TikTok is the latest big thing but it seems to work like all the previous media models: the big names get the big bucks even though the smaller players may have more credibility with key audience segments.
Or to put it in more academic terms: "The niche engagement felt by smaller influencers in promoting sponsored content can be attributed to their size, which makes them able to foster a stronger sense of trust."
That's the finding of a group of researchers at the University of Ottawa, who found that what TikTok users prize most in sponsored content is authenticity, which they find more often in less well-known influencers.
Mass media this isn't. Traditional media like broadcast TV, streaming video and big internet social media can reach millions while the majority of the 100,000 or so TikTok influencers have less than 10,000 followers. And it's those smaller influencers who are most believable when producing paid content, the researchers found.
This isn't too surprising since, in most media, audiences identify more with informal "down-home" performers who are hawking a product than with top-tier talent who are household names and known to be wealthy and powerful.
Most TikTokers are firmly in the "small" category, with less than 10,000 followers, according to Shopify, an online payment processor.
So how much do these paid mouthpieces make?
It varies greatly and depends on factors such as their number of followers, engagement rate, and the types of brand deals they secure.
- Micro-influencers (10,000 to 100,000 followers): $25 - $125 per post
- Mid-tier influencers (100,000 to 500,000 followers): $125 - $1,250 per post
- Macro-influencers (500,000 to 1 million followers): $1,250 - $2,500 per post
- Mega-influencers (1 million+ followers): $2,500+ per post
The Ottawa researchers' study is aimed at helping "brands" -- advertisers, in other words -- identify which influencers are better at "engaging" with their fans.
Their findings seem to match the general wisdom in the field. As Shopify puts it: "In 2023, nano-influencers (the very smallest category) on TikTok with 1,000 to 10,000 followers had the highest engagement rate, with 11.97%. Rates for working with influencers vary but tend to increase by audience size and engagement rates."
The message to consumers in all of this is just the same as it is for advertising testimonials that feature celebrities touting one brand or another: anything that someone is paid to say should be taken with several large helpings of salt.
Or, to put it even more simply, TikTok can be entertaining but don't let its influencers influence you.
The Ottawa study was published in Psychology & Marketing.