Running head: IMPACT OF INFLUENCERS ON MARKETING 1

Media Richness Theory and Social Media Influencers: How the Selection and Role of

Influencers Impacts Small Business Marketing

Jaclyn Lindquist

Carthage College
IMPACT OF INFLUENCERS ON SMALL BUSINESS 2

Abstract

Social media has become a leading channel for businesses to maximize their reach to

their desired publics. One tool that is growing in popularity is the use of social media influencers.

Past research shows expressing your message to the right influencers can promote brands

through testimonials which will build brand credibility (Weiss, 2014). In fact, younger

generations will trust advice from a stranger of their peer network over a marketing professional

(Gillin, 2007). A key theory used in this study is media richness theory (Dennis & Kinney, 1998)

which discusses the importance of medium selection to fit the desired task or mission of a

business. Incorporating nonverbal communication, timely feedback, varying languages, and

creating a personal focus are all components to consider while rating the strength of a medium

(Dennis & Kinney, 1998). This study will include detailed research on the history of social

media influencers as well as a content analysis of select influencers in large and small business

marketing. Quantitative methods are used to uncover the quantity of businesses utilizing social

media influencers and their effects on sales and driving the intended publics to the products

being sold.
IMPACT OF INFLUENCERS ON SMALL BUSINESS 3

Media Richness Theory and Social Media Influencers: How the Selection and Role of

Influencers Impacts Small Business Marketing

With the rise of technology in the last ten years, information can spread in a matter of

seconds through new forms of media. While television, radio, magazines, and newspapers were

formerly vital media outlets to learn information, technology has changed the way people access

news. Computers can now fit in a pocket or purse in the form of a cell phone. With this ability to

access the internet during all hours of the day, social media networking sites have also grown in

popularity. Social media has become a platform to share personal anecdotes or international

news stories. This new wave of information has required businesses to create new ways to sell

their products to consumers using this prevalent technology. Social media is an inexpensive,

versatile way for businesses to advertise their products to reach more people with a variety of

different methods.

Literature Review

It has occurred since the beginning of time. From the moment Eve persuaded Adam to eat

the forbidden fruit, the influence of word-of-mouth marketing has persisted through centuries of

oral stories, chronicles, fables, and songs (Weiss, 2014). Even more so today, word-of-mouth

marketing has increased in popularity and allows every individual to become an influencer

(Weiss, 2014). According to Gillin (2007), some of the first social media influencers were

bloggers who expressed their experiences and beliefs with small groups of people reading their

posts. These small groups continued to grow, and when social networking sites emerged, these

bloggers had a large assembly of like-minded people who trusted bloggers and desired to follow

them more personally (Gillin, 2007). Social media and the Internet strengthened word-of-mouth

marketing which gave bloggers the opportunity to widen their reach (Weiss, 2014). These
IMPACT OF INFLUENCERS ON SMALL BUSINESS 4

bloggers turned a hobby and small following into a career who had the power to define the

attitude of their followers (Gillin, 2007).

Businesses began to notice the sway these bloggers had on social media and created

profiles to engage with their publics and become influencers (Gillin, 2007). This form of word-

of-mouth became known as conversation marketing (Gillin, 2007). While conversation

marketing and a direct dialogue between a business and their publics was useful, it did not

compare to the candidness among an influencer and their following (Gillin, 2007). Gillin (2007)

argues younger generations will trust an influencer with similar interests over a marketing

professional or someone who is employed by a specific company.

According to Weiss (2014), skepticism of conventional marketing strategies is rising, and

shoppers are turning to people they know personally, consumer reviews, and even strangers on

the Internet for recommendations on products and services. Barker (2018) agrees stating, “it’s no

secret that consumers don’t trust advertising anymore.” Because of this, companies are beginning

to observe new engagement from a trusted community they have hardly heard from before, the

consumers themselves (Booth & Matic, 2011). Word-of-mouth marketing from these consumers

is “the most trusted source” of news and has the largest likelihood to be acted on (Weiss, 2014).

These testimonials and reviews influence 81% of consumers and inform customers about the

product before purchasing (Barker, 2018). Barker (2018) argues there is only one strategy to win

consumer’s trust called social proof. Consumers want to be informed from everyday people

similar to themselves using the products they are interested in (Barker, 2018). Social proof is

valued even more when the people they are listening to are experts in the particular department

(Barker, 2018).
IMPACT OF INFLUENCERS ON SMALL BUSINESS 5

While some businesses may question the need for influencers for their brand, the new

generation of consumers makes influencer marketing a necessity (Hulyk, 2015). The new

generation of consumers, known as iGen, look for content including short messages

accompanied by some form of dynamic, quality multimedia with the capability to share with

their friends and followers (Hulyk, 2015). According to Hulyk (2015), a study completed in 2014

indicated 1,500 teenagers ranked YouTube personalities and influencers as the most

approachable, authentic, and influential. The new wave of iGen consumers are more inclined to

view marketing material from figures who are genuine and relatable in their social media content

(Hulyk, 2015). Additionally, product recommendations made by influencers “increase purchase

intent by 5.2x” as stated by Barker (2018).

Businesses who use influencers build customers’ trust, increase engagement with their

publics, provide their audience with interesting content, and grow their search engine

optimization (Barker, 2018). Influencer marketing creates an alternative to traditional

advertisements purchasers have become blind to and lessened the need for irritating pop-up

advertisements (Conick, 2018). Content produced by influencers is more interesting to

consumers and can range from a minor inclusion in one post to significant placement on their

profile (Conick, 2018).

Before considering the role and selection of social media influencers, it is crucial to

understand how to recognize influencer profiles. For most businesses, an ideal influencer would

have “a large number of followers on social media, a sizable number of posts, authentic stories in

their content, high-quality and aesthetic images or videos in their content, and a solid

engagement rate on their posts” (Barker, 2018). For a more concise description, De Veirman,

Cauberghe, and Hudders (2017) define influencers as “people who built a large network of
IMPACT OF INFLUENCERS ON SMALL BUSINESS 6

followers, and are regarded as trusted tastemakers in one or several niches” (p. 1). Freberg,

Graham, McGaughey, and Freberg (2011), contributed a similar definition in their article

labeling influencers as those who “represent a new type of independent third-party endorser who

shape audience attitudes through blogs, tweets, and the use of other social media” (p. 90).

There are three categories of influencers based on the number of people who follow their

content. Though Barker (2018) and Conick (2018) agree on three categories of influencers, the

researchers have separate concepts on the term designation of these categories and how many

followers signifies each classification. Starting with Barker (2018), the three categories of

influencers are mega-influencers, macro-influencers, and micro-influencers. Also identifying the

amount of reach each category has, Barker (2018) states mega-influencers have the largest reach

with more than one million followers. Macro-influencers have less than one million followers

but more than one hundred thousand followers with a moderate amount of reach (Barker, 2018).

Finally, a micro-influencer has the smallest amount of reach with one thousand followers to one

hundred thousand followers (Barker, 2018). Opposing Barker’s (2018) classifications, Conick

(2018) argues the three categories of influencers are macro-influencers, mid-level influencers,

and micro-influencers. Macro-influencers have more than one hundred thousand followers; mid-

level influencers have twenty-five thousand followers to one hundred thousand followers; and

micro-influencers have anywhere from fifty to twenty-five thousand followers according to

Conick (2018).

The role of social media influencers will fluctuate based on the company and marketers

they are working with. While it is the responsibility of the company to select influencers for their

brand who would sway their audience, influencers are required to integrate the company’s

products into their social media posts (De Veirman, Cauberghe, & Hudders, 2017). A
IMPACT OF INFLUENCERS ON SMALL BUSINESS 7

considerable advantage to using influencer marketing is gaining the reach to an already involved

audience (Barker, 2018). The most important opportunity marketers consider in influencer

marketing is the “chance to engage with a new generation of consumers, people who have

always had the option to skip, ignore or completely avoid ads” (Conick, 2018, p. 39). Influencers

produce and share marketing content to their personal accounts making its way to potentially

millions of newsfeeds and timelines without being blocked by ad blocking software (Conick,

2018).

A marketer, or a person who works in the marketing department of a company, should

consider how they will manage the influencers their company is utilizing. Brown and Fiorella

(2013) proposed the four M’s of influencer marketing: make, manage, monitor, and measure.

Marketers must make responsible influencers by assuring they have the right niche and style for

the campaign (Brown & Fiorella, 2013). Managing influencers involves maintaining a

relationship with them and revisiting messaging material the influencer is posting (Brown &

Fiorella, 2013). Auditing the campaign and looking into which posts in the campaign offer the

greatest return to the company is considered monitoring (Brown & Fiorella, 2013). Finally,

Brown and Fiorella (2013) suggest measuring influencer marketing be completed at the end of

the campaign to reflect on what messaging succeeded and which parts of the campaign would be

modified.

Companies should demonstrate caution when managing influencers. Booth and Matic

(2011) reason taking on too much action in developing content for the influencer can feel as if

the marketers are taking control and not offering the influencer flexibility. It is better, Conick

(2018) debates, to give control of authentic content creation to the influencer to appeal to their

audience. Finding an influencer who wants to collaborate and include genuine stories with the
IMPACT OF INFLUENCERS ON SMALL BUSINESS 8

product in their content are ideal for companies and their marketers (Conick, 2018). Though

companies should give control to their influencers to create content, it is beneficial to educate

influencers “about the latest tools and techniques that increase the reach of their transmissions,

tailor conversations to specific media and ensure conversations are seen, heard, viewed and easy

to pass on” (Weiss, 2014, p. 17).

The most important element for companies and influencers to consider when creating a

social media campaign is the desired relationship between the company and the viewers or

potential customers; “social media is all about building relationships and enabling conversations

within the marketplace” (Booth & Matic, 2011, p. 185). Trust is also critical in a social media

campaign (Conick, 2018). Consumers trust the influencer to create authentic, truthful content

(Conick, 2018). When an influencer is posting with a product they are being paid to promote, it

is vital to release this information to the viewers to allow them to choose the reliability of the

review (Conick, 2018). Conick (2018) suggests influencers use the products they are promoting

before publicly endorsing the product. The credibility of the influencer is jeopardized each time

they recommend a product of service (Conick, 2018). If this trust is broken, the social media

campaign will fail, and the reputation of the company and the influencer could be ruined

(Conick, 2018).

The problem most companies face when developing an influencer marketing campaign is

the inability to identify a reliable, relevant influencer for their brand. According to Barker

(2018), 45% of companies admit identifying the right influencers is their largest challenge. There

are many aspects to consider when choosing social media influencers. Looking into an influencer

to decipher if they have similar values and aesthetic as your brand is important when considering

a partnership (Conick, 2018). When a company chooses an influencer with an opposite aesthetic,
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followers can become confused and will not pay attention to the advertisement in the post

(Conick, 2018).

When considering the selection of social media influencers, making sure they have the

right niche or expertise is vital to reaching the right audience (Barker, 2018). Viewing existing

posts on an influencers social media account will reveal an influencer’s niche and ensure their

aesthetic and quality of work will fit a company’s brand (Barker, 2018). Having the same niche

as the influencer will ensure a business’ message will be viewed by pertinent audiences (Barker,

2018). Another factor to consider when assessing an influencer’s profile is listing any other

products of brands the influencer promotes (Barker, 2018). An influencer who represents many

brands or over-promotes is “not a good choice because over-promotion dilutes the authenticity”

(Barker, 2018).

Companies searching for an influencer should evaluate the type of followers an

influencer has and not the number alone (Barker, 2018). Even though a large number of

followers is tempting for the wide reach the influencer would give a business, these influencers

are not for every campaign and do not promise a good fit (Conick, 2018). Sometimes companies

sell followers to people to make it appear as if they have a large following, but in reality, many

of the followers are fake (Barker, 2018). This is why it is important to not confuse an influencer

with a large follower account (Barker 2018). In addition to fake accounts, depending on your

company’s products, an influencer with a large following will decrease the brands uniqueness

(De Veirman, et al., 2017). De Veirman, et al (2017) argue this could have one of two opposite

effects on a consumer: the theory of exclusivity and the theory of popularity. The theory of

exclusivity (Berger & Heath, 2007) is the desire to have exclusive, unique products because no

one else would have them, and the theory of popularity (Henshel & Johnston, 1987) is the belief
IMPACT OF INFLUENCERS ON SMALL BUSINESS 10

only popular products are desirable because of the need to be like everyone else (De Veirman, et

al., 2017).

Although an influencer with a large number of followers can appear to be a red flag,

genuine macro-influencers or mega-influencers can be incredible assets to a brand (Barker,

2018). De Veirman, et al (2017), also found in their study “influencers with high numbers of

followers are considered more likeable, mostly because they are considered more popular” (p. 1).

This popularity can translate into “perceptions of opinion leadership” (De Veirman, et al., 2017,

p. 1). The more followers an influencer has, the larger their audience size and their access to

distribute messages to a wide range of people (De Veirman, et al., 2017). Influencers with a large

number of followers are believed to be more attractive, thought to be trustworthy, and accessible

or approachable (De Veirman, et al., 2017). This research by De Veirman, et al (2017) proves

why marketers should search for multiple partnerships with different influencers who have

different numbers of followers.

Even more significant than niche or number of followers is the engagement of followers

on an influencer’s post (Barker, 2018). Conick (2018) argues the main purpose of a social media

influencer is engaging with current or future customers exhibiting “honest and authentic

communication” (p. 39). The engagement on a post indicates how many people are concerned or

involved in the influencer’s content (Barker, 2018). According to Barker (2018), while mega-

influencers have the most followers, they have the lowest engagement rate. Influencers on

Instagram who have ten million followers or more have 1.6% like rate (Conick, 2018). Micro-

influencers score the highest on engagement rate even though they have the least number of

followers (Barker, 2018). The like rate for influencers on Instagram with less than one thousand

followers is 8% (Conick, 2018). Calculating engagement rate is simply looking into the last
IMPACT OF INFLUENCERS ON SMALL BUSINESS 11

twenty to thirsty posts and calculating “the percentage of followers who like, comment, or share

the posts of an influencer” (Barker, 2018). Inevitably, macro-influencers will draw more eyes to

a post, but it is vital to assess if the viewers are the right ones (Conick, 2018).

Identifying real, relevant influencers can be a daunting assignment (Booth & Matic,

2011). A customizable valuation algorithm, or influencer index, has been created to simplify the

analysis process and assist marketers in generating a list of influencers. According to Booth &

Matic (2011), the influencer index “evaluates a cross-selection of variables, and illustrates a

methodology for engaging these influencers in order to support brand-affecting communications

objectives” (p. 186). In order to rank influencers, the influencer index considers quantitative and

qualitative measurements and identifies talking points to guide the influencer’s engagement

(Booth & Matic, 2011). Variables taken into consideration in the influencer index include

viewers per month, post frequency, the volume of media to cite the influencer, level of web

participation, viewer responses, quality of comments, and topic-related posts (Booth & Matic,

2011). Variables are weighted and each category is assigned a score between one and five with

one connoting poor and five valuing excellent (Booth & Matic, 2011). While these variables are

suggested, the influencer index is customizable meaning marketers are able to include other

variables or delete variables to uncover their influencer needs (Booth & Matic, 2011). The

influencer index is just one technique to use when selecting social media influencers (Conick,

2018). Searching for influencers in-house is the most time-consuming method, but 21% of

businesses claim their marketing and social media departments manage influencers (Conick,

2018).

There are two other strategies marketers utilize when choosing social media influencers

who are relevant to the company’s product or service and will positively represent the brand
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(Conick, 2018). A marketer can work with an agency to find relevant influencers or they can use

a platform (Conick, 2018). Working with an agency is an efficient technique and does not

require an immense amount of time from the marketing team (Conick, 2018). The external

agency will “serve as the matchmaker between brands and influencers” (Conick, 2018, p. 45).

Influencers work with agencies and provide a client list marketers can choose from to meet the

needs of the business and align with the brand (Conick, 2018). Some influencer agencies will

even manage the communication and content creation for the company (Hulyk, 2015). According

to Conick (2018), 87% of businesses with marketing teams use agencies to locate relevant

influencers. Finally, a business can use platforms on the Internet designed for brands to search a

“database and reach out to influencers to examine them, discuss content and negotiate fees”

(Conick, 2018, p. 45).

For businesses still unsure about the benefits or potential pay-offs from using social

media influencers, the following studies examine the future impact influencer marketing can

have on marketing strategies. Hulyk (2015) refers to a study completed in 2015 which concluded

“81 percent of Gen Z uses social media” and “70 percent watch more than two hours of

YouTube each day alone”. Additionally, the percentage of iGen that spends at least three hours

of time unrelated to schoolwork on their computers per day is up to 41% (Hulyk, 2015). When

consumers click on the accompanying product links under multimedia content on an influencer’s

post, the search engine optimization for the company’s name increases which increases the

traffic of customers visiting the website (Barker, 2018). Furthermore, Conick (2018) refers to

results of a study which determined “55% of marketers say influencer marketing brings better

customers” and “84% of marketers say influencer marketing is effective” (p. 44).
IMPACT OF INFLUENCERS ON SMALL BUSINESS 13

With all this time spent on the computer, generations of people are viewing social media

influencer content for hours each day. Businesses are beginning to notice the increase of screen

time and have reacted accordingly in the past few years. In 2017, it was discovered paid posts

created by influencers grew 198% from 2016 (Conick, 2018). Conick (2018) also states, “by the

end of 2018, it’s predicted that there will be 24.2 million influencer posts – up from 3.6 million

posts in 2015” (p. 44). Because of these trends, two-thirds of marketers want to increase their

budget used for influencer marketing next year (Conick, 2018). In fact, more companies will

develop a longstanding influencer marketing plan which will increase to 62% of companies who

currently pay influencers as long-term partners instead of only using an influencer for one

campaign (Conick, 2018). According to Conick (2018), in 2020 marketers are predicted to spend

101 billion dollars on influencer marketing campaigns.

A study completed by Freberg, et al (2011) examined how audiences perceive social

media influencers. Four social media influencers were chosen as samples (Freberg, et al., 2011).

Each of the thirty-two college undergraduates participating in the study were given a photograph,

a general fact sheet about the influencer, and viewed a YouTube video created by the social

media influencer (Freberg, et al., 2011). After considering the samples, participants completed

the California Q-sort which provides one hundred attributes for participants to apply to the social

media influencer between one and four (Freberg, et al., 2011). Ranking an attribute with a one

means the characteristic does not apply to the influencer, and ranking an attribute as a five means

the characteristic does apply to the influencer (Freberg, et al., 2011). After compiling the data,

Freberg, et al (2011) concluded participants identified social media influencers “as verbal, smart,

ambitious, productive, and poised” while attributes such as “self-pitying, indecisive, easily
IMPACT OF INFLUENCERS ON SMALL BUSINESS 14

frustrated, self-defeating, and lacking meaning in life” were not associated with the social media

influencers (p. 91).

Theory

The key theory to consider while researching this topic is the media richness theory (Daft

& Lengel, 1986). Media richness theory discusses the importance of medium selection to fit the

desired task or mission of a business. Different media are chosen by businesses to reach a

specific audience or accomplish a desired result. Several factors decipher the richness of a

particular medium apart from the popularity and potential reach the medium has on the public.

Daft and Lengel who proposed the theory in 1986 considered four factors when rating the

strength of a medium (Littlejohn & Foss, 2009). These factors include the media’s capability to

incorporate nonverbal communication cues, the amount of timely feedback, the ability of the

medium to vary languages, and medium’s ability to create a personal focus on the viewing

individual (Littlejohn & Foss, 2009). Daft and Lengel argued using richer forms of media would

denote better performance on tasks where two participants need to arrive at the same meaning.

(Littlejohn & Foss, 2009). Richer media would increase effectiveness, efficiency, and establish a

consensus between participants (Littlejohn & Foss, 2009).

Researchers Dennis and Kinney (1998) conducted an experiment to test the media

richness theory belief of performance improving between two people with richer media. The

experiment tested decision making and the effects of media richness theory on two forms of

media, computer-mediated and video communication (Dennis & Kinney, 1998). Dennis and

Kinney (1998) paired college students together and required the students to complete a task. The

pair first completed a task using video communication. After this task the pair completed another

assignment using computer-mediated communication. After the group was finished, they
IMPACT OF INFLUENCERS ON SMALL BUSINESS 15

answered a questionnaire about their experience. Dennis and Kinney’s experiment concluded the

increased variety of cues and immediacy of reaction or feedback lead to better performance in

the video communication. This research is helpful because it designates four criteria for media

richness theory and explains how these factors work together to improve performance.

The media richness theory presents a strong importance when studying the role of social

media influencers. Social media’s growing popularity makes it an ideal medium for businesses to

advertise especially when utilizing influencers as opposed to traditional modes of advertising.

When considering the four factors of Dennis and Kinney (1998), social media provides the

strongest medium available to advertisers because influencers can incorporate nonverbal

communication through videos and photographs, social media provides businesses with instant

feedback through likes and comments on the post or video, posts and videos can be translated to

multiple languages, and social media creates a personal focus on consumers because consumers

can view these advertisements in the comfort of their own home. Additionally, consumers can

develop a type of bond with social media influencers making the advertisement feel more

intimate in contrast to an advertisement placed by the business on a billboard or in the

newspaper.

Method

Qualitative methods will be used to conduct IRB approved questionnaires with three

small businesses who use social media influencers as part of their marketing tactics and three

social media influencers who promote products from small businesses. The interview questions

for the small business owners will include inquiries about their general business information,

how they use social media marketing, selecting social media influencers, guidelines given to

influencers, compensations given to the influencers, and if the business observed any sales
IMPACT OF INFLUENCERS ON SMALL BUSINESS 16

increases. The interview questions for the social media influencer will include inquiries

regarding which businesses they promote, their number of followers, the selection process, their

take on the direction of influencer marketing, and their engagement with followers.

Findings

The results of this research were unexpected. Out of the six questionnaires distributed to

small business owners who use social media influencers and social media influencers who

promote small business, three questionnaires were returned. Two small business owners returned

the questionnaire and one small business owner responded by admitting they do not use social

media influencers as a marketing technique. While one social media influencer posts about the

business, the owner declares the influencer is not paid by the business nor asked to post about the

business. One social media influencer returned the completed questionnaire.

The two small businesses who returned the questionnaire used very different social media

marketing goals and techniques. The first small business (Business A) uses social media,

specifically Instagram and Facebook, to reach a very specific audience. This audience is almost

entirely female with an income to support a budget for non-essential items or services. Business

A does not have a professional marketing employee and does not work with an outside

marketing agency. The social media pages are managed by the owner of Business A. Any posts

created by influencers are not controlled by Business A. The other small business to return the

questionnaire (Business B) works with a contracted marketing agency to manage social media

accounts as well as occasional posts from internal employees. Business B’s influencers are paid

per promoted post and “not as expensive as traditional marketing channels,” according to the

owner of Business B (Anonymous, 2018). Congruent with Business A, Business B does not

control the content posted by influencers unless the posts are made from an employee.
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While the two small businesses differ, they both agree social media is the only medium if

you desire to reach a targeted audience. This agrees with Barker’s (2018) advice to use an

influencer with the same niche as your audience. Owner of Business A says, “social media is the

only form of direct promotion which can be directed to one specific individual (totally

customized), and at the same time it may be seen by uncounted number of potential clients”

(Anonymous, 2018). Owner of Business B agrees “social media reaches a larger identifiable

audience that you can instantly communicate with” (Anonymous, 2018).

Analyzing the returned questionnaire from the social media influencer provided

considerable insight. The influencer does not have a particular niche. Instead, they focus on all

local business promotion in Kenosha, Wisconsin. According to the qualifications decided by

Barker (2018) and Conick (2018), the influencer is a micro-influencer with over one thousand

followers on Facebook and over two thousand followers on Instagram. The majority of the

content made by the influencer is posted without being asked or contacted by a business. They

admit “if I wait for people to reach out to me I wouldn’t have as much content to share”

(Anonymous, 2018). The influencer is consistent by posting on their profile every day. This is

one of the attributes of an ideal influencer according to Barker (2018). The influencer’s services

benefit the community and the businesses they promote. The influencer says “I basically offer

free advertising for the community. I promote local businesses, events, nonprofits, people, music,

etc. and do not get paid for it” (Anonymous, 2018).

The influencer considers engagement to be a dynamic opportunity on social media to

validate their audience. The influencer always responds to comments on their posts engaging

with the audience every day and even posts polls and questions to engage with their audience.

Conick (2018) contends engagement is the main role of a social media influencer. The influencer
IMPACT OF INFLUENCERS ON SMALL BUSINESS 18

agrees commenting, “people want reassurance that you know that they follow you and support

you. People want you to know they exist. People want to know that you exist and that you’re

real” (Anonymous, 2018). As a micro-influencer, the influencer’s engagement rate is consistent

with Barker’s (2018) model which states micro-influencers have the highest engagement with

their followers even though they have the lowest amount of followers.

Considering the data received through these questionnaires, it is an oddity small

businesses do not use social media influencers more often. Based on the research, businesses rely

on word-of-mouth marketing for new customers. Even though both businesses interviewed use

influencers, they are a technique not heavily emphasized by either business. Instead, influencers

were viewed more as a person who recommends products to close family and friends and not to a

large social media following. Small businesses have the potential to expand their brand and the

simple awareness of their business by using local influencers. These influencers could be any

individual in a business’ area who has a following of the target audience. A coffee shop may

enlist the posts of a local college student, a clothing boutique can ask to be featured on a young

professional’s profile, the opportunities are endless especially if individuals are willing to do this

marketing for free. In many cases, an individual would be flattered to post about a business and

be seen as an influencer or an important person in their peer group. These small shops could be

utilizing a resource to acquire more business for little to no cost. Businesses may reach out to a

small number of their local customers and ask to be featured on their social media pages. Loyal

customers and individuals who support small businesses would likely create posts about a

business for free. If the individual requires some compensation, instead of paying customers to

post a business can offer them discounts on the products or services they provide.
IMPACT OF INFLUENCERS ON SMALL BUSINESS 19

Future Research and Conclusion

Due to the results of this study, a considerable amount of research can be conducted to

explore the possibilities and opportunities of social media influencer marketing. First, a study

can be conducted researching small businesses in other areas of the United States. The study

conducted in this paper focused only on small businesses in Kenosha, Wisconsin. A larger area

of study may have different results. Another study should be completed to discover the effect of

influencer marketing on large businesses. Large companies use influencers with more potential

reach and therefore are paid for their services. It would be beneficial to discover how much

money a company spends on influencer marketing compared to the budget for traditional

marketing strategies. Additionally, interviewing social media influencers who create sponsored

content to post on social media as their full-time job could provide a more in-depth analysis on

the influencer’s role in a business partnership. It would also be valuable to learn their

experiences and thoughts on using social media as a marketing strategy.

When conducting future research, it would be vital to include a disclaimer on all

interview materials about what a social media influencer does and how they are different from

regular social media users or a professional social media marketer. When focusing on small

businesses, it may be valuable to conduct a survey for residents in a localized area to see if social

media has an impact on where they shop, eat, and find entertainment. Including a question in the

survey on whether the individual would post on their social media to promote a small business

would provide insight on how many potential influencers a business could be using. This

research would provide small business owners with information necessary to determine if they

should include social media influencers in their marketing techniques.

IMPACT OF INFLUENCERS ON SMALL BUSINESS 20

In summation, social media influencers can have a huge impact on businesses. Utilizing

an influencer’s services is a marketing technique that continues to increase as the popularity of

social media marketing grows. With several ways to select and acquire influencers and the

ability to control a singular message, businesses have the opportunity to reach their target

audience while avoiding traditional advertisements which are not trusted by consumers. The

study conducted agrees with existing research about the importance of social media for

marketing purposes as well as the role of social media influencers to be a source of engagement

with their followers. However, it was unpredicted how influencers are willing to make posts

about small businesses for no compensation. Businesses have the opportunity to reach thousands

of individuals in their target audience by contacting loyal customers to post about their brand

without spending large amounts of money on traditional advertising materials.

IMPACT OF INFLUENCERS ON SMALL BUSINESS 21

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