Why most Indian creators earn less than their followers think

New Delhi: India’s creator economy, currently valued at $20-25 billion, is on the cusp of rapid expansion, with creator-influenced spending expected to reach over $1 trillion by 2030, unlocking more than $100 billion in ecosystem revenues. 

According to the latest report by Boston Consulting Group (BCG), this growth is being driven by a dynamic ecosystem of 2-2.5 million creators who influence over 30% of consumer spending, currently valued at $350-400 billion annually.

Rising influence, but monetisation remains a bottleneck

Despite this impressive scale, the report highlights a significant monetisation gap, with only 8-10% of India’s creators effectively turning their online influence into sustainable income. This gap is particularly stark given that the vast majority of creators, including long-tail influencers, earn less than Rs 18,000 per month, despite their content reaching millions of consumers. Beauty and fashion categories currently lead in monetisation, reflecting the popularity of these segments among India’s digital audiences.

Brands bet big on creators, but ROI challenges Persist

The report also notes that around 70% of brands plan to scale their creator marketing budgets by 1.5-3x over the next 2-3 years, recognising the growing influence of creators in driving consumer decisions. However, this optimism is tempered by challenges like fake engagement, ROI measurement, and brand safety, which remain significant hurdles for marketers looking to leverage influencer collaborations effectively.

Shifting monetisation models

Currently, the bulk of India’s creator economy revenue comes from brand spends, which account for nearly 90% of total earnings. However, this reliance is expected to decline as newer models like micropayments, virtual gifting, live commerce, and niche subscriptions gain traction. These emerging revenue streams are seen as critical to closing the monetisation gap and ensuring the long-term sustainability of the creator ecosystem.

• Virtual gifting: Already a staple in markets like China, this model is gaining traction in India, particularly among Tier 2 and 3 audiences who actively engage in gamified tipping and microtransactions. Platforms like Moj and ShareChat, which have a strong regional user base, are well-positioned to lead this charge, offering digital gifting options that allow fans to directly support their favourite creators.
  
  
• Live commerce: Although still nascent in India, live commerce has shown immense promise globally, driven by platforms that blend real-time interaction with product sales. With platforms like Amazon Live, Flipkart, and Myntra’s M-Live experimenting in this space, live commerce could become a significant revenue stream as the necessary infrastructure scales up.
  
  
• Niche subscriptions: While currently under-indexed in India due to price sensitivity and the popularity of free, ad-supported content, subscription-based models have proven successful in Western markets. With the rise of digital-first, Gen Z audiences, the demand for exclusive, high-quality content is expected to rise, creating fertile ground for subscription-led monetisation.

Challenges and the road ahead

For these alternative monetisation models to truly take off, platforms will need to address several challenges, including:

• Infrastructure and scalability: Building robust systems that can handle high volumes of live transactions and real-time engagement.
  
  
• Creator support: Providing tools and training for creators to effectively use these monetisation models.
  
  
• Consumer education: Driving awareness and acceptance of these new revenue streams among Indian audiences, who remain largely price-sensitive.

With the right investments in technology and community building, India’s creator economy could unlock a $100-125 billion opportunity by 2030, redefining the way digital influence drives commerce.