By now, it's common knowledge that social media influencers are key ingredients to any marketing mix. Influencer marketing is one of the most effective methods of reaching internet users, especially as they become increasingly ad-adverse and turn to peers for purchase advice. Over the past year, consumers have become more and more aware of online advertisements. In fact, only 33 percent of internet users actually trust ads, and another 32 percent will actively block them this year. However, 90 percent of consumers trust peer recommendations, and 40 percent of millennials feel that their favorite YouTuber understands them better than their own friends.
Some of the largest companies in the world work with mega-influencers to spend hundreds of thousands of dollars on a single post. Selena Gomez’s posts are estimated to cost $550,000 apiece, and she currently has deals with Coca-Cola, Pantene, and K-Mart. Despite the high costs, influencer campaigns can be successful.
For example, Scottish whiskey maker Lagavulin partnered with Nick Offerman last holiday season to drive the narrative that single malt whisky is an approachable category for new, younger customers. This “Yule Log” campaign was highly successful, earning 840 million media impressions, generating 2 million organic YouTube views in one week, and garnering Lagavulin 17,500 new YouTube subscribers.
The facts are undeniable, influencer marketing is both potent and here to stay. In fact, 75 percent of marketers are currently using influencer marketing to carry their message. However, the high cost and lack of a structured approach act as barriers to entry for smaller, inexperienced, or startup companies looking to engage influencers.
Luckily, there are alternatives that are less expensive, more approachable, and provide higher returns than the mainstream macro-influencers.
Micro-influencers with less than 10,000 followers have proven to be just as effective and significantly less costly than larger (“macro”) influencers. Their highly targeted and active audiences generate superior engagement but lack of sheer numbers keeps their prices low. On average, 84 percent of micro-influencers charge under $250 per post and 97 percent charge less than $500, quite a bit less than Selena Gomez. This price not only fits well within a smaller or startup brand’s budget, but it allows for the use of multiple influencers at a single time. A company could create a campaign of eight influencers for less than $2,000, providing excellent opportunities when it comes time to scale the influencer strategy. Micro-influencers are also a great choice for companies who are just beginning their social influencer marketing and need a low-risk entry point to perfect their plans. The low cost also contributes to the likelihood of a higher return on investment.
Instead of being celebrities, micro-influencers more closely resemble normal people, and tend to have real relationships with their followers. So real, they generate engagement rates 60 percent higher and drive over 22 times more weekly conversations than the average macro influencer. Micro-influencers are perceived as more authentic and trustworthy, and are more responsive and conversational with their audience because there are less followers to manage. More engagement at a lower cost equates to a higher ROI, and the trust factor leads to a higher chance of a conversion from the influencer’s pages. Furthermore, due to the lack of noise, sponsored content is more visible with the influencer’s channels, which leads to results that carry over a longer period of time.
A micro-influencers’ audience is usually following him/her for a specific reason, as they discuss niche topics that their fans are passionate about. By working with a micro-influencer that is authoritative in a particular subject, brands can precisely target a group of people that will be more receptive to their products. Influencers with a wider fanbase juggle a larger variety of interests, which may lead to more impressions, but many of these visitors may not connect with the content. Research has found that influencers with fewer than 10,000 followers had average engagement rates of 4 percent, while those with over 100,000 fans only had 1.7 percent of followers engage with content.
As the demand for influencer marketing increases, popular influencers are garnering a lot of attention. Micro-influencers (which there are more of) are not as sought after and are less inundated with requests. These smaller accounts are also more likely to respond, have room in their schedules for posts, and be more open to collaboration. Additionally, the are also less likely to be working with an agency, which simplifies the process.
Influencers are officially a must-have in any marketing plan, and while many of the largest names may be out of reach, micro-influencers are a more effective and efficient play for smaller businesses, startups, and less experienced brands.
