In the world of influencer marketing, bigger doesn’t always mean better.

Influencer marketing is booming, with 80% of US companies leveraging influencers. But a key question remains: Who drives revenue more effectively—big-name influencers with large followings or smaller influencers with low fellowship?

A new study by Maximilian Beichert et al. tackles this head-on. They analyzed over 1.8 million purchases and conducted real-world tests with hundreds of influencers to determine the effectiveness of influencers based on their follower counts.

The results?

Influencers with lower follower counts (aka nano-influencers) delivered dramatically better per-follower returns on marketing investments than macro-influencers, those with a high number of followers.

Key Findings: Nano vs. Micro vs. Macro

Nano-Influencers: The ROI champions

Nano-influencers typically have between 1,000 and 10,000 followers. They are incredibly cost-effective, boasting the highest return on investment for brands in terms of revenue and engagement relative to their cost. Their hyper-engaged communities translate into impressive conversions - even with a smaller reach -making them a smart choice for brands seeking to maximize their marketing dollars.

Micro-Influencers: The inbetweeners

Micro-influencers typically have between 10,000 to 100,000 followers. They provide decent engagement rates at a moderate cost, making them a versatile choice for a variety of marketing objectives. Their audience size allows for targeted (yet broader) reach compared to nano-influencers, but their revenue-to-cost ratio is notably lower than that of nano-influencers.

Macro-Influencers: The reach giants

Macro-influencers boast between 100,000 to 1 million + followers. They reign supreme when maximizing brand awareness is top priority. They offer the lowest cost per reached follower, making them attractive for broad campaigns. However, engagement rates typically drop with larger audiences, and the cost-effectiveness for driving conversions can be lower compared to nano and micro-influencers.

My take

The “micro versus macro” debate seems to resurface regularly, but this study brings a nuanced perspective that can be highly valuable for influencer marketing teams. The study adds to the growing body of research that points toward similar conclusions.

If your goal is to drive both revenues and deep audience engagement, consider the dynamic duo of nano and micro-influencers. Both offer significant advantages over macro-influencers for boosting revenues and engagement. They are also far more cost-efficient than macro-influencers.

Reserve macro-influencers for brand awareness campaigns where broad reach is crucial. While they may not be the most cost-effective for engagement, their vast audiences can dramatically boost brand visibility.

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