Only 13% of content creators in India earn money: Report
What's the story
India's creator economy is booming, with an estimated 35-45 lakh influencers and a year-on-year growth rate of around 22%, according to influencer ad-tech platform Kofluence's report. However, the gap between virality and monetization remains wide, as most creators find it difficult to turn their content into cash. The report highlights that only around 4.5 lakh to six lakh content creators in India are currently monetizing their work.
Income sources
A look at the figures
The Kofluence report reveals that a whopping 88% of creators earn less than 75% of their income from social media. More than half of these creators make less than a quarter of their earnings from content creation. This shows that most influencers do not consider social media as their main source of income and prefer diversifying their revenue streams.
Challenges
Limited brand deals, competition are major roadblocks
The report found several challenges that make it hard for creators to depend solely on social media for income. These include limited brand deals (33% of creators), competition (13%), algorithm changes (11%), confusing monetization rules (10%), and other issues (3%). Ritesh Ujjwal, Co-founder at Kofluence, said that while the number of monetizing content creators is growing, the demand isn't keeping up with this expansion.
Video impact
Short-form videos most preferred format
Short-form videos have emerged as the preferred format for monetization, with over half of all creators preferring them for their ability to drive engagement and open up more revenue opportunities. Ujjwal broke down the cost of a Reel, saying macro creators can charge ₹3-5 lakh, while micro-influencers charge ₹30,000-₹1.5 lakh. However, earnings from Instagram Reels saw a market correction in FY25 due to an influx of creators and brands becoming increasingly return on investment (ROI) conscious.
Platform performance
YouTube Shorts showed stable or rising earnings
Unlike Instagram Reels, YouTube Shorts had stable or rising earnings, especially for nano and macro creators. A nano influencer with a following of 1,000-10,000 saw revenue increasing to ₹1,000-10,000 in FY25 from ₹1,000-7,000 in FY24. This is attributed to its native monetization features like AdSense and Super Thanks as well as expanding viewership of Shorts, making it a profitable platform for most creators.
Revenue sources
Instagram, YouTube top platforms for earning revenue
Instagram emerged as the highest source for creator income, with over 75% of creators reporting it as their primary revenue source. YouTube, which is very active in structured revenue sharing, ranks second at 13%. This dominance can be attributed to Instagram's visual-first approach and brand-oriented features that contribute to solidifying its position as a reliable platform for creators' earnings.