Brands boost influencer marketing budgets by 35-50% this festive season

New Delhi: Influencer marketing is set to steal the spotlight in this year's festive ad digital adex. According to industry insiders, brands are ramping up their influencer budgets by 35–45% compared to last year, making it a key strategy in their festive season marketing strategies.

Neena Dasgupta, CEO and Founder, The Salt Inc., told BuzzInContent.com that influencer marketing is set to be a major player this festive season, with brands expected to increase their spending by a significant 35-40% by the end of the approaching festive season, against 2023. Sohail Qadri Khan, VP of Client Success at Kofluence, also anticipates a similar percentage, with his guesses being 40-50%. “This reflects the shift from influencers being mere amplifiers of awareness to key drivers of the entire customer journey—from sparking interest to driving conversions,” he added.

On a similar front, Rubeena Singh - Country Manager, India & MENA, AnyMind Group, shared her expectations of 15-20% spike this festive season, as compared to last year’s. As per Singh, the key factors include continued shift towards digital commerce and brands heavily investing in personalised, targeted campaigns. “There’s also heightened investment in collaborating with regional influencers to reach Tier 2 and Tier 3 cities and the growth of authentic content being created by influencers, data-driven influencer picking by brands, and high engagement garnered on relatable content created by micro influencers,” said Sharma. 

According to Dasgupta, by leveraging the relatability and trust that influencers build with their followers, brands can create more meaningful connections with their audience and generate higher conversion rates.

She commented, “During the festive season, when consumer sentiment is high and purchasing power is increased, influencer marketing can be particularly effective in driving sales. This, combined with the growing popularity of social media and the increasing sophistication of influencer marketing strategies, makes it a compelling option for brands looking to maximise their reach and impact during the festive period.”

According to Khan, influencers play a crucial role for brands aiming to capture consumer attention this festive season, using creative content that resonates with seasonal themes. 

Priyanka Padode Sheth, Head of Business and Operations at Iplix Media, has noted a significant uptick in influencer marketing within key categories like e-commerce, beauty, personal care, and groceries. She elaborated, “We’re also seeing increased influencer activity in sectors such as alcohol, confectionery, smartphones, and electronics.”

Brands across various industries are ramping up their influencer marketing spends, particularly in fashion, beauty, consumer tech, and gifting. Dasgupta pointed out that these sectors are going all-in on influencer collaborations, leveraging the visual appeal that platforms like Instagram and YouTube provide to showcase their products effectively. 

“Visual storytelling is key during this time,” Dasgupta noted, emphasising how these platforms are ideal for brands looking to capture consumer attention through eye-catching content. With gifting playing a significant role in the festive season, brands are eager to position their products as the go-to choices for festive season shoppers. 

FMCG brands are also getting in on the action, promoting everyday items that inspire quick purchases. The festive rush often sees consumers looking for convenient options, and influencer marketing can help drive these decisions. 

Khan commented, “In India, these sectors see a natural spike in demand, with consumers stocking up on essentials, refreshing their wardrobes, and indulging in beauty products as part of their festive preparations.”

A major driver behind this increased spending on influencer marketing is the tradition of gifting. Khan said, “During the festive season, many consumers are looking for the perfect gifts, making it a prime time for influencers to suggest must-have items and personalised gift ideas. Influencers help brands connect with shoppers by presenting products in a way that feels both aspirational and practical.”

However, it's not a one-size-fits-all approach. Dasgupta highlighted that sectors like B2B or industrial goods might not dive as deeply into the influencer space since social media influence doesn’t resonate as strongly with their niche markets. 

“The main challenge is the oversaturation of content, with every brand vying for visibility during the same period. Another challenge is logistics coordination due to tight timelines,” Singh highlighted.

Khan emphasised that influencer marketing is set to be more strategic and value-driven this festive season, with notable trends shaping how brands engage with consumers. He said that a rising focus on sustainability and ethical marketing is prompting brands to collaborate with influencers who share their values around safe practices and conscious consumerism. 

Additionally, social commerce integration is becoming crucial, as influencers are not only building brand awareness but also driving real-time conversions by integrating shopping experiences directly into their content, said Khan.

At the forefront of social commerce in India are Nykaa, Myntra, Amazon, Flipkart and Meesho. “This season may also see a rise in live shopping and social commerce integrations across platforms like Instagram, YouTube and apps like Myntra and Amazon. There’s also a shift towards using virtual influencers to create unique content,” as per Singh.

Myntra has launched a shopper-led creator programme, The Ultimate Glam Clan, to target Gen Z. This initiative allows customers to act as creators, showcasing their fashion preferences while earning rewards.

Flipkart onboarded Tanmay Bhat and RJ Karishma as hosts for its Big Billion Days sale live show. 

E-commerce platform Amazon has announced an increase in its standard commission income rates across 20+ sub-categories for over 50,000 content creators engaged with it. The revised structure will offer content creators 1.5x-2x increased income across a wide range of product categories, including popular choices like fashion, beauty and personal care appliances, home, kitchen, toys, and books, Amazon said.“Automotive and real estate brands, on the other hand, may prioritise traditional media over influencer marketing,” opined Singh.

Meesho, with its grassroots strategy, thrives on micro-influencers. These creators, often from tier-2 cities, share personal success stories and product demos, creating a community feel.

“Another significant trend is the rise of geo-targeted influencer strategies, where brands partner with regional influencers to cater to local traditions and cultural nuances. This hyper-local approach allows for more personalised and relevant campaigns, ensuring that festive content resonates with specific demographics,” added Khan.

According to Sheth, brands want influencers who don't just spread awareness, but those who can drive consideration and ultimately conversion. “Brands that are price conscious also want to spread their funds over multiple creators, which is possible by including a healthy mix of micro and nano,” she said. 

For brands that harness smart content and personalised messaging, this festive season presents a unique opportunity, wrapped up Dasgupta.