Brands are pouring crores into creator economy this festive season

New Delhi: As India heads into the 2025 festive season, one trend has become abundantly clear that influencer marketing is no longer a tactical add-on; it’s the beating heart of brand strategy. Leaders across the creator economy are reporting not just increased spending but a reimagining of what influencer campaigns can and should deliver. From D2C upstarts to BFSI giants, everyone is betting big on creators, not just for awareness, but for conversions. 

Gurpreet Singh, Co-Founder of One Digital Entertainment, sets the tone, calling 2025’s spending surge a continuation of years of consistent YoY growth. “There’s been a significant YoY jump in influencer marketing spends for the last few years, and 2025 is no exception. For many brands, it’s the primary vertical of their media plan.” Singh also highlighted how brands are now co-creating content with influencers, even involving them as “creative directors.” That shift from amplification to collaboration is what he sees as driving the next wave of meaningful brand affinity. 

Sudeep Subash, Co-Founder & CRO of Collective Artists Network and CEO of Big Bang Social, concurred but placed the emphasis on the outcomes. “Budgets are definitely going up this year, but what’s more interesting is that brands aren’t just chasing reach anymore. There's a strong shift towards bottom-of-the-funnel metrics that are clicks, conversions, and actual sales rather than just reach metrics.” In his view, the rise of high-conversion creators and tools like affiliate tracking and live selling have transformed influencer content into a “full-funnel sales engine.”

Kulbir Sachdev, Founder of Voxxy Media, also echoed the same sentiments. “Evolution isn’t just in volume, but in value. We see a strong 25–30% YoY growth across the board for influencer marketing budgets, with many categories scaling even faster. It is no longer considered Test Money; by now, it’s mainstream and strategic allocation.” He noted that attribution models and ONDC-powered checkout loops are bringing new rigour to what was once a fluffy metric game.

The strategic relevance of influencer marketing is now settled. All three leaders asserted that it's no longer a debate. “It’s a core part of every brand’s playbook now.” Gurpreet Singh added.

Subash called it a “must-have in the media mix,” especially during the festive season, and Sachdev framed it in even starker terms: “The debate is over. Creators have surpassed display in numerous media plans and are catching search.”

However, what’s shifting beneath this consensus is the way influencer strategies are now being built. A key transformation is the breakdown of the traditional celebrity-first hierarchy. Singh underscored, “influencers are not replacing but complementing. The smartest campaigns today combine both.” Sachdev echoed that sentiment, quantifying the shift, “Micro and nano creators now command nearly half of the total influencer budget. In terms of ROI, we’ve seen consistent results. Micro-tier creators outperform on sales per rupee, even though the coordination effort is higher.”

Big-name influencers backed by a wide network of smaller creators are now driving the most effective campaigns, especially with the growing power of regional content creators. “Regional creator pods, particularly in Tier 2, Tier 3 towns, are delivering disproportionate ROI,” said Sachdev. Subash also added, “We’re seeing brands go hyperlocal, tapping into the trust and authenticity that smaller creators bring, especially in Tier 2 and 3 markets.”

While creators are delivering clear wins on performance metrics, clicks, conversions, and watch times, the long-term brand-building impact of influencer content still raises questions. A Kantar India study noted that while creators excel at capturing attention and driving short-term action, traditional branded ads still perform better on long-term memory encoding, a key ingredient for sustained brand recall and preference.

This has sparked a shift in approach. Sachdev talked about “creator-driven episodic IP” and “short-form storytelling arcs,” while Singh highlighted the shift to long-term brand advocacy.  “While tactical, short-term bursts will always be around, I also see a lot more long-term partnerships, where creators become true brand advocates.” 

When it comes to which sectors are driving this growth, there's strong alignment. Influencer marketing leaders pointed to FMCG, beauty, fashion, and e-commerce as top festive spenders. Subash listed out sectors precisely, from fintech’s regional push to consumer durables’ product demos and highlighted how even BFSI players are getting smarter with regional reels and SEBI-compliant financial content. Sachdev also pointed out the rise of regional food and beverage brands as new-age power spenders, noting, “They're tapping into hyperlocal food bloggers to build awareness and shelf pull.”

Ultimately, what separates 2025 from past years is not just the money but the mindset. “The biggest change in mindset we are seeing is that brands aren’t just looking to purchase influence anymore, they’re seeking to build infrastructure. That means owning creator communities, collaborating on content IPs, and adding creators to sales pipelines,” said Sachdev.

In other words, influencer marketing isn’t just playing alongside traditional advertising; it is advertising now. And increasingly, it's commerce too. As Gurpreet Singh noted, “Anyone not investing enough in this space today will eventually have to adapt, it’s not optional anymore.”