2014 Influencer Marketing Benchmarks Report COPYRIGHT 2015 BURST MEDIA LLC

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1 2014 Influencer Marketing Benchmarks Report COPYRIGHT 2015 BURST MEDIA LLC March 2015

2 Contents Page 3 Page 4 Pages 5-7 About This Report / Methodology Finding Highlights 2014 Influencer Marketing Programs Overview Sponsored Blog Posts Social Syndication and Branded Content Distribution Influencers and Influential Content Earned Media Value Pages 8-9 Page 10 Page 11 Results Earned Media Value Results Social Engagement Rate Conclusions APPENDIX Pages Category-Specific Benchmarks and Insights Pages Resources CPG Food Grocers & Supermarkets Home & Garden Retailers & Apparel Shoes Tourist Destinations & Travel Toys & Games EMV Highlights from Single Advertiser Categories 2

3 About This Report / Methodology Consumer action is driven by the seamless and authentic integration of brands into influential content. This inaugural Influencer Marketing Benchmarks Report offers a top-level analysis of Burst Media s 2014 Influencer Marketing programs as well as industry-specific benchmarks and takeaways. It also provides key insights in the areas of execution, earned media value, consumer engagement and more. In 2014, Burst ran 48 Influencer Marketing programs for advertisers. These US-targeted branded content programs spanned 15 industry verticals and employed (in aggregate) 662 independent web publishers and bloggers. These publishers and bloggers, who we refer to as influencers throughout this report, each has a direct relationship with Burst. An influencer outreach program is quickly becoming indispensable to the modern digital marketing strategy. Influencers are more valuable to brands now than they ve ever been for their ability to deliver on social chatter, earned media, and action. - Tessa Wegert, ClickZ Burst Media and Influencer Marketing Burst Media helps marketers weave their brand stories into the content and social platforms of some of the biggest independent influencers on the web. We do this through our Influencer Marketing programs that can include a variety of content distribution solutions such as Sponsored Blog Posts and content discovery rich media ad units. We are advocates of Influencer Marketing because we know that online consumers trust and are impacted by the influencers they follow. For brands, there is no more effective place to engage with consumers than a trusted environment. 3

4 Finding Highlights For many marketers the concepts of Influencer Marketing and native advertising are hard to define. We view them as two distinct yet related marketing executions. Used together, they make for a powerful marketing tool that leverages the presence of influencers to help promote a product or service with either branded or brand-approved content. Content distribution ad units can further amplify that influence at massive scale. Highlights of Influencer Marketing Benchmarks On average, marketers who implemented an Influencer Marketing program in 2014 received $6.85 in earned media value for every $1.00 of paid media. CPG advertisers received the greatest earned media value for Influencer Marketing programs. Factors contributing to their programs success included: o o A highly social platform engaged target audience moms. Use of brand-approved, highly appealing imagery. Multiple blog posts scheduled to run for fixed time periods with no overlap drove programs to higher social engagement rates. Inclusion of a sweepstakes or giveaway drove higher earned media value and higher social engagement rates. Use of our content distribution Rich Media ad units had the dual impact of increasing program reach and driving social engagement. 4

5 2014 Influencer Marketing Programs Overview In 2014, Burst ran Influencer Marketing programs for a wide variety of brand advertisers. Seven industry categories had representation from more than one advertiser and by count comprised 84% of our influencer campaigns. 1. Retailers & Apparel (23%) 2. CPG Food (19%) 3. Grocers & Supermarkets (15%) 4. Tourist Destinations & Travel (13%) 5. Shoes (6%) 6. Home & Garden (4%) 7. Toys & Games (4%) Additionally, nearly four-fifths (78%) of paid media for our 2014 Influencer Marketing programs came from the seven primary advertiser categories. Single advertisers (16% total) came from the following eight categories and accounted for 22% of paid media for our 2014 Influencer Marketing programs. 1. Baby Products 2. Bath, Body, Skin & Beauty 3. Cameras & Equipment 4. Pet Products 5. Cleaning Products 6. Fast Food Restaurants 7. Hospitals & Medical Services 8. Regional Causes Influencer Marketing Program Distribution by Advertiser Category 23% 22% 29% % of Programs 19% 15% 13% % of Paid Media 8% 5% 6% 7% 4% 4% 4% 3% Retailers & Apparel CPG Food Grocers & Supermarkets Tourist Destinations & Travel Shoes Home & Garden Toys & Games 5

6 2014 Influencer Marketing Programs Overview Sponsored Blog Posts All of Burst s 2014 Influencer Marketing programs included paid media in the form of Sponsored Blog Posts. Our Sponsored Blog Posts pair brands with hand-selected influencers who develop and distribute brand-approved content that promotes products, services or other initiatives. Depending on the specifics of the program, the content of Sponsored Blog Posts takes the form of text, imagery and/ or video. Social Syndication and Branded Content Distribution As social channels become more visual and as we see authentic images working more effectively to communicate with our customers, we re very excited that those are platforms we might be able to tap into differently. Jennifer Kasper, Macy s 1 For most programs we also leverage the influencers social media platforms to amplify the impact and reach of a Sponsored Blog Posts. This Social Syndication can include Facebook posts, Pinterest boards, Instagram videos and posts, Vine videos, Twitter parties, sponsored tweets and Google+ Hangouts. Our content distribution Rich Media units (Expandables and Fixed Footers) can further extend a programs reach beyond the influence of the influencer by distributing created content on targeted sites. Brands seeking to extend the distribution and reach of their Influencer Marketing programs opt for these Rich Media units. Example: Influencer Fixed Footer 6

7 2014 Influencer Marketing Programs Overview Influencers and Influential Content Independent influencers have been Burst s currency since Our influencers are literally thousands of digital media publishers who foster vibrant online communities through sites, blogs and social media. Most important, our influencers demonstrate seven key traits that are present in all that they do. 1. Accelerated growth. Determined and sustained audience development. 2. Social power. Significant and measurable clout on social media. 3. Viral distribution. Engaging content that is often shared organically. 4. Consumer engagement. Audiences that interact with and react to content. 5. Content expertise. Knows his or her focus inside out, no matter the topic. 6. Aesthetically appealing. Clean, clear and user-friendly design elements. 7. Community leaders. Respected as trailblazers within online communities. 7

8 2014 Influencer Marketing Programs Overview Earned Media Value Influencer Marketing is an ideal tactic to elevate brand awareness and consideration as it encourages social sharing. Our Sponsored Blog Posts, Social Syndication and content distribution Rich Media offerings are inherently social and are specifically designed to maximize earned media value (EMV) for paid campaigns. EMV refers to the media value that can be attributed to publicity, social sharing and endorsement. It is an effective measure of an advertising campaigns success at reaching beyond the bounds of it paid placements and a good way to understand the amplification-effect of Influencer Marketing. We consider a wide variety of measurements (see table) to calculate EMV for our Influencer Marketing programs. Burst Media EMV Measurements Blog Comments/Replies Contest Entries Facebook: Shares, Comments, Likes, Shares from Posts Twitter: Re-Tweets, Replies/Comments, Favorites, Shares from Posts Pinterest: Re-Pins, Comments, Likes, Shares from Posts Instagram: Comments, Likes Google+: Shares, Comments, Likes, Shares from Posts Reach of Influencer Facebook, Twitter, Pinterest, Instagram and Google+ Profiles Other Social Shares: Clicks to Brand URLs, Posts with Specific Campaign Hashtags Earned Media Value Campaign-specific factors, such as a product giveaway or sweepstakes, can significantly impact Influencer Marketing program EMV. Another significant consideration is the selected influencers themselves. For example, an individual s social media clout (e.g., Klout Score 2 ) can impact EMV. The more social media clout an influencer has generally means more followers will share their content organically and frequently. For a full breakdown of how we calculate EMV, see the Resources section of this report. 8

9 Results It s kind of a misnomer to force [content marketing] into previous metrics that we use for advertising. That said, I think earned media value is the most important metric. -Stephanie Losee, Dell 3 Earned Media Value On average, our advertisers received $6.85 in earned media for every $1.00 spent on a Burst Influencer Marketing programs in Among the seven primary industry categories (each of which are detailed in the report appendix), the average return of EMV breaks down as follows: CPG Food ($11.33) Retailers & Apparel ($10.48) Tourist Destinations & Travel ($7.04) Grocers & Supermarkets ($4.80) Shoes ($3.70) Toys & Games ($3.31) Home & Garden ($0.64) Total Burst Media Average: $6.85 Earned Media Value for Every Dollar of Media Paid (By Advertiser Category) CPG Food ($11.33) Retailers & Apparel ($10.48) Tourist Destinations & Travel ($7.04) Grocers & Supermarkets ($4.80) Shoes ($3.70) Toys & Games ($3.31) Home & Garden ($0.64) Single Advertiser Categories ($2.10) 9

10 Results Social Engagement Rate On average, advertisers saw a 3.4% social engagement rate for Burst Influencer Marketing programs in Among the seven primary industry categories (each of which are detailed in the subsequent report section), the average social engagement rate breaks down as follows: Grocers & Supermarkets (6.7%) CPG Food (3.9%) Retailers & Apparel (2.7%) Toys & Games (1.3%) Shoes (1.1%) Home & Garden (0.7%) Tourist Destinations & Travel (0.67%) 6.7% Grocers & Supermarkets 3.9% CPG Food 2.7% Retailers & Apparel 1.3% Toys & Games 1.1% Shoes.70% Home & Garden Social Engagement Rate = reader engagements/ social exposure. Reader Engagements = measurable actions taken by readers, including (but not limited to) blog comments, re-tweets, Facebook likes, Instagram comments, etc..67% Tourist Destinations & Travel Social Exposure = the number of times an influencer s audience was exposed to a Brand s Influencer Marketing program via Sponsored Blog Posts and social media. 10

11 Conclusions Influencer Marketing by nature is the modern word-of-mouth. Advertisers that run effective campaigns know this and they leverage the trust and authenticity that influencers inherently bring to the table. Also by nature, Influencer Marketing is very specific. From planning to execution, the four-dozen advertisers that partnered with Burst in 2014 each worked with our team to create customized programs with a clear set of deliverables and goals. A strategy that focuses on targeting the right audience and providing them with great, relevant content will not only increase engagement, but will help to keep your brand top of mind to that audience. -David Neuman, Prime Visibility Targeting Influencer Marketing is all about leveraging the power of community and like-minded people. To that end, the tighter an audience is defined and the more focused the influencers are, the better the results (i.e., earned media value and social engagement rates) will likely be. Influencer Marketing is not for reaching the masses. It s for reaching your brand advocates and then getting consumer-generated content to do the work for you. Engagement At a granular level, an Influencer Marketing program s engagement rate is the barometer for how onpoint branded content is with the target audience. Measurable interactions whether it s a comment on a Sponsored Blog Post or a like on Facebook are key for evaluating how Influencer Marketing programs resonate with communities of people with similar interests. Natural Amplification Engagements are what feed earned media. And earned media is all about trust. If a friend or family member were to share a great deal for a trip they saw on Facebook, re-pin a great kid s craft they saw on Pinterest or like a delicious dessert they saw on Instagram, chances are you ll pay attention. Maybe you ll even visit that destination, or maybe you ll grab that brand-name ingredient the next time you go food shopping. In essence, this is the power of effective Influencer Marketing: engaging the right people who will raise awareness, contribute to the consideration process and ultimately drive action. 11

12 Appendix

13 Category-Specific Benchmarks and Insights CPG Food Advertisers used a total of 160 influencers (in aggregate) for CPG Food Influencer Marketing programs in On average, CPG Food advertisers saw an EMV of $11.33 for every dollar of paid media. CPG Food advertisers also saw an average Influencer Marketing program engagement rate of 3.9%. Takeaways: All advertisers included two posts from each influencer in their Sponsored Blog program. These posts were rotated at set time periods to ensure fresh content and brand visibility as well as to extend the opportunity for consumers to comment on, engage with and share content. All advertisers ran Social Syndication programs, and influencers promoted their own (brand-approved) imagery of baked goodies and recipes across Instagram, Pinterest and Facebook with campaign-specific hashtags. All advertisers in this category had a primary audience target of Moms, and it s no secret that moms are social. According to emarketer, 85% of all online moms in the US use social media every month and nearly 4-in-5 (79%) moms who use smartphones use such devices to access social media once a day or more. 4 Additional findings from Edison Research indicate 45% of moms follow brands on social media. 5 13

14 Category-Specific Benchmarks and Insights Grocers & Supermarkets Grocers & Supermarkets used a total of 107 influencers (in aggregate) for Influencer Marketing programs in On average, Grocers & Supermarkets saw an EMV of $4.80 for every dollar of paid media. Grocers & Supermarkets also saw an average Influencer Marketing program engagement rate of 6.7%. Takeaways: Every single advertiser in this category ran a giveaway or sweepstakes as part of their Sponsored Blog Posts program driving consumers to engage with influencers posts and branded content on social media. Similar to CPG Food advertisers, advertisers in this category leveraged Social Syndication and had influencers promote brand-approved imagery of food items with campaign-specific hashtags (including hashtags that referred to the giveaway/sweepstakes). Grocers & Supermarkets also all targeted Moms in their Influencer Marketing campaigns. Some advertisers leveraged content distribution units (i.e., Rich Media) to further brand awareness and extend the reach of the Influencer Marketing programs. Home & Garden Advertisers Advertisers used a total of 14 influencers (in aggregate) for Home & Garden Influencer Marketing programs in On average, Home & Garden advertisers saw an EMV of $0.64 for every dollar of paid media. Home & Garden advertisers also saw an average Influencer Marketing program engagement rate of 0.7%. Takeaways: One advertiser in this category ran with a short list of influencers who produce home design and décor blogs. In this instance, the product had a very specific target audience of consumers (women 25-54) redecorating/remodeling rooms in the home. Another advertiser had a very specific product and had an audience geared towards moms who have backyard pools. A select list of 12 mom-focused influencers (each of whom has a pool) was used to promote the brand. 14

15 Category-Specific Benchmarks and Insights Retailers & Apparel Advertisers Advertisers used a total of 118 influencers (in aggregate) for Retailers & Apparel Influencer Marketing programs in On average, Retailers & Apparel advertisers saw an EMV of $10.48 for every dollar of paid media. Retailers & Apparel advertisers also saw an average Influencer Marketing program engagement rate of 2.7%. Takeaways: The majority of advertisers included two posts from each influencer in their Sponsored Blog program. These posts were rotated at set time periods to ensure fresh content and brand visibility as well as to extend the opportunity for consumers to comment on, engage with and share content. Advertisers leveraged their visual assets for Social Syndication programs influencers promoted highly stylized apparel photos across Instagram and Pinterest with campaign-specific hashtags. One specific advertiser who saw an EMV that exceeded the category average by 325% relied on a multi-faceted program that leveraged an Influencer Fixed Footer rich media unit, Social Syndication and three Sponsored Blog Posts each from their pool of handpicked influencers. Shoe Advertisers Advertisers used a total of 50 influencers (in aggregate) for Shoe Influencer Marketing programs in On average, Shoe advertisers saw an EMV of $3.71 for every dollar of paid media. Shoe advertisers also saw an average Influencer Marketing program engagement rate of 1.1%. Takeaways: One-third (33%) of advertisers in this category ran a giveaway, complete with campaign-specific hashtags driving consumers to engage with influencers posts and branded content on social media. All Influencer Marketing programs in the shoe category were geared towards millennial women (18-34 years) and blog content focused on topics that resonated with the audience: seasonal fashions, staying fit, matching footwear with outfits, frugality without sacrificing style, and more. 15

16 Category-Specific Benchmarks and Insights Tourist Destination & Travel Advertisers Advertisers used a total of 65 influencers (in aggregate) for tourism and travel-related Influencer Marketing programs in On average, tourist destination and travel advertisers saw an EMV of $7.04 for every dollar of paid media. Tourist destination and travel advertisers also saw an average Influencer Marketing program engagement rate of 0.67%. Takeaways: All advertisers in this space targeted women as travel planners for the family. Creative assets included family-friendly images and copy points geared towards moms. Nearly all advertisers in this category had very specific offerings in these cases, the offerings were attractions and destinations in tightly defined geographic areas. One specific advertiser who saw an EMV exceeded the category average by 425% leveraged Social Syndication and two Sponsored Blog Posts each from their pool of 10 handpicked influencers and ran the campaign over a three month period at the height of the summer travel planning season. Toys & Games Advertisers Advertisers used a total of 21 influencers (in aggregate) for toys and games Influencer Marketing programs in On average, toys and games advertisers saw an EMV of $3.31 for every dollar of paid media. Toys and games advertisers also saw an average Influencer Marketing program engagement rate of 1.3%. Takeaways: All advertisers in this space ran their influencer campaigns in the midst of the 2014 holiday shopping season and influencers promoted the products as great gift ideas towards audiences of moms of young kids. One-half of the advertisers in this category ran a giveaway, complete with campaign-specific hashtags driving consumers to engage with influencers posts and branded content on social media. One specific advertiser with a giveaway saw an EMV that exceeded the category average by 281%. 16

17 Category-Specific Benchmarks and Insights EMV Highlights from Single Advertiser Categories In 2014, single advertisers from the eight categories accounted for 16% of the total count for our Influencer Marketing programs and 22% of paid media revenue. Two single advertisers accounted for more than one-half of the paid media figure: Cameras & Equipment (11% of total share) and Bath, Body, Skin & Beauty (5% of total share). In aggregate, these single advertisers saw an average EMV of $2.10 for every dollar spent on paid media (210%). EMV by specific advertiser was as follows: 1. Baby Products: 127% 2. Bath, Body, Skin & Beauty: 252% 3. Cameras & Equipment: 224% 4. Cleaning Products: 182% 5. Fast Food Restaurants: 389% 6. Hospitals & Medical Services: 270% 7. Pet Products: 502% 8. Regional Causes: 64% 17

18 Resources Earned Media Value Breakdown Earned Media Type Dollar Value (Each Instance) Blog Comments/Replies $2.00 Contest Entries $0.25 Facebook Shares $1.25 Facebook Comments $1.00 Facebook Likes $0.50 Facebook Shares from Posts $0.75 Re-Tweets $1.25 Twitter Replies / Comments $1.00 Twitter Favorites $0.50 Twitter Shares from Posts $0.75 Pinterest Re-Pins $1.25 Pinterest Comments $1.00 Pinterest Likes $0.50 Pinterest Shares from Posts $0.75 Instagram Comments $1.00 Instagram Likes $0.50 Google+ Shares $1.25 Google+ Comments $1.00 Google+ Likes $0.50 Google+ Shares from Post $ % of Facebook Reach $0.25 5% of Twitter Reach $ % of Pinterest Reach $ % of Instagram Reach $ % of Google+ Reach $0.25 Other Social Shares (e.g., clicks to brand URLs, shares using campaign specific hashtag, etc.) Source: Prime Visibility ( $

19 Resources Cited Articles and Quotes 1 Kats, Rimma: Macy s Says Social Media Strategy Begins with Good Content. emarketer, September 27, The Klout Score is a number between that represents influence. See score for more details. 3 Elkin, Tobi: Native Advertising Update: Marketers See Healthy Spending Growth in emarketer, November 20, Mothers Get Social on Smartphones. emarketer, September 22, US Mother and Father Social Network Users Who Follow Brands on Social Networking Sites. Edison Research, May Icons Art from the Noun Project Created by: Azis Rick Pollock Thomas Le Bas Wilson Joseph Marc Haumann About Burst Media An online media and technology company founded in 1995, Burst Media connects brands with highly targeted and influential audiences brought together through specialized content found on 2,000+ websites and influencer blogs. Burst s premium advertising solutions allow brands to leverage high impact creative formats, social media and content distribution channels to engage consumers across connected devices. Burst also offers a programmatic platform, AdConductor, for demand partners looking to access large pools of high quality ad inventory. Burst Media is headquartered in Burlington, Massachusetts and has offices throughout the United States. Visit or call +1 (781) for more information. Copyright 2015 Burst Media LLC. All rights reserved. The information and specifications in this document may be subject to change. Company and/or product names not held by Burst Media may be registered trademarks of their respective owners. 19