Celebrity Influencers: All Reach, No Relevance
Scour the social media feeds of celebrities and high-end fashion bloggers and you’ll likely see a few sponsored posts pop up promoting everything from designer clothing lines to hair care gummy bears to water bottles.
— Kylie Jenner (@KylieJenner) December 16, 2016
On some level, it makes sense to pay A-listers with millions of followers to blast out your messages to masses. After all, if thousands of people are seeing your ad, it’s sure to resonate with some people, right?
Sure. But those conversions aren’t worth the cost. Paying for celebrity influencers is like paying for a billboard – it works to get the message out to the masses, but it has a poor conversion rate.
Influencers like the Kylie Jenners of the world charge money for their sponsored posts – in some cases, up to $30,000 per paid tweet and $75,000 per paid Instagram post. That means many brands would have to see hundreds or thousands of sales to see any ROI. No matter how many sales you see, that’s still a high cost-per-conversion. Why shell out thousands of dollars per post when you can see higher conversion rates for a fraction of the cost?
Pyramid of Influence
Not all influencers are the same. The end of 2016 saw a big shift in focus from these high-end influencers to micro-influencers. To explain the different types of influencers, Insightpool uses the Pyramid of Influence. Influencers with a high reach and lower relevance, like VIP influencers and celebrities, are at the top of the pyramid, while those with lower reach but higher relevance, like current customers, are at the bottom.
True power lies in the Power Middle.
The Power Middle is where you’ll find people with a significant audience size but with real influence. The Power Middle is comprised of micro-influencers and citizen influencers – a mix of people who have reach, but more importantly, have a high relevance among their audiences. Their influence lies in their niche understandings and the mutual trust with their audiences.
Investing in the Power Middle pays off. Brands see the strongest ROI by focusing on this group – even experiencing engagement rates up to 16x higher than paid media alternatives.
2017: Year of the Micro-Influencer
An influencer’s reach means nothing if they’re not relevant to your brand’s target audience. To find success in influencer marketing, brands must look beyond the people with millions of followers to focus on those with real influence – like micro-influencers. Influencers with smaller audiences are more likely to engage with their followers, and more likely to have actual influence over their audience’s purchasing decisions. The future of influencer marketing belongs to micro-influencers – and it’s time for brands to invest in them.