As brands look to connect with consumers in more authentic and engaging ways, many are turning to nano and micro-influencers. These influencers have smaller followings than celebrities or social media stars, but they can offer better engagement rates and more targeted audiences.
Brands are realizing that influencers with lesser followers are giving them a good return on investment ROI.
The micro and nano influencers are becoming the strategic play for the younger generation who value online reviews and recommendations more than traditional adverts. Data shared by Linqia an influencer marketing platform revealed that 90% of US marketers wanted to work with influencers with between 5,000 and 100,000 followers in 2020 (Linqia, 2021).
Nano (1,000-10,000 followers) and micro-influencers (10,000-50,000 followers) also tend to be more affordable than celebrities or social media stars. Their fees are often based on a flat fee or a commission of the product sales they generate. In some cases, they may even work for free in exchange for products or services.
Largely, the rise of social media platforms such as TikTok and Instagram has given more opportunities to users. Linqia says that the interest in using TikTok as a platform for influencer marketing campaigns rose 325% in a year's time, and 68% of marketers vowed to use the platform in 2021.
Algorithms on social media platforms have put a greater focus on posts from individuals rather than large brands. This gives more exposure to nano and micro-influencers and their content.
Social media users can now post about any topic or products they love in front of millions of viewers. Brands are more attracted to this influencer tier because they connect with audiences with highly specific interests. This makes it easy to work with a specific brand to increase brand awareness and engagement.
Additionally, the growth of social commerce has made it easier for nano and micro-influencers to generate sales. With a few clicks, their followers can purchase the products they recommend. This has led to more opportunities for brands to work with influencers in this space to generate revenue.
Social commerce is the use of social media platforms to drive sales. Simply put, social commerce takes shopping and integrates it fully into the social media experience so that users will not have to leave the platform to purchase a good. This can be done in a few different ways, such as:
Nano and micro-influencers are often used to endorse products in specific niches. For example, a nano or micro-influencer who is into fitness may be asked to promote a weight loss supplement. This is because their followers trust their opinions and recommendations.
An influencer who usually posts videos doing makeup on TikTok will be picked to endorse a new line of beauty products. Brands should keep in mind that nano and micro-influencers are more likely to work with them if the product is relevant to their interests and followers.
Brands that Partner with Nano and Micro-Influencers Get:
1. Increased Engagement Rates - Posts shared by nano or micro-influencers tend to have high engagement rates. This is because followers trust the recommendations of those they follow and are more likely to take action on their suggestions.
2. Greater Reach - Even though nano and micro-influencers have smaller followings than celebrities, their posts can still reach a large number of people. This is because their followers are highly engaged and are more likely to share their content.
3. More Authentic Content - Nano and micro-influencers tend to be more authentic than celebrities or social media stars. This is because they are not paid to endorse products and only recommend products they actually use and like. As a result, their content comes across as more genuine and trustworthy.
4. More Targeted Audiences - Nano and micro-influencers tend to have very targeted audiences. This is because their followings are usually made up of people who share similar interests. As a result, brands can be sure that their products are being seen by people who are likely to be interested in them.
5. Lower Costs - Brands can partner with nano and micro-influencers for a fraction of the cost of working with celebrities or social media stars. This is because their fees are often based on a commission of the product sales they generate or a flat fee.
6. Increased ROI - In many cases, brands see a higher ROI when they partner with nano and micro-influencers. This is because their engagement rates are higher and they tend to reach more targeted audiences.
7. Increased Brand Awareness - Partnering with nano and micro-influencers can help increase brand awareness. This is because their followers are more likely to be interested in the products they recommend.
8. Greater Product Sales - In many cases, nano and micro-influencers can generate greater product sales than celebrities or social media stars. This is because their content is more trusted and their audiences are more engaged.
9. Boost website traffic - If a nano or micro-influencer has a link to your website in their bio, you can expect to see a boost in website traffic. This is because their followers are likely to click on the link to learn more about the products they recommend.
Affordability: Micro-influencers are often more affordable than macro-influencers and celebrities or social media stars. Data shows that 70.7% of influencers with 1,000-10,000 followers charge $100 per Instagram post while those with 1million+ followers charge at least $1,000 per post (Enberg, 2021).
Their fees are often based on a flat fee or a commission of the product sales they generate. In some cases, they may even work for free in exchange for products or services.
Availability: Today, several creator tools have been created, to bring together influencers, and you can find micro-influencers in thousands or hundreds of thousands in one tool. This makes it easy for brands to reach and pick the most fitting influencer for a campaign.
Relevancy: Micro-influencers have a more engaged and relevant following than macro-influencers. This is because their followers tend to share similar interests and are more likely to take action on their recommendations.
Authenticity: Micro-influencers are often more authentic than celebrities or social media stars. Their followers trust them and believe their recommendations to be authentic. A report by PRWeek states that over 56% of consumers would rather follow common individuals on social media rather than celebrities because they find their posts to be more authentic (Owen, 2021).
Popular brands like Coca-cola, Sephora, and Gillette are now partnering with micro-influencers (Jacobs, 2021). This is because they offer several benefits that traditional marketing channels cannot match.
Increased Engagement: Nano-influencers typically have a higher engagement. This is because their followers are very close to them and most know them personally. So, they are interested in following up on them on social media to see what they are up to. It's also very easy to engage in a conversation with someone you know personally.
Increased Authenticity: Nano-influencers are often seen as more authentic and their followers trust their word more than any other influencer. The followers are usually family, close friends, and people they have met. As an influencer in this category, you would not recommend something without proper knowledge because you don't want to lose the trust of your followers.
Affordability: Working with a nano influencer can be very affordable starting at $25. In some instances, the influencers will not charge money but instead will ask for a product.
High ROI: Local businesses can benefit a lot from working with nano-influencers because they are able to target a very specific audience. For example, if you are a pizza shop in New York City, you can partner with a nano-influencer who has many followers that live in NYC.
This would be much more effective than working with an influencer who has followers all over the world.
Effect of positive word-of-mouth: Nano-influencers have a personal rapport with many of their followers. These followers listen to their recommendations and often take action on them. Therefore, if a nano-influencer promotes your product or service, you can expect to see a significant increase in sales.
If you partner with the right nano-influencer, you could see a significant increase in your brand's positive word-of-mouth.
Simpler to work with: Nano-influencers are much easier to work with than traditional celebrities or social media stars. You can contact them through email, social media, or their website. They are often very responsive and willing to work with you on a campaign.
Limited Reach: Even though nano-influencers have a high engagement rate, they don't have as many followers as micro or macro-influencers. This could limit the reach of your brand if you are looking to target a large audience. For huge brands or global companies, the higher the reach of the influencer, the better.
FTC compliance: The Federal Trade Commission (FTC) requires all influencers to disclose any sponsored or paid posts. This is to ensure that their followers are not being deceived. However, many nano and micro-influencers are not aware of this rule. If you choose to work with nano or micro-influencer, be sure to check that they are FTC compliant. Otherwise, you could be at risk of being fined by the FTC.
Despite the challenges, nano and micro-influencers offer many benefits that make them worth considering for your next marketing campaign. These benefits include increased engagement, authenticity, affordability, high ROI, and the positive word-of-mouth effect.
Nano and micro-influencers are also much easier to work with than traditional celebrities or social media stars. If you partner with the right nano or micro-influencer, you could see significant growth in your brand.
Enberg, Jasmine. "Micro-influencers Present Macro Opportunities." Insider Intelligence, 29 Nov. 2021, www.emarketer.com/content/mirco-influencers-present-macro-opportunities?_ga=2.265993039.1391066912.1647547024-402629170.1645713176.
Jacobs, Karen. "Small Influencers Poised to Win More Brand Followers in 2022." Insider Intelligence, 22 Dec. 2021, www.emarketer.com/content/small-influencers-poised-win-more-brand-followers-2022.
Linqia. "The State of Influencer Marketing 2021 – Linqia." Linqia, 19 Apr. 2021, www.linqia.com/insights/the-state-of-influencer-marketing-2021/.
Owen, Jonathan. "Are Celebrity Influencers Losing Their Touch?" US Home, 17 Aug. 2021, www.prweek.com/article/1724983/celebrity-influencers-losing-touch?mkt_tok=ODUwLVRBQS01MTEAAAF--DiCLTdN4K7TBBYX2lKEiwz8Iiegx6Xry8Wl2CGli8qSciGVQY4oBl0r51wcniZCZ_bmk2BKhoap6kduZWZTdqn9tYa6DvxceurlaXEbmObY.