Creator economy takes centre stage in FMCG media mix

FMCG brands are no longer treating influencer marketing as an add-on, it is fast becoming the main channel for digital spends. Instead of relying on a few big campaigns, companies are now spreading their budgets across hundreds and thousands of creators to drive daily visibility, sharper audience targeting, and more consistent engagement. Industry executives say this shift is pushing a significant chunk of digital budgets (25%) towards creator-led content, as brands chase scale and measurable results in a crowded market. 

Ayush Shukla, Founder of Finnet Media, an influencer marketing company, points to a decisive pivot by legacy players to underline the shift. “HUL just moved 50% of their ad budget to 300,000 creators. This isn't a trend move. This is a fear move,” he said, adding that new-age brands like Mamaearth, mCaffeine, Minimalist, and Sugar Cosmetics have already demonstrated that large businesses can be built without relying on traditional advertising.

According to Shukla, distribution has become content-led, with consumer attention shifting decisively to platforms such as Instagram, Reels, and YouTube. “The brands winning aren't the ones with the biggest ad budgets; they're the ones who figured out where attention actually lives,” he said. He added that deploying a large base of creators allows brands to feed algorithms with high volumes of relevant content, something a single influencer cannot achieve.

This scale is also influencing how campaigns are conceptualised. Viraj Sheth, Co-founder and CEO at Monk-E, an influencer marketing agency, said branded content often fails due to weak ideas, scripting, or casting, but a creator-first approach can address these gaps. Citing their campaigns for Kissan, Sheth said the company built culturally rooted narratives around occasions like Valentine’s Day and Holi, aligning casting with real-life personas of creators.

In the Valentine’s Day film, the team chose recently married creator-husbands such as Dhruv, Neel, and Thugesh to mirror the real-life tension of balancing relationships and friendships, making the narrative feel authentic. For the Holi film, casting hinged on a generational contrast, with Kullu playing a Gen Z host alongside millennial comedians, turning the insight into a relatable, comedic conflict. 

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The approach delivered strong metrics, with over 35.9 million views, more than 1 lakh engagements, and significantly lower cost per view compared to industry benchmarks. “The difference came from treating writing and casting as part of the core idea, not execution choices,” Sheth said, highlighting that such content does not behave like traditional advertising.

Beyond hiring influencers, brands are also investing in building creator ecosystems. Vikas Chawla, Co-founder of Social Beat and Influencer.in, said the industry is moving away from competing for a limited pool of popular creators. “Most FMCG brands pay influencers to promote food. Fortune Foods attracted 50,000 home cooks to become influencers instead,” he said.

Through its ‘Fortune Influencer Masterclass’, the brand identified and trained new creators, offering tools, mentorship, and content deals. The initiative drew 50,000 registrations without paid promotion and led to 25 creators securing annual brand partnerships. Chawla said this approach not only expands the creator pool but also builds long-term brand affinity and authenticity.

The shift is also visible in how budgets are distributed across influencer tiers. Gaurav Kaushik, Founder of Nians, a martech company, said brands are moving from a handful of macro influencers to a wider network of micro creators to drive relevance and engagement. “Meaningful connection and relevance to specific audiences are more important than sheer reach,” he said.

Kaushik cited a campaign where spends were distributed across more than 40 micro influencers instead of a few large names, resulting in higher engagement rates and more consistent performance across platforms. He added that this reflects a broader transition towards scalable, data-driven creator networks.

Industry estimates peg India’s influencer marketing ecosystem at over ₹10,000 crore, with FMCG brands among the biggest contributors. As competition intensifies, marketers say the focus is shifting from renting attention through traditional media to building sustained consumer trust through creators.

The transition, however, comes with its own challenges. Shukla cautioned that brands often undermine performance by over-controlling content. “The moment you control the message, you've made it an ad. The audience knows. The creator knows. The numbers know,” he said.

With creator rates rising and early adopters already locking in long-term partnerships, industry executives believe the cost of entry will only increase.