Fox School of Business at Temple University researchers outline why brands would be wise to include micro-influencers as part of their marketing strategy this holiday season
PHILADELPHIA — It’s the holiday shopping season and by all accounts, it’s going to be a big one. According to a recent OpenX Technologies report, consumers are expected to spend more than last year, and this is especially true for millennials. The report found that millennials plan to spend 15% more than the average shopper and 25% more than baby boomers.
So how are companies and brands supposed to break through the noise to reach these potential customers? Two Temple University Fox School of Business professors believe the answer could be micro-influencers.
“Micro-influencers bring credibility and authenticity,” says Jay Sinha, associate professor of marketing and supply chain management. “The best ones bring in their own personal narratives that mesh well with the brands they endorse.”
Together with Thomas Fung, assistant professor of marketing and supply chain management, Sinha recently authored the “Right Way to Market to Millennials,” published in MIT Sloan’s Management Review.
A micro-influencer is not Cardi B or Rihanna. Rather, they are defined as those that have a follower base numbering between 1,000 and 100,000. They’re someone that a millennial can relate to, and that’s what’s been missing with traditional influencer marketing.
A recent study by Bazaarvoice noted that traditional influencer marketing is falling out of favor; 63% of online audiences noted that influencer content is materialistic and misrepresents real life. In comparison, micro-influencer marketing is just the opposite.
“They provide opportunities for companies, big and small, to reach out to narrow and often difficult-to-access subpopulations,” Sinha says. “Micro-influencers have finessed the subtle ‘nudge’ into an art form.”
According to Sinha and Fung, some of the more prominent brands using micro-influencers include Nike, Sephora, Levi, Microsoft and many others. That will remain the case this holiday season.
For instance, Zales Jewelers recently partnered with YouTube star Jaci Marie Smith and her husband, Leif Carlson, to create a “Holiday Love Story” across a number of social platforms. Similarly, clothing retailer H&M recently created the H&M League, a group of 22 influencers who have been promoting the brand for the year. Much of the content specifically revolved around key holiday dates like Black Friday and New Year’s Eve.
“As department stores fight for relevance ahead of the start of the holiday shopping season, micro-influencers command a significant role in framing a new marketing narrative,” Fung says. “Boomers might be okay with ‘sea of sameness’ product offerings, however, millennials thrive on an ‘experience playground,’ where micro-influencers become their lifestyle coaches.”
This micro-influencing trend likely is not going anywhere anytime soon, either.
“Even though there are indications recently that ‘influencer fatigue’ has set in among millennials, they still remain open to those micro-influencers that have suasive power over them from their charisma and expertise in some niche market category,” Sinha says.
About the Fox School of Business
The vision of Temple University’s Fox School of Business is to transform student lives, develop leaders, and impact our local and global communities through excellence and innovation in education and research.
The Fox School’s research institutes and centers as well as 200+ full-time faculty provide access to market-leading technologies and foster a collaborative and creative learning environment that offers more than curriculum—it offers an experience. Coupled with its leading student services, the Fox School ensures that its graduates are fully prepared to enter the job market.
The flexibility and responsiveness of our knowledge-creating research faculty allow the school to address the needs of industry and generate courses and programs in emerging fields. As a leader in business research, the Fox School values interdisciplinary approaches and translational research that influence and impact real-world problems. Our research informs an adaptive curriculum, supports innovation in teaching and prepares students for the ever-changing business environment.