Influencer marketing has become a core part of marketing budgets in sectors across the board. According to the e4m INCA Influencer Marketing Report, this industry is valued at about Rs 1,275 crore and is going to grow at a CAGR of 25% for the next 5 years. So, how are brands capitalizing on these nano/micro-influencers?
Easy access to the internet and social media has led to a surge in content creation, content creators and influencers. Apart from marketers roping in nano/micro-influencers, several platforms have also come up with monetization options for this tribe.
Shashank Shekhar, Sr. Director, Content Strategy and Operations, Moj and ShareChat, says, brands often ask for a certain number of micro-influencers to be included in their campaigns as they provide a deeper connection with the audiences.
“Although micro-influencers have relatively small followings, they offer a significant advantage beyond cultivating close relationships with their audience. Collaborating with micro-influencers can result in higher engagement rates as their followers are more invested in their content. Additionally, they offer a cost-effective option for brand partnerships, making them a desirable option for businesses. The unique and authentic approach to content creation by micro-influencers, stemming from their distinct styles and diversity in their content, leads to higher levels of trust and credibility among their followers.”
As for Rij Eappen, Co-Founder and COO, WYLD, “TRUST! The most important element in the follower/influencer relationship is trust, which is what nano and micro-influencers and social media users bring to the table in droves. And this is because this segment of social media users tends to be followed by their friends, family, colleagues and people within their social circle, maybe with one or two degrees of separation. As compared to creators with a large following, these nano influencers and users have higher engagement rates and better conversions because you will always trust the recommendation of your friend over that of someone you follow, but don’t have a personal relationship with.”
Monetization avenues
Anyone with 500 or 1000 followers is an influencer on social media. And there are platforms who are keen to get them on board. This has opened up monetization opportunities.
Sharing factors in favour, Yulia Aslamova, Head of Asia, DRIM Global says, “The growing popularity of these influencers, with their engaged and niche-focused audiences, has created a demand for platforms that facilitate collaborations with brands. Efficiency in campaign management is another driving force as these platforms streamline the influencer selection process, enabling brands to scale their marketing efforts and reach a wider audience. The availability of built-in analytics and performance tracking tools on these platforms enhances transparency and empowers brands to make data-driven decisions.”
There are some challenges though. Shekhar notes that unlike macro influencers nano/micro-influencers may face difficulties in enjoying a stable supply of brands. “Micro and nano influencers often struggle to connect with brands due to the complexities of the campaign finalization process and the uncertainty of successful collaborations. This can be a time-consuming and energy-draining experience for creators. With platforms like Moj, creators, and brands get a steady supply of brand opportunities. Ultimately, this leads to more efficient and effective collaborations, benefiting all parties involved.”
In a recent boost to this industry, Instagram has started rolling out ads in the profiles of people with a higher engagement. However, India is yet to get access to the same.
Aslamova says, “Brands and influencers can truly justify the investments and efforts being put into this marketing avenue. Powered by smart segmentation, look-a-like targeting, and machine learning, our full-stack platform delivers exceptional results at scale. With a robust project management toolkit and a dedicated team of over 120 influencer talent managers in India, we are poised to redefine the influencer marketing landscape and propel brands to unprecedented success.”
Eappen of WYLD also shared the uniqueness of such platforms. “They have the option to take a picture or video and post about the product / brand on Instagram, and earn massive cashbacks, ranging from 30% to 100%.”
Brands are now able to leverage the social clout of every socially active customer, he added.
Sharing other USPs of influencer platforms, Shekhar says, “The algorithm helps micro-creators get discovered by new fans who share similar interests, enabling them to quickly grow their following and reach a highly engaged audience.”
The future
According to Kalyan Kumar, CEO and Co-founder of KlugKlug, “A lot of changes are happening because there are so many influencers coming in and AI is helping them to make content. There will be a whole bunch of influencers that will be making great content but it will lead to fatigue. Consumer behaviour may shift with AI-based digital influencers coming in. There will be a ton of influencers who will be purely AI generated profiles making lovable content.”
“It will be interesting to see AI-led content being created on platforms like ChatGPT, merging with the algorithm of Instagram. This is an attention economy, there is going to be a lot of fusion in the future because fairly sharp and advanced AI is already here and it is going to make human-like content.”
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