The ever-evolving nature of marketing has given rise to influencer marketing. These social media personalities, with their relatively smaller but highly engaged followings than traditional celebrities, are quickly becoming the new priorities of brands seeking authentic connections with their target audiences.
Among them, micro-influencers have emerged as the answer to this demand for authenticity. Their expertise and intimate relationships with their niche communities make them a powerful force in shaping consumer behaviour.
My blog today will provide a clear explanation for why micro-influencers are better solutions to branding than other influencers through the case of a nascent fashion retailer Shein.
What is Influencer Marketing?
Influencer marketing involves the collaboration between brands and social media influencers with an outstanding online following and respect within a specific niche or industry.
These influencers are trusted by their followers and can effectively promote products or services to their engaged audiences.
Influencers can be categorised based on the size of their following, ranging from micro-influencers with a few thousand followers to mega-influencers or celebrities with millions of followers.
- Micro-influencers (1,000 to 100,000 followers): these influencers typically operate within niche communities or specific interest areas, such as fashion, beauty, fitness, or travel. They are known for their expertise and authentic content creation, often sharing personal experiences and insights.
- Macro-influencers (100,000 to 1 million followers): these have a broader reach and appeal, often spanning multiple interest areas or industries. They may be well-known personalities, experts, or content creators with a significant online presence. Their content is typically more polished and professionally produced, catering to a wider audience.
- Mega-influencers (over 1 million followers): they are famous personalities, such as actors, musicians, athletes, or social media stars with a massive following. Their influence often transcends specific niches and reaches a diverse, global audience. Mega-influencers and celebrities command high visibility and can significantly impact brand awareness and perception.
Why should brands prioritise micro-influencers over macro and mega-influencers?
Despite the opportunity to reach a significant number of customers with macro and mega-influencers, many sources argue that micro-influences contribute significantly to the brand-building process and customers’ product knowledge. Here’s why!
1. High Perceived Authenticity and Trustworthiness
Authenticity is a crucial factor in the success of micro-influencer marketing. Unlike macro-influencers or celebrities, micro-influencers are perceived as more authentic and trustworthy by their followers. 70% of social media users claim that they trust micro-influencers much more than big names like celebrities.
This perception of authenticity is grounded in the Attention Theory, which suggests that individuals are more likely to attend to and be influenced by sources they perceive as trustworthy and credible.
Besides, research on why micro-influencers are more persuasive than mega-influencers found that micro-influencers often cultivate more intimate relationships with their niche communities than macro-ones, so they foster a sense of genuine connection and shared values.
This authenticity resonates deeply with their followers, who are more likely to trust and act upon their recommendations. A survey by Sprout Social shows that micro-influencers (6%) have a higher engagement rate than macro-influencers, who only provide a modest 1.97%.
Besides, unlike macro-influencers with millions of followers, the relatively smaller audience base allows micro-influencers to engage their audiences on a more personal level, which further enhances the perception of authenticity and strengthens the influencer-follower bond.
2. Context Effects and Brand Personality Association
A study on the personalities of micro-influencers discovered that micro-influencers can be particularly beneficial for new or emerging brands seeking to establish a strong brand personality and identity due to the context effects.
The context effects principle suggests that consumers rely on contextual cues, such as visual elements in the content shared by micro-influencers, or their characteristics and lifestyles, to make inferences about a brand’s personality and values.
In other words, by partnering with micro-influencers whose personal brands and values align with the desired brand identity, companies can leverage the influencer’s established persona to shape consumer perceptions of their brand.
This association can be particularly powerful for new brands with limited awareness and low salience, as consumers may initially rely heavily on the influencer’s persona to form their initial impressions and brand associations.
As micro-influencers often operate within specific niches or areas of expertise, allowing for highly targeted and relevant content that resonates with specific consumer segments. This niche expertise enhances the credibility and trustworthiness of the influencer’s endorsements, further reinforcing the desired brand associations.
3. High Persuasion under Sponsorship Disclosure
Another advantage of micro-influencer marketing compared to others is the high persuasion power it holds, even when sponsorships are transparently disclosed.
Traditionally, many studies conclude that when a macro-influencer discloses his commercial sponsorship with a brand, the audiences will perceive the influencer as financially driven and less trustworthy.
Contrary to the criticism associated with sponsored content from macro-influencers or celebrities, micro-influencers maintain a high degree of authenticity and trustworthiness in the eyes of their followers when they reveal the sponsorship.
This phenomenon was explained by the Persuasion Knowledge Model in a study on the impact of micro-influencers, which suggests that consumers are more receptive to persuasive messages when they perceive the source as trustworthy and having benevolent intentions.
Micro-influencers, with their established relationships and perceived authenticity, are often seen as having their followers’ best interests in mind, even when promoting sponsored content.
Moreover, transparency in sponsorship disclosure can actually enhance the credibility and perceived authenticity of micro-influencers, as followers always appreciate their honesty and openness. This, in turn, can lead to higher levels of product knowledge and purchase intent among consumers who are informed about the brand-influencer partnership.
In addition to these theoretical underpinnings, micro-influencer marketing offers practical advantages, such as cost-effectiveness and targeted expertise, making it an increasingly appealing strategy for brands seeking authentic and impactful connections with their audiences.
4. The best solution for Niche Marketing
Due to the ability to effectively engage and reach highly targeted niche communities, micro-influencers become a priority of newly established brands which have just joined the competitive market recently.
These micro-influencers are recognised as subject matter experts or passionate enthusiasts within their chosen fields, whether it’s fashion, beauty, fitness, gaming, or any other niche interest. As a result, they have amassed a following of individuals who share their specific interests and actively seek out their content for its specialized and highly relevant nature.
Hence, rather than casting a wide net with generic messaging, micro-influencers help brands deliver highly personalised and contextually relevant content that speaks directly to the interests of their target audiences.
How To Maximise The Effectiveness of Micro-Influencer Marketing?
1. Brand-Influencer Congruity
As newly established brands often rely on influencers’ personal brand values to build up their brand image in consumers’ minds, it is important that brands should carefully select micro-influencers whose niche expertise align with their desired identity and targeted customers.
Brand-influencer congruity enhances authenticity and relevance, creating strong connections and reinforcing brand associations.
2. Smaller Following, Larger Reach
Despite having a smaller following compared to macro or mega-influencers, micro-influencers offer a larger reach and higher engagement within their niche communities. This intimate relationship can help brands amplify their messages and effectively engage their niche segments.
To further optimise the reach, brands should prioritise a wide network of micro-influencers within the niche over only commit to one person.
3. Transparency of sponsorship disclosure
Transparency is key to maintaining trust and credibility in micro-influencer marketing. Brands should prioritise clear and upfront disclosure of sponsorship agreements between the brand and micro-influencers.
This is a win-win relationship in which the influencers reveal the sponsorship to their audiences to reinforce their authenticity and trustworthiness while sponsoring brands build up their trust and reliability.
Case Study: How does SHEIN grow its business with micro-influencers?
Shein, the rapidly growing online fast-fashion retailer, has successfully leveraged the power of micro-influencers to drive its remarkable growth. Founded in 2008, SHEIN has become a global phenomenon, earning over $16 billion and $22 billion in revenue in 2021 and 2022 respectively, capturing a significant share of the fast-fashion market.
Recognising the importance of authentic connections and word-of-mouth marketing, SHEIN has implemented a strategic micro-influencer marketing campaign.
Currently, the company has introduced the ‘SHEIN hauls’, which soon became a popular phenomenon with the use of micro-influencer marketing in the fashion and lifestyle niches. Specifically, SHEIN hauls showcase a collection of clothing, accessories, and other fashion items that an influencer has recently purchased from SHEIN.
When Smaller Leads To Bigger
Micro-influencers, with their dedicated and engaged following within the affordable fashion niche, have played a significant role in fueling the buzz around SHEIN hauls. Hundreds of micro-influencers share their hauls on social media platforms like Instagram, TikTok, and YouTube, guiding a total of millions of followers to the latest trends and affordable fashion finds from the retailer.
Rather than collaborating with a couple of macro-influencers, SHEIN partners with hundreds of micro-influencers to spread the message effectively.
SHEIN hauls serve as inspiration and discovery for the influencers’ followers. By monitoring the influencer’s shopping experiences and witnessing their excitement over the various fashion pieces, followers gain insights into what items they might want to add to their wardrobes.
Moreover, the ever-evolving nature of SHEIN’s collection ensures that each haul feels like an exclusive reveal of the latest trends. Micro-influencers can leverage this niche expertise and authenticity to keep their content engaging and relevant, fostering a loyal following of fashion enthusiasts who tune in for the latest SHEIN hauls.
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Academic sources for this blog:
Kay, S., Mulcahy, R., and Parkinson, J. (2020) When less is more: the impact of macro and micro social media influencers’ disclosure. Journal of Marketing Management. 36(3-4), pp.248-278.
Park, J., Lee, J.M., Xiong, V.Y., Septianto, F., and Seo, Y. (2021) David and Goliath: When and Why Micro-Influencers Are More Persuasive Than Mega-Influencers. Journal of Advertising. 50(5), pp.584-602.
Zwicker, S., Tarabashkina, L., Hardiman, M., and Proksch, M. (2023) How Micro-Influencers’ Personality Influences the Personality of Novice and Established Brands. Australasian Marketing Journal. 32(2), pp.113-125.
Sy Chu
As an analytical and creative marketing enthusiast skilled in customer analysis, content research and brand management, my passion is help businesses gain insights into their brand and marketing strategies to drive impactful outcome to their success.