Influence and Impact: A deep dive into UGC & influencer marketing

The 2024 edition of CMOs’ Charcha – Bengaluru Chapter brought together India’s top marketing leaders to explore the future of marketing in India. Held on September 25, the event revolved around the theme ‘Revolutionising Marketing: The Fusion of Data, Creativity, and Technology’. The summit delved into how integrating data, creative innovation, and advanced technology is reshaping the marketing landscape.

One of the highlights of the event was a fireside chat, titled ‘Influence and Impact: A Deep Dive into UGC and Influencer Marketing’. Moderated by Rajashree Ivaturi, Partner at Ipsos Strategy3, the session featured insights from Praanesh Bhuvaneswar, Chief Executive Officer at Qoruz, and Saurabh Jain, Country Head of Media at BMEG.

Emphasising on the importance of understanding the impact of influencer marketing, Saurabh Jain said, “We have four or five pillars to determine the direction of a campaign, such as reach, frequency, and dominance. Influencers play a key role in creating a significant impact because followers are highly engaged with them.” He further explained that once influencers gain prominence, awareness scores rise, leading to better results with fewer resources.

Jain advised marketers to focus on two or three key factors at a time rather than chasing multiple goals, adding, “Marketers need to maneuver expectations and not chase all factors at once. Instead, target a few to maximize impact,” he added.

Praanesh Bhuvaneswar highlighted the three primary factors that brands need to consider when selecting influencers – Performance history, Audience relevance, and Previous associations with the brand or competition. He said, “The performance of influencers consistently and historically is key, along with their relevance to your audience and their prior associations within your industry.”

Bhuvaneswar also noted that brands are increasingly looking beyond quantitative measures to assess influencer authenticity. He shared a brand example, explaining how associations with specific celebrities, such as Nayanthara and Samantha, yielded varying sales results despite similar audience engagement.

When asked about tracking the performance of influencer campaigns, Bhuvaneswar admitted that it’s challenging to quantify certain metrics. He explained, “When influencer spends cross a certain threshold, it becomes crucial to collaborate with mainline agencies to better understand the characteristics and heuristics of the influencers.”

Rajashree Ivaturi pointed out that influencer marketing now occupies a significant portion of the marketing budget, citing an Ipsos report that revealed “10 to 20% of marketing budgets are now allocated to influencer marketing, compared to just 2 to 3% a few years ago”.

Saurabh Jain further elaborated on how influencer marketing is evolving and its impact on media planning. He explained that for startups, it is important to test campaigns in select markets before scaling. “You do a pilot in one market, see if it is working, and then scale it up,” he advised. Jain cited the example of an electrical brand that shifted its focus from national cricket sponsorships to more localized influencer campaigns, resulting in better ROI and consumer engagement.

“Regional play is increasing tremendously,” Jain observed, highlighting how local influencers are driving engagement and saving marketing costs by reaching more targeted audiences.

Rajashree Ivaturi drew attention to emerging trends from the Ipsos Global Trends Report 2024, which discussed the rise of regional disparities, cultural diversity, and the post-COVID shift toward individualism.

“Given these societal changes, marketers need to be mindful of regional differences and how geopolitical risks could impact platforms. The increasing focus on cultural diversity and individualism means marketers must adapt,” she said.

Praanesh Bhuvaneswar echoed these sentiments, noting how platforms have evolved. “Earlier, social media platforms were distinct, like hatchbacks and sedans. Now, every platform is a crossover. When TikTok was banned, Instagram launched Reels, YouTube introduced Shorts, and even LinkedIn began pushing short-form video content,” he added.

Bhuvaneswar further said that marketing strategies have also shifted. “Now, it’s about creating content that works for the algorithm. You focus on one piece of content going viral and hope to replicate that success across platforms.”