2020 Influencer Marketing Trends - The Corner London
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I N FLUENCER MARKETING TR EN DS 202 0 PAG E 0 2 Introduction 2019 was the year that influencer marketing went from being ‘pitch candy’ or an added value, to a fully fledged business function, pivotal to the success of “In 2019 we many leading organisations. We now know that 61% of consumers aged 18 to 34 collaborated with have at some point been swayed in their decision- making by digital influencers (MarketingWeek - 2019). The business results that occur as a direct over 190 brands… result of this industry are very real and rapidly increasing. and have put our The Corner were not only part of this surge, but at its forefront. In the past year we’ve collaborated experience into with over 190 businesses and brands in the influencer space. We’ve put our industry experience into this document for your success in 2020. this document”
Contents 01 05 Measurement and ROI Influencers becoming activists 06 02 Shorter form video Increased regulation 03 07 Long term influencer The (continued) rise of nano partnerships and micro influencers 04 Quality story telling
I N FLUENCER MARKETING TR EN DS 202 0 PAGE 0 4 1) In fl u e n ce rs Be co m i n g Act i v i sts Living ethically has gone mainstream. The modern consumer uses social media to research There will also be a greater pursuit for self- and discuss issues that are close to their hearts. acceptance and self-actualisation. Influencers will The modern influencer uses it as a platform to fuel continue to champion themselves and encourage activism. others to embrace their own imperfections. There will be an increase in ‘unfiltered’ campaigns where Celeste Barber is just one of many incredible influencers will talk honestly and frankly with their activists who has leveraged the power of social followers, including discussing the up and down media as a platform to spark international realities of their lives. movements. She has raised a record breaking $50 million for the Australian bushfires through @meganroselane is a top Facebook fundraising. advocate of embracing body image and 2020 will see more digital personalities vocalise their postpartum journey, opinions about societal, environmental and political overcoming self-judgment, issues. and how vulnerability and authenticity are the When surveyed, a staggering 81% of global doorways to self- respondents feel strongly that companies should confidence. help improve the environment. The percentage of ‘Belief Driven Buyers’ - people who choose or don’t Brands who collaborate with influencers to not choose a brand based on its societal stance - rose only promote, but build upon their CSR will see an from 51% to 64% from 2017-2018 worldwide unprecedented uplift. 2020 will see a rise in cause- (Edelman - 2018). Simply put, for the vast majority of led campaigns which have societal-benefits and consumers, a key contributor in buying behaviours is align with the passions of influencers and in turn, the brand’s CSR. their communities.
I N FLUENCER MARKETING TR EN DS 202 0 PAG E 0 5 2) “Our message to brands and In cr e a s e d influencers couldn’t be clearer. Be upfront with followers.” Re g u l a t i o n ASA’S Chief Executive, Guy Parker. Industry watch dogs are clamping down. Undoubtedly one of the hottest and most widely Acceptable Ad Advertisement debated industry topics of 2019 was the increased methods of governance from advertising watchdogs - the ASA disclosure: Advert Paid Ad and the CMA. After releasing an industry code of practice in 2018, laws have become increasingly stringent throughout 2019 and look to bear more serious consequences for those not adhering in @emilycanham adopting correct declaration 2020, with influencers, brands and agencies all methods - content is clearly labelled as an ad. equally liable. “The CMA definitely have teeth and the severity of the possible punishments they’ve announced shows how seriously they're taking this.” (Influencer - 2019) The ASA and CMA bear additional scrutiny of influencers on the topic of transparency. In the past, some influencers have done their best to disguise the fact that they’re being paid to promote a brand in order to maintain an ‘organic’ appeal. This is where watchdogs have drawn a line in the sand. All influencer content which a brand has had any level of control over, must be declared upfront to audiences. In short, audiences must know that a piece of content is an ad before they engage with it. Additionally, for anyone who produces content / ads for children it is important to familiarise yourself with the Children’s Online Privacy Protection Act. As the influencer landscape continues to ramp up, so too do industry regulations - and rightly so. Influencers’ true strength comes from the trust audiences have in them and this trust must be upheld.
I N FLUENCER MARKETING TR EN DS 2 020 PA G E 0 6 3) Th e (co nt i n u e d ) r i s e o f n a n o a n d m i cr o - i n fl u e n ce rs . Myth! Myth! Influencer Marketing is a new thing Influencers are just YouTubers or Connectors Technically, no. Influencer marketing is essentially an evolution bloggers, right? of celebrity endorsement, a practice which dates back to Knowing which influencers are available to you, and which the 1700s when the Royals were used to promote Wedgwood are right for your brand, is essential for running a successful pottery. Brands have been using individuals in a position of influencer program. To get granular, you can usually categorise 2020 will see brands increase / shift budgets influence for centuries to lure customers in through aspiration, towards Nano and Micro influencers. Generally expertise or relatability. In fact, the creative methods have • Macro - 100,000 + influencers into one or more of the below tiers. speaking,barely thesechanged two tiersin thehave a years. last 70 lowerThe CPE* andshift in recent higher CTR**. perception is largely due to the domination of social media, and the birth of influential people who have learned to harness • Micro - 30,000 + that Influencers power are for their beginning toown be popularity. seen as more than a distribution channel. The fact is that different • Nano - 10,000 + influencer tiers produce different results. (followers) * CPE - Cost Per Engagement ** CTR - Click Through Rate Who they are What they are How to use them good for Influencers with traditional & Traditional & social media Brand “Face”, event press social media status reach and impressions coverage, and social media partnership Celeb / Elite Following of over 100K on a Large scale social media Brand “Face”, event social single social media platform reach and impressions coverage, and social Macro media partnership Following of 30K - 100K on a High social media Social media single social media platform engagement partnerships Micro Renowned expert in Industry approval Written content, a particular field speaking occasions, Authority social promotion Journalists Press coverage Press trips, written content, social promotion Media Following of under High social media Social media 30K on a single social engagement in a partnerships Nano media platform specific field Influencer gatekeepers, Consideration & Product gifting, event i.e. agents/managers infiltration amongst invitation, experiences Connectors influencer circles
I N FLUENCER MARKETING TR EN DS 2 020 PAGE 07 3) Th e (co nt i n u e d ) r i s e o f n a n o a n d m i cr o - i n fl u e n ce rs . In terms of immediate and attributable ROI (clicks, conversions, sales), Micro and Nano audiences are usually more effective. The smaller an audience, the closer the relationship between creator and follower: hence the stronger It is crucial to understand the the level of trust. Smaller audiences are often hyper local, less diverse and more engaged. In fact, Micro objectives of a campaign from influencers are 10% more likely to influence decision making than Macro influences. the outset and find the right influencers to help achieve them. The key here is in the selection process. It’s crucial that influencers are vetted and their audience data scrutinised in order to maximise effect. Average Impressions (per post) Cost per click Impressions CPC £ 30 110000 22.5 82500 15 55000 7.5 27500 0 0 208,000 136,000 44,000 14,000 208,000 136,000 44,000 14,000 Followers Followers Results from a recent campaign run by The Corner with a mix of Macro, Micro and Nano influencers. It was clear that while impressions were higher from the Macro influencers, cost per clicks was lower on the nano side.
I N FLUENCER MARKETING TR EN DS 202 0 PAGE 0 8 4) Genuine “The responsibility sits equally with the creator and the brand to ensure S to ry te l l i n g that their stories align” Influencers are born story-tellers. In many cases, their audience have been following their story for years. Consumers are intrigued and captivated by the lives of influencers, but they’ve become more savvy and can spot a disingenuous post instantly. An influencer authentically displaying how a product or service fits into their own life, helps to paint a picture of how it could fit into the audiences’. Advertisers need to be wary of: 1) smothering influencer creativity 2) appearing out of place on an influencer’s page It’s important that a partnership between brand and influencer has a background story and context is given to audiences. Collaborations that feel insincere can have a negative effect on both the brand and influencer. @hawkinsandshepherd content for Neutrogena talks about the reality of living in London and the less- than-glamorous effect it has on his skin. Take away points: • In 2020, brands will allow influencers more creative freedom to speak to their audiences in a way which feels natural. The process will become more and more collaborative. • Consumers have become disengaged with unauthentic branded content. Brands need to allow the influencer to add some real emotions to their @tobyandroo produced this campaign for Heinz content so that it resonates with their audience. Beans showing unreservedly the state of her kitchen during renovations. Heinz is an everyday product for • Keep influencer briefs open to interpretation. Allow everyday people. This post exceeded KPI’s and influencers creative freedom to speak to their received 90% + positive sentiment from followers audience in the way they know best. because it was relatable and sincere.
I N FLUENCER MARKETING TR EN DS 202 0 PAG E 0 9 5) “First, think about the actual objective you are trying to achieve. What do you want influencers M e a s u r e m e nt to do? Then, set KPIs you can achieve, and find what’s working and what’s not.” a n d RO I - Carlisle Campbell, Senior Director of Communications, Capital One The first step to measurement, is setting clear objectives. 57% of influencer marketers see measuring ROI as Use audience their biggest challenge (Zine, 2019). As brands continue sentiment in to increase their influencer marketing, spend, there is reporting understandably an equally increased demand for justification. Before brands try to create KPIs for an The comments influencer campaign, they must first decide what they sections of an are trying to achieve and how influencers can help. To influencer post create a successful influencer marketing strategy, are essentially they must first understand what actions or free focus groups. behaviours will impact their business goals. Use comments in your reporting to indicate audience Clicks, video views, or even sales? sentiment. To date, impressions and engagement have been the most common metrics brands have looked-to when measuring the success of an influencer campaign. However to fully understand the impact that an As the value of influencer marketing becomes more influencer campaign has had, a more holistic approach widely understood and brands begin to see greater should be adopted. By using a personalised uplift from their influencer campaigns, more diverse combination of measurements that align with their strategies will be implemented. It is important that goals, brands will be able to truly measure influencer within this, there is a focus on measurable goals. activity. Some measurable KPI’s could include: Clicks Leads Sales Audience sentiment Engagement Content usage rights App Downloads Increased followers Event Attendees Product Reviews Voucher Downloads Impressions Reach
I N FLUENCER MARKETING TR EN DS 202 0 PAG E 1 0 6) “Instagram stories will replace S h o r t (e r) fo r m likes. Stories allow for so many more means of engagement video than grid posts ever could” WhatsApp Creative, short form video has been identified as one of the most effective way of getting Gens Y & Z on Messenger board. Todays youths are so well conditioned to rejecting TikTok TikTok content that doesn’t appeal to them. If marketers Facebook want to have any cut through with these generations (the fastest growing population cohort) it’s imperative Instagram that we listen to what does appeal, and respond accordingly. Youtube Short form video has typically referred to video Twitter content with a duration of less that 15 minutes. In 2020 this refers to content shorter than 15 seconds. 0 60 120 180 240 In a world of four-second attention spans, the Top Global App Downloads - Q1, 2019 usability of Instagram stories and Tiktok videos are (Sensor Tower - 2019) incredibly welcome. Vast databases of audio and filters, coupled with the ease of editing makes uploading content far easier than before. Additionally, engagement is enhanced by the constant update of features from social media Instagram stories were perhaps the biggest disruptive platforms. Fun filters, voice modifiers and stickers innovation to the influencer marketplace when are interactive, enjoyable and memorable. released in late 2016. They contributed over 1/3 of all #paid posts on the platform throughout 2018. Therefore, one of the worst mistakes marketers (Marketing Land - 2019) could make when working in such a raw medium, would be to approach this audience with a traditional According to data from analytics site Sensor advertising mindset. It’s important to give influencers Tower, TikTok has hit 1.5 billion total downloads. guidelines and key brand messages, but short form videos are often where influencers truly express Nothing has landed the same impact since - until themselves. It’s imperative this integrity is upheld. TikTok. TikTok has seen unprecedented growth not only in the UK market, but world-wide. Never before For mediums like TikTok and Instagram stories, have we seen an app so quickly adopted by an entire influencer marketing is likely to be one of the most generation. Short form videos feel more authentic. effective forms of marketing in 2020. Influencer Creators often post behind-the-scenes, off-the-cuff marketing works best when audiences and influencers content which they’re less fussy about. Videos are feel relaxed and comfortable - to modern audiences also better seen vertically, so phones are great for this medium really hits the mark. generating this type of content, meaning the creation is often inexpensive and informal.
I N FLUENCER MARKETING TR EN DS 202 0 PAG E 1 1 7) Lo n g - te r m In fl u e n ce r Pa r t n e rs h i ps Influencer marketing hasn’t always been regarded as a method for customer retention. However, as spending “Long-term influencer partnerships grows, brands will become more strategic, which includes trying to increase and retain brand loyalty. require more upfront work, but the This is where longer-term partnerships with return appears almost immediately and influencers have been showing real value. Collaborating on an extended term with influencers allows for both over time. One-off collaborations consistent messaging and stronger alignment between talent and brand. require seemingly less effort but can bog down a marketing team’s productivity with wasted time, money, and resources” (MediaKix - 2019) Warren Nash’s contract with ‘Lego Family’ channel, in a 6-month partnership, produced 4 videos a week for the brand throughout the duration. @alexcrockford has a 1 year partnership with Under Armour. Pro’s of long term agreements: Alex is contracted to a - Economies of scale (discounted influencer fees) 4 posts a month, - Likelihood of extra posting / added value but offers far - Exclusivity of the talent within brand sector more value than - The power of repetition his contracted - Added reach if influencer following grows deliverables - S t r e n g t h e n i n g o f a ffi l i a te m a r ket i n g arrangements - Long term partnerships are considered more formal and respectable - The influencer is more involved in the brand and can provide valuable insights Cons of long term agreements: - If you have selected the wrong influencer, you’ll be hitting the wrong audience continually - Much higher upfront costs - Longer time needed for planning - Pressure to choose the right talent
I N FLUENCER MARKETING TR EN DS 202 0 PAG E 1 2 Conclusion In 2020, quick and easy ‘pay per post’ influencer partnerships will begin to be phased out, and emphasis will be put on finding experts in a relevant field to contribute authentically to your brand promotions. At The Corner we put an emphasis on matching well informed strategy with best in class creative. We’re often asked if we have a ‘little black book’ of influencer names. Generally the answer to this is ‘no’. Of course we have extensive industry network. However, having contributed to hundreds of influencer campaigns - we’ve found that it’s important to get to the core of a brands’ problem and then strategically onboard the right influencers to help solve these. Campaigns with a focus on real stories and emotions are the right way forward. The entire industry is founded on trust. If an influencer is able to uphold this trust, add value to audiences and convey brand messages - all three parties will benefit. Influencer marketing as an industry is still developing. Base regulations are still being determined, various tactics are being explored and influencer specialisations are still to be discovered. The one constant is that businesses are seeing unprecedented results by implementing influencer strategy. In 2019 people spent 128% more time on social media than in 2011 and still ad budgets don’t reflect this pattern (Thinkbox Global Web index - 2019). Now is the time to solidify a brands strategy and industry foothold, while the fees are still disproportionate to the results. Credits louis.cosyn@thecornerlondon.com alexandria.zaphiri@thecornerlondon.com
The Corner, London. 1 Richmond Mews, London, W1D 3DA, UK thecornerlondon.com/influencer
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