How Gifting Products to Micro-Influencers can Boost Return On Advertising Spend

Social media harbours influencers of all types are mega huge celebrity level influencers of smaller micro-influencers who are popular within communities. And with the growth of social media, so have grown the number of influencers.

With this very quick growth emerged a concept of influencer marketing where brands and companies hire influencer marketing agencies that collaborate with influencers that resonate with their industry and target audience to help them market and advertise themselves.

Such agencies work with brands, encouraging them to reap the fullest capability of social media influencers to produce higher brand mindfulness and get exposure to a wider audience. Simultaneously, they work with influencers to help them work with renowned brands. For any brand searching for a good influencer marketing agency, Confluencr is the place.

Earlier, big brands would partner with mega influencers with millions of followers and pay them thousands of bucks for just one post. But recently, this has shifted to micro-influencers taking the spotlight. It is simple why they have a decent amount of followers, focus on specific niches, and are quite low on investment on the brand’s side. And since they are quite popular with a certain community, their interactions and engagements are often more beneficial than of an influencer bigger than them.

Micro-influencers are often also very lenient with what and how they charge from a brand in exchange for good promotion. They are negotiable in terms of content as well and if a brand wants to earn profits, getting in touch with a micro-influencer is the way to go.

You may have seen your favourite micro-influencers post about products or demonstrate themselves using it as a way to talk about and promote the brand they are collaborating with. Because of course to review and promote a product, one needs to use it themselves to capture its essence and put it forth for their followers to see.

Let’s say with beauty products or fashion brands, it only makes sense that the influencer uses it themself and then proceeds to recommend it to their followers. For eateries or restaurants or even resorts, they would have to actually go there and eat or stay plus record that experience so their followers can get a closer look at the place.


Moreover for an influencer to actually share their experience with the product increases their credibility and trust among their followers, which helps them grow. But it simultaneously also brings good attention to the brand through minute ways like their brand approach to the influencer, packaging of their products, their actual products, contents in their gift box to the influencer, and especially what the influencer has to say about the brand itself.

To get into the economics of this, connecting with a micro-influencer is quite a pocket-friendly choice for brands, and one, if done right, can offer them loads of profits both monetary and nonmonetary.

Micro-influencers don’t usually take monetary payments but prefer the products as gifts instead which narrows down the company’s investment in this marketing to a minimum. Usually, the cost of production to make the product is quite less than the price it is sold in the market.

So if the product is straight away sent to the influencer, the cost on the brand’s head is just the cost of production to make that product. Let’s say a lipstick by a beauty brand costs 1000 rs in the market. But its actual production and making cost is 200 rs. So sending this lipstick to the influencer will cost the brand just 200 rs but on the influencer’s side, it will be seen as a gift worth 1000.

When we talk about ROAS or return on ad spend, micro influencing is a great choice and can boost a brand’s ROAS much higher than what a mega or even a macro influencer can do. Since the brand’s investment in this is not through cash or money, it doesn’t directly affect their pockets.

But since their products are mass-produced or produced in a sizable quantity, sending one piece as a gift to one influencer will not be much of an investment on their side.

With how influential micro-influencers are in their community of followers, even if 10 people get influenced by the influencer to purchase a brand’s product, the brand will easily earn 10 times more than they spent to get an influencer to promote them. In fact even more.

Taking the lipstick example from before, an item worth 1000 would cost only 200 to the brand to send an influencer. If 10 people make a purchase of this lipstick once it’s promoted and recommended by the influencer, the brand pockets 10000 rs worth of sales.

Which when compared to 200 rs, their initial investment to this advertising set up, is quite a lot. While this is just an example, micro influencing has proven to influence a good number of their followers to purchase a product through continuous promotion, reviewing, and sharing experience from their side. And the number of new purchasers for a company through this has risen a lot.

Final Words:

Another reason why this always works out with the brands ROAS boosting and their sales increasing is because of the trust a micro-influencer develops with their followers wherein they would make a purchase of a product if the influencer recommends it. Hence micro influencing is definitely the ultimate low investment high profits option a brand can look into to promote themselves.