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State of Influencer Marketing - Mid-Year Review

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As influencer marketing continues to evolve and mature, more and more brands are doubling their investment this year. In this week’s webinar, we will deep dive into how to get influencer marketing right for your business. This session will be led by Kathy Baird, Managing Director of Content & Social at Ogilvy North America and Robert Davis, Head of Advance Video Practice at Ogilvy New York.

We will look at:
- Latest influencer trends
- Methodology to working with influencers
- What to look out for in the second half of the year

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State of Influencer Marketing - Mid-Year Review

  1. 1. 1 IN Powered by INFLUENCE For
  2. 2. 2 Hello! Thomas Crampton Global Consulting Principal, Marketing Transformation OgilvyRED Kathy Baird Managing Director, Social North America OgilvyPR
  3. 3. 3 What’s the weather like in your city? Tell us where you’re dialing in from!
  4. 4. 4 Want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy Ogilvy staff: It’s also on The Market! themarket.ogilvy.com Are you on the go? You can join our webinars on mobile, too! Download the GoToWebinar app from the App Store or Google Play
  5. 5. 5 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
  6. 6. 6 Agenda • 2017 Mid-Year Influencer Marketing Landscape • Ogilvy’s Influencer Marketing Process • The Latest with Influencer Marketing Measurement • Recent Industry Examples
  7. 7. 7 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
  8. 8. 8 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
  9. 9. 9 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
  10. 10. 10 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
  11. 11. 11 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
  12. 12. 12 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
  13. 13. 13 3. INFLUENCERS AS CREATORS Enhancing your creative team and maximizing content opportunity Value Exchange / Financial Compensation Increased Exposure Passion for Brands Creative Inspiration
  14. 14. 14 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
  15. 15. 15 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.
  16. 16. 16 6. MORE RIGOR AROUND DISCLOSURE Pressure on FTC to regulate – more #ad, no #spon
  17. 17. 17 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
  18. 18. 18 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
  19. 19. 19 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.
  20. 20. 20 Map Out Tiered Recommendations
  21. 21. 21 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
  22. 22. 22 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
  23. 23. 23 A P P R O A C H T O M E A S U R E M E N T
  24. 24. 24 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
  25. 25. 25 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
  26. 26. 26 L E S S O N S F R O M T H E I N D U S T R Y
  27. 27. 2727 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
  28. 28. 2828 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
  29. 29. 2929 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
  30. 30. 3030 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
  31. 31. 31 Q U E S T I O N S ?
  • RachitaSaha

    Jun. 28, 2020
  • JoshuaMedler

    Feb. 3, 2020
  • MohamedAbdelaalAhmed

    Feb. 2, 2019
  • KatieTreacy1

    May. 22, 2018
  • ddanire

    Oct. 15, 2017
  • tripathisaumil

    Sep. 29, 2017
  • marciikeler

    Aug. 9, 2017
  • JessicaNeese

    Jul. 28, 2017
  • PrateekMishra12

    Jul. 25, 2017
  • 1545676652

    Jul. 18, 2017

As influencer marketing continues to evolve and mature, more and more brands are doubling their investment this year. In this week’s webinar, we will deep dive into how to get influencer marketing right for your business. This session will be led by Kathy Baird, Managing Director of Content & Social at Ogilvy North America and Robert Davis, Head of Advance Video Practice at Ogilvy New York. We will look at: - Latest influencer trends - Methodology to working with influencers - What to look out for in the second half of the year

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