Scour the social media feeds of celebrities and high-end fashion bloggers and you’ll likely see a few sponsored posts pop up promoting everything from designer clothing lines to hair care gummy bears to water bottles.
On some level, it makes sense to pay A-listers with millions of followers to blast out your messages to masses. After all, if thousands of people are seeing your ad, it’s sure to resonate with some people, right?
Sure. But those conversions aren’t worth the cost. Paying for celebrity influencers is like paying for a billboard – it works to get the message out to the masses, but it has a poor conversion rate.
Influencers like the Kylie Jenners of the world charge money for their sponsored posts – in some cases, up to $30,000 per paid tweet and $75,000 per paid Instagram post. That means many brands would have to see hundreds or thousands of sales to see any ROI. No matter how many sales you see, that’s still a high cost-per-conversion. Why shell out thousands of dollars per post when you can see higher conversion rates for a fraction of the cost?
Not all influencers are the same. The end of 2016 saw a big shift in focus from these high-end influencers to micro-influencers. To explain the different types of influencers, Insightpool uses the Pyramid of Influence.