Maximizing Sales with Influencer Marketing: Research by P.K. Kannan

Influencers have become the new pitchmen for businesses looking to sell products through social media, with consumers increasingly turning to their favorite influencers for recommendations. But how do companies choose which influencers to work with to maximize sales? New research from P.K. Kannan at the University of Maryland’s Robert H. Smith School of Business provides some insights.

Kannan, along with Xian Gu, PhD ’19, and Xiaoxi Zhang, studied how an influencer’s number of followers impacted total sales for livestream marketing campaigns. They found that products pitched by mega influencers, with 1 million or more followers, saw the most sales due to their wide reach. However, smaller influencers with fewer followers had higher conversion rates and were better at closing sales.

Interestingly, the researchers also discovered that using a mix of big and small influencers to pitch the same product could have a negative impact. Consumers may view the product as less exclusive or interesting if they see it being promoted by both big and small influencers.

Kannan advises marketers to be strategic in their influencer selection, suggesting that if budget allows, it may be better to invest in one big influencer rather than multiple smaller influencers. However, if working with smaller influencers, marketers should be aware of their limited reach but higher conversion rates.

Overall, influencer marketing is here to stay and is set to become an established form in the marketing mix. As social media marketing, including influencer marketing, continues to grow, understanding how to effectively work with influencers will be crucial for businesses looking to reach consumers in new and engaging ways.