The Power of Micro-Influencers: Why They're a Game-Changer for Every Retailer and How to Discover the Perfect Fit for Your Brand

Influencer marketing is thriving, and many brands are increasing their corresponding budgets. However, relying solely on big names and celebrity influencers would be shortsighted. Especially in Commerce Advertising, where coupons and deals play a significant role, brands should instead consider focusing on micro-influencers. Deborah Kilpatrick, Co-Founder and VP of Marketing at SourceKnowledge, explains why.
Deborah Kilpatrick • SourceKnowledge
1. August 2023
7 min read

Key Take Aways

Executive summary: 5 key take-aways for quick readers

  1. Micro-influencers excel in authenticity and passion for niche topics.
  2. Deal-oriented micro-influencers, who offer coupons or discounts to their followers, are particularly sought after.
  3. Micro-influencers exhibit nearly 47 percent higher engagement compared to macro-influencers.
  4. The conversion rate of micro-influencers has increased from just under 2 percent (2020) to over 26 percent (2022).
  5. Compensation for micro-influencers is typically performance-based rather than fixed.

In the realm of influencer marketing, the era of mega influencers like Kim Kardashian, Dwayne Johnson, and Charli D’Amelio has cast a formidable shadow. With their massive followings reaching hundreds of millions, they dominate the spotlight. However, within this domain, a new breed of influencers has quietly emerged and is reshaping the landscape: micro-influencers. Despite their smaller audience sizes, these micro-influencers wield extraordinary engagement levels and offer a unique avenue for brands to authentically connect with their target markets.

An Overview of the different types of Influencers 

Five advantages that make micro-influencers appealing to every brand

Micro-influencers stand out for their dedication to specific niche topics, sharing valuable tips and in-depth knowledge with their engaged communities. Whether it's delving into the world of cosmetics, navigating the joys and challenges of new parenthood, or embarking on travel adventures, these micro-influencers cater to a more focused audience compared to their macro or mega counterparts. Moreover, within the realm of micro-influencers, a rising trend is the emergence of "deal-centric influencers." These influencers specialize in curating the best deals and coupons for their followers within a specific market segment. For brands seeking Commerce Advertising partnerships, collaborating with micro-influencers presents numerous advantages:

  1. Enhanced Engagement: Micro-influencers target much smaller audiences than macro or mega-influencers, they tend to generate higher engagement rates. This, in turn, is often accompanied by a higher conversion rate. In 2022, the average conversion rate of micro-influencers in the U.S. was an incredible 26.9 percent.
  2. Authenticity and Trust: Most micro-influencers are motivated intrinsically, speaking passionately about their chosen topics. Their authenticity resonates with their community, fostering trust in their recommendations. These qualities naturally extend to the brands they collaborate with, bolstering their credibility among consumers.
  3. Relatableness: Micro-influencers often exhibit a more relatable and genuine approach compared to their macro and mega counterparts. Their less polished, everyday demeanor allows followers to connect on a personal level. This connection intensifies when micro-influencers have personal ties to the brands and products they endorse. For example, young parents endorsing baby products can establish a strong connection with their audience, especially if they personally use the items they promote.
  4. Targeted Audience Appeal: Micro-influencers attract followers with specific interests or needs. For instance, an influencer might curate coupons and deals tailored to a particular audience segment. Collaborating with relevant brands becomes mutually beneficial in these cases, as micro-influencers cater to a wide range of verticals, ensuring a suitable match can be found.
  5. Performance-Based Metrics: Unlike campaigns involving macro and mega influencers, which operate akin to traditional TV commercials billed per "airing," micro-influencer campaigns follow a different approach. At SourceKnowledge, for instance, we exclusively bill based on clicks. This method minimizes risk for brands, as they only pay for engagements. The ability to measure the campaign's efficacy through precise metrics empowers brands to gauge its worth effectively.
    The unique characteristics of micro-influencers, including their focused audience, authenticity, relatability, targeted appeal, and performance-based billing, position them as a compelling choice for brands seeking impactful influencer marketing partnerships.

Three figures that illustrate the high potential of micro-influencers

Micro-influencers have captured the spotlight in the realm of influencer marketing, boasting remarkable potential that is supported by compelling statistics. Let's delve into three key figures that illuminate the power of micro-influencers:

  1. Elevated Engagement: As previously mentioned, micro-influencers excel in cultivating active engagement from their followers. Our data at SourceKnowledge reveals that they achieve an impressive 47 percent higher engagement on their content compared to macro influencers. This heightened level of interaction strengthens the connection between micro-influencers and their audience, creating a fertile ground for effective brand messaging.
  2. Unleashing Online Shopping Surge: The advent of the COVID-19 pandemic brought about a surge in online shopping, propelling micro-influencers into the forefront. In 2022 alone, micro-influencers within SourceKnowledge's pool generated an astounding 372,000 clicks and amassed a total revenue of approximately $85,000 in the United States. This marked a significant increase from the previous year, where the figures stood at 31,000 clicks and $11,000 in revenue, respectively.
  3. Conversion Rate Ascendancy: The average conversion rate of micro-influencers has witnessed a consistent upswing in recent years, according to our data at SourceKnowledge. In 2020, the conversion rate stood at 1.83 percent, which then surged to an impressive 12.2 percent in the following year. Building on this upward trajectory, 2022 witnessed a remarkable conversion rate of 26.9 percent. These figures underscore the persuasive impact micro-influencers wield in driving tangible results for brands.

As a brand, how do I find the perfect micro-influencers?

If you're a brand venturing into the influencer realm, it's crucial to observe and analyze micro-influencers within your industry. Take note of how they engage with their audience, understand the demographics of their followers, and examine their approach to product promotion. However, conducting this research can be time-intensive.

At SourceKnowledge, we offer a unique approach to influencer selection. Rather than the brand choosing the influencer, we reverse the process. Micro-influencers, being intimately acquainted with their audience, possess a deep understanding of which brands and products align with their followers' interests. Acting as the intermediary, SourceKnowledge bridges the gap, connecting both parties seamlessly. Rest assured, brand safety is of utmost importance to us. We meticulously vet the influencers within our network, ensuring their credibility and professionalism meet our stringent standards.

By leveraging the expertise and resources of SourceKnowledge, brands can streamline their influencer research, access targeted micro-influencers, and guarantee a secure and productive collaboration.

Get started now with SourceKnowledge in micro-influencer marketing

We equip you with the essential tools to seamlessly integrate (micro) influencer marketing into your brand strategy. Our expertise lies in collaborating with deal-centric influencers, whose dedicated audiences actively seek out discounts and exclusive deals. By leveraging our services, you can sidestep the arduous task of personally researching and identifying suitable influencers. Instead, allow us to connect you with our extensive network of influential individuals.

Since joining the SourceKnowledge Influencer Network, MyDealAddiction has worked with retailers such as, Wayfair, Chewy, Michael Kors, Macy’s, Womanizer and more.

Michelle St. Pierre of MyDealAddiction said, “I love being a part of the SourceKnowledge Influencer Network. SourceKnowledge has helped me connect with a wide variety of respected retailers and offers a very fair and straightforward pay model.”

Don't miss out on the opportunity to enhance your brand's reach and engagement. Contact us today to get started with SourceKnowledge and unlock the potential of micro-influencer marketing.

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