Kofluence has released its ‘Decoding Influence: Annual Research Report 2026’, outlining how India’s creator economy is transitioning from an experimental ecosystem into a formalised and performance-driven industry. The report draws insights from more than 2 million creators, over 1,000 surveys and interviews with 50+ industry professionals to examine how AI, creator commerce, governance and accountability are redefining influencer marketing in India.
According to the report, India’s influencer marketing industry is valued between INR 3,000 crore and INR 3,500 crore in 2025 and is projected to reach INR 4,500 crore to INR 5,000 crore by 2027. The sector is currently sustaining a 22% CAGR, driven by deeper brand integration, creator professionalisation and the formalisation of influencer-led marketing initiatives.
The report positions influencer marketing as an increasingly measurable business function rather than an experimental brand-building channel. It states that creator partnerships are becoming structured commercial operations linked directly to performance outcomes and revenue accountability.
Commenting on the findings, Sreeram Reddy Vanga, ceo and co-founder, Kofluence, said, “What this report captures is a market that has crossed a structural threshold. With 15% of India's active creator base now registered as formal business entities, and brands linking influencer marketing directly to revenue targets, influence is no longer a soft channel. India is not following global best practices in creator commerce -- it is writing them.”
Ritesh Ujjwal, co-founder, Kofluence, added, “AI has done what most technology promises and rarely delivers: it has compressed the production overhead that was preventing India's creator class from operating at business scale. The governance question is now the defining one. ASCI disclosures, SEBI scrutiny, DPDP compliance -- these are not obstacles. They are the structural filters that will separate the durable from the disposable.”
The report estimates that India currently has between 4 million and 4.4 million active creators, with Instagram serving as the primary platform infrastructure for 3.3 million to 3.7 million creators. One of the report’s key findings is the growing formalisation of creators as businesses. It states that 15.2% of creators are now registered either as business entities or GST individuals, establishing a new benchmark for enterprise-level brand collaborations.
Nano creators with follower counts between 1,000 and 10,000 account for 61.1% of surveyed creators, indicating the continued importance of highly targeted community engagement strategies for brands.
The study also highlights the increasing role of Tier 2, Tier 3 and Tier 4 markets in driving creator economy growth. With India crossing 900 million internet users, brands are reportedly shifting towards hyper-local and vernacular content strategies. More than 62% of creators surveyed said they had seen an increase in regional-language campaign briefs.
The report compares campaign efficiency across markets, showing metro city engagement rates averaging between 3% and 4% with campaign costs ranging from INR 3.8 lakh to INR 4.5 lakh. In Tier 2 cities, engagement rates rise to between 3.5% and 4.5%, while campaign costs fall to INR 1.3 lakh to INR 1.6 lakh. Tier 3 and Tier 4 cities deliver the highest engagement rates at 4.5% to 5.5%, with campaign costs between INR 35,000 and INR 90,000.
Brand accountability around influencer marketing investments is also increasing. The report states that 13.3% of brands now directly connect influencer marketing expenditure with formal revenue targets, while 46.4% assess performance on a campaign-by-campaign basis. Additionally, 62% of brand professionals surveyed said long-term creator partnerships generate stronger ROI compared to short-term campaigns.
Instagram continues to dominate platform investments, with 93.1% of brands identifying it as their primary influencer marketing platform. E-commerce leads sector spending at 23%, followed by FMCG at 19%.
AI adoption is emerging as a key operational driver within the ecosystem. The report notes that 59% of creators regularly or occasionally use AI tools for content ideation, design, scheduling and trend analysis. Content ideation leads AI adoption at 64.4%, followed by creative design at 31.9% and trend analysis at 28.1%. On the brand side, 61% of marketers are exploring technology platforms for creator discovery, campaign management and performance forecasting.
The report also examines the impact of regulation on influencer marketing. It cites SEBI’s scrutiny of finfluencers, ASCI disclosure mandates and the DPDP Act as developments that are pushing the industry towards stronger compliance and accountability standards. According to the report, governance is becoming central to building long-term institutional trust between brands, creators and platforms.
Kofluence said the full ‘Decoding Influence: Annual Research Report 2026’ is available as a free download on its website.
