By Mary Nguyen

Social media influencers have been around as long as social media itself.

Since 2010, when social media truly became entrenched, influencers have been using their clout to promote products and services to audiences disillusioned with traditional advertising. It started with the “mommy bloggers” who harnessed their power drive the conversation around issues that mattered to them and ended in the proliferation of influencers in every space imaginable from fashion to business and finance.

Despite being unfairly maligned by some, social media influencers are now embraced by marketers and PR professionals as a budget-friendly and effective way to reach audiences who are increasingly hard to reach. In a fragmented media environment, influencers are a trusted and authentic voice and bring with them a unique set of skills that include content creation, brand management and engaging with their followers.

The fact that the most popular influencers are able to monetise their talents in such a way that they’re now able to make a living entirely from their social media signals to marketers they’re worth paying attention to, and that social media influencing is here to stay.

Social media influencer stats

As of November 2020, there are around 10.64 million Australians or 41.3% of the population on Instagram alone. HypeAuditor’s State of Instagram Influencer Marketing in Australia reports that “With its 1 billion monthly active users (June 2018) Instagram becomes not only one of the leading social networks but also the most important platform for Influencer Marketing.”

Of these influencers 46.1% are micro or mid-tier influencers with followers numbering between 5-20k. Collectively the business of social media influencing for Instagram alone is worth $7.4 billion, up 15% in 2021. With continued growth in the cards, brands are increasingly making space in the budgets to engage with social media influencers.

The psychology behind social media influencers

Market research has established without a doubt that social media influencing is extremely effective in gaining credibility with key audiences and driving sales. In a study of more than 5000 global consumers, it was found that 48% had recently made purchases based on ads they had seen on social media.

The psychology underpinning this phenomenon is that we’re more likely to trust a recommendation from people in our social circles or those we relate to on social media. As consumers become increasingly suspicious of companies and overt marketing like TV adverts, brands rely on influencers to gain access to their dedicated social media followers.

Social media influencers also present unique advantages in that they are perceived as trusted experts in their respective niches. In the realms of beauty, fashion, hospitality, tourism and more, influencers impart valuable information for people wanting to find out the latest trends. Whether it’s what to eat, what to wear, where to go on holiday, how to achieve that makeup look or hair consumers look to influencers as a source of inspiration and aspiration. Across all social media platforms including Instagram, YouTube, Snapchat, TikTok and Facebook influencers are a major force in driving the purchasing decisions of their followers.

How to choose the right influencer

The conventional wisdom around choosing influencers purely based on their number of followers is no longer the case. Businesses are placing greater value on brand alignment and engagement. As a rule of thumb the smaller the following, the higher the engagement. Nano-influencers with followers between 1,000 and 5,000 have the strongest connection with their audience.

Some brands are making a case for diversifying with nano-influencers at the forefront of their strategy. Nano-influencers have the advantage of being more responsive and are perceived as more genuine to their followers.

"Being a nano influencer is a more direct and personal approach,” says Astrid Montague, 27 year-old with an Instagram following of 1500. "I’m more than happy to respond to DMs [direct messages] and tell people what the recipe for something is, where a top is from, what beach I was at, [or] what skincare I use.”

Are social media influencers for you?

With growth projections on the rise, market research predicts social media influencers will continue to benefit from a huge portion of marketing spend in future. By tapping into existing networks already established by influencers, marketers can enjoy unfettered access to engaged audiences and further entrench brand awareness.

Want to learn more?

Find out when to plan a media release, how to evaluate campaigns, or if working with an influencer is right for you on PR Insights.