Who is a Micro-Influencer:
There is no standard definition of this new-breed of influencers but the most marketers agree that Micro-influencers are social media users with followers ranging from 5000 to 1,000,000.
Micro Vs Macro Influencers:
Aside from the obvious difference in follower count, micro-influencers are more niche-based with higher observable engagement. Studies show that the higher the follower count, the lower the engagement rates.
A smaller audience means that micro-influencers on instagram can reply to more comments, be aware of the audience reaction and generally be more engaged with them on a day to day basis; in comparison to highly influential people with follower count in the hundreds of thousands who wouldn’t realistically be able engage with their followers at the same level.
Unlike supermodels who often endorse 10-15 brands varying from packaged water, perfume to sports shoes at the same time, micro-influencers on Instagram cannot afford to overload their Instagram feeds with sponsored posts as it may put off their followers. So generally, when they do agree to collaborate with a company, the product has to resonate with their life, otherwise, they risk losing their audience.
Another difference is that macro-influencers get attention from a wide variety of people from dissimilar countries, interests, gender among other factors while micro-influencers have an audience who are more targeted to an interest.
What Micro-Influencers bring to the table
If a coffee brand collaborates with a social celebrity with 2 million followers, it can reach a big pool of audience, but there is no guarantee that most of them even like coffee! It would make more sense to work with 100 self-proclaimed coffee-based influencers whose followers are actually interested in coffee brands and trends.
2. Size isn’t everything
An influencers engagement, an important KPI marketers measure, is measured by the average number of interactions they get per post. It is a common misperception that influencers with bigger a bigger following will have a better engagement rate.
Micro Influencers has 22% more ‘buying conversations’ than an average consumer.
In fact, a recent study has shown that as the following base continues to increase, the like and comment rate keeps decreasing. Instagram influencers with 10k to 100k followers see a 2.4% like rate, compared to 1.7% for those with 1 million to 10 million followers and more. Comment rate follows a similar pattern.
Marketer Craig Bierley once said, “I’m not sure anyone really believed that Tiger Woods drove a Buick.”
Consumers today do realize that there is an exchange of paycheck that occurs in advertising but they increasingly prefer that when an influencer recommend a product, they mean it. This is why when Kim Kardashian posts a picture of herself with detox tea claiming it helps her maintain her figure, it may even get the brand a lot of eyeballs but rings inauthentic and phony to potential buyers. It’s quite simple: Micro-influencers establish themselves as experts in a given field, then review the relevant products n blogs or in videos they make.
“A survey of 1,470 women found that 86 percent of them wanted product recommendations from real people.”
The average micro-influencers will charge $250 for one post, whereas the average macro-influencer can set you back anywhere from a couple thousand to a couple hundred thousand dollars. In some cases, micro-influencers on Instagram are glad to post for free in exchange for products sent to them or if they are fans of the product.
At the cost of hiring one mega-influencer, a brand could partner with multiple micro-influencers on instagram to reach a higher number of people for the same or even lesser amount with better engagement.
Besides the ROI, micro-influencers tend to be easier to connect with directly whereas macro/mega influencers usually have agencies or agents that represent them. Everyday influencers, like everyday people, tend to be much more approachable.
5.Higher Click Through Rates
A common term in the advertising industry, a click-through rate is the ratio of users who click on a specific link to the number of total users who view an advertisement. In recent times, traditional digital marketing tactics such as paid display ads have seen lower CTRs due to the high usage of ad blockers and ad fatigue by viewers.
A study has shown that a micro-influencers’ post is more valuable to a brand than celebrities, popular bloggers, and other advertising. This is possible because of the resonance that micro-influencers have with their following which leads to higher engagement that in turn lend themselves to a higher CTR.
6.Cost Per Lead
This metric measures how cost-effective your marketing campaigns are when it comes to generating new leads for your business. A lead is an individual/business that has expressed interest in your product or service by completing a goal. Since all businesses can agree that keeping marketing costs low and revenue high is the right way to achieve a high return on investment, betting on micro-influencers is a good strategy.
||Average Cost Per Lead
|Facebook Newsfeed Ads
Source: The State of Influencer Marketing CMO Summit April 2016
An analysis of 1 billion impressions from July-Dec 2016 across Travel, Entertainment, Retail, and QSR has shown that micro-influencers’ have the least CPL’s in comparison to other digital strategies as their followers are more likely to drop into your brand’s funnel because they both trust and value the micro-influencer’ advocacy.
7.Cost Per Acquisition
Another important metric that helps measure the success of a campaign, CPA refers to the average cost of acquiring leads or customers which is calculated by dividing the cost of advertising by the number of leads or customers for a given campaign.
The lower the CPA the better and micro-influencers(as shown above) have the lowest CPA’s in comparison with other popular advertising methods due to the relatively lost cost of hiring a micro-influencer, dynamic fan base, and a ‘long-tail’ approach which reaches the right audience.
Over the last couple of years, marketers are now shifting their marketing budgets towards micro influencers on Instagram. To access our massive micro-influencer database and exploit the benefit of micro-influencer marketing, sign up with Affable today!