MKTG3529

Social Media Marketing

Session 5
Influencer Marketing
“People do not buy goods and services.
They buy relations, stories, and magic.”

Seth Godin

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Want to seize the attention of your ideal audience?

➢ Influencer Marketing!
➢ Why?

• When it comes to millennials, only 1% of them trust advertisements. However, 33% of them
trust blog reviews for their purchases.

• Around 40% of people reported that they purchased a product online after seeing it used by

an influencer on YouTube, Instagram, or Twitter.

• According to a study by Tomoson, influencer marketing yields a $6.50 return on investment for
every dollar spent.

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What is influencer marketing?

➢ Influencer marketing is a strategy that businesses use to promote their

products and services by partnering with popular social media users,
bloggers or celebrities. Influencers usually have a large, engaged
audience that brands can tap into to build credibility and even drive sales.

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Why influencer marketing works?

➢ Reach a bigger audience

➢ Build trust for your brand

➢ Grow your social following

➢ Increase site traffic

➢ Get more leads

➢ Drive sales

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Growing interest

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Influencer marketing global spend

• The influencer marketing industry is

rapidly growing and evolving.

• Latest estimates predict influencer

marketing spend will reach $5-10 billion
by 2020

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 What constitutes an influencer?

➢ An influencer is a content creator with a social media

following.

➢ Social media influencers develop a following by

sharing quality content that inspires, entertains,
informs, and connects them with their followers.

➢ Influencers start social conversations, drive

engagement, and set trends amongst a receptive
audience, which positions them to work with brands
on sponsored content.

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Defining social media influencers by size and scope

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Influencers tiers

➢ Each influencer tier has their own advantages and disadvantages for
businesses depending on the goals of a particular initiative or campaign.
➢ For example, macro- and mega-influencers are able to reach very wide audiences
in a single post, while nano- and micro-influencers can sometimes help
campaigns reach more niche audiences.

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Most effective tier of influencers

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A new influencer tier: Nano-influencers

https://www.nytimes.com/2018/11/11/business/media/nanoi
nfluencers-instagram-influencers.html

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 A new influencer tier: Nano-influencers

“Everyone who’s on Instagram has that friend

who is just really popular and is racking up
‘likes’ and comments and has great content,”
as explained in a recent New York Times
story. These Instagram power users are prime
candidates for becoming nano-influencers.

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A new influencer tier: Nano-influencers

➢ A nano-influencer is defined as an (Instagram) influencer with between

1,000 and 10,000 followers.

➢ Nano-influencers’ audiences are small, niche, and highly

engaged.

➢ Nano-influencers and their followers share common and usually niche

interests.

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Why are brands working with nano-influencers?

➢ Authenticity
➢ Nano-influencers are essentially “normal” people who don’t use influencer
marketing as their main source of income, which makes them more
relatable and approachable.
➢ Higher Engagement Rates
➢ Nano-influencers have a much smaller following which includes many
people they may personally know. Because of their smaller follower count,
nanos are better able to respond to every comment or DM
➢ Word-Of-Mouth Effect
➢ Nano-influencers know many of their followers personally, meaning their
endorsement or promotion acts as a direct word-of-mouth
recommendation.

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Why are brands working with nano-influencers?

➢ Less Expensive
➢ nano-influencers are not “professional” influencers treating social media as a
passion project or side gig.
➢ Easier To Work With
➢ Nano-influencers tend to be much more agreeable to the terms set forth by a
brand. They are easier to work with compared to more established influencers
who may have their own set of demands and terms.
➢ Easier To Recruit
➢ Some nano-influencers proactively reach out to brands they love to secure
sponsorship deals. Brands can also attract/enlist nano-influencers by promoting
their nano-influencer program via Instagram, social media, or their website.

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 Nano

Influencer
Nano-influencers vs. Micro-influencers

➢ Nano-influencers ➢ Micro-influencers
➢ Still post based on own interest. ➢ Hit their stride with engaging content
➢ Not yet a fixed posting schedule discovering what types of posts resonate
➢ Because of their niche or hyper- best with their audience
focused content and smaller avid ➢ Their posts carry an elevated level of
followings, nano-influencers may quality (i.e. better camera quality and
have higher and more meaningful editing capabilities) and are posted on a
levels of engagement. fairly regular schedule (e.g. once every
other day or every day)
➢ Many micro-influencers at this stage have
done several sponsored Instagram posts,
may be contracted for recurring
sponsorships and/or be a brand
ambassador

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How to find nano-influencers

➢ Searching and subscribing to specific hashtags on Instagram can

be a good way to surface up-and-coming nano-influencers.
➢ Oftentimes nano-influencers follow and engage with similar nano-
influencers. When following an account, note how Instagram will
serve other related accounts — take notice of these when finding
nano-influencers
➢ Additionally, users can also search which other accounts nano-
influencers follow to find related nano-influencers.

➢ How to detect fake influencers & followers?

➢ https://mediakix.com/blog/detect-fake-influencers-marketers-guide/
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 How to find nano-influencers

➢ Agencies!

MCN
（Multi-Channel Network）

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Value of Nano/Micro/Mid-tier influencers

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How much do influencers make?

Note:
• It’s unclear whether the survey accounts for non-monetary compensation. Influencers
oftentimes accept the sponsoring brand’s product, service, or event invitation in direct
exchange for their promotion and endorsement.
• Influencers may also be compensated in part or entirely from commission fees
KOL and Live-commerce
Challenges

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References

• https://www.bigcommerce.com/blog/influencer-marketing/#what-is-influencer-marketing
• https://www.singlegrain.com/content-marketing-strategy-2/guide-influencer-marketing/
• https://stackla.com/resources/guides/redefining-your-influencer-marketing-program-why-organic-
influencers-are-the-future-of-influencer-marketing/?utm_source=adam-enfroy
• https://www.doofinder.com/en/blog/influencer-marketing
• https://mediakix.com/influencer-marketing-resources/influencer-tiers/
• https://www.nytimes.com/2018/11/11/business/media/nanoinfluencers-instagram-influencers.html

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Influencer Marketing Effectiveness

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Case Presentation
TheFirstGroup :

Case1. Finding Goldilocks Influencers: How Follower Count Drives Social Media
Engagement

WW :

Case2. Driving Brand Engagement Through Online Social Influencers

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