With the sudden rise in nano-influencer marketing, there has been a backward push on other parts of digital marketing such as paid adverts, paid promotions on web pages
By Aaradhya Khanna
The space of digital media and brand promotions has seen a remarkable rise in the past few years owing to an exceptionally high level of digital media consumption by the audience from almost all age groups and socio-economic sectors. The rapid demand for digital media also gave rise to a large pool of content creators that have the power to influence their followers on various social media handles such as Instagram, Facebook, Twitter, and LinkedIn to name a few.
While the concept of influencers seems to be a suddenly hyped and new notion, this has been a part and practice for centuries. It dates back to the 1760s, Josiah Wedgwood, the pioneer of influencer marketing, produced ceramics for the British royal family to influence the people and their thoughts. Then came the era of Web 2.0 where the concept of word-of-mouth marketing was strongly implemented. Now with the availability of a large pool of audience on social media, influencer marketing has become the new normal, where brands invest a huge part of their marketing budget in brand promotions through influencer marketing.
Reasons behind the rise of nano-influencer marketing
Nano-influencers are influencers that have a limited audience. These are not celebrities with over 1 million followers on social media but some of the common people who have been able to grasp the attention of the audience through their unique and engaging content. Such influencers can have around 1,000- 10,000 followers who focus on a particular niche based on the kind of content they produce. The brands dedicate about 10% of their brand promotion budget to influencer marketing and primarily focus on nano-influencers that can reach their target group.
The main reasons for the rise of nano-influencer marketing are-
- Increase in digital media consumption: From 2012 to 2018, a spike in social media usage has been recorded from 5 h 37 min to 6 h 45 min per person. This consumption rate grows even higher for Generation Z which falls in the age group of 16-24 years. The average consumption for these young individuals is reported to be 7 h 44 min for a typical day. These numbers suggest the rising time investment of people from all walks of life on social media. Hence brands are also focusing on getting the most out of this pool of audience that is easily available.
- Nano-influencers have a niche: Every nano-influencer produces a certain kind of content and hence has a dedicated audience group which enables brands to easily find their target audience. This streamlined audience is helpful for the brands in a way that they can get higher returns with minimal investment.
- A target audience that trusts the brand ambassador: Nano-influencers have a very close group of people that they interact with daily and delve into creating an online bond based on admiration and trust. This is where the brands leverage the opportunity to develop strong word-of-mouth. The audience believes in the influencers and vice versa influencers mostly promote only those brands that they believe in.
- Cost-effective: Nano-influencers are very cost-effective and do not charge as much as a celebrity or a renowned face. However, with their dedicated reach, they reach the masses and are more closely related to their audience than a celebrity with millions of followers which works as a major plus point for the brand in converting leads into sales.
Effects of nano-influencer marketing on digital marketing
- While nano-influencer marketing is working wonders for both small and big businesses, it also has its pros and cons for the digital marketing industry.
- Digital marketing is not just centered around influencer marketing but has several other facets to it. However, with the sudden rise in nano-influencer marketing, there has been a backward push on other parts of digital marketing such as paid adverts, paid promotions on web pages, etc.
- Nano-influencer marketing will slowly and gradually become the most invested sector in terms of digital marketing. It is the sense of personalization that is missing from other types of digital marketing plans that nano-influencer marketing very strongly covers.
- With the rise in revenue generation and engagement on social media through nano-influencers the digital platforms are investing in developing more and more apps that provide a platform to all influencers to showcase their talent.
Hence, nano-influencer marketing is the future that has just begun and those who invest in this practice are sure to have huge gains. The fact that certain brands are also hiring nano-influencers on a contractual basis is proof enough to know that this is also a profession that is acknowledged and on the rise.
The author is CMO of Gem Selections. Views expressed are personal.