India’s Marketers Are Done Guessing: AI Is Now the Brain Behind Influencer ROI
Influencer economy

When Dr. Sanjay Arora began posting educational content after decades in marketing and academia, he described himself as “an influencer by accident, not by choice.” His daughter convinced him to post snippets of his classes on Instagram. Within eighteen months he had amassed over 500,000 followers. What started as a side project quickly revealed a crucial truth: in today’s influencer economy, reach alone does not suffice.

India’s creator economy is currently estimated at ₹2,500 crore, and that valuation is opening eyes. Brands and influencers are under pressure to prove outcomes, not just impressions. If you cannot measure results, in a world powered by AI and analytics, you risk being invisible.

Leaders in the field are speaking plainly. Kalyan Kumar, CEO of Klug Klug, said that “two out of three influencers have more than 50 percent inactive or fake followers.” He waved aside vanity metrics: for him, “brands can no longer afford to simply chase high follower counts and engagement rates.” He added that platforms are enabling “profiling of real audiences—filtering by gender, geography, and behavioral interests,” to ensure that marketing spend hits the right people.

Rishi Jain, the CEO of Digital Scholar and a LinkedIn Top Voice, described what feels like rapid escalation. “Last month alone, I moved from 25,000 to almost 75,000 followers—purely through automation,” he said. His workflow now includes tools like ChatGPT for research, Agent for video avatars, and 11Labs for voice replication. Technology, he believes, is not replacing creators, but giving them muscle to scale.

Those are not isolated stories. Several data‑driven trends are reshaping the industry.

  1. Fake follower prevalence: According to Kalyan Kumar, about two out of three influencers have over 50 percent inactive or fake followers.

  2. Growth of the creator economy: The value is ₹2,500 crore as of early 2025 in India.

  3. Efficiency gains through AI tools: Arora claims that now “tools can handle 60 to 70 percent of the work” in content creation, from researching topics to generating hooks.

  4. Follower jump via automation: Jain’s following rose threefold in one month via AI tools.

  5. Audience profiling demands: Brands are filtering by geography, gender, behavioral interest to ensure better targeting.

  6. Authenticity issues: Kumar points out mismatches such as about 84 percent of female beauty influencers having 70‑80 percent male followers.

  7. Traditional brands adapting or falling behind: Many advertisers now believe that failing to accept MarTech tools is “brand suicide,” in Kumar’s words.

These shifts are rooted in real market need. When influencer campaigns were new, brands focused on reach and visual polish. Celebrity influencers with large followings were a near‑guarantee of attention. But with soaring costs and tighter budgets, boards are asking tougher questions: What is the cost per engagement? What is the quality of that engagement? Is there real conversion?

Dabur India’s Rajiv Dubey is one such marketer. He has said publicly that in many top‑funnel influencer campaigns, measurement has been murky. “Earlier, influencer campaigns were great for visibility, but we struggled with measurement. Today, we’re looking closely at cost per engagement, cost per view, and true brand lift. Anything without metrics is just noise.” That kind of clarity is now expected, not optional.

Companies are responding. Platforms are investing in AI tools that help brands audit audiences, detect bot followers, and calculate metrics like view‑through rate, engagement rate, and conversion rate. Real tools allow brands to see what percentage of the audience is active, which geography they fall in, what gender they represent, and what content styles they respond to.

There are also vivid examples of campaigns reengineered under this logic. A beauty brand targeting non‑metros used AI‑assisted tone‑analysis tools to test content in local dialects. They found that short video tutorials in local language performed 37 percent better in terms of shares and meaningful comments versus content in English or non‑vernacular formats. These insights led them to reallocate budget toward vernacular creators with smaller but deeply engaged audiences.

Another example is the campaign by Hero MotoCorp to promote its Xpulse line via Kofluence. The campaign worked with hundreds of regional micro‑influencers. It delivered more than 45 million impressions and generated over 15,000 registrations for test rides. The selection of creators was based on region, past engagement and demographic matching, rather than simply large follower counts.

Dr. Arora said that even after producing over 700 marketing story reels, audience reaction remains unpredictable. “Sometimes the stories I think will do really well perform average, and simple ones blow up. Like a quick story I did on Coke’s solar‑powered fridges—it crossed a lakh views in a day,” he recalled. That anecdote shows how content still matters, in tone, timing and authenticity.

Still, there are common pitfalls. Fake followers plague the industry. Kumar says India is now among the top generators and consumers of fake followers globally. He also critiqued the mismatch in gender audiences: “About 84 percent of female beauty influencers have 70 to 80 percent male followers. No surprise when you realize Instagram’s user base is predominantly male in India.”

Traditional brands are among the slowest to adapt. The panelists said that many still cling to broadcast‑era logic—TV, big spectacle, long lead times. But mobile attention is volatile. Rishi Jain pointed out a core shift: “On mobile, you do. If you don’t capture attention within three seconds, the viewer is gone.” The brands that adjust creative formats, shorten content, optimize for immediacy are the ones making progress.

The implications for brand strategy are large.

Marketing budgets are being redistributed. Spend is shifting from macro influencers to micro and nano creators because these smaller creators tend to have higher engagement quality. Return on investment is becoming measurable. Brands are designing metrics, not just for brand awareness but for bottom‑line impact.

Platform providers that embed audience filters, fraud detection and performance dashboards are winning business. Agencies that still bill by impressions without accountability are increasingly being questioned by clients. It is no longer enough to have high reach. Clients want precision. They want to know who is seeing, who is listening, who is acting.

There are challenges ahead. AI tools are not perfect. Algorithms may misinterpret context, language nuances or cultural signals. Regional dialects and local cultures can flip meaning. A joke, a reference, a tone can fail or succeed based on local sensibility. Dr. Arora’s stories show that even with advanced tools, creativity remains unpredictable.

Also, there is tension between efficiency and authenticity. When too much automation creeps in, audiences can sense formulaic content. The human, emotional edge of storytelling can weaken. Content that feels too polished or too uniform may lose trust.

Still, most people in the space believe the trade‑offs are worth it. The measurable improvements in audience alignment, engagement, lesser fraud and better ROI are shifting norms.

As the creator economy continues to grow, projected at 25 percent annual growth, brands that combine data, measurement and authentic storytelling are the ones shaping what comes next. Those refusing to adapt risk being left behind.

The creator economy in India is no longer a novelty. It is being audited. Influence is being asked to deliver. AI tools are not just optional extras. They are core infrastructure.