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The Future of Influencer Marketing 6 Predictions Your Brand or Agency Can Bank On Table of Contents 1 Introduction 4 Prediction 1: Brands will “get” what consumers already know: That traditional digital ad tactics suck 11 Prediction 2: Brands and agencies will falter before mastering the new, trusted web 15 Prediction 3: Brands will deepen customer relationships through influencer marketing 21 Prediction 4: Content distribution will drive content creation 26 Prediction 5: Influencer marketing automation will bring new efficiencies to marketers 31 Prediction 6: Influencer marketing automation will change how you influence 34 Learn More Introduction Hi. Welcome to The Future of Influencer Marketing: 6 Predictions Your Brand or Agency Can Bank On, a report on what’s coming in the world of influencer marketing. Although this ebook isn’t an introductory primer, marketers new to the space will gain plenty of useful information that will serve in campaigns to come. We’re skipping over the basics because we assume you already know a little something about influencer marketing. 1 The Future of Influencer Marketing will not only help you figure out how to ramp up and optimize your influencer marketing efforts; it will also dispel some of the myths circulating about influencer marketing and preview what’s on the horizon. Our predictions come from industry research and our own proprietary data— data we’ve been gathering from our clients’ programs over the past six years. 2 Introduction Influencer marketing is catching fire. It’s an exciting time, and we’re glad to be a part of it. When you see what’s coming, we think you’ll be glad to be part of it, too. 3 Introduction Prediction 1 Brands will “get” what consumers already know: that traditional digital ad tactics suck Pop-up videos. Pop-under ads. Autoplay videos. Banner ads. As marketers, why did we ever think that “disrupt and distract” methods of reaching consumers were a good idea? Here’s why: Because until social media came along, all we’d ever known were the oneway communication methods we’ve been practicing since the dawn of advertising. 4 You know: Radio. TV. Print. Direct mail. Then came the Internet. And we considered it just another channel. So we digitized our brochures and put them on our shiny, new websites. And we surrounded those brochures and loaded up those websites with banner ads to monetize the new medium. Next came email, video, mobile, and social …. Digital advertising quickly got out of hand from there. With the advent of social, consumers found their voice online, and all hell broke loose. Consumers were fed up with being “talked at” and interrupted by brands online. The sudden rise of social gave them a newfound voice in what was, essentially, our game. And they wasted no time making their opinions known. After “X”ing and “deleting” and complaining to whomever would listen, these ticked-off consumers drove the birth of the adblocker. 5 Prediction 1 Adblockers are one of the chief killers of our digital ad efforts today. Adblockers: digital advertising’s public enemy #1 Did you know? Adblock technology is expected to reach full saturation in just a few years. NPR just reported that adblock usage is up 70 percent from 2014 2. Even Apple is getting into the adblock game, allowing developers to create ad blockers for Safari 3. What’s your brand doing about it? 1 2 3 6 47% of consumers are using adblockers 1 -Reuters https://reutersinstitute.politics.ox.ac.uk/sites/default/files/Reuters%20Institute%20Digital%20News%20Report%202015_Full%20Report.pdf http://www.npr.org/sections/alltechconsidered/2015/07/20/424630545/with-ad-blocking-use-on-the-rise-what-happens-to-online-publishers http://9to5mac.com/2015/06/10/block-ads-ios-9-safari-iphone/ Prediction 1 Bots: another reason to shift budget away from digital advertising If adblockers are bad, then bots—automated web crawlers that mimic human behavior and create false engagement data wherever they go—are downright evil. Bot software, simple to create and deploy, has become a multi-billion dollar problem for the digital advertising industry, accounting for two-thirds or more of all digital engagement. Recent studies place that figure at as high as 98 percent4. metrics. This year, that amount could be as high as $29 billion5. To learn more about bots and how to protect yourself, check out The Bot Baseline: Fraud in Digital Advertising, a report by the Association of National Advertisers and White Ops, a pioneer in the detection of bots and malware on the web. Know what this means? It means that all those clicks you see registering on your paid advertisements are not from humans. They’re from bots, which are duping brands out of billions of dollars through false engagement 4 4 5 7 http://oxford-biochron.com/downloads/OxfordBioChron_Quantifying-Online-Advertising-Fraud_Report.pdf http://oxford-biochron.com/downloads/OxfordBioChron_Quantifying-Online-Advertising-Fraud_Report.pdf https://www.thinkwithgoogle.com/infographics/5-factors-of-viewability.html Prediction 1 The new norm: consumer behavior ... sans trust That brief history lesson brings us to the state of affairs today. We as marketers are tired of throwing dollars at ad methods that no longer work. We’re scratching our collective head, wondering where to turn. As consumers, we now have a voice. We now have a choice. And we love to use both. As marketers, we have no choice but to follow this shift—to move away from traditional tactics and towards what has become the new, trusted web. What media do consumers trust if not banner and video ads? According to Nielsen, 92 percent of people trust strangers over brands6. And, by the way, “brand” includes any content a brand produces. You see this perception playing out through the rise and popularity of online reviews. How many times has a review from Yelp, TripAdvisor, or Amazon swayed where you spent your dollars? 6 http://www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html 8 Prediction 1 Where do consumers turn if not to digital brochures or selfpromoting websites? According to another study, 74 percent of people turn to social networks for guidance on purchase decisions7. And given the GlobalWebIndex finding8 that people spend one in every four minutes online on a social media site, that stat makes sense. How many times have you followed a link to check out a cool t-shirt, the next new-new gadget, or what might be the perfect gift for your great Aunt Gertrude, who has everything? 9 7 http://www.adweek.com/prnewser/ogilvy-cannes-study-be hold-the-power-of-word-of-mouth/95190?red=pr 8 http://insight.globalwebindex.net/social-q1-2015 Prediction 1 “Word of mouth is the primary factor behind 20 percent to 50 percent of all purchasing decisions.” Jonah Berger, Contagious: Why Things Catch On 10 Prediction 4 Prediction 2 Brands and agencies will falter before mastering the new, trusted web 11 On the new, trusted web, consumers respond to disruptive communications in one of three ways: 1. Block ‘em 2. Close, dismiss, or otherwise exit ‘em as quickly as possible 3. Treat ‘em like background wallpaper — there, but not worth paying attention to On the new trusted web, consumers want communications on their terms. They want trusted messages from people like themselves, even people they don’t know personally. In Influencers We Trust Even though she’s a marketer by trade, Rachael Cihlar, Tap’s resident Influencer Marketing Strategist, surfs the new, trusted web the way most of us do—as a consumer. “Instagram is my favorite social network,” she says. “I follow lifestyle and fashion influencers on there, so when I’m looking for, say, Fall’s new trends, I go straight to a few key influencers for inspiration for my Fall wardrobe. Those influencers tell me what’s hot, what’s not, and, for example, how to style a new pair of boots. Before you know it, I’ve made a decision to buy those boots, and I haven’t even thought about going to the brand’s site.” 12 Prediction 2 Rachael Cihlar Even more surprising to Rachael is that she doesn’t really know the people who influenced her decision. “Sure, I’ve been following them for a while, so I trust what they say and post. But still, in a sense, I’m relying on the word of strangers, and then using social networks to do the bulk of my research.” Ready to take the new, trusted web by storm? Ahhh. How wonderful is this new web for our brands and agencies! Now, we marketers need only to share our content and communicate our messages, and voilà! Consumers buy, and success is had. Right? Not so fast. Remember those intrusive, disruptive digital ads? The ones that continue to drive consumers crazy? Those ads combined with excessive email marketing have shredded the trust of consumers. That’s why 92 percent of people trust strangers over brands today9. 9 13 And trust is where the brand challenge lies, because brands now have to rebuild broken trust. 92% of people trust strangers over brands http://www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html Prediction 2 9 What’s your #1 job, your first priority? Rebuild consumer trust How can you, on behalf of your brand, rebuild trust? By understanding: You’ll be poised to choose the right channels; ready to create and distribute targeted influencer content. Who the consumer is What she needs It won’t be easy. And it won’t happen overnight. What she wants But it will happen. Where she lives online As consumers repeatedly see your content and messages coming from trusted influencers, you will, over time, develop meaningful relationships and build engagement. Who she follows Who she trusts Then, armed with that knowledge, you’ll be in a position to choose the right influencers. 14 Prediction 2 Prediction 3 Brands will deepen customer relationships through influencer marketing 15 If you get it right … if you take the time to understand your customers … if you choose the right influencers who get the right messages out to the right audiences in the right channels at the right time … then influencer marketing becomes a potent source of revenue and customer love. Influencer marketing will also take a primo place in your marketing mix: 73 percent of marketers say they have budget for influencer marketing 10 59 percent plan to increase the influencer marketing budget in the next year 11 The spend on influencer marketing is expected to hit $336 million in 2015 12 10 16 https://www.forrester.com/The+Forrester+Wave+Social+Relationship+Platforms+Q2+2015/fulltext/-/E-res120645 11 http://technorati.com/wp-content/uploads/2013/06/tm2013DIR1.pdf 12 Based on 2013 Technorati estimate, applying CAGR of 18.18% consistent with Forrester expectations of the social media market http://technorati.com/wp-content/uploads/2013/06/tm2013DIR1.pdf Prediction 3 It’s no wonder why marketers and brands are catching on: 70 percent of consumers trust the word of family and friends first, online reviews second13 47 percent of US readers consult blogs to spot new trends and get new ideas 35 percent of US readers look to blogs to discover new products 13 http://www.prweb.com/releases/2011/4/prweb8300514.htm 17 Prediction 3 Plus, influencer marketing in the mix pays off: 51 percent of marketers say that influencer marketing produces better customers14 One Tap CPG customer found that influencerdriven brand advocates spend 35 percent more— and they keep on buying, increasing the lifetime value of those customers But hey, we get it. Stats are one thing … stories, another. 14 http://blog.tomoson.com/influencer-marketing-study/ 18 Prediction 3 In battles between brand- and influencer-owned content … there is no battle Battle 1: Maybelline-owned vs. influencer content Influencer content wins for the Maybelline brand. The company’s own YouTube channel drives 11,000 views per video. Not bad. But influencer videos generate an average of 1.4 million views per video — a clear indication that influencers win the battle against Maybelline’s own brand channel15. 15 http://www.slideshare.net/BDMIFund/bdmi-influencer-marketing-overview-august-2014 19 Prediction 3 Battle 2: Vlogger vs. brand “celebrity” content Battle 3: Black Box-owned vs. influencer content The winner? L2 reports that vloggers in the digital beauty space trounce mainstream celebrities, with vloggers drawing more than 700 million views per month and attracting 50 times more views and 108 times more subscribers than celebrity content for an underlying brand. In one corner: The old Black Box Wines site. In the other: An updated site with a new social media hub featuring the content from 50 new influencer-created blog posts. The new hub prevailed17, generating: Need more proof? L2 also reports that, in a Google search for brand terms, two-thirds of the first-page results is content from influencers, whereas only eight percent of results point to brand pages. That’s less than one result for a brand on each page16. Knockout. An increase of 31 percent in website views An increase of 56 percent in time on site An increase of 44 percent in social mentions The original campaign packed a punch, too. Those 50 authentic blog posts about influencers’ first tastes of Black Box Wine? They delivered: 73,000+ views 5,000+ engagements A total media value of $250,000 16 17 20 http://www.l2inc.com/vloggers-outshine-celebrities http://www.tapinfluence.com/customers/black-box-wines-success-story/ Prediction 3 Prediction 4 Content distribution will drive content creation If you think about it, prediction four sounds a little backwards: “Content distribution will drive content creation.” Don’t you create—and then distribute? Don’t you create so that you can distribute? And don’t customer needs—and your need to sell—drive content creation? Yes, yes, and yes. 21 In influencer marketing, as with all content marketing, you work backwards from the customer to create content. But in influencer marketing, you don’t look only at the WHAT—the consumer pains, challenges, and opportunities—but also at the WHERE—the places your consumers work and play online. Then, with the WHERE in mind, you—and your influencers—are ready to create content to maximize reach and engagement on those channels. Case in point: how content distribution drives content creation Is your target audience (and are their influencers) on Facebook? If so, you need to know that the photo post is now the worst-performing type of brand content on Facebook, and that video reigns supreme . And you need to know this before you or your influencers create content. 18 Is your audience on Twitter? There, the opposite is true: Images far surpass videos, garnering 128 percent more retweets . 19 The moral? To reach your audience, let content distribution drive content creation. 18 http://marketingland.com/want-maximum-reach-facebook-dont-post-photos-118536; accessed August 5, 2015. 19 http://www.quicksprout.com/2014/03/05/what-type-of-content-gets-shared-the-most-on-twitter/; accessed August 5, 2015. 22 Prediction 4 A Digital Marketing Puzzle Question: If 65 percent of marketers say that targeting precision is the top attribute of a content marketing campaign20 … and if 47 percent of marketers aren’t satisfied with their ability to distribute content to the right audiences17 … Then why do 87 percent of marketers continue to take the path of least resistance and use the company website as the number one method of distribution for content 17 marketing programs ? Answer: Old habits die hard. When content distribution works … and when it doesn’t You can tell when content distribution isn’t driving content creation. The proof will be in the engagement, or lack thereof. If you don’t understand your distribution channels, you may wind up wasting your effort and budget, creating content your audience doesn’t want and won’t engage with. On the other hand, when distribution is driving content creation, you’ll reach your audience—and their audiences and networks as well. In fact, sharing content through influencers in your industry can triple conversions, in some cases increasing conversions by a factor of 21 10 . It’s the magic of amplification. 20 http://www.itbusinessnet.com/articles/viewarticle.jsp?id=3415100 17 http://www.tapinfluence.com/customers/black-box-wines-success-story/ 21 http://branderati.com/the-age-of-advocacy-and-influence-26-statsmarketers-should-know/ 23 Prediction 4 Sharing content through influencers in your industry can triple conversions 24 Prediction 4 What kind of content amplifies well? Amplification in action: an example Content that amplifies ... content that spreads … content that consumers willingly distribute … is content that’s real. By real, we mean: This YouTube video represents one of our favorite examples of amplification. It tells the story of a student in a social media class unexpectedly using the power of amplification to generate a flurry of testimonials for Columbia Business School— with nothing more than a simple tweet and hashtag. Authentic Fun Creative Useful It’s content that, like influencer content, provides Youtility. “Youtility is marketing upside down. Instead of marketing that’s needed by companies, Youtility is marketing that’s wanted by customers. It’s massively useful, FREE information that creates long-term trust and kinship between a company and its customers.” —Jay Baer, Youtility 25 Prediction 4 How might you use influencers and the power of amplification for your brand? Prediction 5 Influencer marketing automation will bring new efficiencies to marketers Did you know that the number of professionals citing influencer marketing as a skillset grew by 27 percent in less than two months22? That’s right. Influencer marketing is happening now. It’s happening everywhere. 22 26 This data is from a TapInfluence study of LinkedIn profiles conducted in July 2015. As your digital marketing portfolio expands to accommodate influencer marketing, you’ll need a way to scale and measure to create predictability, a need that, of necessity, will spawn efficiency. How so? Imagine that you want to launch an influencer campaign involving 20 influencers. We know that influencer campaigns are typically executed by senior people, someone like a Senior Digital Communications Manager. We also know that such a person earns, on average, $80,000 annually, or $38.50 hourly. Let’s take a look at what the work involved in, and cost of, such a campaign might be. A hypothetical: manually running an influencer campaign with 20 influencers Task Total number of hours Identify 200 influencers to hit an end target of 20 (for scouring the Internet and social sites to find influencers that match your chosen categories; verify their reach and content aesthetic) Recruit by sending emails to those 200 influencers (for writing emails; responding to queries; discussing content strategy) Negotiate with your chosen 20 influencers Manage the content creation process 40 hours 40 hours 20 hours (for back-and-forth emails that outline tasks and rates; tracking rates toward your budget) 80 hours (for gathering content, reminding influencers of requirements; approving Average task cost @ $38.50 per hour $1,54023 $1,540 $770 $3,080 posts before they go live) 40 hours Measure and report on the campaign (for tracking down content; capturing view / engagement details; tying performance to KPIs) $1,540 Cost of Your time 220 hours $8,470 23 http://innetwork.net/2015/05/6-basic-steps-manage-influencer-outreach-campaigns/ Yes. It’s a lot of work, calling for in excess of 200 people-hours from a senior staff member. Sounds like a siren call for efficiency, no? Enter influencer marketing automation. 27 Prediction 5 Meet the next generation of influencer marketing Influencer marketing automation (IMA) is a new category of marketing automation that brings the power of data matching, algorithms, and SaaS technology to brands and agencies wanting to reach and engage consumers wherever they are—authentically, efficiently, and at scale. In other words, IMA is technology that makes it simple to run any number of influencer campaigns at the same time—without having to add headcount. It gives us the ability to: Connect the right influencers to the right content in the right channels at the right times Use baked-in best practices and methods to generate predictable, measurable results 28 Prediction 5 Drive engagement through authentic social conversations with known and unknown audiences Eliminate our dependence on broken broadcast and ad-based distribution models Engineer a new era of intimacy between our brand and consumers Harness the consumer’s solid trust in influencers—and in the meaningful content influencers create and exchange online Influencer marketing automation is also going to save us a lot of time and money. How much? Glad you asked. A comparison: running the same influencer campaign with and without automation Let’s return to our earlier example to compare the work of running an influencer marketing campaign manually to the work of running the same campaign with automation. The Manual Way Task Total number of hours Identify 200 influencers to hit an end target of 20 (for scouring the Internet and social sites to find influencers that match your chosen categories; verify their reach and content aesthetic) Recruit by sending emails to those 200 influencers (for writing emails; responding to queries; discussing content strategy) Negotiate with your chosen 20 influencers 40 hours 40 hours 20 hours (for back-and-forth emails that outline tasks and rates; tracking rates toward your budget) 80 hours The Automated Way Average task cost Total number of hours @ $38.50 per hour Average task cost @ $38.50 per hour 5 hours $1,540 23 $1,540 (for using the platform to search for and review target influencers) None (influencers have opted in) $192.50 - 1 hour $770 (for minimal work; you already know rates for each piece of content) $3,080 (for reviewing and approving content submitted through the system) 8 hours $38.50 Manage the content creation process requirements; approving posts before they go live) Measure and report on the campaign (for tracking down content; capturing view / engagement details; tying performance to KPIs) $1,540 (for choosing, viewing, and distributing reports) $192.50 Cost of Your time 220 hours $8,470 19 hours $731.50 29 Prediction 5 (for gathering content, reminding influencers of 40 hours 5 hours $3,080 A comparison: dollars saved The Manual Way The Automated Way Total number of hours @ $38.50 per hour Task cost Total number of hours @ $38.50 per hour Task cost 220 $8470.00 19 $731.50 Amount Saved: $ 7,73 8.50 30 Prediction 5 Prediction 6 Influencer marketing automation will change how you influence 31 The rise of IMA will not only save us time and money. It’s also going to change how— and how much—we influence. For the first time ever, we’ll be able to scale and grow our influencer marketing efforts, predictably, without adding headcount, and all the while regaining the trust of consumers. An agency with IMA will: Pitch bigger, win more, and risk less Offer influencer marketing as a core competency without adding headcount Build an influencer marketing practice that drives and sustains rapid growth Stay abreast of influencer best practices Deliver margins and set pricing and comfort levels by knowing your costs Get campaign results in weeks, not months 32 Prediction 6 A brand with IMA will: Deepen relationships with and generate more revenue from existing consumers Create connections with new consumers Handle always-on influencer marketing efforts in house Own relationships with influencers Keep high-level staff focused on key programs and initiatives Stay abreast of influencer best practices Deliver campaign results in weeks, not months 33 Prediction 6 Want to learn more? Visit our Influencer Marketing resource center for educational videos, webinars, ebooks, and success stories. To learn more about TapInfluence’s influencer marketing platform: Email: [email protected] Call: 720-726-4074 Visit: www.tapinfluence.com Let’s Talk / Get a Demo