Working with micro-influencers can be less expensive and result in higher conversion rates than working with bigger social media stars.
When you work with social media influencers to advertise a product or brand, you pay them in the hopes of having a high return on investment (ROI). That usually means you expect the influencer’s status among their following to result in acquisition of new potential consumers, and conversion of them into repeat customers. But some research suggests that working with Micro-influencers, or those with less than 500,000 social media followers, could cost less and produce better results.
An overwhelming 83 percent of consumers trust the recommendations of friends or family, with 66 percent trusting consumer opinion online, according to a report by market research agency Nielsen in 2015. This is where micro-influencers come in.
Celebrities like Kim Kardashian, with millions of online followers, are engaging with her content for different and not always overlapping reasons. Plus, posting on Kim Kardashiaj’s Instagram can cost between $250,000 to more than $700,000 for a single post.
However, micro-influencers, are often experts on a specific topic. Though they have fewer followers, ranging from a few thousand to 100,00, they have a focused niche audience that trust their opinion on that specific topic. For instance, a micro beauty influencer with 20,000 followers who focuses on organic skincare might be more selective about who she works with, but she will likely a) give more genuine product reviews and feedback, and b) have a rapport with her audience that really encourages them to go out and buy that product.
A report in Digiday last year claimed that a micro-influencer costs about $1000-$2000 per 100k followers, per post on Instagram and YouTube. And you can figure out how much an influencer with fewer than 100k followers would cost by taking the average of the two prices, $1500, and multiplying that result by the percentage of 100k followers they have (i.e. 20k followers would be 20 percent: $1500 x .20 = $300 per post). On Snapchat, the average pay was $500 for 1000-5000 views.
If you want to just reach the widest audience possible, or if you have money to spare on big names like Kim K, then this probably isn’t meant for you. Just keep in mind that micro-influencers are a perfectly viable option for influencer marketing, because they can cost less up front and still produce a high ROI.
Thanks for reading and come back next time!