Brands shift budgets to micro-, nano-influencers on Instagram – PR Week

NEW YORK: Brands’ use of influencers on Instagram has decreased amid COVID-19, according to Socialbakers State of Influencer Marketing report. The data also found that marketers have been working more often with micro- and nano-influencers. 

Over the last three months, the amount of sponsored content posted on Instagram by influencers has declined. The number of brands cooperating with influencers on Instagram was down 37% in April compared with the previous year. The data is based on #ad and other sponsored hashtags.

Influencer marketing efficiency, defined as engagement with influencer content compared with brand content, also fell sharply, down 41% from last year. While healthcare influencers maintained a 4.2x efficiency, other verticals such as automotive, sporting goods and airlines (0.2x to 0.6x) showed little ROI from influencer use.

The report also found that brands worked with influencers but changed their approach. Of all brand cooperations analyzed by Socialbakers, 94% were with micro-influencers, defined as accounts with fewer than 100,000 followers.

“Nano- and micro-influencers are now seen as high-value resources, bringing high impact without the big price tag of macro- and mega-influencers,” said Socialbakers CEO Yuval Ben-Itzhak. “As budgets remain tight, savvy brands will likely continue to expand partnerships with these smaller influencers as part of a smarter social media strategy in the wake of the continuing worldwide pandemic.”