KlugKlug CEO Kalyan Kumar on why brands need smarter influencer tools

Picture this: scrolling through reels during a lunch break, captivated by a vibrant travel vlog that sparks wanderlust. Or, clicking “add to cart” after a trusted skincare review seals the deal. For millions of Indians, these moments are part of daily life — and it’s exactly why influencer marketing is thriving.

In 2024, advertising budgets for influencer marketing increased by $40 million, representing a 16% year-over-year rise, bringing the total expenditure to $290 million. Influencer marketing currently accounts for 5% of India’s total digital ad expenditure, marking a 3.6% increase from the prior year. (Source: Meltwater)

With platforms such as Instagram and YouTube emerging as daily hubs for discovery and inspiration, the return on investment (ROI)  is evident. 

So what does this mean for brands and creators? Here's a deep dive into India's evolving influencer economy.

Marketers are now redirecting budgets

As influencer marketing matures in India, brands are slowly redirecting their budgets to platforms that foster deeper consumer engagement. “Instagram is great for creating buzz—especially for beauty, fashion and low-involvement products,” says Kalyan Kumar, co-founder and CEO of KlugKlug — a platform built to help marketers find relevant influencers with precision. 

“But if you’re selling a skincare serum or a high-consideration product, users will want to watch a proper review. That’s where YouTube shines.”

According to Kumar, on Instagram, engagement peaks within 48 to 72 hours; however, YouTube content can continue to attract views and engagement for weeks, or even months.

In fact, YouTube ads in India can now reach 491 million users, or 60.9% of all internet users—a figure that showcases its unmatched scale. (Source: Meltwater)

The rising cost of influence

Kumar reveals that influencer marketing budgets are expanding significantly across various categories, citing Unilever’s intention to allocate Rs 100 crore this year. 

“If you take just the top 10 brands in India, you're already looking at upwards of Rs 1,500 crore in influencer marketing spends,” he notes. “And if you add the long tail—like local restaurants in Guwahati, nightclubs in Meerut—the total could easily exceed Rs 4,000 to Rs 5,000 crore.”

India’s influencer marketing industry is experiencing significant growth, with projections indicating an increase from Rs 12.75 billion in 2022 to Rs 68.75 billion by 2025 — representing an impressive 439% rise. The market is projected to reach Rs 107.5 billion by 2027, fuelled by a compound annual growth rate (CAGR) of 25% through 2026. (Source: Statista)

Fake followers: The industry’s dirty secret

However, beneath the surface, there exists a concerning trend: influencer fraud. “Two out of every three influencers in India have more than 50–60% fake followers,” Kumar points out, quoting internal data from KlugKlug, the influencer analytics firm he is associated with. “It’s shockingly easy—and cheap—to buy followers. You can get 1,000 followers for as little as Rs 8.”

This has led to what Kumar describes as massive budget wastage.

“If 40% of your influencer campaign budget is going to creators with fake audiences, you're burning Rs 1,200 crore every year.”

Kalyan Kumar, co-founder and CEO of KlugKlug

KlugKlug collaborates with a diverse range of brands across various categories to address this issue. Notable names include ITC, HealthKart, RP-Sanjiv Goenka Group, Noon, Vivo, Minimalist, Jio, FirstCry, and Kapiva.

The gender mismatch tragedy

Adding another layer of complexity, Kumar shares that, according to KlugKlug’s data, while 70% of India’s internet users are male, a significant number of beauty influencers—who primarily target women—are predominantly followed by men.

“Out of 1.5 million female creators in our database, only 6% have over 50% female followers,” he adds. 

“So beauty brands might think they’re reaching women, but they’re actually speaking to men. Unless brands use tech to filter audiences properly, a lot of targeting is just guesswork.”

Shift to hyper-local targeting

Consider this: A brand is looking to launch a campaign that specifically targets Guwahati. What is the requirement? An influencer based in Guwahati, with a follower base primarily located in the city. 

KlugKlug allows marketers to generate a list of over 200 influencers who fit this very specific criterion, according to Kumar. 

Manual influencer agencies, on the other hand, often operate with static lists of 50–100 influencers per region, making it virtually impossible to meet such targeted demands.

Follower authenticity, not self-reported data

Many traditional agencies depend on self-reported data from influencers, such as engagement rates, follower counts, and demographics, which are frequently unverifiable. KlugKlug, however, collects public social media data directly and compiles it into a global database featuring over 125 million profiles from 150 countries.

This allows for nuanced targeting, such as identifying influencers from Nepal with up to 80% of their followers from India, or even Hollywood celebrities like Taylor Swift, who unexpectedly has over 5% of her follower base in India.

“We see the data in real-time, including follower geography, engagement trends, and even whether an influencer has recently hidden likes or posts,” Kumar adds.

Brand safety and sentiment tracking

Recently, many brands have adopted a more careful approach regarding their associations. Although viral influencers can ensure significant reach, the potential for backlash stemming from political or controversial remarks remains a considerable risk.

To address this, KlugKlug offers features such as social sentiment analysis, which involves scanning the comment sections of influencers’ posts to assess the tone of audience engagement: positive, neutral, or negative. This enables marketers to steer clear of individuals who may have previously participated in divisive or problematic content.

“You can’t predict the future, but you can analyse the past,” Kumar explains. “We help brands ensure influencers have a history of safe, on-brand communication.”