Follower Count vs. Engagement: Uncovering the Best Influencer Strategy

Maximilian Beichert, PhD, Andreas Bayerl, PhD, Jacob Goldenberg, PhD, and Andreas Lanz, PhD

Influencer marketing is an essential strategy for direct-to-consumer (DTC) firms, particularly on platforms like Instagram. However, the question of whether targeting influencers with large or small followings leads to better financial performance remains unresolved. Our research investigates the entire influencer marketing funnel, from follower engagement to sales impact, while factoring in the cost of paid endorsements. Drawing on comprehensive sales data and multiple field studies, our research aims to explore how low versus high followership influencers affect return on investment (ROI). Grounded in social capital theory, the study seeks to provide practical guidance for optimizing influencer marketing strategies by analyzing the dynamics between influencer engagement and financial performance.

The Follower Dilemma in Influencer Marketing

Influencer marketing has grown rapidly, with platforms like Instagram making it easy for brands to connect with consumers through trusted voices. Yet, a critical challenge persists: Should companies invest in influencers with vast followings, or should they partner with those who have smaller but highly engaged audiences? The conventional wisdom favors macro-influencers, believing that their broad reach drives better results. However, this study explores an alternative perspective, focusing on engagement rather than sheer numbers.

Smaller influencers, such as nano and micro-influencers, often cultivate stronger, more personal relationships with their followers, leading to higher engagement. This engagement is essential because it can lead to stronger brand loyalty and ultimately, higher sales conversions. While larger influencers may offer a wider audience, their interactions can be more superficial, which may limit the effectiveness of campaigns. By comparing the impacts of different influencer types, this research seeks to clarify which approach yields better financial outcomes for DTC firms.

Data-Driven Insights on Engagement and ROI

To address this question, we analyzed over 1.8 million purchases across campaigns involving a range of influencers, from nano to macro. Our study evaluated key ROI metrics, including revenue per follower, revenue per reach, and return on influencer spend (ROIS). By doing so, we aimed to move beyond basic engagement metrics and consider both costs and financial returns to give a better picture of influencer marketing effectiveness. Advanced techniques like mediation analysis and propensity score matching ensured the results were both reliable and reflective of real-world marketing scenarios.

Our findings consistently showed that smaller influencers generated higher engagement rates. Nano and micro-influencers, despite having fewer followers, demonstrated better ROI than their larger counterparts. For example, nano-influencers had higher revenue per follower, suggesting that their closer connections with their audiences led to more authentic interactions, stronger trust, and ultimately, better sales performance. Macro-influencers, on the other hand, often struggled to maintain the same level of engagement due to the scale of their audience, leading to less effective communication and lower ROI.

The field studies supported this data, revealing that nano-influencers could provide a cost-effective alternative to macro-influencers, driving meaningful results despite their smaller reach. Our research highlights that deeper, more personal engagements often lead to higher conversion rates, as followers are more likely to act on recommendations from influencers to whom they feel genuinely connected.

Practical Implications for DTC Firms

These findings suggest that brands should rethink how they approach influencer partnerships. Instead of prioritizing reach, marketers should focus on engagement metrics to guide their strategies. Nano and micro-influencers may not deliver the immediate, broad visibility that larger influencers offer, but their ability to foster genuine connections can lead to higher conversions, better brand loyalty, and a more cost-effective ROI.

This shift in approach could have significant implications for how brands allocate their marketing budgets. By carefully selecting influencers who can engage their audiences in a meaningful way, DTC firms can maximize their returns without overspending on influencer fees. We recommend a balanced strategy that considers not just the number of followers but also the strength of the influencer's connection with their audience. This engagement-focused approach can allow brands to build more authentic campaigns, resonating with their target markets more effectively than traditional reach-focused models.

Rethinking Influencer Marketing Strategies

In a competitive market where consumer trust is hard-won, brands must go beyond just getting their message in front of as many eyes as possible. The results of our study suggest that deeper, more engaging interactions are key to building long-term brand relationships. Smaller influencers are often seen as more relatable and trustworthy, which can drive followers to take action based on their recommendations.

This insight shifts the paradigm from merely counting followers to understanding the quality of those relationships. For DTC firms, this means re-evaluating how success is measured in influencer marketing. While metrics like impressions and follower count remain important, they should not be the sole focus. Marketers should develop a more nuanced understanding of engagement, recognizing that influencers who can spark meaningful, genuine interactions are likely to deliver better results. By doing so, brands can make smarter investments in their influencer marketing strategies, focusing on those who can truly impact consumer behavior.

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Recommended Reading

Beichert, Maximilian, Andreas Bayerl, Jacob Goldenberg, and Andreas Lanz (2024), “Revenue Generation Through Influencer Marketing,” Journal of Marketing, 88(4), 40-63. https://doi.org/10.1177/00222429231217471

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About the Authors

Maximilian Beichert, PhD 
Assistant Professor, Bocconi University (Italy) 
Dr. Maximilian Beichert’s (PhD – University of Mannheim) research primarily focuses on quantitative marketing, and he has made significant contributions to the field through his research on digital marketing strategies and consumer behavior analytics. His studies have been published in reputable journals, including Journal of Marketing, Journal of the Academy of Marketing Science, and MIT Sloan Management Review. Additionally, his research has gained wider attention through prominent media outlets like the Harvard Business Review. Dr. Beichert's expertise has allowed him to bridge the gap between academic theory and practical marketing applications, and he is actively engaged in projects that leverage data analytics to optimize marketing strategies.

Andreas Bayerl, PhD 
Assistant Professor of Marketing, Erasmus University (Netherlands) 
Dr. Andreas Bayerl’s (PhD – University of Mannheim) research interests lie in data-driven marketing, sales strategies, and the use of machine learning to enhance business decision-making. Dr. Bayerl has built a strong reputation for his work in understanding how companies can leverage data analytics to drive marketing efficiency and sales growth. He has published in leading academic journals, including Journal of Marketing and Nature in Human Behaviour, and his findings have contributed significantly to the field of strategic marketing. Dr. Bayerl is also actively involved in consulting projects, where he applies his academic insights to help companies optimize their sales and marketing operations. His academic prowess and practical experience make him a sought-after speaker at international conferences, where he shares his insights on the latest trends in marketing analytics.

Jacob Goldenberg, PhD 
Professor of Marketing, Reichman University Herzliya (Israel) 
Visiting Professor, Columbia Business School 
Dr. Jacob Goldenberg’s (PhD – Hebrew University of Jerusalem) research focuses on creativity, new product development, the diffusion of innovation, and the complexities of market dynamics, particularly within the context of social networks. Dr. Goldenberg's interdisciplinary approach has led to groundbreaking insights that have been published in top-tier academic journals, including Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research, and Marketing Science. He is also an accomplished author, having penned several influential books published by prestigious presses such as Cambridge University Press and Simon & Schuster. Dr. Goldenberg's contributions to marketing science have been recognized globally, and his work has been featured in prominent media outlets, including The New York Times, Wall Street Journal, BBC News, and The Economist. He has also held editorial positions, including Editor-in-Chief of the International Journal of Research in Marketing, and currently serves as an area editor for leading journals, further cementing his influence in the marketing field.

Andreas Lanz, PhD 
Assistant Professor of Marketing, University of Basel (Switzerland) 
Dr. Andreas Lanz (PhD – University of Mannheim) is a marketing professor and member of the faculty board at the University of Basel. He joined from HEC Paris and holds a doctoral degree from the University of Mannheim. Dr. Lanz researches social networks and is recognized for his award-winning work on the effectiveness of micro influence for dissemination (i.e., Lanz et al. 2019 as well as Beichert et al. 2024 and Goldenberg et al. 2024). He published in leading academic journals including the Journal of Marketing (2024; 2024), Journal of Marketing Research (2019; 2024), Journal of the Academy of Marketing Science (2025), Management Information Systems Quarterly (2022; 2025), Management Science (2025), and Quantitative Marketing and Economics (2022)—with press coverage, among others, in the Harvard Business Review and MIT Sloan Management Review.

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