Influencer Marketing

ℹ️ Most of the following information is from Harward Business Review - September - October 2024 edition | Volume 102 | Issue 5

Data

• 24% of U.S. - based companies spend more than 40% of their total marketing budget on influencers. ¹
• Research by Bocconi University’s Maxmillian Beichert and colleagues discovered that nano inluencers, those with fewer than 10,000 followers yield a remarkable average return of more than $1,000 on a $50 investment - the typical worth of free products they receive. Conversely, macro influencers, those with more than 100,000 follower, command a hefty price tag of well over $1,000 on average, but deliver a return of only $6,000.¹
• If you want your influencer-marketing expenditures to lead to sales directly and measurably, you should consider the entire influencer-marketing funnel, which the researchers describe as having four distinct tiers: an influencer’s total following (audience), an influencer’s followers who see the sponsored post(impressions), engagement with the sponsored post (likes, commentes and replies), and revenue generated by the post. When it comes to the last three tiers, the research has found that on a cost basis, nano influencers consistently outperform macro influencers.¹

Recommendations

• You’ll want to be able to directly tie a sponsored post to purchases. That can be done via voucher codes, tracking links, and even unique 800 numbers.¹
• Use influencer-marketing platforms whenever possible.¹
• You’ll typically experience a better working relationship with nano influencers.¹

“Nano influencers are just like us, they interact with followers just like they do with their friends on social media. This authenticity is so much more powerful than a sponsored post with no engagement from a well-known celebrity. You don’t need massive reach. You need a bunch of small influencers with intimate groups that can promote your products in a trustworhtly way” - Maxmilian Beichert ¹

References