influencer marketing: introduction & market · pdf filereach their audience change in...

Influencer Marketing: Introduction & Market Landscape

© BDMI, August 2014

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.

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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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

Influencers are often…. §  Native to platform §  Regular personal account §  Early to platform §  Dedicated to audience §  True to voice §  Younger demographic

Are Influencers the New Celebrity or the New Media Company?

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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


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%

10%

20%

30%

40%

50%

60%

70%

80%

90%

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

2011A 2012A 2013A 2014E 2015E

Social Ad Network Revenue % of Digital Ad Spend

US Social Network Ad Revenues

Source: eMarketer, Aug 2013.

Where Teenagers (13-18 years) Are Online

17% 26% 26%

65%

93%

0%

20%

40%

60%

80%

100%

Instagram Google+ Twitter Facebook YouTube

% w

ho c

heck

wee

kly

Display Media CTR

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Clipperton Finance Analysis, MediaMind, eMarketer, Pearson.

Source: Technorati 2013 Digital Influence Report.

…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%

Social Media

Video sites (Hulu, YouTube)

Video ad networks

Ad networks

Publishers (content)

Increase Maintain Decrease

Source: Advertiser Perceptions; “Advertiser Optimism Index Wave 19”, Sept 24, 2013 5


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

Declining Reach of Facebook Brand Pages

Comparison of Brand Owned vs. Influencer Audiences

What forms of advertising do consumers trust?

12.1% 11.6%

8.7% 7.7%

6.2%

4.0% 3.5% 3.0% 2.7% 2.1%

0.0%

4.0%

8.0%

12.0%

16.0%

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 Influencer Who

51,000 5,000,000 Subscribers

11,000 1,400,000 Avg. Video Views

N/A 8,000 Avg. Comments

Recommendations from people I know 92%

Consumer opinions posted online 70%

Branded websites 58%

Ads on TV 47%

Online banner ads 33%

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Media

Influencer Marketing Emerging as Key Model

Native Advertising Influencer Marketing

Declining engagement and audience in traditional online media is driving a shift to native content and influencer campaigns on social

Pla$orms Supported

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Case Studies

Brand Awareness Contests

Affiliate Product Launches

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.

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

Influencer marketing is typically used for brand marketing, as well as building buzz and engagement around specific events

Sure: Augure 2014 Influencer Marketing report. 8


Paradigm Shift in the Marketer’s Toolkit

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 to influencer and native marketing has impacted entire advertising value chain

•  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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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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Influencer Marketing Landscape

MarkeDng, CRM and Page Management

AnalyDcs and Monitoring

Influencer Marketplaces / Agencies

Aggregators & Publishers

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