6 Great Reasons You Should Invest in Nano-Influencers

By on November 25, 2019

Unless you’ve been living under a rock, you’ve heard of influencer marketing.

The theory goes, by connecting with a well-known social media figure you can tap into their large following. That means exposure to an audience in the hundreds of thousands to millions.

But bigger isn’t always better.

Just because an Instagram user has a large following doesn’t mean working with them will translate directly to sales. In fact, with engagement rates decreasing as follower counts increase, there’s a very real chance you’ll waste your social media marketing budget.

Micro-influencers were the logical next step. With between 5,000 and 50,000 followers these thought-leaders had loyal followers with higher engagement rates compared to traditional mega-influencer marketing campaigns.

This switch – from traditionally broad influencer marketing to micro-influencers – was a response to a lack of trust and declining engagement. But if downsizing can increase reach and engagement, could smaller be better?

Enter nano-influencers.

What is a Nano-Influencer?

In the simplest terms, a nano-influencer is an Instagram user with a follower count between 1,000-5,000.

Forget glamorous profiles and glitzy products, as part of a changing social landscape, nano-influencers in 2020 won’t be built on the back of a highly cultivated image. They’re honest and authentic, which is exactly why they’re so valuable.

To put a figure on this value, a recent survey by DigiDay showed that nano-influencers were able to engage up to 8.7% of their audience. Compare this to the 1.7% for celebrity/mega-influencers and you can see the difference.

With nano-influencers often specialists in their niche, you’re able to tap into an audience with specialty interests. Let’s say you wanted to promote your latest range of shoes. Rather than use an influencer devoted to fashion, you could connect with a nano-influencer who only posts content about their favourite shoes.

And with nano-influencer rates considerably lower than both micro and mega-influencers, there’s less financial risk at play.

Best of all, nano-influencers are everywhere. In fact, nano-influencers make up over half of all Instagram users.

Source: Post Beyond

So if you’re ready to tap into the next generation of influencer marketing, here are 6 great reasons to connect with a nano-influencer.

#1 – Nano-influencers…have highly loyal followers

Nano influencers tend to have a much stronger connection with their followers compared to traditional or mega-social media influencers.

It’s easy to get distracted by vanity metrics like follower counts. But if those followers aren’t motivated to take the next step and engage with your brand, you’re wasting every dollar you invest.

Nano-influencers, as a result of their small follower counts, can generate one-on-one communication with their audience. This intimate feel is more like a personal recommendation from a friend than an ad. It’s not uncommon to see nano-influencers reply to every single comment on their post.

All of this adds up to followers who take recommendations seriously.

#2 – Nano-influencers…deliver higher engagement rates

Loyal followers are one thing. Convincing these followers to engage with content is another.

Sponsored posts through partnered nano-influencers have higher engagement rates compared to influencers with large followings. This means you reach more of their followers. With more followers reached your investment stretches further.

According to Forbes, nano-influencers deliver 6x the engagement of traditional influencers. With smaller audiences that are invested in each post, it’s easier for their content to reach more people.

The end result is a nano-influencer engagement rate between 5-9%; compared to the 2-3% seen by micro-influencers; and 0.5-1.5% of mega influencers.

Nano-influencers help people to see and engage with your products.

#3 – Nano-influencers…have more trust and credibility

Think of a celebrity influencer you know.

Kim Kardashian. Gigi Hadid. The list goes on. Do you trust that they’ve got their followers best interests at heart when they advertise a product? Probably not

Nano-influencers build entirely different relationships with their audience. Due to the higher levels of engagement, and smaller followings, it’s entirely natural for a nano-influencer to know everyone by their first name and consider them a friend.

83% of people trust recommendations from friends about products and services – making this the highest rank source for trustworthiness. So when a nano-influencer (who feels like a friend) recommends your business or praises your products, their followers take on that recommendation seriously.

Nano-influencers make sure that their audience trusts them. They are very careful about choosing a product or service to advertise. So when you partner with them for a campaign, it carries great referral weight.

Source: The Shelf

#4 – Nano-influencers…provide cost-effective market research

Most nano influencers keep their content niche and extremely specific. This allows you to position your products among an audience most interested in what you sell.

A common complaint of nano-influencers is that the smaller audiences can’t generate massive ROI. Even if you find nano-influencers aren’t driving revenue directly, you can use a partnership to test your product or service by gathering feedback from the audience. 

  • What did people like about it?
  • What would they have liked more of?
  • What did they find was holding them back from a purchase?

Answering questions like these can provide priceless market research.

You can also get feedback from nano-influencers about your brand. This might lead you to a completely untapped market space where you can create more demand for your product.

The more you know, the more you can grow.

#5 – Nano-influencers…offer an untapped space

Nano-influencers have smaller audiences. But that doesn’t mean they have smaller benefits. In fact, their size means they often participate in uncontested social conversations.

This gives you an edge over your competition. The space occupied by nano-influencers may be partly, or completely, uncontested as you read this. Imagine tapping into the primary social channel for your niche product – with no one else in the space, and no other conversations occurring.

These low-competition spaces provide an opportunity for you to build your brand. And while these spaces might become more contested in the future, by getting in on the ground floor you’ll have the advantage by establishing yourself before anyone else does.

Sydney Facebook expert Jordan Zhou suggests taking this a step further by creating specific brand ambassadors. He explains “consumers are increasingly wary about sponsored posts. You can avoid this distrust by creating brand ambassadors. Your nano-influencers can add your link to their bio to direct traffic, and by partnering with you broadly it will seem less ‘commercial’ when one of their posts promotes a product.”

#6 – Nano-influencers…are cost-effective

Successful advertising doesn’t have to be about the deepest pockets, not if you’ve got the most creative thinking. Still, operating on a limited budget can prove a challenge.

However, nano-influencers are a relatively new marketing tool.

This has kept the cost of entry low for businesses who want to dip their toes in the water. While mega-influencers may expect free products as well as a financial fee, you’re likely to be able to partner with a nano-influencer through a contra-agreement (an exchange of goods and services without money) or a very small fee.

Imagine generating interest or sales while having a marketing budget leftover to invest in your website or other social channels.

It’s possible thanks to the cost-effective nature of nano-influencers.

About Alexander Porter

Alexander is a social media marketing manager at Sydney agency, Search It Local. Passionate about helping business owners master their marketing, he believes simple communication is the secret to selling.
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