Report: A very low fraction of Instagram ‘micro’ and ‘nano’ influencers doing brand deals

Instagram is a very powerful platform that has given the trend of influencer marketing a major boost. The coronavirus pandemic harmed the businesses a lot, and many big brands had to cut down their ad production costs too, but that also turned into a favorable situation for influencers and social networks.

Socialbakers is a social media marketing, and it has recently sourced some data from 8 million business profiles and 5 million influencers. On the basis of this data, it produced a report which says that there are two types of influencer groups that have major collaborations with various brands on Instagram. 'Micro-influencers' are the ones that have a follower count of 10,000-50,000, and 'Nano-influencers' are those that have less than 10,000 followers.

With the comparatively lower number of their followers, the engagement rate of these influencers is really good with their followers. Also, their audience is usually very loyal to them and is easily influenced by these influencers they follow. These are the reasons why many brands have started to collaborate with these Micro and Nano influencers because they are great at converting their audience to a website, app, and in driving huge amounts of purchases for brands, they collaborate with.

A few month back, Linqia reported that around 77 percent of marketers (who were surveyed) were turning towards working with influencers who fall in Micro and Nano categories.

Now, Socialbakers data suggests that in July, 40% of brand deals and collaborations on Instagram were with Micro-influencers. Around 30% of brands collaborated with Nano-influencers on Instagram. Together, both Nano and Micro-influencers who were reported to have brand collaborations were found to be around 70%.

Surprisingly, despite engagements, only a small number of these Nano and Micro-influencers were found to have used tags that suggested their posts were sponsored from May till July 2020. Only 1.3% of Nano-influencers were found to have used the specific tags for sponsored posts, while the percentage for Micro-influencers was found to be around 4.5%.

7.4% of the influencers with 50,000 to 100,000 followers used these specific sponsored post tags.

This shows that despite the boost in influencer marketing, there is only a very small fraction of Micro and Nano influencers who are actually working. This probably also indicates that during the pandemic, especially from May till July 2020, the influencer market crashed like many other markets and industries. But now, from July 2020 onwards, there seems to be a rebound and it looks like the markets are getting back on their feet again. At least they are trying to, now that lockdowns and bans are being lifted in many regions.

Recently, traveling-related sponsored content also started seeing some rebound, and many traveling-influencers were roped in for brand marketing with the COVID restrictions in mind.

In general, as per Socialbakers report, the ratio of average interactions on an influencer’s post mentioning the brand compared to a post published by the brand itself was found to be favoring the Nano influencers on Instagram, as their marketing has been found to be the most efficient during this period.

Read next: Computer-generated virtual influencers are in demand because they are ‘omnipresent’ even amidst the social distancing
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