Influencer marketing is the greatest marketing phenomenon of the past decade. The industry is projected to grow to upwards of $9.7 billion by the end of 2020. Brands like Fashion Nova and HiSmile Teeth have built their empire primarily based off the effects of their influencer marketing efforts, but the truth is, you don't need to have a multi-million-dollar budget to see the positive impact of influencer marketing on your brand.
Large budget influencers like Kylie Jenner and Connor McGregor are often thought to be the only options for promoting your brand through influencers, but this is far from the truth. The rise of micro-influencers has changed the name of the game. Studies show that micro-influencers are a better investment than their larger counterparts for a handful of reasons, which we mention down below. At Collabstr, we typically define a micro-influencer as someone with between 3000 – 150k followers, focused on a specific niche, whether it be fashion, health, food or more.
Why Are Micro-Influencers A Better Bang For Your Buck? Here’s Four Reasons:
Cost Effective: Micro-influencer rates are much less compared to their peers with hundreds of thousands or even millions of followers. This allows for you to spread your budget amongst a handful of different influencers, rather than splurging on a specific influencer that may or may not end up paying off. For example, you can pay a top-tier influencer $20,000 for a post and not know whether or not this is a cost-effective strategy for driving more sales until you have already paid the influencer, and by then it is already too late.
Loyal Audience & High Engagement: Micro-influencers are generally known for having loyal and highly engaged audiences as opposed to their larger counterparts. This is because they know many of their followers personally, whether they are friends, family or just somebody they've met once. This ultimately results in a very tight-knit community. Aside from having followers that they know, micro-influencers also have people following them simply because the content they are putting out is interesting.
Having a loyal following not only means that engagement rates are up but also more people will genuinely care about the advertisement and consider purchasing the product. This is because they have instilled trust in that influencer to the extent that they will make a buying decision based on their word or actions.
Increased Exposure: Consumers may need anywhere between 8-20 exposures to your product before they make a buying decision. This is a great problem to solve by utilizing micro-influencers, you can gather a group of influencers in relevant niches and use them to promote a product, this will allow you to saturate those niches with content about your brand.
Influencers within the same niche and geographic areas typically have a slight overlap in their audience. This means that your target audience will be repeatedly exposed to your product through multiple channels (the influencers). Any successful marketing campaign ensures that the target is continuously exposed to the product, influencer marketing is no different.
Advertise To Niche Audiences: Advertising to a niche audience can be tough when it comes to traditional social media marketing tactics such as Google, Facebook and Instagram ads. Finding a handful of influencers in your niche can be a much more targeted approach to getting in front of your ideal customers.
Let's say you run a company that sells balls of yarn, you may find it tough to advertise to people that need yarn by using traditional advertising methods. Instead, you leverage ten micro-influencers that have a community built around people that love to knit. This would be a surefire way of getting in front of your target audience.
What Does This Mean For Marketers?
With a record number of millennials saying they hate traditional advertisements, marketers must adjust their strategy to appeal to their target audience. It turns out that consumers don't care so much about picture-perfect and professional ads anymore as much as they care about seeing authentic content from their favourite creators.