With Instagram influencer marketing on the rise, small and medium-sized companies with limited budgets may get access to a broad target audience via micro- and nano-influencers.
The exact value of the Instagram influencer advertising market is hard to determine due to the lack of reliable metrics, but according to conservative estimations, it will surpass $2 billion in 2019. A separate study conducted by InfluencerDB suggests that marketers see better engagement when they cooperate with nano-influencers, who have a smaller reach but highly dedicated followers.
Regardless of what the exact numbers are, Instagram influencers can serve as a bridge between brands and their potential customers. Proper optimization and the right choice of partners can do wonders even on a tight advertising budget.
Nano- and micro-influencers are doing better than mega Insta stars when it comes to benefit-cost ratio, as confirmed by a recent study carried out by CreatorIQ across Instagram, YouTube, Facebook, and Twitter.
Higher engagement numbers
Instagram nano-influencers (account owners with up to 10,000 followers) have the highest engagement rate – 4.4%. This figure is inversely related to the number of followers, which means that mega-popular influencers with over 1 million followers have the lowest rate of engagement (less than 1%).
YouTube shows an engagement rate of 6.7% for nano-influencers and only 4% for the megastars. The trend also applies to Twitter and Facebook.
It stands to reason that what is good for one industry will not work for another. Instagram is best suited for beauty, fashion, food, lifestyle, fitness, and travel businesses.
Sponsored posts related to pets, tobacco and smoke, and baby toys also demonstrate high engagement rates (3.9%, 3.3%, and 3.2% respectively), while finance, music, and healthy lifestyles are on the other end of the spectrum.
When less is better
As CreatorIQ’s research shows, engagement is an important metric for a company to consider. Since the total number of followers does not guarantee good results for an advertising campaign, it is vital to study and analyze the influencer’s engagement rate along other metrics to project the efficiency of the initiative.
CreatorIQ points out that an influencer with 10,000 followers can produce a better ROI than someone with 200,000 followers due to the difference in their engagement rates.