Why Do DTC Brands Prefer Micro KOLs?

According to brand marketers and industry analysts, an increasing number of DTC (direct-to-consumer) brands are developing marketing strategies around micro-influencers to leverage their unique word-of-mouth and personal recommendations. marketing methods to create value.

Micro-influencers refer to niche social media celebrities with between 1,000 and 10,000 fans. They often have close connections with their audiences and can help DTC brands launch more powerful marketing campaigns.

While the epidemic has promoted the development of DTC e-commerce brands, it has also increased the promotion income of micro-influencers. According to influencer company Izea, a sponsorship that cost only $5 to $10 in 2006 has soared to between $1,500 and $1,600 in 2020.

DTC brand Spotlight Oral Care has been working with micro-influencers since its inception in 2016, and according to Dr. Lisa Creaven, co-founder of the brand, due to the epidemic causing people to stay at home for a long time, the frequency of use of mobile phones and social networks has increased, and Micro-influencer collaboration has become an important part of the brand’s marketing strategy in 2020.

DTC brands often choose to offer paid partnerships and giveaway rewards in exchange for micro-influencer posts. Spotlight Oral Care did not disclose how much it spent on micro-influencer marketing, but it is certain that this marketing method accounts for 25% of its overall KOL marketing budget.

“We have found that micro-influencers generate higher conversion rates and are suitable for long-term partnerships,” Creaven said. The brand is currently planning to increase the proportion of its budget spent on micro-influencers to 50%.

But working with micro-influencers can also come with its own set of challenges.

Greg Manago, president of Mindshare, said that usually, micro-influencers need to go through a learning curve because they are new to the field and do not have the support of a team like influencers with larger followings, but at the same time they also need to Attract more audiences to promote your brand.

However, Manago also believes that these micro-influencers will eventually adapt to new promotion needs and their ability to influence audiences will continue to improve.

Companies currently engaged in micro-influencer marketing include AspireIQ, Upfluence and Grin. Among them, the Taipei-based startup Influenxio just received US$2 million in Series A financing led by DCM Ventures on March 9. At present, 80% to 90% of the company's customers are small and medium-sized enterprises, and well-known customers include Shiseido, Shopee, iHerb and KKBox.

Therefore, sellers who want to try micro-influencer marketing also have some relatively mature institutions to choose from. Sellers who are interested in entering the game can continue to pay attention!