Influencer marketing is everywhere. But how much are brands really spending?

From flying creators to the FIFA World Cup to sponsoring influencer trips during the Indian Premier League, brands have made creators impossible to ignore. Global giants like Unilever, L'Oréal, P&G and PepsiCo have significantly expanded their creator partnerships, fuelling the perception that influencer marketing now commands a large share of advertising budgets.

That perception gained further momentum after Unilever CEO Fernando Fernandez revealed earlier this year that the company allocates roughly ₹42,750 crore annually to creators and social media marketing. The spend accounts for nearly half of Unilever's digital advertising and media budget, alongside its plans to scale influencer partnerships twenty-fold.

Yet conversations with Indian marketers unravel a seemingly different story.

Across industries including insurance, automotive, beauty and retail, most chief marketing officers say influencer marketing still accounts for a relatively small share of their overall marketing budgets. While creators are increasingly becoming part of the media mix, marketers say investments continue to be driven by measurable returns, authentic storytelling and the role influencers play in the consumer journey rather than by the hype surrounding the creator economy.

Shekhar Saurabh, Head of Marketing at TATA AIG General Insurance Company, said, "Influencer marketing is a relatively small part of our overall marketing mix, accounting for around 3% to 5% of the budget. We invest far more in long-term brand building through digital, television and other mass media. Our philosophy is simple: if someone speaks about our brand, it should come from genuine product experience, not because they're being paid to say it."

The emphasis on authenticity was echoed by IKEA India.

Hazefa Chhitwala, Marketing and Communication manager, IKEA India, echoed the same sentiment with an example from their latest IKEA launch on an e-commerce platform. He said, "Influencer marketing accounts for roughly 5% to 10% of our digital marketing budget, but we've always been clear that we don't use creators for promotional messaging. During our recent e-commerce launch, influencers were part of the campaign because they were already genuine IKEA users and could naturally share how the brand fits into their lives. We don't script what they should say. We look for an organic fit. If it's promotional content around a collection launch or an event, we disclose it as advertising. But when someone is simply talking about a brand they already use, that's where the content feels authentic and resonates better with consumers."

For skincare brand Fixderma, creator spending is even more conservative.

Chirag Jagwani, chief marketing officer at Fixderma, said, "Unlike brands allocating a significant share of digital budgets to creators, Fixderma has kept influencer marketing to around 2% of its digital spend. The company measures campaigns based on direct sales generated through creator-led affiliate links and says any increase in spending will depend on proven returns rather than visibility alone. We'd like to take it to 10%, but only if we can scale with measurable impact."

The approach varies across categories. For premium automobiles, the focus is less on the size of the influencer budget and more on choosing the right creators for different stages of the buying journey.

Milind Shah, Head of MG Select at JSW MG Motor India, pointed out using MG Select, a luxury product, as an example: "Rather than chasing reach through travel influencers alone, MG Select is aligning creator investments with how luxury consumers discover and evaluate products. Lifestyle creators receive the highest priority because they are part of consumers' everyday content consumption, allowing the brand to stay top of mind. Finance creators and category experts come next, particularly for educating buyers about premium vehicles and ownership considerations. Travel creators remain part of the mix, but play a relatively smaller role because travel content tends to inspire future purchases rather than immediate consideration."

This approach also reflects MG Select's broader media strategy. "With about 70% of its media spend directed towards digital, the company sees creator marketing as one element of a wider content ecosystem designed to build trust and consideration, complemented by experiential activations and selective print advertising. For its mass-premium MG business, the mix is more balanced, with 35-40% of media spend allocated to digital alongside a larger investment in traditional above-the-line media."

The contrast highlights how influencer marketing is evolving. While global consumer brands may be committing billions to creator-led campaigns, many marketers in India still treat influencers as one component of a broader media strategy rather than the centrepiece. Instead of increasing budgets indiscriminately, brands are prioritising creators who can drive credibility, measurable outcomes and sustained consumer engagement over viral visibility alone.