Social media influencers could see up to a 70% increase in brand deals this holiday season

According to Riya Turakhia, a Mumbai-based content creator who expects collaborations to increase by at least 70% this year, the festive period is good business for influencer marketing. “Brands are all about their promotions and want creators to integrate their products into their festive content.”

Turakhia, who creates fashion and lifestyle content and has 279,000 followers on her Instagram The designer, whose username is @snug.style.chic, said brands in this category are more active around major festivals such as Ganesh Chaturthi, Navratri and Diwali. She expects the frequency of collaborations to increase starting this month and till the end of November.

The shopping period accounts for a large part of business for most consumer-facing brands. Increased spending on promotions has already boosted earnings for several influencers, as deals with brands bring in the bulk of their revenue.

Companies are looking to attract shoppers when they are most willing to splurge. Gifting, largely driven by word of mouth, increases during the festival season, according to D2C Insider, a community of new-age Indian brand founders.

“As influencers are key sources for product reviews, brands are strategically increasing their influencer marketing budgets to capitalize on this trend,” D2C Insider said in response to emailed queries. Mint“Their recommendations can significantly influence consumer decisions, making influencers an essential part of holiday marketing strategies.”

According to Neel Gogia, co-founder of influencer marketing and talent management agency IPLIX Media, “Since the reports of Diwali started coming in, the industry at large is gearing up for the festive season. All brands are setting aside a significant amount of their marketing budget for the festive season. That’s why we are seeing a whopping 50% increase in creator earnings.”

Increased demand

Increased demand has also increased the prices charged by creators.

“As brands increase their marketing spends, influencers, especially those in high-demand niches like fashion, electronics and personal care, are seeing an increase in opportunities, allowing them to charge higher rates for collaborations with brands,” said Sahil Chopra, CEO of iCubesWire, a mobile marketing platform powered by AI and machine learning.

The rise in demand for influencers can also be attributed to the general increase in content consumption, especially in the shorter format, during the festival season and how it strengthens consumers’ purchasing decisions.

“During the holidays, people consume more content, making creators a gateway for brands to integrate products into relatable content, driving a high level of engagement,” said Aabir Vyas, an actor and influencer with a cumulative total of 4.13 lakh subscribers on his Instagram and YouTube User @belikeeaabirr says: “This is why brand integrations peak during the holiday season.”

Marketing budget

However, a larger marketing budget does not directly translate into an equivalent increase in spending on creators. Influencer marketing still represents a smaller proportion of brands’ total spending, said a senior partner at a major consulting firm.

Still, many brands have ramped up their influencer marketing activities to capitalize on the festive season opportunity. “We collaborate with around 70-80 influencers, but in September we are excited to expand that number to over 300-400,” said Samarth Narang, CEO of pet care brand Heads Up For Tails. “Our marketing strategy combines digital and local initiatives, with digital efforts accounting for about 40%.”