Nano- And Micro-Influencers: How to Maximize Their Cost-Effectiveness for SMEs?

Recent studies have questioned the effectiveness of influencers with larger follower sizes in engaging customers. In response, this study examines the cost-effectiveness of two low-followership influencer types, nano- and micro-influencers, for small and medium-sized enterprises (SMEs). In particular, the research investigates how campaign properties, content type, format consistency, and Multi-Channel Network (MCN) association influence cost per engagement (CPE) for these influencers. Using data from 225 sponsored posts promoting an herbal tea product on the Chinese social media platform RED, the findings reveal that nano-influencers are more cost-effective than micro-influencers for simple content like food and haul posts, but less efficient in more complex types, such as store visit content. Additionally, consistency in content format is essential for nano-influencers, leading to lower CPE, while micro-influencers maintain stable engagement across different formats due to their diverse follower base. The study also highlights that MCN association lowers CPE for micro-influencers but increases it for nano-influencers. These insights are critical for SMEs seeking to refine their influencer marketing strategies by aligning influencer type with appropriate campaign properties for optimal cost-effectiveness.