NEW DELHI: With an estimated up to 4 million social media influencers, the influencer marketing in India is likely to be worth $2.8–$3.5 billion in 2028 as more brands are leveraging the credibility of influencers to promote their products, a report showed on Wednesday.

Influencer marketing has gained much momentum in last 12 months as it helps brand improve its reach to their target audience more effectively.

There are about 3.5 to 4 million influencers (accounts with more than 10,000 followers) in India influencer marketing ecosystem, according to Redseer Strategy Consultants.

“One of the primary challenges in influencer marketing is the effective matching of influencers with the specific campaign requirements of brands, along with the ability to accurately assess influencer engagement metrics,” said Mukesh Kumar, associate partner at Redseer.

“Simultaneously, influencers often encounter difficulties in achieving price transparency and securing favourable deals. The advent of emerging models, such as creator marketplaces, holds significant potential in resolving these challenges,” he added.

Redseer estimates that the number of Internet users in India is set to cross 1 billion landmark by the end of the decade.

As engagement of these users across internet platform increases, digital ad spends to grow steadily to $21 billion by FY28. Most of the influencers in the Mid-tier, Micro, and Nano categories start out as hobbyists and aspiring influencers. “Influencers are becoming the centre piece of digital advertisement as UGC generates 2X more engagement than PGC. These new age celebrities have a direct connection to their followers, and the relationship is a crucial tool for advertisers.” the report noted.