Tiny followings, big impact: Brands rethink influencer spending

Major brands are shifting their marketing strategies and looking at smaller influencers to do business with, ditching the requirement for massive follower counts, the Wall Street Journal reports.

Companies like Target, SoulCycle, American Eagle, and Little Spoon are introducing initiatives that reward creators with as few as 500 followers for posting about their products.

While the payouts are far smaller than those earned by megainfluencers with over 1 million followers, smaller creators often receive $10 gift cards, complimentary products, and commission-based earnings, offering modest rewards for homemakers, momfluencers, and workers with stable day jobs.

Blame the algorithm
The shift reflects a broader change in social media algorithms, where reach is increasingly driven by content quality rather than follower counts. As a result, smaller creators are often generating stronger engagement than influencers with massive audiences.

Growth marketing firm ATTN found microinfluencers (5,000 – 19,999 followers) average a 3.2% engagement rate compared to 1.1% for megainfluencers.

According to research firm Emarketer, 45% of total US influencer marketing budgets will target creators with fewer than 20,000 followers in 2026, up from 19.5% in 2021.

Nearly 20% of spending will go to nanoinfluencers (below 5,000 followers) compared to just 3.1% five years ago.

Creators in the US are expected to generate $21 billion in earnings this year. Despite the industry's growth, 57% of 3,000 full-time creators surveyed in 2025 reported making below a living wage.