Influencer Marketing, A Journey To A New World

Influencer Marketing, A Journey To A New World

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  INFLUENCER MARKETING, A JOURNEYTO A NEW WORLD
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  1) THE LARGESTANALYSIS OF INSTAGRAM #AD POSTS EVER • JAN-DEC 2017 • 100,000+ POSTS • 182,000,000+ INTERACTIONS 2) BESPOKE SURVEY TO UNDERSTAND ATTITUDES TOWARDS INFLUENCERS • 2,123 RESPONDENTS • SURVEYED OVER TWO WAVES, 2016 AND 2017 THE INFLUENCER PROJECT CONSISTS OF TWO DATA SETS: • Global data, English language
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  I. THE COLLISION MEDIA'SFRAGMENTATION OUR RELATIONSHIP WITH INFLUENCERS II. AN EXPLOSION BRANDS AND INFLUENCERS AUTHENTICITY AS A COMMODITY INFLUENCE AS A CURRENCY III. A NEW WORLD A NEW WORLD THAT NEEDS NEW RULES
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  I. THE COLLISION
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  Fuelled by media’sfragmentation and people’s relationship with influencers, the advertising eco- system as we know it is changing.
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  MEDIA FRAGMENTATION BRANDS AUDIENCE • Moreadvertising options • More avenues to produce content • More selective about the content we see • More distrust around the information we receive
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  0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UK AD SPENDSHARE TV Radio spot Newsbrands Magazine brands Cinema Outdoor Paid search Pure-play digital display Pure-play digital classified Digital other MORE ADVERTISING OPTIONS The proliferation of platforms has eaten away at traditional advertising as we spend more time on mobiles, laptops and tablets. Where there was once clarity and simplicity, there’s now confusion and complexity.
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  MORE CONTENT More platformshave meant more content and more advertising: • 4.6 billion pieces of content are produced daily • Every day there are around 92,000 new articles posted on the internet. • There are 83,000 blog posts published every hour • 400 hours of video is uploaded to YouTube every minute • Instagram users post 80m+ photos every day From being exposed to about 500 ads a day in the 1970s, it’s now as many as 5,000 a day today.
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  SELECTIVITY More advertising hasled to more audience selectivity. By 2016, 615m devices had an adblocker: • Mobile adblocking reached 380m active devices • Desktop adblocking reached 236m active devices The main reasons listed for adblocking: • Too many ads are annoying or irrelevant (51%) • There are too many ads on the internet (50%) • Ads are too intrusive (47%)
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  A WORLD OFDISTRUST More choice has fuelled more distrust. Media is the least trusted institution in a world of distrust. Fragmentation has produced contradiction. 80% of people across the world believe that "there is so much contradictory information it’s hard to know who to trust". People are overwhelmed by the choices – big and small – that are facing them every day.
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  IN A WORLDOF DISTRUST, INFLUENCERS ARE A RELATIONSHIP BUILT ON TRUST. IN A MEDIA LANDSCAPE WHERE WE’RE BOMBARDED BY UNWANTED CONTENT, INFLUENCERS PROVIDE A DESIRED CONTENT FIX.
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  A GROWING FORCE,NEARLY HALF OF MILLENIALS NOW FOLLOW INFLUENCERS 48% % OF MILLENNIALS (18-34) WHO FOLLOW A SOCIAL INFLUENCER 35% 2016 THE NUMBER OF MILLENNIALS FOLLOWING A SOCIAL INFLUENCER HAS INCREASED FROM 2016 21% 34% 46% 55+ 35-54 18-34 SOCIAL INFLUENCER FOLLOWERS BY AGE 2017 • YouGov Social Media Influencers research paper
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  INFLUENCERS ARE SEENAS AUTHENTIC AND HONEST 66% OF MILLENNIALS WHO FOLLOW SOCIAL INFLUENCERS FIND THEM AUTHENTIC AND HONEST • YouGov Social Media Influencers research paper 68% OF MILLENNIALS WHO FOLLOW SOCIAL INFLUENCERS FIND THEM MORE AUTHENTIC AND HONEST THAN TRADITIONAL CELEBRITIES
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  OF MILLENIALS WHOFOLLOW AN INFLUENCER TALK ABOUT A SOCIAL INFLUENCER TO THEIR FAMILY AND FRIENDS AT LEAST ONCE A WEEK 84% OF MILLENIALS WHO FOLLOW AN INFLUENCER READ, WATCH OR LISTEN TO SOCIAL INFLUENCER CONTENT ONCE A WEEK OR MORE PROVIDING FOLLOWERS WITH CONTENT THAT THEY REGULARLY ENGAGE WITH 36% • YouGov Social Media Influencers research paper
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  INFLUENCERS LEAVE FOLLOWERSINSPIRED, ENTERTAINED, UNDERSTOOD AND READY TO ACT 77% 68% 58% THEY ARE A FORM OF ENTERTAINMENT 76% THEY AREN’T AFRAID OF TALKING ABOUT DIFFICULT SUBJECTS THEY INSPIRE ME TO TRY NEW THINGS WE SHARE SIMILAR INTERESTS Millennial attitudes towards influencers % AGREE • YouGov Social Media Influencers research paper
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  OF MILLENIALS WHOFOLLOW AN INFLUENCER FEEL MORE POSITIVE ABOUT THE BRAND INFLUENCERS LEAVE FOLLOWERS FEELING MORE POSITIVE ABOUT THE BRAND 50% WHEN A BRAND IS ASSOCIATED WITH A SOCIAL INFLUENCER: 40% • YouGov Social Media Influencers research paper OF MILLENIALS WHO FOLLOW AN INFLUENCER ARE MORE LIKELY TO BUY THE PRODUCT
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  Faced with mediafragmentation, a selective audience and growing distrust, brands are co-opting a medium that the audience engages with: influencers BRANDS AUDIENCE Bombarded with content, a mistrust in the media, the audience are finding and being inspired by people that are authentic to them: influencers
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  II. THE EXPLOSION
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  The explosion… Globally $1bn*(£776.7m) has been spent by brands this past year on Instagram influencers and is expected to double by 2019. Influencer marketing is big business. 0 20 40 60 80 100 120 2004-07 2005-01 2005-07 2006-01 2006-07 2007-01 2007-07 2008-01 2008-07 2009-01 2009-07 2010-01 2010-07 2011-01 2011-07 2012-01 2012-07 2013-01 2013-07 2014-01 2014-07 2015-01 2015-07 2016-01 2016-07 2017-01 2017-07 2018-01 Searches for ‘Influencer marketing’ Google Trends
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  BRANDS FROM PEPSITO AMERICAN EXPRESS ARE EMBRACING INFLUENCERS • ALL STATS FROM INSTAVIEW. JAN-OCT ALL POSTS IDENTIFIED AS AD IN POST NUMBER OF BRANDS NUMBEROFPOSTS Please Note: the size of a brand’s bubble is dictated by the total number of influencer posts from the brand FASHION ACCESORIES BEAUTY STORES CARS FMCG FAST FOOD RESTAURANTS ALCOHOL FINANCE
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  58% OF THE115 BRANDS TRACKED HAVE USED INFLUENCERS EVERY MONTH SINCE FEBRUARY • ALL STATS FROM INSTAVIEW
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  HELPED BY ANADVERTISING FORM WHERE CATEGORY TYPE IS NOT A CHALLENGE TO ENGAGEMENT • ALL STATS FROM INSTAVIEW AverageEngagement Example of ad post Finance Alcohol Cars FMCG Fast food restaurants Stores Accessories Beauty Fashion 1.0% 2.0% 3.0% 4.0% 5.0% Average Engagement for #ad posts by category for selected brands Please Note: the size of a brand’s bubble is dictated by the total number of influencer posts from the brand
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  FUELLED BY ACOST EFFECTIVE CPE CPE:14p • ALL STATS FROM INSTAVIEW £- £0.20 £0.40 £0.60 £0.80 £1.00 £1.20 Celeb Reality TV Star Publication/Ent. channel Social Media Superstar Social Influencer Mid-Tier Micro COST PER ENGAGEMENT
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  TWO CLEAR BRANDTACTICS ARE BEING USED Macro NIKE making a broad statement Micro ADIDAS building credibility with a niche target audience Macro influencers 1m+ followers Micro influencers <100,000 followers • ALL STATS FROM INSTAVIEW
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  coach uniqlo dorothyperkins timberland lancomeofficial jackwills Guess tommyhilfiger karllagerfeld primark adidas Reebok nordstrom topshop riverisland newlookfashion forever21 hm PrettyLittleThing crocs puma gucci underarmour zara urbanoutfitters kswiss danielwellington cluse cartier theofficialpandora jordwatches paul_hewitt kaptenandson swatch TIMEX 1% 2% 3% 4% 5% 6% 7% - 200,000 400,000600,000 800,000 1,000,000 1,200,000 1,400,000 Engagement vs. Reach Fashion and accessory brands MACRO MEANS BROAD REACH, BUT LOWER ENGAGEMENT. MICRO MEANS LOWER REACH, BUT HIGHER ENGAGEMENT AND MORE POSTS HIGH ENGAGEMENT • ALL STATS FROM INSTAVIEW.PLEASE NOTE REACH HERE IS THE AVERAGE NUMBER OF FOLLOWERS FROM THE INFLUENCERS USED HIGH REACH LOW REACH MICRO TACTICS MACRO TACTICS
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  SEEKING AUTHENTIC ENGAGEMENTBRANDS ARE OPTING TO GO MICRO “…while you can give a piece of content to one global influencer with a million followers, the message is far more authentic if you give it to 500 kids, each with 2,000 followers.” – Florian Alt, Director global brand communications, Adidas 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fashion Accessories Beauty Stores Fast Food Restaurants FMCG Cars Alcohol Finance Share of Influencer type by category Micro Middle Social Influencer Publication Mass Social Influencer Celeb • ALL STATS FROM INSTAVIEW 0.0% 1.0% 2.0% 3.0% 4.0% Celeb Reality TV Star Publication/Ent. channel Social Media Superstar Social Influencer Mid-Tier Micro Average Post engagement by Influencer type
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  The explosion ininfluencers and influencer marketing is built on trust. For the audience it’s that the people they follow are honest and authentic. For brands it’s that the engagement and followers that the influencer has are authentic. TRUST IS THE DARK ENERGY EXPANDING INFLUENCER MARKETING
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  High profile influencershave gone from authenticity to a commodity. Followers have gone from being part of a community to being potential customers. THE CHALLENGE TO AUDIENCE TRUST “I’m not a businessman, I’m a business, man”
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  0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 0 20 4060 80 100 120 140 160 Average Engagement for Social media superstars and social media influencers HIGH PROFILE INFLUENCERS AREN’T A SILVER BULLET TO ENGAGEMENT. MANY HAVE BECOME NEWS FEED WALLPAPER. IN THE NEWS FEED, BUT NOT ENGAGED WITH NEWS FEED WALLPAPER 65% OF INFLUENCERS WITH FOLLOWERS OF MORE THAN 1M HAVE AN ENGAGEMENT OF LESS THAN 2% • ALL STATS FROM INSTAVIEW AverageEngagement Number of Influencers
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  AS A COMMODITYTHE AUTHENTICITY THAT THE AUDIENCE FIRST IDENTIFIED WITH HAS BEEN SHED. THE RESULT IS A DECLINE IN ENGAGEMENT JIM CHAPMAN: 2.8m FOLLOWERS AVG AD ENG:2% TANYA BURR: 3.2m FOLLOWERS AVG AD ENG:2% 0% 5% 10% 15% 20% 25% 30% - 5 10 15 20 25 30 35 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 Marcus Butler Joe Sugg Jim Chapman Tanya Burr Alfie Deyes Zoella Avg. Interactions and Avg. Engagement (leading influencers) AVG #AD ENG #AD POSTS • ALL STATS FROM INSTAVIEW/CAPTIV8 Adposts Avg.Engagement The story of Jim Chapman and Tanya Burr: declining interactions- despite increasing followers- and engagement. From social media darlings in 2015 to news feed wallpaper in 2017.
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  Influence as acurrency for advertising has increased the need to be seen as influential. You no longer have to build it, you can buy it- people are buying followers to look influential to society and brands alike. The more followers influencers have the more reach influencers can claim and the more money influencers can earn. THE CHALLENGE TO BRAND TRUST 0 20 40 60 80 100 120 2004-01 2004-06 2004-11 2005-04 2005-09 2006-02 2006-07 2006-12 2007-05 2007-10 2008-03 2008-08 2009-01 2009-06 2009-11 2010-04 2010-09 2011-02 2011-07 2011-12 2012-05 2012-10 2013-03 2013-08 2014-01 2014-06 2014-11 2015-04 2015-09 2016-02 2016-07 2016-12 2017-05 2017-10 Searches for ‘how to buy followers’ Google Trends
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  Influence as acurrency has helped build “The Follower Factory” 48 million of Twitter’s reported active users — nearly 15 percent — are automated accounts designed to simulate real people Facebook disclosed to investors that it had at least twice as many fake users as it previously estimated, indicating that up to 60 million automated accounts may roam the world’s largest social media platform. Instagram was reported in 2015 to have up 24m Bot accounts THE GROWTH OF THE FOLLOWER FACTORY
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  TRANSFORMING ENGAGEMENT FROMAN AUTHENTIC AUDIENCE ACTION TO AN INAUTHENTIC ONE • ALL STATS CAPTIV8 A single day’s worth of posts tagged #sponsored or #ad on Instagram contained over 50 percent fake engagements, according to data from anti-fraud company Sway Ops. Out of 118,007 comments, only 20,942 were not made by bot followers. Bot comments are responsible for over 40 percent of total comments for over 500 of 2,000 sponsored posts made each day, per Sway. Pods remain a problem as well: Sway’s recent research found that out of 2,000 posts, an average of only 36 sponsored posts made per day contained no Instagram pod activity, fake comments, fake likes or uneven ratios of bot followers to engagements.
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  III. A NEWWORLD
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  A NEW WORLDTHAT NEEDS NEW RULES • ALL STATS FROM INSTAVIEW In the film Alien: Covenant an expedition team discovered a new planet that had everything they could want for colonisation. A perfect world with a perfect eco-system. The land was infested by aliens. Brands arrived to influencer marketing enticed by the perfect ingredients of authentic engagement and audience interest. It’s being destroyed. We need new rules to save this new world. New rules for influencer marketing to survive and thrive.
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  THE NEW RULES •ALL STATS FROM INSTAVIEW FROM LOOKING AT THE SIZE OF THE COMMUNITY TO LOOKING AT THE COMMUNITY FROM SHORT TERM SATURATION TO LONG TERM ASSOCIATION FROM USING AN INFLUENCER’S PROFILE TO CELEBRATING THE CREATIVE ROLE THEY CAN PLAY FROM SEEKING VANITY TO FINDING VALUE FROM INFLUENCER MARKETING BEING AN ADDED EXTRA TO ADVERTISING INTEGRATION
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  FROM LOOKING ATTHE SIZE OF THE COMMUNITY TO LOOKING AT THE COMMUNITY • ALL STATS FROM INSTAVIEW Intoxicated by the size of an influencer’s community, many marketers never look beyond the number of followers an influencer has and ask whether this audience is actually relevant to the brand’s objectives. If we instead begin by looking at the prospective influencer’s community, we prevent a number of challenges besetting the industry. We can: • Identify if the partnership will reach the audience desired • Detect fake followers & boosted bot engagement • Understand if the influencer is on a historical upward/downward trajectory of engagement By looking at the community and not the size of the community, we’re treating influencer marketing by the same standard we would any other advertising channel. It should be a prerequisite, not an afterthought. 0 5 10 15 20 25 0-17 18-20 21-24 25-34 35-44 45-54 55 and older % Audience. Jim Chapman Male Female Promoting Hugo Boss watches to a follower base mainly under 24 and female
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  FROM SHORT TERMSATURATION TO LONG TERM ASSOCIATION Short term partnerships between influencers and brands have built a post today, forgotten tomorrow industry. The result: influencers are saturating the landscape with endorsement. One product after another is endorsed, often with directly competing interests. This short term mindset- from brands and influencers- dilutes the power of any recommendation from the influencer and any hoped for residual association by the brand. Eschewing the post today, forgotten tomorrow philosophy and focusing on building long lasting partnerships gives the credibility needed to build association and drive salience. Making the partnership a natural experience to the audience, instead of disruptive one. Building distinction through micro-influencers Adidas created Tango Squad for customers identified as micro-influencers. These members have ongoing access to exclusive content via a bespoke messenger group that can subsequently be shared with friends and followers on social media. The added profile of being part of ATL and brand social media communications has in turn helped fuel the popularity of Tango Squad members. Brand examples Ongoing association with a leading influencer Fashion influencer Kristina Bazan has been a brand ambassador for L'Oréal since 20151. L'Oréal’s Yann Joffredo described Bazan as ”a bridge between classical advertising and the consumer”
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  Influencer partnerships needto feel natural to the audience, but also deliver on brand objectives. It’s a fine line to tread. The most adept way of doing this is working with an influencer who has a creative and unique output, or where the brand is aligned to a community clearly built from the influencer’s passion. In return this fuels a creative and emotive recommendation relevant to the community. Ignoring this and shoehorning a product into an influencer’s news feed because of the followers that they have, dismisses the challenge of the Instagram algorithm- and more widely algorithms in general- has on the success of content. Where content is rewarded with reaching more followers and unengaging content is a trigger to limit the number of followers exposed to the post. Endorsement irrelevancy, built from short termism, has resulted in many of the commoditised influencers stuck in a repeated algorithm hell of sponsored content being seen by fewer people because of previous unengaging sponsored ad content. FROM USING THE CREATOR TO CELEBRATING CREATIVITY • ALL STATS FROM INSTAVIEW 1)YOUNG & FUN Smoothsmith8 1.7m FOLLOWERS 3 AD POSTS 7.2% ER CREATIVE AUTHENTIC LIFESTYLE Annasaccone 1.5m FOLLOWERS 18 AD POSTS 6.7% AVG ER Ohhcouture 1.5m FOLLOWERS 76 AD POSTS 4.1% AVG ENG
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  In a landscapechallenged by bots and pods providing artificial engagement, influencer marketing must move beyond vanity metrics. Instagram has introduced a Paid Partnership tag giving the brand- and influencer- access to the suite of Instagram analytics and metrics- such as reach and clicks- for a more granular understanding of value. Even better, employing a third party validated brand lift, or sales studies can give a better understanding of the value of a partnership than any like, or comment would ever do. • ALL STATS FROM INSTAVIEW FROM SEEKING VANITY TO FINDING VALUE
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  Partnerships compliment advertisingby bringing to life the creative themes of a brand campaign. It’s not a substitute for advertising. adidas #heretocreate, or Nike’s recent Nothing Beats A Londoner campaign, are ATL campaigns featuring and supported by ongoing influencer partnerships that add a human lens to the creative. Instead of supporting advertising creatively, however, influencers are often used for the most basic product promotion, creating the short- term endorsement saturation currently challenging the industry. By investing in and transforming the role of influencers, from product mannequins, to part of the wider communications mix, we are giving due deference to the impactful role that influencers have on their audience and aligning them to the wider marketing goals of salience and awareness. • ALL STATS FROM INSTAVIEW FROM INFLUENCER MARKETING BEING AN ADDED EXTRA TO ADVERTISING INTEGRATION
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  THE NEW RULES •ALL STATS FROM INSTAVIEW THE NEW WORLD SELECTING INFLUENCERS BECAUSE OF THEIR AUDIENCE, NOT BY HOW MANY FOLLOWERS THEY HAVE REPLACING SHORT TERM SPONSORED SATURATION WITH LONG TERM INFLUENCER ASSOCIATION AN INTEGRATED PART OF THE ADVERTISING MIX, NOT AN AFTERTHOUGHT MOVING BEYOND LIKES AND COMMENTS TO LOOK AT THE VALUE FOR THE BUSINESS PARTNERSHIPS BUILT ON EMOTION FROM THE CREATIVITY OF THE INFLUENCER AND PASSION OF THE AUDIENCE FROM LOOKING AT THE SIZE OF THE COMMUNITY TO LOOKING AT THE COMMUNITY FROM SHORT TERM SATURATION TO LONG TERM ASSOCIATION FROM USING AN INFLUENCER’S PROFILE TO CELEBRATING THE CREATIVE ROLE THEY CAN PLAY FROM SEEKING VANITY TO FINDING VALUE FROM INFLUENCER MARKETING BEING AN ADDED EXTRA TO ADVERTISING INTEGRATION
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  THANKS