Influencer Marketing vs. Traditional Advertising: A comparative study of ROI in the Indian Retail Sector

Influencer Marketing vs. Traditional Advertising: A comparative study of ROI in the Indian Retail Sector

*1RAM NARESH KAUSHIK,  AVINASH MISHRA*2

*1Researcher, Department of Management, School of Business, Galgotias University*2 Guide, Department of Management, School of Business, Galgotias University

Abstract

This study compares the return on investment (ROI) effectiveness of influencer marketing versus traditional advertising strategies within the Indian retail sector, examining their respective impacts on consumer engagement, brand awareness, and sales conversion. Influencer marketing demonstrates superior ROI performance, generating an average of 11 times higher returns than traditional advertising methods. Consumer trust in influencer recommendations (67%) significantly exceeds that of traditional advertisements, with influencer content achieving 15% higher brand favorability and 10% greater purchase intent. Traditional advertising maintains substantial market presence, particularly television advertising which generated ₹297 billion in revenue during 2023.