A new study by influencer marketing platform Intellifluence found that brands are increasingly turning to micro-influencers for maximum return on investment (ROI). The 2023 Influencer Compensation Study revealed that smaller influencers are more cost-effective and generate higher engagement rates than macro-influencers.
Strong Niche Micro-influencers
The study shows that brands are willing to pay higher compensation to micro-influencers with a strong niche following, because they offer more targeted reach. In fact, the study found that cmaller influencers with 5,000 to 10,000 followers can generate engagement rates of up to 8.8%, compared to just 1.6% for influencers with 100,000 to 150,000 followers.
Instagram continues to be the most popular social media platform for influencer marketing, followed by YouTube and TikTok. The majority of influencers surveyed (96%) said they disclose sponsored content to their followers, highlighting the importance of transparency in influencer marketing.
The results suggest that brands are becoming more savvy about how they approach influencer marketing. Instead of simply chasing influencers with the largest following, brands now recognize the importance of targeted reach and engagement. By partnering with micro-influencers with a strong niche following, brands can generate higher engagement rates and better ROI.
One example of a brand that has successfully utilized niche-influencers is Glossier. The beauty brand, which has a strong social media presence, used micro-influencers to build a community of loyal fans. By partnering with influencers who share Glossier’s values and aesthetic, the brand has been able to create a sense of authenticity and trust among its followers.
In addition to connecting with micro-influencers, brands are also turning to other tactics to improve their marketing campaigns. For example, some brands are now using AI to identify influencers who are a good fit for their brand, based on factors such as audience demographics and interests. This allows brands to find influencers who are more likely to resonate with their target audience and can help to improve the effectiveness of their campaigns.
The study also revealed that brands are increasingly looking for long-term partnerships with influencers, rather than just one-off campaigns. By building long-term relationships with influencers, brands can create more authentic and effective campaigns and can leverage the influencer’s following to build brand loyalty and drive sales.
As the influencer marketing industry continues to evolve, it is clear that brands are becoming more sophisticated in their approach. By focusing on targeted reach, engagement, and long-term partnerships, brands can generate better ROI and create more effective influencer marketing campaigns.
- Brands increasingly turn to micro-influencers for maximum ROI.
- Micro influencers are more cost-effective and generate higher engagement rates than macro-influencers.
- Brands are willing to pay higher compensation to boutique influencers with a strong niche following, as they offer more targeted reach.
- Instagram is the most popular social media platform for influencer marketing, followed by YouTube and TikTok.
- Transparency is important, with 96% of influencers stating that they disclose sponsored content to their followers.
Overall, the Intellifluence 2023 Influencer Compensation Study provides valuable insights into the current state of influencer marketing, and highlights the importance of staying up-to-date with the latest trends and strategies. As brands continue to look for new and innovative ways to reach their target audience, influencer marketing is likely to remain an important part of their overall marketing strategy.
Talking about compensation, Joe Sinkwitz, Intellifluence CEO and Co-Founder said he believes “overall rates will continue to rise due to inflationary factors and increased demand for influencer services as a whole, however the industry needs to be aware that influencer compensation is more fluid and cash flow driven than it is a set rate. In times of excess demand rates will spike, and deservedly so for hardworking creators; in times of marketing budget constraints, however, these rates will temporarily drop as a loss in billable hours cannot be recovered.”