When someone your customers already follow and trust recommends your business, it carries more weight than any advert you could write. That is the idea behind influencer marketing, and Instagram is still one of the best places to do it, especially for local businesses.

This guide explains Instagram influencer marketing for small businesses: the types of influencer, why we usually recommend local micro-influencers, how to find and approach them, how to pay them, and how to stay on the right side of the UK advertising rules.

What is Instagram influencer marketing?

Instagram influencer marketing is when a business works with Instagram creators to promote its products or services to their followers. That might be a post, a Reel, Stories, a review, a giveaway or a visit to your business, usually in return for free products, an experience or a fee.

It works because followers see the influencer as a trusted source, not a brand trying to sell to them.

Types of Instagram influencer

• Nano-influencers: roughly 1,000 to 10,000 followers. Often very local, with close, engaged audiences.
• Micro-influencers: roughly 10,000 to 100,000 followers. Focused on a niche or area, with strong engagement.
• Macro-influencers: roughly 100,000 to 1 million followers. Wide reach, higher fees.
• Mega-influencers and celebrities: over a million followers. Huge reach, high costs and usually lower engagement per follower.

Why we recommend local micro-influencers

For most of our clients at Delivered Social, the best value comes from local micro-influencers (and the larger nano-influencers): people with a few thousand to a few tens of thousands of followers who live in the area and post about it.

• Their followers are your customers. A Portsmouth food blogger’s followers are mostly people who can actually come to your Portsmouth café.
• Engagement is higher. Smaller accounts tend to get more comments, saves and replies per follower.
• They are more trusted. Recommendations feel personal rather than paid-for.
• They are affordable. Many will work for gifted products or a modest fee.
• They create great content. You can often reuse their photos and videos on your own channels, with permission.

A big national influencer might give you a spike of attention from people who will never visit. Five local micro-influencers can bring a steady flow of real customers through the door.

How to find the right influencers

1. Search local hashtags and places. Look at posts tagged with your town, local landmarks and local food, family or lifestyle hashtags.
2. Check who your customers follow. Look at who engages with your posts and who tags local businesses like yours.
3. Look at who your competitors work with. Not to copy them, but to understand who is active locally.
4. Check the quality, not just the numbers. Look for genuine comments, consistent posting, content that fits your brand and followers who are actually local.
5. Watch for fake followers. Sudden jumps in followers, very low engagement or generic comments are warning signs.

Our guide on finding UK micro-influencers on Instagram goes into more detail.

How to approach an influencer

• Follow and engage first. Like and comment on their content genuinely before you get in touch.
• Send a short, personal message. Say why you like their content, what you would like to do together and what is in it for them.
• Be clear about what you want. One Reel? Stories from a visit? A review? An honest opinion?
• Let them be themselves. Influencers know what their audience likes. Content that sounds like them performs far better than a script.

How to pay influencers

There is no single right answer. It depends on the influencer, their audience and what you are asking for.

Gifting

Many nano and micro-influencers are happy to work in return for a free product, meal, treatment or experience, especially if it is something they genuinely love. Gifting works well for local businesses with something worth experiencing. Be clear that you would love an honest post but cannot insist on one, unless you agree otherwise.

A fee, often with product

For agreed deliverables, such as a set number of Reels or Stories, a guaranteed post date or the right to reuse the content in your ads, a fee is fairer and more reliable. Fees vary widely by audience size, engagement and the work involved, so ask for their rates and what is included.

Commission or discount codes

Some businesses give influencers a unique discount code and pay a commission on sales. It is useful for tracking, though many influencers prefer a fee as well.

Whatever you agree, put it in writing: what will be posted, when, whether you can reuse the content and how it will be labelled.

Follow the UK rules on influencer ads

In the UK, influencer marketing is covered by advertising rules enforced by the Advertising Standards Authority (ASA) and consumer protection law enforced by the Competition and Markets Authority (CMA). In short:

• If you pay an influencer, or have any control over what they post, it is an advert and must be clearly labelled, for example with “Ad” at the start of the caption.
• Gifted products should also be disclosed, even if you have no control over the content.
• Labels must be obvious, not hidden in a list of hashtags or behind “more”.
• Claims must be honest and backed up.

Both the business and the influencer can be held responsible, so make labelling part of every agreement.

How to measure Instagram influencer marketing

• Reach and views of the posts, shared by the influencer from their insights.
• Engagement: likes, comments, saves and shares.
• Follower growth on your own account during and after the campaign.
• Traffic and sales, using tracked links or unique discount codes.
• Footfall and bookings, such as asking customers how they heard about you.

Instagram influencer marketing ideas for local businesses

• Invite three local foodies to try a new menu before it launches.
• Host a small influencer evening at your shop or salon.
• Partner with a local fitness or parenting creator on a giveaway.
• Ask an influencer to take over your Stories for a day.
• Repost influencer content (with permission) and boost the best performer as an ad.

Frequently asked questions about Instagram influencer marketing

How much does Instagram influencer marketing cost?

From a free product for a small local creator to thousands of pounds for large accounts. Most small businesses start with gifting or modest fees for local micro-influencers.

How many followers does an influencer need?

There is no minimum. For local businesses, an engaged local audience matters far more than follower count.

Do influencers have to say a post is an ad?

Yes, if they are paid or the business has control over the content. Gifted items should also be disclosed.

Can I use an influencer’s content in my own ads?

Only with their permission. Agree usage rights in writing before the campaign.

Is influencer marketing still worth it?

Yes, especially with smaller, trusted local creators. Our article on whether influencer marketing still matters covers this in more depth.

Start small, start local

Instagram influencer marketing does not need a celebrity budget. Find a handful of local micro-influencers whose followers match your customers, give them a great experience, agree clearly what you both expect, label everything properly and measure what it brings in.

If you would like help finding influencers or running a campaign, our social media team can help. Get in touch, or find more practical guides on the Delivered Social website.