Some celebrity influencers can cost brands up to millions of dollars which has forced brands to look for a more cost-effective solution for their marketing campaigns.
'Nano-influencers' with less than 10,000 followers might have a smaller following across social media channels -- but can show higher returns per marketing campaign.
These smaller influencers have shown to engage 8.7 percent of their audience compared to 1.7 percent for celebrities with hundreds of thousands of followers.
This improved engagement, has made the nano-influencer trend an effective, cheaper option for marketers.
Toronto-based influencer marketing service Peersway has now launched its nano-influencer marketing service for US brands.
Brands can pay for nano-influencer marketing at a fixed price per influencer. Each influencer registered with the service charges the same amount for each campaign.
However, as 47 percent of online consumers use ad blockers, traditional online advertising models are no longer connecting with audiences.
Hundreds of nano-influencers, each with around 5,000 followers can be used by brands to promote campaigns across their networks. These networks enable businesses to achieve a much higher level of engagement through a more targeted marketing approach, and do so for much less.
This approach seems to be working for brands. Matrix, part of L'Oreal engaged 150 nano-influencers across Canada to promote Biolage styling products. Influencers were instructed to post pictures of the product and an 'after-look'. Biolage's Instagram following grew by 10 percent as a result.
Excel gum launched a new 'soft' gum and engaged 85 nano-influencers across Canada to purchase the product and describe how they used Excel soft chew. The influencers reached an audience of over 570,000, helping Excel save 25 percent of their regular influencer marketing cost.
Arnab Majumdar, Peersway co-founder. said: "By working with nano-influencers, we are focusing on ordinary people instead of celebrity-like personas.
We have learned that any company can benefit just as much -- or even more -- from influencers with smaller, more personal followings, allowing for a more intimate approach. This is important for bringing the human element back into influencer marketing."
Engaging with everyday influencers, not celebrities -- but friends, family and colleagues -- is one of the most successful ways to increase brand awareness.
The release of the Social Intelligence platform means that brands will be able to form their go-to-market influencer strategies based on AI predictions.
With fake accounts, likes, and comments flooding Instagram, brands should be more cautious when selecting influencers they plan to work with.
Across the hyper-competitive retail climate, brands constantly look for ways to drive sales. Influencer marketing could be a key tactic to gain that competitive edge.