content platform offers large clients with account managers to reduce operational workload. TikTok is also working to boost their influencer response rate, which is currently around 8-10%. Going forward, we expect 4 key trends in influencer marketing spend in India: Standardization in influencer marketing which increases transparency and consistency in pricing and commissions Higher influencer professionalism which involves greater transparency in sponsored content and avoidance of conflicts of interest Increased guidelines and regulations as the industry continues to grow Brands prioritizing cost and optimizing strategies to work with extreme cost efficiency
  • 14. © Redseer 14 As a self-serve tech solution, the influencer marketplace would solve existing challenges in the ecosystem, effectively bridging the gap between brands and influencers. At each step, the marketplace would add value to the brands as follows: Social Filters (Views, Followers, Engagement) Profiles Shortlist basis filters (Views, Followers, Engagement) 4.4 Influencer marketplace as a self-serve tech solution for Indian brands and influencers Discovery & Shortlisting Access to plenty of influencers in the ecosystem Easy discoverability through filters based on influencer attributes and their audience Vetted social metrics from social media API Discovery & Shortlisting Access to plenty of influencers in the ecosystem Easy discoverability through filters based on influencer attributes and their audience Vetted social metrics from social media API Communication & Negotiation Centralized communication system Fast and seamless collaboration on a single platform Deployment & Payment Payment integration with dashboard Affordable and transparent pricing Invoice and payment tracking Campaign Measurability & Optimization Real-time analytics on influencer campaign Ability to modify campaign based on feedback Re-target consumers through influencers A B C D Case Study (A): Solving the discoverability and fraud challenges Creator marketplaces sourcing APIs from social media platforms create a database of verified influencers. Credible information gathered from social media sites such as Instagram, YouTube, and Twitter verifies social metrics such as views, followers, and engagement. Metrics such as creator demographic, audience demographics, and past performance trends also act as authenticity indicators to avoid influencer fraud. Creator Demographic (Location, Content Category) Audience Demographics (Age, location, gender, affinities) Source (s): Redseer Analysis
  • 15. © Redseer 15 Source (s): Redseer Analysis Source (s): Redseer Analysis Case Study (B&C): High efficiency in campaign delivery through integrated communication & payment tools Brands communicating directly with influencers lead to higher transparency and better communication of campaign objectives. It shortens campaign delivery time and boosts the efficiency of the whole process. A centralized dashboard with end-to-end assistance from proposal to shortlisting, campaign delivery, and payments makes it transparent and seamless for both brands and influencers. accurate picture of how the campaign is performing. This allows brands to make course corrections when needed. B.1. Centralized Communication Dashboard End-to end assistance provision from shortlisting to reaching out to proposal on the self serve platform D.1 Tracking & Reporting Dashboard Updates real time metrics on views, likes, engagement, and audience demographic. Also compares how different creators performed within a campaign. C.1. Payment Integration Price cards for influencers, fixed commission rates of the marketplace improving transparency & tracking of process enabling trust & efficiency C.2. Price Transparency Overall Campaign reporting (Views, shares, engagement rates) C.3. Payment Tracking Key Performance Metrics (Top creators, Audience breakdown) Case Study (D): Real-time campaign tracking for strategy adjustments Real-time analytics on campaign performance, such as views, likes, engagement, and audience demographics, offer an
  • 16. Mainstreaming Influencer Marketplace: A Path Forward 5.0 © Redseer 16 Going ahead, it’s essential for the influencer marketplace to increase awareness and acceptance in the influencer ecosystem through education and indemnification strategies. To that end, the path forward entails: Educating influencers & brands to unlock the potential of the marketplace Through education, it is possible to resolve brand apprehensions regarding the quality of influencers, fraudulent metrics, lack of transparency, and ROI concerns. Case studies, analytics, and customer testimonials are crucial to offer proof for the effectiveness of influencer marketplaces. Ensuring indemnity for brands and influencers Thoroughly vet both brands and influencers to ensure they are not working with fake entities or engaged in illegal or unethical activities. A robust screening process in place and contracts that are detailed and clear in expectations, deliverables, and consequences are critical to building trust. Introducing dedicated managers for large brands Leading cause of major brands opting for agencies over the self-serve model is operational support and hassle-free campaign execution. Assigning dedicated campaign managers to large clients ensures a single point of contact for brands and makes it smoother to execute successful influencer campaigns through the marketplace. Improving response rates of influencers for better campaign execution Low response rates can create bottlenecks in campaign execution, leading to delayed timelines and unsatisfied clients. Boosting response rates can help in matching the best-fit influencer with the campaign and build reputation among brands.
  • 17. Glossary (1/2) Advertisement is a form of marketing communication that promotes or sells a product, service, or idea. Advertisements can be delivered through various media, including television (TV), radio, print, outdoor and digital media Terms Description Advertising Beauty & Personal care BPC Digital Advertising refers to advertising via digital channels (advertising on the internet). Digital Advertising Google Search and others, Google Network and YouTube Ad Google Ecosystem Professionally Generated Content (PGC) is content generated by the brand itself PGC Display advertisements refers to banner advertisements or classified advertisements published on websites across the internet. Display advertisements can be images, GIFs, or videos. Display advertisements can be static or dynamic. Display Advertisements A type of social media marketing that uses endorsements and product mentions from influencer Influencer Marketing Users who have access to the internet. This includes only wireless connections. Internet Users Live commerce is the act of selling products online through live video while shoppers interact with the brand in real-time. Live Commerce Includes Family of accounts (Facebook, Instagram, Messenger, and third-party affiliated websites or mobile applications) Meta Ecosystem OTT refers to Over-the-top media service or content offered directly to viewers via the internet. It is an on-demand video or audio content provided. It can be provided as subscription based, advertisement supported or on a pay-per-view basis. OTT Platform © Redseer 17
  • 18. Glossary (2/2) Response rate means the no. of influencers responding to Brand outreach by the total outreach by brands Terms Description Response Rate Search advertising is a method of placing online advertisements on the results page resulting from queries posted on a search engine platform. Search advertisements are targeted to match key search terms (called keywords) entered on search engines. Search Advertisement Digital Advertising refers to advertising via digital channels (advertising on the internet). Digital Advertising Social commerce is the use of social media platforms to promote and sell products and services. Social Commerce Platforms which support any type of video content that’s less than 60 seconds in length. Shortform Video Platforms Social Media refers to websites and applications which allow users to a) create and share content, and/or b) participate in social networking by features such as direct chat/like/comment/share etc. Social Media User Generated Content (UGC) is digital content that is produced and shared by end users UGC Video advertisement refers to advertisements that occur before, during, and/or after a video stream on the internet. Video Advertisement © Redseer 18
  • 19. Authors Anil Kumar Founder and CEO Anil Kumar is the Founder of Redseer Consulting. He has been part of engagements in Internet, Private Equity, Retail CPG and Healthcare among others. He specializes in growth and investment strategies. Anil is a believer of the data-driven approach in solving business problems. His consulting approach leverages Data IP, sector expertise and the client’s core hypothesis. He holds a B-tech from IIT Delhi. He can be reached at anil@redseerconsulting.com Mukesh Kumar Associate Partner Mukesh Kumar is the Associate Partner at Redseer Consulting and has 9+ years of experience in growth strategy engagement across internet, education, healthcare, and consumer products clients across India, MENA, and North America. He holds a B.Tech from IIT Delhi.He can be reached at mukesh@redseerconsulting.com Saloni Sancheti Associate Consultant Saloni is an Associate Consultant at Redseer. She has worked on engagements in the travel, retail & media space. She holds an MBA degree from IIM Kozhikode & a B.A in Economics from Miranda House, Delhi University She can be reached at saloni.s@redseerconsulting.com Wasim Khan Business Analyst Wasim has worked on consumer engagement and market reports in the digital media and entertainment, online mobility, and Insurtech spaces. He has graduated from SRCC and hold B.Com (H). He can be reached at Wasim@redseerconsuling.com © Redseer 19
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