It is estimated Dwayne “The Rock” Johnson is paid around $1.7 million whenever he makes a sponsored Instagram post for a company or brand. It’s a high cost, but that is the price of business for an influencer who has more than 395 million followers. 

But for a company trying to reach Generation Z, this might not be money well spent. 

Recently published in the Journal of Brand Strategy, “Tapping generation Z micro-influencers for marketing and branding” outlines that the key to reaching Gen Zers may lie in the utilization of non-celebrity influencers, better known as micro-influencers. The scholarly journal article was authored by Jay Sinha, an associate professor of marketing within Temple University’s Fox School of Business who has spent part of the last several years studying how to best reach Gen Z, the generation of people born between 1997 and 2012.  

“I investigated the characteristics that make Generation Z a different type of consumers. They are a new consumer in the U.S. market and are very different from past generations,” Sinha said. “The traditional ways to appeal to consumers, they are not as effective with this audience, which is why it’s imperative that companies adapt.” 

From a business standpoint, the stakes are high, too. According to Sinha, Gen Z presently accounts for 20% of the U.S. population and approximately 30% of the world population. As of last year, their global spending power was estimated to be over $450 billion and they will soon become the wealthiest generation ever. 

To reach this market of consumers, it is imperative that companies and brands adapt, which is what makes Sinha’s new research article so important. 

Defined as social media influencers with follower numbers between 10,000 and 100,000, micro-influencers are known to have meaningful relationships with their followers. According to Sinha, that is part of what makes them so appealing to Gen Z. 

As part of the study, Sinha took a close look at some of the key findings related to the preferences of Gen Z. Past research has outlined how Gen Z is more likely to be influenced by their peers than by authority figures. Additionally, Gen Zers also spend significant time online, seeking virtual connections and virtual friendships. 

They value authenticity, Sinha said. That’s part of the reason why a post from a micro-influencer can have such a big influence on them, no pun intended. A post from Dwayne Johnson or Rihanna is not going to come off as authentic, but a micro-influencer is someone they can actually aspire to. 

“Authenticity matters, authenticity and the person who is doing the marketing and pitching matters,” Sinha said. “Generation Z finds micro-influencers to be more credible. Micro-influencers communicate and engage with them on a very personal level, which heightens engagement. That’s a big difference with a mega-influencer, as they are far less likely to interact directly with fans.” 

Some companies are already reaping the benefits that come from using micro-influencers for marketing. Specifically, Sinha cites large companies like Coca-Cola, Nike, Starbucks, Gillette, Sephora and Red Bull, who have found that collaborating with micro-influencers allows them to speak directly to new and niche markets. For example, Coke has used micro-influencers to run the #cokeambassador campaign in countries across the globe where the influencers post photos of themselves enjoying Coca-Cola beverages on the popular social platform. 

“This is slated to be the biggest consumer market in this country,” Sinha said. “They have tremendous potential for buying power, and most have not entered their careers. Once they do, the implications of this will be even more significant.”