Media agencies snap up major influencer firms as marketing trends evolve

Publicis Group has recently announced the acquisition of Influential – apparently, the largest influencer marketing platform in the world. The deal is reportedly worth $500 million and is expected to close by August-end after regulatory approvals. 

Influential runs a network of over 3.5 million creators, including 90 per cent of the global influencers who have 1 million followers or more, and serves more than 300 brands around the globe. Influential is likely to be paired with the in-house Adtech and Marktech arm Epsilon, which was acquired by the French multinational about four years ago. 

“Not only does this acquisition mean we will take the leadership of Influencer marketing. It also uniquely positions us at the centre of the new media ecosystem,” Publicis CEO Arthur Sadoun said in a statement. “It’s how we are putting power back into the hands of brands in a fragmented media landscape, and driving marketing transformation that delivers real business outcomes.”

Publicis' acquisition comes on the heels of WPP’s strategic moves in influencer marketing over the past two years. In March 2023, WPP’s media investment arm, GroupM, acquired The Goat Agency, one of the largest influencer firms, and integrated it with INCA. Additionally, GroupM strengthened its influencer capabilities by acquiring ‘Obviously’ and ‘Village Marketing’ in 2023 and 2022 respectively. 

While TBA Worldwide acquired Joybyte, Havas entered into strategic collaborations with influencer tech stack KlugKlug last year. 

However, it was Dentsu (erstwhile Dentsu Aegis Network) that tapped into the potential of influencer marketing back in 2017 by investing in Gleam Futures, an influencer talent management agency. The Japanese company is now set to make “significant strides” in the influencer marketing space in South Asia as well, Harsha Razdan, CEO, South Asia, dentsu, told e4m. 

Fast growing market 

Influencer marketing performed better than other types of advertising throughout the pandemic. Media planners are bullish on the word-of-mouth creative format over the long term.

With nearly half of all consumers making purchases based on influencer marketing — and trust in influencers rising — the media agencies’ acquisitions demonstrate how influencer marketing has become a ubiquitous growth driver for most of the big and small brands over the past couple of years. 

Global social media spending will reach $186 billion in 2025, exceeding linear television ad spending for the first time, per Publicis’ website.

Mark Read, CEO, WPP, following the acquisition of The Goat Agency in March 2023, hinted about the potential of this segment of marketing globally.  “Influencer marketing is a key growth priority for the industry and for WPP. Our clients are increasingly planning budgets at a global scale and require partners that have the global reach to help deliver, whilst driving engagement and impact at a local level.”

In India, influencer marketing is expected to drive Rs 3,300 crore of ad spend by 2026 with a CAGR of 18 per cent, as per an EY report. Three in four brands in India rope in influencers to reach out to consumers who spend half of their mobile time on social media platforms. 

FMCG (18.5%), BFSI (16.6%), and automotive sectors (15.9%) are leading the way in using influencers to engage with audiences. Fashion follows closely with a share of 12.1%, according to the Dentsu Influencer Marketing in India report. 

Naturally, media agencies are eager to be part of this burgeoning trend and are vying for a larger share of the market.

Razdan agrees, “In a market where only the fittest survive, these strategic moves ensure we leverage cutting-edge trends and technologies, solidifying our leadership position.”

According to Razdan, India is on the cusp of a massive boom in influencer marketing. Brands are doubling down on influencer campaigns. “Gen Z and millennials love the fresh, authentic vibes from influencers, while Gen X and Boomers still prefer traditional brand messages. It’s a fascinating balance, but influencers are definitely the new power players for younger audiences,” he noted. 

The impact of social media and social commerce on marketing in the last three-four years is about as significant as digital’s impact on media over the last 30 years. The purchase funnel just doesn’t work the way marketing schools have taught it since the 1970s.

Vineet Bajpai (Founder & CEO, Magnon Group) agrees, “While top-of-the-funnel influencer marketing is popular and rapidly growing, brands expect bottom-funnel impact from influencer marketing. If this starts to happen, the growth is likely to be explosive.”

“Creator earnings set to grow”

With more brands jumping on the bandwagon, creators will see higher earnings and diverse collaboration opportunities. This boom will also drive better tools and platforms for creators, helping them professionalize their content and build sustainable careers, Razdan noted. 

Bajpai predicts that the micro and nano influencers will more likely benefit from recurrent campaigns, and macro influencers will likely be consolidated into specialized where authority on the subject will outweigh influence. 

Besides, Generalist and lifestyle influencers will face increased competition and a more rationalized price as the market matures and regional creators are more likely to gain fame on their own, too, with the extensive knowledge of the local culture and communities, Bajpai shared. 

Consolidation 

With the rapid growth, the stakeholders in the market have realised that they need the infrastructure and talent to continue to scale. The market is also beginning to consolidate through mergers and acquisitions, not just in India, but around the world. 

For instance, Mumbai-based talent management and influencer marketing firm Collective Artists Network has acquired AI-based platform galleri5 to expand its creator and content ecosystem.

Global influencer agencies are also entering the Indian market. French influencer marketing agency YKONE acquired 70 per cent stakes in Barcode, an Indian content and influencer marketing agency early this year.