EVALUATING COST-EFFECTIVENESS TO BETTER UNDERSTAND THE ECONOMIC IMPACT OF MICRO INFLUENCER MARKETING ON SOCIAL MEDIA PLATFORMS

• Main Author: Zaki Prambudi, Axel
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87488
• Institution: Institut Teknologi Bandung

This dissertation aims to delve into the recent trend of using a marketing technique of using followers with a smaller follower base otherwise known as micro influencer marketing. Influencer has become the recently preferred marketing strategy for many businesses since it has the potential to effectively attract many audiences through an existing follower base. A lot of people received information about products, places to eat, and travel destinations from Influencers who shared a similar experience. Marketing strategy typically aims for the largest audience to attract a percentage if not all of the targeted audience, presumably this involves influencers with large followings. However, recently, micro influencers have taken the spotlight for cost-effective alternatives to influencer marketing. Forbes suggests that micro-influencers could better define brands from its competitors, keeping a smaller audience could promote authenticity while keeping costs at a minimum. This dissertation investigates the relationship between micro influencer marketing and social media engagement rates. The study looks at the cost-effectiveness of micro influencer marketing and how businesses can fully leverage this strategy to reach optimal engagement rates. The dissertation goes into the theoretical underpinnings of micro influencer marketing, social media engagement, and cost-effectiveness analysis using a thorough literature study. Key findings give insight on the intricate dynamics of micro influencer marketing, including aspects that impact its cost-efficiency and efficacy in engaging target audiences.