Influencer Marketing- Where Does it Stand?

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As the demand for authenticity among social media users grows, influencer and UGC marketing is the new wave. The wide use of social media has led brands to work with popular users in order to promote their products or services. In a study conducted by CreatorIQ, 66% of brands saw an increase in ROI when using content featuring creators in comparison to more traditional digital advertisements. These brands are dedicating large chunks of their marketing budget to influencer relations. In fact, brands are projected to spend $7.14 billion of influencer marketing in 2024. Despite the growth of this type of marketing, many brands are wondering… what exactly is an influencer, what is UGC, and how can working with these users help drive sales?

There are four tiers of influencers, each of which has unique pros and cons:

Nano – 1k – 10k followers
Micro – 10k – 100k
Macro – 500k – 1M
Mega – 1M+

Nano and micro influencers are on the lower side of the spectrum when it comes to followers, but don’t underestimate them in terms of their benefits. Creators with smaller audiences have lower rates and are more likely to be open to creating content in exchange for products or services from the brand. While their reach may not be as wide, micro and nano influencers are reported to have higher engagement rates than their macro or mega counterparts.

Macro and mega influencers have large followings and, therefore, can reach much larger audiences than those with smaller platforms. However, their rates are much larger and the usage rights may be more strict. Additionally, there is a higher potential for competition or scheduling difficulties as these content creators will likely work with several brands at a time.

When dealing in influencer relations, it’s important to be clear on your deliverables and expectations. Many influencers are now represented by managers or agents, making communication easier and campaign management more efficient.


Another method of working with creators is that of UGC(User Generated Content). UGC is a cost-effective alternative to influencer marketing as it is free to companies. This content can either be completely organic, or brands can send free products to users in hopes of that user review or mentioning the product in their posts. AdWeek states that 85% of people find UGC more influential than content made by brands. Likely, this is because UGC is more authentic than other advertisement practices. Users are not required to review the product favorably, and their audience is more likely to trust an honest opinion versus a paid partnership.

According to Social Pilot, TikTok users in the US spend 53.8 minutes per day on the platform, while Instagram users spend an average of 33.1 minutes per day on the app. In an age where content is king, it’s wise to utilize creators when it comes to marketing your brand and expanding your reach. If you need help figuring out if influencer marketing is right for you, give the folks at Quantus a call!

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