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Influencer Marketing Overview by BDMI (Aug 2014)

Overview of the influencer marketing space including a 'lumascape' inspired chart showing the landscape of companies active in the space.

This is a living document, so check back for updates. Any and all feedback is welcome!

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Influencer Marketing Overview by BDMI (Aug 2014)

  1. 1. Influencer Marketing: Introduction & Market Landscape
  2. 2. Influencer Marketing Overview This presentation provides an overview on the rise and increasing relevance of social influencers, and how they are impacting the marketer’s toolkit. © BDMI, August 2014 Source: Basics of Influencer Marketing, Appinions 2012. Brands Publishers Influencers Audience An influencer is a person who expresses a contextually relevant opinion that is meaningful enough to elicit action from others Influencer marketing is the practice of identifying and building relationships with individuals who have influence over a target audience of buyers 2
  3. 3. Are Influencers the New Celebrity or the New Media Company? Influencers are often…. § Native to platform § Regular personal account § Early to platform § Dedicated to audience § True to voice § Younger demographic © BDMI, August 2014 Pseudonyms for influencer: § Weblebrity § Internet famous § Blogger § Vlogger Influencers are a new type of celebrity without… § Traditional gatekeepers (studio, TV, distribution) § “Production” § A script § Barrier between fans § A mask 3
  4. 4. © BDMI, August 2014 Prototypical Influencers Network Audience Size (largest age group) Engagement Prototypical Influencer Representative Advertisers 200M users 18 – 29 yrs. 75M daily users Chris Ozer, 32 Brooklyn, NY 559k followers 1B monthly unique visitors 18 – 29 yrs. 100 hours of video uploaded every minute Zoe Sugg, 24 U.K. 5.1m followers 70M monthly unique visitors 25 – 34 yrs. 88 minutes average session Joy Cho, 34 Los Angeles, CA 13.6m followers 30M users sending 18 yrs. 700M snaps per day Meghan Hughes, 16 Los Angeles, CA 40M users 20 yrs. 5 Vines tweeted per second Nash Grier, 16 Charlotte, NC 8.4m followers 48M monthly unique visitors 18 - 29 yrs. 154 minutes average session Tanesha Awasthi, 34 San Francisco, CA 900k followers 4
  5. 5. 90% 80% 70% 60% 50% 40% 30% 20% 10% US Social Network Ad Revenues © BDMI, August 2014 Social Becoming More Important to Marketers Social media is taking share from traditional web publishers, especially among young people, while traditional online ads are becoming less effective $2.5 $3.1 $4.3 $5.5 $6.7 8% 9% 10% 12% 13% 0% $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $- 2011A 2012A 2013A 2014E 2015E Social Ad Network Revenue % of Digital Ad Spend Source: eMarketer, Aug 2013. Where Teenagers (13-18 years) Are Online 17% 26% 26% 65% 93% 100% 80% 60% 40% 20% 0% Instagram Google+ Twitter Facebook YouTube % who check weekly Source: Technorati 2013 Digital Influence Report. Display Media CTR 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Clipperton Finance Analysis, MediaMind, eMarketer, Pearson. …as a result advertisers need to find a new way to reach their audience Change in Digital Ad $ According to US Advertisers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Publishers (content) Ad networks Video ad networks Video sites (Hulu, YouTube) Social Media Increase Maintain Decrease Source: Advertiser Perceptions; “Advertiser Optimism Index Wave 19”, Sept 24, 2013 5
  6. 6. Influencers are More Relevant than Brand Pages As organic social reach is increasingly limited, social influencers offer a more authentic voice, leading to more engaged audiences What forms of advertising do consumers trust? © BDMI, August 2014 Declining Reach of Facebook Brand Pages Recommendations from people I know 92% Consumer opinions posted online 70% Branded websites 58% Ads on TV 47% Online banner ads 33% Comparison of Brand Owned vs. Influencer Audiences 12.1% 11.6% 8.7% 7.7% 6.2% 4.0% 3.5% 3.0% 2.7% 2.1% 16.0% 12.0% 8.0% 4.0% 0.0% Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 % Reach on Brand Pages % Reach on Large Brand Pages (>500k likes) Sure: EdgeRank Checker as cited in company blog, April 1, 2014 Source: Nielsen Global Trust in Advertising and Brand Messages, 2012. Maybelline New York Official Brand Who Influencer 51,000 Subscribers 5,000,000 11,000 Avg. Video 1,400,000 Views N/A Avg. 8,000 Comments 6
  7. 7. Declining engagement and audience in traditional online media is driving a shift to native content and influencer campaigns on social © BDMI, August 2014 Influencer Marketing Emerging as Key Model Media Native Advertising Influencer Marketing Pla$orms Supported 7
  8. 8. Influencer marketing is typically used for brand marketing, as well as building buzz and engagement around specific events © BDMI, August 2014 Case Studies Contests Brand Awareness What Kia enlisted prominent mommy bloggers as lifestyle advocates to drive brand awareness, shares, engagements, and to generate consumer conversation. Result The campaign worked with 198 bloggers, resulting in 24k social endorsements, and 30M media impressions. What Mercedes-Benz enlisted six highly followed Instagram photographers to document a road trip in the new Mercedes-Benz CLA. The campaign included hashtag promotions and contests for both the photographers and fans to win a brand new CLA. Result Over 2,100 studio quality Instagram posts relating to the CLA, reaching over 2.8M followers. Affiliate Product Launches What Taco Bell pre-marketed, and worked with influencers to launch the new Cool Ranch tacos across Vine, Facebook, YouTube and Twitter. Result The combined social media content generated 2.9B earned media impressions, 2.7M YouTube views, helping sell over $1B in Cool Ranch tacos. What ModCloth actively partners with bloggers to promote new products, contests and brand awareness. Result The company has reportedly done $100M in revenue, growing 40% year over year. Affiliate Links Sure: Augure 2014 Influencer Marketing report. 8
  9. 9. © BDMI, August 2014 Paradigm Shift in the Marketer’s Toolkit Shift to influencer and native marketing has impacted entire advertising value chain Old World New World Paid Media Content Production User Generated Content Audience Experience Paid media on premium sites Sponsored influencer content on social media Expensive, broad, highly produced Outsourced, cost efficient, tailored to audience and platform Unsafe for brands Effective, desired by user Drive off page to destination / microsite Users stay in native experience • Shift in spend to social platforms • Outside trade media buying process • New ad-tech infrastructure required • In house creative teams less relevant • Resources required to identify and manage talent • Lower agency and production fees • Content can be highly customized • Shorter lead time • Still have to manage brand “safety” risk • Leverage influencers’ existing audience to drive marketing goals • Retain audience in native environment • Difficult to move users off platform • Hard to track and attribute using third parties 9
  10. 10. © BDMI, August 2014 New Challenges for Marketers New social mediums have led to new marketing challenges Category Challenges Marketing, CRM and Page Management • How do I ensure safe, consistent and quality content across social platforms? • How do I streamline editorial and content planning? • How do I manage the conversation with my social audiences? Analytics & Monitoring • How do I measure social influence and engagement? • How do I identify social trends? • How do I monitor, report and optimize? Influencer Marketplaces and Agencies • How do I identify and collaborate with my strongest influencers? • How do I manage campaigns across a variety of social platforms? • How do I manage engagement, execution and payments with influencers? Examples Aggregators & Publishers • How do I produce native content at scale? • How do I leverage social context to build a destination/hub? • How do I find viral content for my campaigns? 10
  11. 11. © BDMI, August 2014 Influencer Marketing Landscape MarkeDng, CRM and Page Management AnalyDcs and Monitoring Influencer Marketplaces / Agencies Aggregators & Publishers 11

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