From this article, you'll understand the different influencer types by looking at their unique abilities, standard metrics, and price range of influencers. Get an understanding on why & when to choose nano/micro/macro/celebrity influencers that helps in creating the right influencer marketing strategy.
An overview about Influencers/Creators
Who are Influencers?
Influencers are the ones who can affect the purchasing decisions of people through their social media presence, expertise, and/or personal brand. They can be social media personalities with a large following, industry experts, bloggers, or celebrities. You can say that Influencers are often seen as a trusted source of information and highly sought after for endorsements and collaborations.
Content Creators vs Influencers:
Creators are the ones that create their own original content. Creators are influencers too. But coming to influencers, they don't necessarily have to create their own content. It’s all about having influence on the audience. Creators have influence by creating unique content. Celebrities, Athletes, etc have influence over the audience by appearing in movies/series, winning competitions for the nation. Creators & Influencers are similar at the core.
Growth of Influencers/Creators:
There was no such thing as the ‘Creator Economy’ a decade ago. But now The Creator Economy is at $104.2 billion as of 2021 which is a hundred times higher than its previous year. Rise of social media platforms created opportunities for people to share or create content.
As per Linktree Report, there are 200 million content creators in the world.
Breaking 200m creators down,
23m creators have 0-1k followers
139m creators have 1k-10k followers
41m creators have 10k-100k followers
2m creators have 100k-1m followers
Source: Stripe
Interesting facts of creator economy:
As per Crunchbase’s Database, there are more than 300 economy startups that operate in the creator economy.
Total no. of watch hours in Twitch of the whole December 2022 is 106,333,883. That is time equivalent to 121 centuries.
Coming to the Influencer Marketing, the industry is valued at $16.4 billion as of 2022 and is expected to grow more.
Rise of Creators:
Before we see how creators rose, it's important to understand what’re the tools/platforms that provided tools for people to create. A decade ago Creator/Influencer was not a name. Something happened in between. There are certain platforms that emerged. It is the era of Social Media. Social Media has grown from sharing content between a circle of known people to creating content & making a business out of it. One of the first platforms that ignited creators is YouTube.
Currently as of 2022, YouTube has more than 2 billion users and 37 million channels created. YouTube has created a platform for influencers by enabling users to post and share videos. This opened an opportunity for users to gain views, subscribers by creating and sharing their content. As people posted more videos and gained more subscribers, they began to become known as creators/influencers. Later YouTube developed tools to help influencers monetise their content such as YouTube Ads and eventually brands started approaching influencers hence, influencer marketing.
Not only YouTube, platforms like Instagram & TikTok emerged as big players for Influencers because of their user-friendly content sharing features, large reach, and more creator tools. These platforms enable influencers to collaborate with other influencers & brands and create unique content. Additionally, these platforms provide detailed insights on their posts which can also be used as metrics to measure the performance of collaboration posts. These platforms evolved as a great market place that enabled brands to market. And Consumer Spending of users through these platforms is growing rapidly. According to Statista, consumer spending in asia on social media apps in 2020 was more than $2.1 billion and by 2025, is expected to increase by 220% reaching the market value of $6.8 billion.
Are Celebrities Influencers too?
Celebrities usually have large followings who look to them for their opinion, advice, and trends. These people tend to be loyal and care about what that celebrity has to say. This gives the celebrity a power to influence their follower’s interests, opinions, and behaviors. Ye previously known as Kanye West built a billion dollar brand Yeezy through his influence. Not only Ye, many celebrities are building brands for themselves. Like any other influencer, a celebrity can promote different products, & events, and also can use their platform to create awareness, & educate their followers. Not every influencer is a celebrity, but almost every celebrity is an influencer.
One of the reasons why influencer marketing works is because of PSR (ParaSocial Relationship) & PSI(Parasocial Interaction). In simple terms, PSI can be described as an illusory experience where the audience interacts with personas i.e celebrities, hosts, fictional characters, social media influencers, etc as if they’re in reciprocal relationship with them. PSI becomes Parasocial Relationship(PSR) when they’re exposed to those personas repeatedly. This is very powerful. As per a research, PSR is positively related to consumer spending.
Types of Influencers
Nano Influencer:
A nano influencer is an individual with a small but dedicated online following, typically on social media platforms such as Instagram or TikTok. Nano influencers often have fewer than 10,000 followers and are known for their authenticity, as they tend to have a close relationship with their followers and share content that is relatable and genuine.
Standard Metrics of a Nano Influencer:
Engagement Rate: 4%
Fake followers percentage: 0-10
Why to include Nano Influencers in your influencer marketing strategy:
Low cost – Nano influencers typically do not cost much compared to higher tiered influencers, making them a cost-effective choice for brands.
More authentic – Nano influencers tend to have smaller, more engaged follower bases, making their content more genuine and relatable to their followers.
Local appeal - Nano influencers often have a local following, so partnering with them can help a brand target a specific geographic area.
Micro Influencers:
Micro influencers are individuals with a smaller, but highly engaged audience who often specialize in a particular topic or niche. They typically have between 1,000 and 100,000 followers on social media and are often seen as more authentic and trustworthy when compared to larger influencers.
Standard Metrics of a Micro Influencer:
Engagement Rate: 3.86%
Fake followers percentage: 5-20
Why to include Micro Influencers in your Influencer Marketing Strategy:
More engagement – Micro influencers typically have higher engagement rates than their larger counterparts, making them ideal for reaching a target audience.
Affordability – Since micro influencers have fewer followers, they are typically more affordable than macro influencers.
Genuine connection – Micro influencers are often seen as more relatable by their followers, which can help a brand create a more genuine connection with their audience.
Macro Influencers:
A macro influencer is an individual who has a large following on social media, typically numbering in the hundreds of thousands or millions. They are often well-known in their industry or niche and have the ability to reach a large audience through their social media channels. Macro influencers may be celebrities, athletes, or other high-profile individuals, or they may be regular people who have gained a significant following through their content and engagement with their audience.
Standard Metrics of a Macro Influencer:
Engagement Rate: 1.3%
Fake followers percentage: 10-30%
Why to include Macro Influencers in your Influencer Marketing Strategy:
Relevant Audience: Macro influencers usually have a large and engaged following, which means they are capable of reaching a relevant and targeted audience for your brand.
Brand Awareness: Macro influencer marketing can significantly increase brand awareness and reach a wider audience through their followers.
Trust and Authenticity: Macro influencers often have a high level of trust and credibility with their followers, which can translate to their endorsement of your brand.
Cost-Effective: Compared to celebrity endorsements, macro influencer marketing can be cost-effective while still providing a high level of impact and reach.
Celebrity Influencers:
A celebrity influencer is a famous person who uses their social media channels to promote products or services to their followers. Celebrity influencers may be actors, musicians, athletes, or other high-profile individuals who have a large following on social media. They often have a significant amount of influence over their followers and are able to reach a large audience through their social media channels.
Standard Metrics of a Celebrity Influencer:
Engagement Rate: 1.22%
Fake followers percentage: 10-30%
Why to include Celebrity Influencers in your Influencer Marketing Strategy:
Immediate recognition – Celebrity influencers are well known by the public, allowing brands to leverage their audience for immediate recognition.
Increased exposure – Celebrity influencers have a large and engaged following, which can help a brand increase their reach and exposure.
Brand credibility – Partnering with a celebrity influencer can help a brand gain credibility and trust from their target audience.
Authentic followers:
Price Range of Influencers:
Nano: $10-$100 per post
Micro: $100-$500
Mid: $500-$5k
Macro: $5k-$10k
Mega: $10k+
Source: AndrewMacarthy
In India Rupees, it could be anywhere from 2k to lakhs and sometimes even crores.
Strategies to Leverage Influencers
#1 Set Goals & Research Potential Influencers:
Setting goals is a prerequisite for anything. It gives the campaign direction, keeps it focused and it allows to measure the success. And mainly having clear objectives helps to better target the right influencers and create content that resonates with their target audience.
The first step in developing an influencer marketing strategy is to identify your target audience & goals and determine which type of influencer will be most effective in reaching them. Different goals will determine what kind of influencers to reach out to. It’s not strategic to use influencers without understanding when to use them to garner better results. This following should give an idea on when to choose nano/micro/macro/celebrity influencers.
When to choose a Nano Influencer?
Choose Nano Influencers when you have a specific, niche product or service that may not appeal to a broad audience: Nano influencers often have a highly targeted following, which makes them an ideal choice for promoting niche products or services.
If you are looking for a more authentic, genuine way to reach potential customers: Nano influencers tend to have a more personal relationship with their followers and may be more likely to share genuine opinions and experiences with your product.
Limited Budget: Nano influencers are best if you are having a limited budget for influencer marketing, they generally charge less for collaborations and sponsored content, making them a more cost-effective option.
Trying out Influencer Marketing for the first time: Choose nano influencers when you want to try out influencer marketing for the first time and want to start small. It’s a good way to test the waters and see how influencer marketing can work for your business.
When to choose a Micro Influencer?
Choose a micro influencer when you have a product or service that would appeal to a specific, but slightly broader audience. Micro influencers often have a more niche following, but their audience is still larger than that of a nano influencer.
Reach a larger audience while maintaining a sense of authenticity and credibility: Micro influencers can be a good balance between the reach of a larger influencer and the authenticity of a smaller one.
If you’re having a moderate budget: Micro influencers generally charge more for collaborations and sponsored content than nano influencers, but still offer a cost-effective way to reach a larger audience.
If you want to build a long-term relationship with an influencer: Micro influencers are often more accessible and open to ongoing collaborations, which can be a good way to build a long-term relationship with an influencer.
When to choose a Macro Influencer?
Choose a macro influencer if your product or service has mass appeal and you want to reach a large, diverse audience. Macro influencers have a wide reach, which can be useful for promoting products that have mass appeal.
To create a buzz around your product or service: Macro influencers often have a large, engaged following and can generate a lot of buzz and attention for a product or service.
If you have a large budget for influencer marketing and are willing to invest in a high-impact campaign: Macro influencers generally charge more for collaborations and sponsored content than smaller influencers, so they may be a more expensive option.Macro influencers often have a strong reputation and a high level of credibility, which can be valuable for promoting a product or service.
When to choose a Celebrity Influencer?
Choose a celebrity influencer if you want a large and engaged following, which can amplify the reach of marketing campaigns.
Reach a larger audience: Celebrity influencers have a wide reach, enabling brands to reach a significantly larger audience than they would be able to do through traditional marketing.
Gain credibility: Utilizing celebrity influencers to promote products or services can be useful in building credibility for the brand. It’s not that credibility comes only through celebrity influencers. Celebrity Influencers already are very well recognized not because of their created content but because of their appearances in multiple films & media channels which connects with the audience much faster.
Generate buzz: Celebrity influencers can be a great way to generate buzz around a product or service typically more than what a macro influencer can create.
How to find these Influencers? - Influencer Discovery
With the new Starbuzz’s software, it's easy to find influencers.
Step 1: Select No. of followers filter and select the range as per your requirements.
Step 2: Go to the niche filter and select the influencer niche. It could be fashion, fitness, sports, etc as per brand's products and requirements.
And there are other multiple filters including language, age, the platform influencers are on, by audience location, interests, etc. that makes it easier for brands to find influencers.
Step 3: Analyze each profile’s metrics and select them. Profile metrics include influencer's ER, Audience Credibility, Fake followers percentage, Paid post performace, and others.
Step 4: Make a list of influencers for the campaign. Pick the right influencers by analyzing their metrics and can save them to the list.
#2 Reach out to Influencers & Negotiate Terms:
Once the influencers are decided, it's time to start reaching out to them. Here how its done:
Step 1: Create a template of what your proposal is.
Make sure to include the price, and clear info on how an influencer should create the content around the brand's guidelines. Type of content is the vital part of the whole campaign as it’s the output the audience consumes.
Step 2: Send them to the list of influencers created for the campaign at once.
Once influencers are in, start scheduling when & who will be posting & managing the campaign.
#3 Create Content not Ads
One of the reasons behind influencer marketing’s effectiveness is the way ads are made. The consumer market research company Nielsen found that 92% trust recommendations from individuals rather than brands (Nielsen, 2012). It’s important to do influencer marketing the way it is meant to do. Following are the ways a brand can create its content around.
Let Influencers go creative:
No one knows better about what content works best than influencers themselves. It’s a good idea to ask them to go creative while keeping the brand guidelines & rules in mind. Advertising a product without sacrificing the unique factor of an influencer works like magic.
Or Idealize a theme for the whole campaign:
Create the content analyzing the trends and ask the influencers to do it in a similar manner. If it inspires other influencers to do it, it is more likely to go viral. But it depends on the brand's objectives of the campaign. Campaigns are more likely to go viral when it is not bombarded with the brand’s details and when it has a special unique entertaining factor which speaks for the brand and anyone can relate to.
Creating a theme means holding some sort of recognizable pattern across all the content pieces of the campaign. It could be the same music, same pattern of actions, same questions, etc. This is where ideation goes. Make the ad entertaining to watch.
#4 Monitor Performance of the Campaign
Not analyzing the results of the campaign will badly affect the ways a brand plans its future campaigns. Having a detailed report would give a better idea on what isn’t working. In a research done by Tapinfluence together with Nielsen, it is found that ROI from influencer marketing is 11 times higher than traditional forms of digital marketing. But how is this ROI calculated?
Before measuring ROI, one must understand what the return is. Returns could be in the form of increased sales, increased brand awareness, & higher customer engagement. Once the return is taken into account, calculate the cost of the campaign i.e influencer fees, agency fees, and any additional costs associated. Then divide those returns with the costs. The returns such as increased sales, increased brand awareness, etc are calculated through KPIs (Key Performance Index). KPIs in influencer marketing are different to other methods of marketing.
Metrics in an Influencer Marketing Campaign:
The basic metrics of an influencer marketing campaign are reach, impressions, clicks, & engagement. These metrics provided with cost gives us much refined & valuable metrics like CPC (Cost-per-Click), CPM(Cost-per-Mile), CPE (Cost-per-Engagement), EMV(Earned-Media-Value) and ultimately ROI(Return-on-Investment).
These metrics represent the quality of the campaign. It gives a clear understanding on the amount of cost incurred per click, per 1000 impressions, per engagement.
PS: With Starbuzz Influencer Report, it is possible to analyze influencer individually. Influencer Report consists of all the essential metrics that defines an influencer. It has metrics like Starbuzz overall score, consistency score, Paid Post Performance Score and more. Its very helpful for brands to choose the right influencers while it acts as an identity and helps influencers to grow.
This above report is of Divya Boppana generated for reference.
Conclusion:
To create a stunning influencer marketing campaign, a clear objective & a strong understanding of how influencers can add value to a product are essential. Additionally, understanding the types of influencers and the unique ways they add value will not only refine the strategy but increase the quality of the content. Backed up by clear reports, regularly monitoring them will give best results.