Influencer Marketing: Introduction & Market Landscape

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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. An influencer is a person who expresses a contextually relevant opinion that is meaningful enough to elicit action from others Brands Publishers Influencer marketing is the practice of identifying and building relationships with individuals who have influence over a target audience of buyers Influencers Audience Source: Basics of Influencer Marketing, Appinions

3 Are Influencers the New Celebrity or the New Media Company? Pseudonyms for influencer: Weblebrity Internet famous Blogger Vlogger Influencers are often. Native to platform Regular personal account Early to platform Dedicated to audience True to voice Younger demographic Influencers are a new type of celebrity without Traditional gatekeepers (studio, TV, distribution) Production A script Barrier between fans A mask 3 BDMI, August 2014

4 Prototypical Influencers Network Audience Size (largest age group) Engagement Prototypical Influencer Representative Advertisers 200M users yrs. 75M daily users Chris Ozer, 32 Brooklyn, NY 559k followers 1B monthly unique visitors yrs. 100 hours of video uploaded every minute Zoe Sugg, 24 U.K. 5.1m followers 70M monthly unique visitors 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 yrs. 154 minutes average session Tanesha Awasthi, 34 San Francisco, CA 900k followers 4

5 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 as a result advertisers need to find a new way to reach their audience % who check weekly Where Teenagers (13-18 years) Are Online 100% 93% 80% 65% 60% 40% 26% 26% 17% 20% 0% Instagram Google+ Twitter Facebook YouTube Source: Technorati 2013 Digital Influence Report. US Social Network Ad Revenues $7.0 $6.7 $6.0 $5.5 $5.0 $4.3 $4.0 $3.1 $3.0 $2.5 $2.0 $1.0 8% 9% 10% 12% 13% $- 2011A 2012A 2013A 2014E 2015E Social Ad Network Revenue % of Digital Ad Spend Source: emarketer, Aug % 80% 70% 60% 50% 40% 30% 20% 10% 0% Display Media CTR 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Source: Clipperton Finance Analysis, MediaMind, emarketer, Pearson. Change in Digital Ad $ According to US Advertisers Publishers (content) Ad networks Video ad networks Video sites (Hulu, YouTube) Social Media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Maintain Decrease 5 Source: Advertiser Perceptions; Advertiser Optimism Index Wave 19, Sept 24, 2013

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 Declining Reach of Facebook Brand Pages What forms of advertising do consumers trust? 16.0% 12.1% 11.6% Recommendations from people I know 92% 12.0% 8.0% 4.0% 4.0% 3.5% 8.7% 7.7% 3.0% 2.7% 6.2% 2.1% Consumer opinions posted online 70% Branded websites 58% 0.0% Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Ads on TV 47% % Reach on Brand Pages % Reach on Large Brand Pages (>500k likes) Online banner ads 33% Sure: EdgeRank Checker as cited in company blog, April 1, 2014 Source: Nielsen Global Trust in Advertising and Brand Messages, Comparison of Brand Owned vs. Influencer Audiences Maybelline New York Official Brand Who Influencer 51,000 Subscribers 5,000,000 Avg. Video 11,000 1,400,000 Views Avg. N/A 8,000 Comments 6

7 Influencer Marketing Emerging as Key Model Declining engagement and audience in traditional online media is driving a shift to native content and influencer campaigns on social Media Native Advertising Influencer Marketing Pla$orms Supported 7 BDMI, August 2014

8 Case Studies Influencer marketing is typically used for brand marketing, as well as building buzz and engagement around specific events Contests 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 What ModCloth actively partners with bloggers to promote new products, contests and brand awareness. 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. 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 company has reportedly done $100M in revenue, growing 40% year over year. Affiliate Links Result The combined social media content generated 2.9B earned media impressions, 2.7M YouTube views, helping sell over $1B in Cool Ranch tacos. 8 Sure: Augure 2014 Influencer Marketing report. BDMI, August 2014

9 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 Paid media on premium sites Sponsored influencer content on social media Shift in spend to social platforms Outside trade media buying process New ad-tech infrastructure required Content Production Expensive, broad, highly produced Outsourced, cost efficient, tailored to audience and platform In house creative teams less relevant Resources required to identify and manage talent Lower agency and production fees User Generated Content Unsafe for brands Effective, desired by user Content can be highly customized Shorter lead time Still have to manage brand safety risk Audience Experience Drive off page to destination / microsite Users stay in native experience 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 9

10 New Challenges for Marketers New social mediums have led to new marketing challenges Category Challenges Examples 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? 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? 10

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

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