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Does It Pay to Increase Public Messages in Nano-Influencer Campaigns? Investigating the Optimal Public Message Share for Sales and Return-On-Investment

  • Online influencer marketing has matured, and many managers now seek better performance with nano-influencers in seeding campaigns. Compared to macro-influencers, nano-influencers create more private (direct online or offline) brand messages that supposedly deliver more “persuasive punch”. But such private messages lack the usual online tracking per message, forcing managers to ask nano-influencers for self-reports, or to estimate sales at a campaign level if they want to assess their own decisions. Therefore, little is known about how to set up effective nano-influencer campaigns: does it pay to increase the public message share in nano-influencer activity, in order to benefit from private and public influencer activity? Or does it defeat its purpose, diminishing nano-influencers’ persuasiveness and total campaign results? This study analyses a unique campaign-level data set of various seeded marketing campaigns comprising the activity of 700,000 nano-influencers. We model the impact of nano-influencers’ activity on incrementalOnline influencer marketing has matured, and many managers now seek better performance with nano-influencers in seeding campaigns. Compared to macro-influencers, nano-influencers create more private (direct online or offline) brand messages that supposedly deliver more “persuasive punch”. But such private messages lack the usual online tracking per message, forcing managers to ask nano-influencers for self-reports, or to estimate sales at a campaign level if they want to assess their own decisions. Therefore, little is known about how to set up effective nano-influencer campaigns: does it pay to increase the public message share in nano-influencer activity, in order to benefit from private and public influencer activity? Or does it defeat its purpose, diminishing nano-influencers’ persuasiveness and total campaign results? This study analyses a unique campaign-level data set of various seeded marketing campaigns comprising the activity of 700,000 nano-influencers. We model the impact of nano-influencers’ activity on incremental sales and return-on-investment (ROI) at the campaign level. To answer our questions, we include effects of public message share and optimal public message share and their interaction with activity; instrumenting both for identification, and controlling for campaign, marketing, and brand context. We find conditional optimal public message shares for both sales and ROI. The average campaign benefits most when increasing influencer activity (through design or incentives) at public message shares between 4% and 5%. This shows the importance of striking the right balance between nano� influencers’ online and offline activity, and suggests a similar balance for combining nano- and macro-influencers in future campaign formatsshow moreshow less

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Author: Ulrike Phieler, Florian DostORCiD
URL:https://www.researchgate.net/publication/379237391_Does_It_Pay_to_Increase_Public_Messages_in_Nano-Influencer_Campaigns_Investigating_the_Optimal_Public_Message_Share_for_Sales_and_Return-On-Investment
Title of the source (English):2023 ISMS Marketing Science Conference Proceedings
Publisher:INFORMS
Document Type:Conference publication peer-reviewed
Language:English
Year of publication:2023
Number of pages:3
Faculty/Chair:Fakultät 5 Wirtschaft, Recht und Gesellschaft / FG ABWL, insbesondere Marketing
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