The Role of YouTube Influencers in Driving Sales for Brands

🔍Insights

Nitin Konde, Apoorva Bajj

Apr 4, 2024 — 4 min read

The Role of YouTube Influencers in Driving Sales for Brands

On YouTube, several youthful content creators have amassed a massive following by posting videos in which they try on clothes, evaluate products, or demonstrate new makeup looks. A Delhi-based YouTuber named Sejal Kumar has 883,000 subscribers. In a video called "How I get ready for a shoot," she walks her viewers through her procedure for getting ready, all the while gently promoting the Veet electric trimmer and how it saves her from having to rush to the salon at the last minute. The owner of the brand, Reckitt Benckiser (India) Ltd., funded the video's production.

In the ever-changing realm of online video creation, YouTube stars from India have emerged as powerful advocates for many brands. Several factors, including the influencer's subscriber count, average views, engagement rate, and the brand's unique requirements, determine the charges for these promotional services. To give you an idea, a promotional video from an Indian YouTuber with a moderate following of about 50,000 subscribers would cost anything from 20,000 to 50,000 INR.

Putting the Price Cap
Brands Opting for YouTube Influencers
Developments and Data Regarding the Market

Putting the Price Cap

On the flip side, famous YouTubers with millions of fans can charge 2 lakhs INR or more for just one ad. But brands must not limit themselves to only subscriber counts. When comparing influencers, it's usually better to go with one with a smaller but more engaged audience because they tend to deliver more value for money. The promotional fees are heavily influenced by the type of content and the intended audience.

Consider a firm that is trying to reach tech-savvy consumers with an ad for their product. In such instances, they may choose an influencer whose audience consists primarily of young adults and whose content is centered on technology. The opposite is true for household goods brands; they may favor influencers who cater to stay-at-home moms and their families.

To meet the unique requirements of brands and work within their budgets, YouTubers may sometimes provide bespoke promotional packages. Reviews, sponsored videos, shoutouts, and product placements in their normal material are all examples of what can be considered these.

Influencers may negotiate for free goods and services in addition to monetary remuneration as part of their promotional contract. For startups or smaller firms on a tighter budget, this could be a great way to contact their customers without breaking the bank.

Brands Opting for YouTube Influencers

Influencer marketing is a significant deal for Amazon India, one of the largest eCommerce platforms in the country. Actors, singers, and YouTubers from India are among the influencers that the brand has teamed up with to market its wares. Influencer marketing is another strategy that Amazon India employs to boost sales and awareness of the business. Indian influencers have been working with Myntra, a leading fashion shop in India, to promote the brand's wares. Myntra has collaborated with numerous influencers, including Bollywood stars and fashion bloggers, to produce content that speaks to its demographic.

The top Indian eCommerce platform, Flipkart, has been advertising its wares through the use of influencers. To reach its demographic, the brand has collaborated with a wide range of prominent figures, including Bollywood actors and lifestyle influencers. Influencer marketing is nothing new for L'Oréal India too; the company has been doing it for some time. The business has teamed up with several popular Indian artists, musicians, and YouTubers to produce material that speaks to its demographic.

Developments and Data Regarding the Market

In 2025, the influencer marketing sector in India is projected to be worth Rs 2,200 crore, with a compound annual growth rate of 25%, according to the Influencer Marketing Report.

Influencer Marketing Market Size Worldwide

The rise of short-form video formats on sites like YouTube, Facebook, and others has contributed to the explosion in social media consumption, and marketers' increased efficiency in gathering data for social media marketing is a major factor in this trend. On average, Indians spend 2 hours and 25 minutes each day on social media, and there are more than 448 million active users in the country.

From being a fad to an essential tool for modern brands, influencer marketing has gone a long way. Now considered an essential advertising approach, influencer marketing has been incorporated into 93% of marketing efforts.

There will be no stopping the growth and change of influencer marketing in India. Brands can get enormous benefits from utilizing influencers in certain industries. The top four categories that account for 70% of influencer marketing volume are personal care (25% of the total), food and beverage (20%), fashion and jewelry (15%), and mobile and electronics (10%), according to "The Indian Influencer Marketing Report" by INCA.

There is a lot of space for innovation and participation in influencer marketing in India, thanks to the country's thriving startup ecosystem and the fact that larger brands are also trying to reach their target audience.

FAQs

What are the top categories that account for the maximum percentage of influencer marketing?

The top four categories that account for 70% of influencer marketing volume are personal care (25% of the total), food and beverage (20%), fashion and jewelry (15%), and mobile and electronics (10%).

What will be the anticipated worth of influencer marketing in 2025?

In 2025, the influencer marketing sector in India is projected to be worth Rs 2,200 crore.

What is influencer marketing?

Influencer marketing is a strategy where brands collaborate with individuals with a large and engaged following on social media to promote their products or services to a targeted audience.