This presentation discusses the rise of influencer marketing, highlighting how social influencers have become critical in the marketer's toolkit by engaging target audiences effectively. It contrasts traditional advertising methods with the emerging strategies that leverage influencers' authentic voices to reach consumers, especially younger demographics. Additionally, the document outlines challenges and shifts in advertising practices alongside case studies demonstrating successful influencer campaigns.

1. Influencer Marketing:
Introduction & Market Landscape

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
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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
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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
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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. 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. 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
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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.
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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
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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?
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11. ©
BDMI,
August
2014
Influencer Marketing Landscape
MarkeDng,
CRM
and
Page
Management
AnalyDcs
and
Monitoring
Influencer
Marketplaces
/
Agencies
Aggregators
&
Publishers
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