As the popular saying goes, 'bigger isn't always better' - and this also appears to be the case with 'influencers' (how is this term still a thing?) on social media, according to research by the University of Auckland.
Micro-influencers are sealing the deal on the likes of Instagram, TikTok and Facebook, selling a myriad of products from fashion to food to their fans - often with more success than those with a million-plus followers, according to University of Auckland associate professor of marketing, Dr Yuri Seo.
The marketing expert said micro-influencers - those with 10,000 to 100,000 followers - are more effective than mega-influencers at encouraging their followers to purchase products if they are associated with fun, pleasure and excitement; such as premium hotels, restaurants, perfumes, or high-end electronics.
So why are micro-influencers more successful in this arena?
Seo and his fellow researchers found that people perceive micro-influencers as more intimate, genuine and authentic - positive perceptions and connotations that, in turn, their followers associate with the products they promote.
"Consumer psychology has previously taught us that this rub-off effect usually occurs only when people think about fun and pleasurable things, and that it doesn't occur when people think about practical and serious (utilitarian) things - such as basic kitchen appliances, motels, or financial services," Seo said in a statement on the findings on Wednesday.
Despite this, Seo's behavioural experiments - which included over 700 social media users - found micro-influencers also perform just as well as mega-influencers when promoting more 'utilitarian' products and experiences.
"Big is not always good when it comes to social media influencer marketing. In fact, across all the tests we conducted, micro-influencers either completely outperformed mega-influencers or were at least as persuasive," he added.
As such, businesses that are keen to market their offerings via influencers on social media should consider the type of product they're trying to sell, Seo advised.
"If your product is one that generates experimentation, enthusiasm, satisfaction and pleasure, or is described in this way, businesses should consider working with a larger number of micro-influencers rather than a smaller number of mega-influencers.
"If you want to grow sales, improve perceptions of your product, or build brand relationships – micro-influencers are more effective."
However, working with 'mega-influencers' could still be the easiest option if a company is simply looking to grow marketplace awareness.
Dr Seo shared a condensed version of his co-authored research paper, David and Goliath: When and Why Micro-Influencers Are More Persuasive Than Mega-Influencers, at the 2022 Business Research Translation Competition in July.
