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Rise of nano-influencers in influencer marketing

You’ve probably heard of influencers. But do you truly know they can help you gain an edge over your competitors? 

Influencers have been dominating the social space globally and will continue to do so. In fact, according to Influencer Marketing Hub, the industry is expected to grow to be worth $13.8 billion in 2021 despite initial concerns that it might decrease due to Covid-19. 

Over the last five years, brands have collaborated with social media influencers across multiple channels to generate awareness, and influencer marketing grew from a secondary marketing tactic to a $5-10 billion dollar industry
Today, influencer marketing is more accessible and measurable than ever before. A study that was done by Media Kix even reported that 80% of marketers find influencer marketing effective in achieving their goals.

What is Influencer Marketing?

Just in case you are not familiar with the term, influencer marketing is a form of social media marketing whereby brands work alongside creators who have a dedicated social media following and an experts in a given niche.

Influencer marketing is when brands collaborate with influencers to increase brand awareness or conversions among a specific target audience

Big Commerce

Influencer marketing is a hybrid of old and new marketing tools. It takes the idea of celebrity endorsement and places it into a modern-day content-driven marketing campaign, placing more focus on collaborations between brands and influencers

However, influencer marketing does not just involve celebrities or famous people. Instead, like its term “influencer”, influencer marketing revolves around influencers – those who typically would not identify themselves as someone famous in an offline setting. 

Influencers can be categorized into different tiers depending on their follower count. There are five main types of influencers that you should know and each of them vary according to skillset and purpose. Here’s a simple breakdown: 

  • Mega-influencers with more than a million followers (think celebrities) 
  • Macro-influencers with 500K to 1 million followers
  • Mid-tier influencers with 50K to 500K followers
  • Micro-influencers with 10K to 50K followers
  • Nano-influencers with 1K to 10K followers
Influencers can be categorized into different tiers depending on their follower count.

Who are Nano-Influencers?

Focusing on the lesser-known of the lot, nano-influencers or “nano” are ordinary digital citizens with at least 200 followers on social media. Nano-influencers are our friends, neighbours and co-workers – think your cousin who enjoys sharing baking recipes or your high school mate who now collects watches. You might even be a nano-influencer yourself.

Nano-influencers are creators who are followed by their circles of influence and not too many people beyond that

Built-in Beta

Simply put, nano-influencers are regular everyday people who help brands promote their products and services by influencing their friends, family and people around them. Nano-influencers are becoming more prominent as they tend to be hyper-invested across multiple topics that interest them; like travel, food, fashion, beauty, and many more.

Why are brands targeting Nano-Influencers in their marketing strategy?

There are many reasons why brands are now looking to work with nano-influencers despite their smaller following. In fact, oftentimes nano influencers smaller follower count or lack of fame is actually part of their appeal.

Why brands are targeting nano-influencers in their marketing strategy

Other key reasons why brands and businesses are keen to work with nano-influencers include:

1. Nano-influencers are known for their authenticity

Nano-influencers are essentially just your average joe who does not use influencer marketing as their main source of income. Hence, they tend to come off as more relatable and approachable to the mass audience. As opposed to the other types of influencers, most people can see themselves in the shoes of a nano-influencer.

2. Nano-influencers have higher engagement rates

Nano-influencers typically have a much lower follower count, most of those who include their closest friends, family and peers. This first-hand relationship between nano-influencers and their followers oftentimes leads to an overall higher engagement rate on their social media channels. 
As proven in a study conducted by Later, nano-influencers have the highest engagement rate with 4% across all feeds and sponsored ones.

Nano-influencers have higher engagement rates

3. Nano-influencers “influence” through word-of-mouth

Nano-influencers know many of their followers personally, which means their endorsements or promotions acts as a direct word-of-mouth recommendation. A recommendation from a nano-influencer is like a suggestion from your best friend. Word-of-mouth holds great weight when it comes to a consumer’s purchasing decision. In fact, 74% of consumers reported that word-of-mouth is a key influencer in their purchasing behaviour.

Consumers often reach out to other consumers before making a purchase decision

Forbes

4. Nano-influencers provide an excellent return on investment

Nano-influencers are not “professional” influencers who treat their social media as a passion project or side gig. And because of that, 45% of nano-influencers are willing to create more curated content in exchange for a free product or service or just a small monetary compensation, providing brands with a good ROI compared to macro or mega-influencers.

5. Nano-influencers are more trustworthy

Based on a study done by Social Media Today, consumers consider user-generated content 3 times more trustworthy than brand-created content. When it comes to credibility, you are more likely to trust the words of a regular person like your friends or family over a full-fledged influencer who works with brands for a living. Nano-influencers on the other hand have no reason to be dishonest in giving a review as they are not driven by monetary benefits.

Most consumers base their purchase decisions on family and friends, rather than celebrities or influencers

Partipost

6. Nano-influencers are easy to work with

Nano-influencers generally make for a smooth and easy partnership. These individuals love the prospects of working with brands and are rarely stingy with their time and effort. They also tend to comply with terms and conditions decided by brands more openly and are all-around less demanding than larger-scale influencers.

Make Nano-Influencers your best Brand Ambassadors

It’s clear: nano-influence is advantageous. Being the main connector between brands, content creators and consumers, nano-influencers are the essential ingredient to successful influencer marketing campaigns and soon to become an indispensable tool for influencer marketing in 2021 and beyond. 

With the help of MyBump Media, you can now easily identify nano-influencers that fit your brand’s voice, handle campaigns easily and most importantly, an advertiser dashboard made just for you to track your campaign performance!

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