Why brands should/should not, consider Nano influencers?

Let us understand the basics first, nano vs. macro vs. Mega influencers.

A nano influencer would typically have a follower base of 1,000 to 10,000 on social media platforms. In contrast, macro influencers would have a 500,000 - 1 million follower base, while mega-influencers would typically have more than 1 million followers. The lines stars blurring with super mega influencers and celebrities.

I read it somewhere, the influencer market is poised to grow to $ 21 billion by the end of 2023. In this growing market, nano influencers have somehow carved out a distinct niche for themselves. If we delve deep into why brands are favoring nano influencers over their bigger siblings

1. Authenticity: Nano influencers typically have a smaller but more dedicated audience. This often results in a more authentic and genuine connection between the influencer and their followers. When nano influencers promote a brand or product, their endorsement feels more trustworthy and less like a paid advertisement. For a customer, it’s more like your next-door guy is suggesting a moisturizer before the winter.
2. Niche Audiences: Nano influencers often focus on specific niches or interests. This alignment allows brands to target very specific and relevant audiences, increasing the likelihood of reaching potential customers. For example, Mega influencers will talk everything about health, but nano influencers will talk about running/marathon preparation. Its often seen that the engagement rates delivered by nano influencers are far superior to their mega counterparts
3. Cost-Effective: Mega and macro influencers charge significantly higher fees than nano ones. They essentially do this as they would have an army of crew members to support them. However, our humble non influencers are often solopreneurs. Simple barter deals also work.
4. Lower Risk of Controversy: Larger influencers may be more prone to controversy or negative publicity that can harm a brand's reputation. Nano influencers typically have a lower risk of being involved in such controversies, making them a safer choice for brand partnerships.

However, everything is not green, but there are certain issues as well when it comes to working with Nano Influencers

1. Limited reach and scalability: As a brand, one must onboard multiple nano influencers to get the same reach as getting one Mega influencer on board. It often becomes challenging to work with numerous nano influencers, as managing multiple partnerships is a nightmare
2. Professionalism and Expertise: Nano influencers may not have the same level of professionalism, experience, or marketing expertise as larger influencers. This often lead to issues such as inconsistent content quality, missed deadlines, and not adhering to brand guidelines.
3. Tracking and Measurement: Nano influencers due to their limited resource availability, often end up sharing non-detailed campaign reports. Brands often find it difficult to consolidate reports from multiple nano influencers on a campaign level, thus making ROI calculation even more cumbersome.
4. Follower quality: Some nano influencers may have followers who are more family and friends than actual potential customers. There is no way brands can verify the authenticity of their follower base.

?

So what is the solution?

Managing overall influencer marketing was never easy for brands, ad with the rise of nano influencers it has become more difficult.

However, a simple solution is to strategically shift the brand budget to nano influencers, campaign by campaign. While the Mega and macro will be the top funnel driving awareness, the nano ones help drive consideration. Now managing an influencer army is no easy deal, but getting a good agency often eases your life.

Last but not least, regardless of the quality or the number of influencers, a good mechanism to check authenticity and measure campaign ROI should be in place.