This document provides an overview and summary of the mid-2017 influencer marketing landscape and Ogilvy's influencer marketing process. Some key points: - Influencer marketing continues to grow in importance as traditional media declines and audiences engage differently. Brands are increasing investment. - Micro-influencers with 30,000 or fewer followers are gaining prominence with higher engagement rates. Influencers are also becoming content creators. - Ogilvy's process involves identifying the right influencers based on relevance, reach, and resonance; mapping them into tiers; and aligning objectives and measurement plans. - Recent examples show the success of Glossier in engaging organic fans and Sperry in tapping

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IN
Powered by
INFLUENCE
For

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Hello!
Thomas Crampton
Global Consulting Principal,
Marketing Transformation
OgilvyRED
Kathy Baird
Managing Director, Social
North America
OgilvyPR

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O g i l v y
H O W T O M A S T E R I N F L U E N C E R
R E L A T I O N S H I P M A R K E T I N G &
2 0 1 7 M I D - Y E A R R E V I E W

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Agenda
• 2017 Mid-Year Influencer Marketing Landscape
• Ogilvy’s Influencer Marketing Process
• The Latest with Influencer Marketing Measurement
• Recent Industry Examples

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2 0 1 7 M I D - Y E A R
I N F L U E N C E R M A R K E T I N G
L A N D S C A P E

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INFLUENCER
MARKETING CONTINUES
TO DOMINATE. WHY?
Because earning the audience
remains a major challenge:
• Earned media reach is declining
• Traditional authority is eroding
• Younger generations engage differently
and 47% are using ad blockers
• Paid media is being usurped
Circulation
Declines
Fake News
Ad Blockers
Loss of Forced
Views
Lack of Trust in
Brands
Need for
Authenticity

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HOW IS THE
ROLE OF
INFLUENCERS
CHANGING?
SIX TRENDS AND OBSERVATIONS
1. Influencer marketing is not new anymore
2. Tiers of influence continue to evolve
3. Influencers are also content creators
4. Influence is a strategy vs. a tactic
5. Brands increase investment
6. Increasing eye on disclosure

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1. INFLUENCERS ARE NOT NEW
• We need new ideas, beyond just
“product placement”
• Campaigns need to be as creative
and original as possible, without
sacrificing organic quality
• Clear distinction between
endorsement and content creation
• Continued shift away from looking at
quantity of followers

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F r o m F a m e a n d F o l l o w i n g t o E n g a g e m e n t a n d A u d i e n c e
TIER 1:
CELEBS,
MEDIA,
ETC.
TIER 2:
YOUTUBERS,
BLOGGERS,
INSTAGRAMMER,
PINNERS,
SNAPCHATTERS
TIER 3:
BRAND FANS,
CONSUMER
ADVOCATES
NEAR-TERM
FAR-TERM
Tier 1:
Traditional
Mass Awareness
Tier 2:
Digital Influence
and Micro-Influence
Tier 3:
Consumer-Driven
Brand Advocacy
2. TIERS OF INFLUENCE

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SPOTLIGHT: MICRO INFLUENCERS
• Micro-influencers or accounts with
30,000 or fewer followers are
growing in perception as “more
beneficial”
• Up to 60% higher engagement rates
are driven by micro-influencer
campaigns
• Micro-influencers with 10K – 30K
followers exert more influence on
their followers than bigger
influencers with over 1m+ followers

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3. INFLUENCERS AS CREATORS
Enhancing your creative team and maximizing content opportunity
Value Exchange /
Financial
Compensation
Increased Exposure
Passion for Brands
Creative Inspiration

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4. INFLUENCE AS A STRATEGY, NOT A
TACTIC
Long-Term Thinking #ForTheWin
PULSE
AMPLIFICATION ARM
OF AN EXISTING 360
BRAND CAMPAIGN
PROGRAM
FOCAL POINT OF AN
INFLUENCER
DRIVEN 360 BRAND
CAMPAIGN
PLATFORM
CORE COMPONENT TO
THE ENTERPRISE
MARKETING
APPROACH

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5. BRANDS INCREASE INVESTMENT
• Global marketers spent $570m on
Instagram influencer marketing in
2016.
• 59% of respondents plan on
“significantly increasing” influencer
marketing investment in the next 12
months. Video influencer content is
expected to gain the most.
• 41% are seeing more success in
influencer campaigns than in more
traditional advertising efforts.

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6. MORE RIGOR AROUND DISCLOSURE
Pressure on FTC to regulate – more #ad, no #spon

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O G I L V Y ’ S I N F L U E N C E R
M A R K E T I N G P R O C E S S

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IRM Model
•Influencer
Identification
•Mapping and
Evaluation
•Program Briefing
•Audience Insights
•Content Co-Creation
•Ongoing relationship
management
•Experience Map
•Media Plan
•Cross Channel
Integration
•Objective Setting
•Audience Alignment
•Measurement Plan
Strategic
Framework
Experience
Design
Influencer
Acquisition
Planning +
Execution

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Identify + Find the Right Influencers
Resonance Reach
Relevance
Influence
Relevance / Expertise
Criteria:
How an influencer aligns with
the brand or topic to reach your
audience.
Reach Criteria:
Determine audience size, or how
many people will be exposed to
the message.
Resonance Criteria:
An influencer’s ability to
drive measurable
engagement within the
target market.

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Map Out Tiered Recommendations

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Tier 1 Example
ALISA CIRCLE
Location Orange County, CA
Expertise Lifestyle, parenting advice, health and wellness
Rationale
Alisa is your go-to woman for parenting advice, health tips and
style expertise. She is a full time working woman who carefully
balances her hectic work schedule with her busy mom life. Alisa
does her best to share her knowledge with the other moms
posting beauty how-tos, recipes, and life hacks to her social
channels.
PLATFORM URL STATISTICS
Twitter twitter.com/alissamcircle 5,216 followers
Instagram instagram.com/alissamcircle 17,200 followers
LinkedIn linkedin.com/in/alissa-circle-35a41010 500+ connections
Pinterest pinterest.com/alissamcircle 7,500 followers
Google + plus.google.com/+alissacircle/posts 5,597 followers
Website diaryofanaddict.com/aboutme N/A

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Tier 1 Examples
Amanda Ensing
Total Reach: 1,573,860 Followers
Category: Cosmetic Beauty (Above the Neck)
Primary Expertise: Beauty, Make-Up Tutorials,
Fashion,
Primary Audience: Beauty and Fashion Lovers
Carlie Wood
Total Reach: 1,451,623 Followers
Category: Pet Care
Primary Expertise: Mommy Blog, Fashion,
Lifestyle
Primary Audience: Moms, Fashion and
Beauty Lovers
Naomi Davis
Total Reach: 525,454 Followers
Category: Actively Involved Mom
Primary Expertise: Mommy Blog, Recipes,
Travel
Primary Audience: Moms, Everyday Women
Colette Butler
Total Reach: 2,144,470 Followers
Category: Actively Involved Mom
Primary Expertise: Mommy Blog, Recipes,
Life-hacks
Primary Audience: Moms
Paulina Beregova
Total Reach: 620,117 Followers
Category: Cosmetic Beauty (Below the Neck)
Primary Expertise: Beauty, Fashion, Vegan
Tempeh Chili Recipe Lifestyle
Primary Audience: Beauty and Fashion Lovers
Holly Homer
Total Reach: 267,083 Followers
Category: Pet Care
Primary Expertise: Mommy Blog, Kid’s
Crafts, Family Recipes
Primary Audience: Moms, Everyday Women
Jessica Shyba
Total Reach: 632,805 Followers
Category: Pet Care
Primary Expertise: Mommy Blog, Lifestyle
Primary Audience: Moms, Dog Enthusiasts
Dr. Jennifer Walden
Total Reach: 130,509 Followers
Category: Health Care Professional
Primary Expertise: Cosmetic Plastic Surgery
Primary Audience: Health Care Professionals,
Moms
Dr. Paul Nassif
Total Reach: 669,038 Followers
Category: Health Care Professional
Primary Expertise: Cosmetic Plastic Surgery
Primary Audience: Health Care Professionals,
Pop Culture Followers
April Athena
Total Reach: 981,257 Followers
Category: Actively Involved Mom
Primary Expertise: Mommy Blog, Recipes,
Beauty and Fitness Tips
Primary Audience: Moms, Everyday Women

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A P P R O A C H T O M E A S U R E M E N T

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Approach to Measurement
Determining ROI of influencer investments grows in importance:
• Measurement becomes easier as availability of influencer-owned social data
and analytics becomes more open for 3rd parties
• Key metrics vary campaign-to-campaign depending on brand goals (website
visits, sales, other conversion actions, brand buzz, social media reach)
• Tying metrics to specific influencer activities, using a cost-per-click or cost-per-
engagement model and tying back to actual sales
• In the future – better attribution, more insight into who views branded
influencer content and more data from influencers

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Align on KPIs and Business Objective
Resonance Reach
Relevance
Influence
Relevance Metrics
•Category relevance – Brand +
Product + Competitor
•Subject matter –
Conversation topic overlap
•Audience relevance – Fan
base/followers
Reach Metrics
•Primary reach – Followers, likes,
UMVs
•Engagement – RTs, comments,
shares
•Social graph – Number of social
channels
•Frequency – Posts/videos per
week/month
Resonance Metrics
•Authenticity
•Storytelling
•Quantitative Response
•Qualitative Response

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L E S S O N S F R O M T H E
I N D U S T R Y

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G l o s s i e r : Y o u r F a n s a r e Y o u r I n f l u e n c e r s
In just two years, Glossier has gone
from launch to “THE” beauty brand
• Originally started as a blog, “Into
the Gloss” in 2010, follower base
was organic
• Launched in 2014 with a limited
range of products
• Expected to grow 600%!
• Aim is to create a brand that
engenders a feeling of friendship
• Modern, minimalist packaging is
designed to look good in Instagram

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S p e r r y : M i c r o - I n f l u e n c e r s D r i v e S u c c e s s
Tapping into its existing fan base, Sperry
identified 100 micro-influencers, already
posting about their products
• Micro-influencers are contacted and
asked for permission to share their
posts
• No compensation is exchanged but the
micro-influencer is credited for their
photography
• Next steps will be to develop an
ambassador program (marine biologists,
athletes, outdoor enthusiasts , with
compensation to engage their
communities

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F y r e F e s t i v a l : W h a t W e n t W r o n g ?
Fyre Festival organizers sought to
engage a litany of influencers to create
buzz and interest in the festival
• “Fyre-Starter” Influencers included
models, clothing designers and
influential personalities
• All command millions of followers
on social media
• Unclear what the value exchange
was
• In the end, influencers are also
included in the lawsuit

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W h a t ’ s N e x t ?
What’s on the horizon?
• Influencer marketing remains a critical part of the media mix and will continue
to take away from other investments
• More work is being done to add sophistication to the identification process
(Ogilvy’s Advanced Data Analytical Model, ADAM)
• Influencer marketing will become more strategic, showing consistency over just
one-off campaigns
• Measurement will evolve to prove true ROI, making the case even easier for
investment
• Fuzzy areas of disclosure will continue to be addressed and will serve as lessons
for all of us

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Q U E S T I O N S ?