By Aaradhya Khanna
The space for digital media and brand promotions has seen a remarkable increase in recent years due to an unusually high level of digital media consumption by audiences of almost all age groups and socio-economic sectors. . The rapid demand for digital media has also spawned a large number of content creators who have the power to influence their followers on various social networks such as Instagram, Facebook, Twitter and LinkedIn to name a few. .
While the concept of influencers seems like a suddenly fashionable and new notion, it has been part of and practical for centuries. Dating back to the 1760s, Josiah Wedgwood, the pioneer of influencer marketing, produced ceramics for the British Royal Family to influence people and their thoughts. Then came the era of Web 2.0 where the concept of word of mouth marketing was firmly established. Now, with the availability of a large audience on social media, influencer marketing has become the new normal, where brands invest a huge portion of their marketing budget in brand promotions through influencer marketing. .
Reasons for the boom in nano-influencer marketing
Nano-influencers are influencers who have a limited audience. These aren’t celebrities with over a million social media followers, but some regular people who have captured the public’s attention with their unique and engaging content. These influencers can have around 1,000-10,000 followers who focus on a particular niche depending on the type of content they produce. Brands spend around 10% of their brand promotion budget on influencer marketing and mainly focus on nano-influencers who can reach their target group.
The main reasons for the boom in nano-influencer marketing are-
- Increase in digital media consumption: From 2012 to 2018, a peak in the use of social networks was recorded from 5 h 37 min to 6 h 45 min per person. This rate of consumption increases even more for Generation Z, which belongs to the 16-24 age group. The average consumption of these young individuals would be 7 h 44 min for a typical day. These numbers suggest the increasing time investment of people from all walks of life on social media. Therefore, brands also strive to make the most of this easily accessible audience pool.
- Nano-influencers have a niche: Each nano-influencer produces a certain type of content and therefore has a dedicated audience group that makes it easy for brands to find their target audience. This streamlined audience is useful for brands so that they can achieve higher returns with minimal investment.
- A target audience that trusts the brand ambassador: Nano-influencers have a very close group of people they interact with on a daily basis and seek to bond online based on admiration and trust. This is where brands take advantage of the opportunity to develop strong word of mouth. The public believes in influencers and vice versa, influencers mainly promote only the brands they believe in.
- Profitable: Nano-influencers are very profitable and don’t charge as much as a celebrity or famous face. However, with their dedicated reach, they reach out to the masses and are more closely connected with their audience than a celebrity with millions of followers, which is a major asset for the brand in converting leads to sales.
Effects of nano-influencer marketing on digital marketing
- While nano-influencer marketing does wonders for businesses small and large, it also has its pros and cons for the digital marketing industry.
- Digital marketing is not just about influencer marketing, but has many other facets. However, with the sudden increase in nano-influencer marketing, there has been a pushback to other parts of digital marketing such as paid ads, paid promotions on web pages, etc.
- The marketing of nano-influencers will gradually become the most invested sector in terms of digital marketing. This is the sense of personalization that is lacking in other types of digital marketing plans that nano-influencer marketing covers very heavily.
- With the increase in revenue generation and social media engagement via nano-influencers, digital platforms are investing in the development of more and more apps that provide a platform for all influencers to put showcasing 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 payoffs. The fact that some brands also recruit nano-influencers on a contractual basis is sufficient proof to know that it is also a recognized and growing profession.
The author is CMO of Gem Selections. The opinions expressed are personal.
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