Influencer Marketing
Influencer marketing has become a pivotal component of modern marketing strategies, enabling brands to connect with target audiences through trusted individuals on social media platforms. Influencers, by sharing authentic experiences and recommendations, can significantly sway consumer purchasing decisions. This method offers brands a means to engage consumers in a more personalized and credible manner compared to traditional advertising.
In recent research we provides valuable insights into the effectiveness of influencer marketing. Our study, titled “Revenue Generation through Influencer Marketing,” published in the Journal of Marketing, examines the return on investment (ROI) of influencer partnerships, particularly for direct-to-consumer (DTC) firms. The researchers analyzed data encompassing nearly 1.9 million purchases, amounting to over €17 million in revenue, and conducted field studies involving 319 paid influencers on platforms like Instagram, YouTube, and TikTok.
A key finding from our research is that influencers with smaller followings, often referred to as nano- or micro-influencers, can yield higher ROI compared to those with larger audiences. Despite their limited reach, these influencers tend to have more engaged and intimate relationships with their followers, leading to more effective marketing outcomes. Our research suggests that while macro-influencers generate higher absolute revenue due to their extensive reach, the associated costs are substantially higher, making nano-influencers more cost-effective.
Our research challenges the conventional emphasis on partnering with high-followership influencers and highlights the potential benefits of collaborating with smaller-scale influencers who maintain closer connections with their audiences. For marketers, this implies that investing in multiple nano-influencers could be a more efficient strategy for achieving higher engagement and ROI.
Key publications of the research group “Quantitative Marketing & Consumer Analytics” on “Influencer Marketing”:
- Lanz, Andreas, Goldenberg, Jacob, Shapira, Daniel, & Stahl, Florian (2024): "Buying Future Endorsements from Prospective Influencers on User-Generated Content Platforms”, in Journal of Marketing Research, Vol. 61(5), pp. 839–857.
- Goldenberg, Jacob, Lanz, Aandeas, Shapira, Daniel, & Stahl, Florian (2024): "Targeting Nearby Influencers: The Acceleration of Natural Triadic Closure by Leveraging Interconnectors”, in Journal of Marketing, Vol. 88(5), pp. 111–130.
- Andreas Lanz, Jacob Goldenberg, Daniel Shapira and Florian Stahl (2019): “Climb or Jump – Status-Based Seeding in User-Generated Content Networks”, in Journal of Marketing Research, Vol. LVI, 361–378.
In summary, our research on influencer marketin underscores the importance of considering influencer engagement levels and cost-effectiveness when designing influencer marketing campaigns. Our findings advocate for a strategic shift towards leveraging the influence of smaller-scale influencers to optimize marketing outcomes.
Contact us to learn more about our research on influencer marketing.
Your contact for further information:
Prof. Dr. Florian Stahl
L 5, 2 | 68161 Mannheim | Deutschland
E-Mail: florian.stahluni-mannheim.de | Telefon: +49 621 181-1563