Influencer content outperforms digital ads on lower- and mid-funnel metrics: Study

With India's influencer marketing growing in investment, impact, and ROI expectations, it has started showing its impact on consumer buying decisions. According to Kantar's latest norm-based research report, ‘The Influencer Playbook’, influencer content outperforms digital ads in driving lower and mid-funnel metrics in India.

While influencer content benefits from the reach and credibility of the influencer, its overall impact and ROI are largely driven by the quality of the creative execution. In comparison with digital ads influencer content, the study finds, delivers higher brand favourability (12% versus 15%), stronger brand attribute recognition (9% versus 11%), and increased purchase intent (9% versus 10%). In effect, influencer content is better at ensuring consumers notice it and also better at nudging them to buy than conventional digital advertisements.

Prasanna Kumar, regional creative lead – insights division, Kantar said, “Understanding the differences and similarities between impactful digital advertisements and influencer content has been a fascinating experience. Influencer content works directly, making the brand personally relevant to consumers without the over-engineered marketing speak.”

Aiming to help helps brands evaluate and benchmark influencer campaigns against cross-format digital ads and influencer peer groups, the report explores key strategies for maximizing campaign effectiveness based on consumers preference and successful execution elements. Influencer content, along with e-commerce and online display ads currently represent the most equitable online media channels in India.

Kantar's study finds that 67% of Indians trust influencer recommendations over traditional advertisements. A further 26% also prefer influencer recommendations but stay cautious and refrain from trusting them blindly.

Moreover, while the influencer ads outperform other digital ad formats in driving short-term sales with a 57% chance of driving immediate impact, they are less effective in building long-term brand equity.

Stating that more than two-thirds of Indians trust influencer recommendations over traditional advertisements, Soumya Mohanty, managing director and chief client officer, SouthAsia – insights division, Kantar, said that brands must understand the elements that drive its success. “The Influencer Playbook provides a framework to evaluate and benchmark influencer content, providing brands with the tools to craft high-impact content that drives both immediate action and long-term brand affinity.”