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UEN
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MARKETING 2020
AB
OUT
We are a powerful data intelligence
tool that combines the knowledge
and insights you need to deliver a
successful celebrity and influencer
marketing strategy. From emerging
talent to mainstream taste-makers,
we help businesses worldwide to
discover and connect with only the
most relevant talent
CONTRIBUTORS
The report features qualitative interviews from a
wide range of industry experts including brands,
agencies, influencers and consultants. Interviews
were carried out over the phone in August and
September 2018. Contributors include…
Bexy Cameron Sarah Evans NATASHA HULME Ollie Thomas Aaron Brooks
Head of Insight Head of Digital at Bottle PR Senior Strategist Managing Partner Co-Founder
Amplify Beauty SEEN Beyond Talent Global Vamp
Emma Usher Natasha Mensah Benjamin Lucy Lendrem Suri Singh Dee Mehta
Company Director Managing Partner Head of Talent UK at Influencer Expert Marketing Manager
RunRagged Media Beyond Talent Global Gleam Futures ITB Worldwide Ananya
09 INTRODUCTION
10 WHERE IS THE
INDUSTRY NOW?
14 CASE STUDY:
CONVERSE’S ‘YOUNG
AND LACED’ PROGRAMME INVESTS IN A
NICHE POCKET OF YOUTH CULTURE
15 KEY
TRENDS
17 CASE STUDY:
MANGO GIRLS
18 CASE STUDY:
H&M SPORT MAKES
AMBASSADORS
OF NICHE GLOBAL
SPORTS ENTHUSIASTS
4
22 CASE STUDY:
JEWELLERY BRAND ANANYA FINDS
SUCCESS WITH AUTHENTIC, UNPAID
INFLUENCER COLLABORATIONS
26 CHALLENGES
32 CASE STUDY:
KELLOGG’S: JUSTIFYING
INVESTMENT WHEN THERE IS
NO DIRECT LINK TO PURCHASE
33 MEASURING
SUCCESS
41 CONCLUSION
42 REFERENCES
5
EXEC
U T IVE
SUMMARY
KEY FINDINGS
Digital influencers
have swayed purchase
decisions for the majority
of millennials
61% of consumers, aged 18 to 34, have at some 61% of consumers say micro-influencers
point been swayed in their decision-making by produce the most relatable content
digital influencers, the consumer survey finds. 56% of marketers questioned say that micro-influencers
This consumer group is a discerning one having largely are more cost-effective for them to work with than top tier
grown up with social media and is often the first to notice talent, and 55% also believe they have a better connection
when an influencer has sold themselves out or failed to with their target audience. When it comes to analysing the
disclose a commercial relationship. It stands to reason that appeal of micro-influencers, 61% of consumers believe they
within the survey of industry marketers, 56% admit that the produce more relatable content. Furthermore, US consumers
changing expectations from a rising digital-born generation of particularly value the transparency of this segment of talent
consumers is proving the biggest driver of change within their (44%), significantly more than UK respondents (26%).
influencer marketing programmes. Amidst growing rumours
of a backlash against influencer culture, how this younger
generation perceives influencers, and permits their opinions
and choices to be shaped by them, will ultimately determine
the sustainability of influencer marketing moving forward. Proving the ROI of individual influencers is a big
challenge for 84% of marketers
A resounding 84% of marketers agree that being able to
demonstrate the ROI of influencer marketing will be critical
Confusion continues to plague disclosure to its future. Yet despite this, 31% say influencer marketing
guidelines is peripheral to their digital marketing ROI calculations,
Brands are fully aware that consumer trust in influencer content and additionally proving the ROI of individual influencer
is eroding, and 64% of marketers feel that drastic action to collaborations is also cited as the greatest ongoing challenge
prove transparency is critical. While the Advertising Standards (alongside identifying the best talent to work with).
Authority in the UK (ASA) and Federal Trade Commission (FTC)
in the US, set guidelines for influencers and have begun to take
a harder line on individuals who are not properly disclosing
their commercial brand relationships, industry experts
interviewed say there is a strong case for more clearly defined 90% of marketers say authenticity is critical to
rules that are not so open to interpretation. the future of influencer marketing
More than two-thirds (68%) of industry respondents say that
authenticity and transparency is key to influencer marketing
success. Experts interviewed for this report stressed the
100% of marketers agree that ‘relevance’ is the need for due diligence in selecting an influencer to work
with, to ensure they are not only a credible match for the
most sought-after attribute in influencers
brand and their audience, but also the campaign in question.
Industry experts agree unanimously (100%) on the importance
Contract terms are also changing to reflect the gradual rise
of collaborating with influencers whose following is relevant
in longer-term, organic and more meaningful partnerships
to the brand. Three quarters of industry respondents say
that are being forged between brands and influencers. Only
influencers should already be a fan of the brand, for example,
8% of survey respondents claim that they are engaging
to prove their relevance. Many of the experts interviewed for
influencers on a one-off post basis. Above all, 90% of industry
the report championed the concept of brands supporting
respondents say that brands need to take authenticity and
influencers who are already embedded with the brand and
transparency more seriously, for it to be sustainable over
have been loyal supporters for some time, so that their first
the long term. Consumer attitudes are similar, with 61%
posts are organic and unpaid for. This, experts claim, will
expressing a preference for influencers who create authentic,
ensure that the influencer is proud and passionate about the
engaging content.
6 content that they create on behalf of the brand.
More than half of brands are searching for
influencers manually
‘Identifying talent’ is cited by marketers as the biggest challenge
in influencer marketing, currently. One of the main reasons
for this is that just over half (54%) of respondents say they
are continuing to search for influencers manually, via social
media platforms and forums. Experts interviewed for the report
stressed the need for the identification process to include a
360-degree analysis of influencers, benchmarking them, looking
at their audiences and their personality archetype, all through a
combination of manual due diligence and data-driven insights.
influencerintelligence.econsultancy.com
8
INTRO
DUCTION
2018 has been the year that influencer marketing has were engines for product promotion, but today, we are
exploded, while simultaneously coming under the crafting collaborative brand and product narratives
greatest scrutiny. Initially heralded as the future of through influencer content partnerships. We’re looking
digital marketing and thought to have the potential for influential voices with interesting stories and points
to challenge more traditional forms of celebrity of view for brands,” shares Natasha Hulme, Senior
marketing, the past 12 months have exposed chinks Strategist at Beauty SEEN. “We are taking learnings
in the armour, raising questions over the long-term from the past and understanding how to balance paid
sustainability of influencer marketing. endorsements with organic advocacy.”
Articles have surfaced claiming influencer marketing A simple example illustrates this point well. Grime
is dead, and a couple of high-profile investigations by artist Stormzy, and singer and actress Rita Ora,
the Competition and Markets Authority (CMA) and have both had collaborations with Adidas. Stormzy
Federal Trade Commission (FTC) into whether top has been a loyal follower of Adidas for years,
tier influencers have been endorsing products without dating back to well before he found fame. “You
disclosing their commercial interests, have cast doubt could scroll back five years on his social stream to
over the credibility of digital talent, with critics claiming see him wearing Adidas with his crew - he was very
their influence has also begun to wane. embedded with the brand, because he loved it,” says
Bexy Cameron, Head of Insight at Amplify. Rita Ora,
To add fuel to the fire, Keith Weed, Unilever’s CMO, on the other hand, has put out several collections
took the stage at Cannes this year to expose the with Adidas Originals, but during that time she also
current state of influencer marketing, which he argued shared pictures of herself wearing Fila and Reebok,
is plagued with transparency and authenticity issues. among other athletic brands. “Rita Ora got pulled in
He called for a three-pronged approach to influencer to do a campaign with Adidas and she had a much
marketing in which misleading engagement, dishonest bigger reach at the time than Stormzy, however
practices and a lack of transparency need to be fixed. two weeks beforehand her audience had seen her
“We need to take urgent action now to rebuild trust wearing Sketchers. That says to her audience she is
before it’s gone forever,” he said. there for a brand activation, rather than because she is
in embedded with the brand, and when young people
Mistakes have clearly been made, by influencers and are so savvy you can’t afford to make slip-ups like
brands alike, and significant challenges still exist; but that,” says Cameron.
to tarnish the entire industry with the same brush
is unjustified. There was a period of education as But the tide is turning, and contrived commercial
there would be with any new form of marketing, and partnerships are waning in favour of genuine, organic
experts interviewed for this report agree that we have brand tie-ups where there is already some natural
arrived at a place where brands are beginning to do affinity or advocacy. Lucy Lendrem, Head of Talent
influencer marketing properly. Bexy Cameron, Head UK at Gleam Futures, shares: “We are seeing a lot of
of Insight at brand experience agency Amplify and beauty brands only engaging commercially with talent
an expert on British youth culture, shares: “How we who naturally endorse the brand, i.e. they have to be
are working with influencers is changing: the industry fans of the brand. In the early days there was a lot
isn’t dying but we need to get smarter about how we of paying people who didn’t already talk about the
do influencer marketing and work with people who brand in order to increase reach, but increasingly that
have expertise, who are relevant and who are already is becoming a must-have for brands, which means the
embedded within the brand. Brands need to stop talent who are most passionate about a brand end
looking at just reach and start considering all of the up working with them commercially, and that is only
other parts of influence.” a good thing.”
For a few years brands gravitated towards working As we look ahead to 2020, the future of influencer
with the biggest names and largest followings in the marketing, like any marketing strategy, will be subject
industry, for understandable and valid reasons: after to changing trends, audiences, and technologies.
all, that is what has characterised celebrity marketing The wider the landscape gets, the harder it will be to
for many years, with proven success. But diversity navigate, and the experts interviewed for this report
is on the rise and brands are seeing the benefits agreed more challenges are coming. For influencers
of working with a range of influencers, particularly also, the barriers to entry are becoming higher,
micro-influencers. Approximately 6 in 10 of the which is making it harder for rising talent to break
digital marketers surveyed for this report claim through. This report will consider the opportunities
the purpose influencer marketing serves for their and threats shaping the future of this increasingly
business has changed in the last 12 months (see Fig. critical segment of digital marketing. Through
4 below), with the younger generation of consumers qualitative expert interviews and bespoke survey
being the biggest driver of change (see Fig. 3). Young data collected from both industry marketers and
people have come to more firmly reject the way that consumers within the UK, US and globally, it will seek
influencer marketing has been done over the past to clarify the capabilities and approaches required to
few years and are instead demanding higher levels of make influencer marketing a sustainable investment
authenticity and relevance. “In its infancy, influencers for brands, both now and in the future.
9
WHERE
IS THE
INDUSTRY
NOW?
On Instagram alone, influencer marketing is now a $1bn
industry, and this figure is rising steadily, predicted to
reach $2bn by 2019.01 Recent new features such as
Instagram Stories, Live and Gallery, along with the
new paid partnerships tag are all designed to benefit
brands and influencers alike, while drawing audiences
in deeper.
Figure 1
21%
14% 14%
13%
9%
10
Digital influencers
have swayed purchase
decisions for the
majority of millennials
61% of consumers, aged 18 to 34, have at some point
been swayed in their decision-making by digital
influencers, the consumer survey finds (see Fig. 2
below). Interestingly, US consumers (71%) are more
likely to say they have been influenced than UK
respondents (51%).
61%
39%
Figure 2
Have social media influencers in
some way ever influenced your
consumer decisions?
Yes
No
11
How young people perceive digital influence is Cameron explains that young people have come
critical, and as a result, more than half of industry to consider the role of ‘influencer’ as a job
respondents (56%) say the digital-born generation which is hard graft, very competitive and more
of customers is proving the biggest driver of commercial than it ever used to be. They have
change (see Fig. 3). also seen influencers get it wrong too often and
be publicly ridiculed for their mistake; overall the
Bexy Cameron, Head of Insight at Amplify, recently novelty of having ‘influence’ has worn off, and the
published Young Blood 2, a comprehensive study digital-born generation is now more passionate
into modern British youth culture that looked about other things, such as the environment.
extensively at how young people aged 18-30
perceive influencer culture, and how attitudes According to Cameron, young people have begun
have shifted since 2016 when the first phase of to reject the way that influencer marketing has
research was conducted.02 Above all, it unearthed been done over the past five years, and their
the potential beginnings of a backlash against appetites to be influenced has clearly dropped.
influencer culture, with the concept of ‘influence’ “There are nine different types of influence but
being notably less popular than it was a couple of with influencer schemes and endorsements as
years ago. The report reads: “Our young audience an industry we have always looked at something
see themselves as influential – 62% feel they can that is very easy to quantify, which is reach,”
influence their peers, which is up from 2016 – but Cameron explains. “Reach is only one of the types
they don’t want to be called influencers as this is now of influence and we should instead be looking at
a real job and one that is open season for criticism. things like does the individual have relevance, do
Only 18% see themselves as influencers on social they have authority on a particular subject, how
media. 41% do not want to be more influential on do they treat their audience, is there some natural
social (with 26% not having an opinion either way).” affinity, etc.”
Figure 3
Other 7%
12
As a result, 59% of industry respondents say the
purpose influencer marketing serves for their business
has changed over the past 12 months.
Figure 4
44%
32%
15%
9%
‘YOUNG
AND LACED’
PROGRAMME
INVESTS CHA
LLENGE
IN A NICHE Converse, the 100-year-old streetwear brand,
POCKET
needed to keep relevant to a youth audience. It
was performing well among certain demographics,
but to remain the brand of choice for 16-25-year-
STRA
TEGY
Converse embarked on an influencer strategy
programme, called ‘Young and Laced’, through
which they signed up a group of boys aged 16-
20 and supported them for a year-long period.
Converse chose creative boys from urban
communities, who represented exciting, young
and local talent, and gave them bursaries and
challenges. The campaign wasn’t consumer
facing to begin with as above all Converse
wanted to understand more about the audience
and select the most appropriate talent to work
with. They also wanted to give the boys what
they needed which was a platform and funding to
get themselves going. “These guys were brilliant,
but they were ordinary, and they only had 800
followers each. But the point wasn’t reach, it was
depth, and in a grassroots way so that we were
giving back to a community,” explains Cameron.
OUT
COME
The initial programme lasted for a year and by the
end of it the talent had become genuine brand
ambassadors for Converse, truly loving and
endorsing the brand. They were given platforms
to talk about their work, artists to collaborate
with, and mentors to help with everything from
developing creative concepts, to media and PR,
to ensure their work was accessible to the largest
audience possible. “Four years later the boys still
really care about the brand, and some are huge
influencers now,” shares Cameron. “And when
they talk about Converse with a big audience,
the authentic links are there. It was a big risk,
which not all brands would be willing to take, but
it provided an important lesson in the experiences
and emotional connections that a brand can give to
14 influencers, which they couldn’t get anywhere else.”
KEY
TRENDS
For quite some time it seemed like an influencer’s Ella Catliff, Head of Communications at The
total following and reach was the most important House of Luxury and Founder of La Petite
thing, but the tide is turning, and experts Anglaise, shares that content created by top-
interviewed for this report concurred that tier talent isn’t always the most effective. “Over
brands are beginning to focus on other areas the past couple of years, I have seen a lot of
of influence, and particularly the quality of brands paying a large amount of money to top-
interaction between a talent and their following tier influencers, to essentially all produce the
along with their audience demographics. same content for them, with the same hashtag,”
she explains. “We need to move past that and
As a direct consequence, brands are shifting influencer collaborations could definitely benefit
their attention from top-tier talent to those from being a bit more nuanced and bespoke, and
demonstrating higher levels of quality engagement, particularly within the luxury sector, and it is time
and micro-influencers very often fit the bill. They to look at different ways of working.”
tend to have niche followings who they are deeply As Fig. 5 below reveals, industry respondents say
connected with, and this can be well suited to a that micro-influencers, or those with less than
brand who is looking to target a specific audience. 100,000 followers, are in highest demand, while
As Joseph Harper, Social Media Manager, UK & top-tier talent boasting a global presence are the
Ireland, at Kellogg’s, puts it: “why would we invest least sought after.
Figure 5
65% 659
59%
57% 57% 581
51%
505 523
49%
43% 43%
41%
35%
Male
343
Female
Total
Checks
Figure 6
Other 2%
61% of consumers
say micro-influencers
produce more
relatable content
When it comes to thinking about the appeal It additionally seems that US consumers
that micro-influencers hold for consumers, 61% particularly value the transparency of this
say they believe they produce more relatable segment of talent (44%), significantly more than
content (see Fig. 7 below). A further 43% of UK respondents (26%).
consumers also say that the micro-tier is more
likely to engage in discussion with them.
Figure 7
They are yet to deliver more valuable than top tier influencers 6%
Other 1%
17
S TUDY
H&M SPORT
CA S E
MAKES
AMBASSADORS
OF NICHE
GLOBAL SPORTS
ENTHUSIASTS
CHA
LLENGE
Fashion brand H&M wanted to make its first foray
into the sport and fitness market, but it was
keen to do so in a sensitive and thoughtful way.
ITB Worldwide, who work with H&M across their
big talent campaigns, below the line activities as
well as social media campaigns was tasked with
the challenge.
STRA OUT
TEGY COME
“We needed a strategy that would give H&M Sport “Three years later Amanda is still an H&M Sport
a meaningful place in this market, where not only ambassador,” says Singh. Year-on-year H&M Sport
were they aligning themselves with people of have continued its agreement with her, and her
influence, but also people who were very much audience looks to her as an authority in this space.
authentic to the world of sport,” Suri Singh, ITB Her profile has grown to over 200k followers since
Influencer Expert, explains. “Sport was one of joining the programme.”
the last sectors to embrace influencer marketing, In the second year of the campaign, H&M Sport
despite its heritage in celebrity marketing, and recruited Tommy Rivers Puzey, a relatively
H&M was quite right to tap into while it was still an unknown (at the time) runner living in a remote part
emerging market and do so in a way that wasn’t of Arizona. “Tommy was a micro-influencer but his
just momentary.” ITB embarked on an influencer aesthetic and the content he was producing was
ambassador programme for H&M, utilising four incredible. H&M listened to us, and they saw the
carefully cast micro to mid-tier influencers opportunity. For Tommy it was an opportunity for him
for a 12-month engagement. “Not only did the to build his profile with one of the world’s biggest
campaign need to demonstrate authenticity but to high street brands.”
make a mark, it would also be less about numbers Tommy overdelivered and because of the
and more about longevity and getting across to partnership his reach has now grown to 90.3k
the influencer’s audience that these people were followers, and he is now travelling the world with
working with H&M as ambassadors.” H&M Sport. H&M have continued his contract for
year two and are about to embark on year three
Australian influencer Amanda Bisk was the first with Tommy. The programme has also put him
ambassador selected: a former elite pole-vaulter, on the radar for other brands and he now has a
physio and a qualified yoga teacher. “Sport and lucrative footwear deal with Ultra, and a coach
fitness play a big part in her day-to-day life, both for Peak Run performance. “He has established a
professionally and privately, and that was crucial profile without even realising he was a person of
for the campaign,” shares Singh. “we put together influence,” shares Singh.
a programme that would engage her over 12 “Three years ago, measuring engagement was
months and include shoot services, throughout never part of our remit, but as this space has
which H&M would give her product, and she evolved more people have come to understand that
would be paid a fee for her engagement with the it isn’t all about having a large number of followers;
brand.” The concept was to give the influencer engagement is now a key metric that everyone is
ambassadors complete creative freedom so that looking for,” explains Singh. “We are currently in
they could introduce the H&M Sport collection conversation with H&M Sport to discuss its next
into their daily life naturally and organically. The signings and how we add another layer to continue
only requirement was that H&M Sport was to elevate this campaign.”
tagged in content along with the campaign
hashtag. Exclusivity within the sport and leisure
sector was however an important requirement,
not specific to footwear, to ensure the message
wouldn’t be diluted by other competing brands.
18
90% of marketers say
authenticity is critical
to the future of
influencer marketing
Influencer marketing evolved out of a growing the trust or authenticity factor is in danger of waning
appetite for authenticity among consumers. At once again. Within the consumer survey, 46% say
the time there was (and still is) plenty of research that for them to trust and buy into influencer-led
to indicate that consumer faith in paid forms of campaigns, it is essential that the content that is
advertising was eroding, and that individuals authentic and therefore engaging. Consumers are
were instead gravitating towards content created savvy and in tune with how commercialised the
by trusted, likeminded authorities, who lacked a influencer space is becoming, which means that
clear commercial objective. branded influencer content is subject to intense
Indeed, within the consumer survey, 79% of scrutiny the moment it goes live.
respondents say they prefer influencer content
over celebrity ads since it tends to offer a better Brands are fully aware of this danger zone and more
reflection of real life. A further 61% express a than two-thirds (68%) of industry respondents
preference for influencers who create authentic, agree that authenticity and transparency is key
engaging content. to influencer marketing success. Furthermore,
However, as influencer marketing has grown and 90% of industry respondents say that brands
the space has become more deeply saturated need to take authenticity and transparency
with individuals being paid sometimes hefty fees more seriously, for influencer marketing to be
to discuss brands and co-create content with them, sustainable over the long term (see Fig. 23 below).
Figure 8
19
The rise of a new
pool of ‘talent’ in the
shape of customers
and employees
The experts interviewed for this report stressed
the need for due diligence in the selection
process, to ensure each influencer collaboration
is a credible match for the brand. “If brands are
seeing that an influencer is deleting content two
weeks after the collaboration, then it really proves
that they are choosing the wrong influencers,
and the authenticity piece is missing,” says Bexy
Cameron, Head of Insight at Amplify. “But if they
have got the right person on board they will be
proud of that post.”
Sarah Evans, Head of Digital at Bottle PR,
believes the pressure to demonstrate authenticity
will drive brands to make better use of genuine
advocates such as employees and customers – a
tried and tested strategy that dates back to the
mid-20th century, which a raft of brands within
the fashion and beauty brands particularly are
now reigniting. “People need to be able to see
themselves in the content and be able to relate
to the influencer,” Evans explains. “With the next
wave of influencer marketing we will see more
substance and it will be more thoughtful, adding
value for the customer.”
ModCloth
Figure 9
other 1%
21
S TUDY
JEWELLERY
CA S E
BRAND ANANYA
FINDS SUCCESS
WITH AUTHENTIC,
UNPAID
INFLUENCER
COLLABORATIONS
CHA EXE
LLENGE CUTION
Luxury jewellery brand Ananya launched in India Over the past few months approximately 10
two years ago, and soft launched in the UK less carefully curated mid to top-tier jewellery
than 12 months ago. Dee Mehta, Marketing influencers have been invited by appointment
Manager at Ananya explains that fine jewellery to Ananya’s showroom in Kensington, London,
sales in India happen quite differently to in the where the collections are painstakingly laid out for
UK, often privately and behind closed doors, and them to view. The influencers can pick up items
for that reason the brand had decided against they like and try them on, and learn how each
working with Indian influencers. However, in the item has been made and the precious materials
UK where sales tend to happen more in person, it contains, such as the gold and gem content.
Ananya was keen to build organic relationships They are permitted to take as many photos
with key jewellery influencers, alongside the press. as they like. Influencers will be briefed on the
collection hashtags, and Ananya will ensure they
have all the accurate facts to hand, which Mehta
says is always done very informally. “Since the
STRA relationships are unpaid, we leave the decision
TEGY on hashtags entirely up to the influencer,” Mehta
Mehta explains, “we did a lot of research into explains. “If it is just one post, the influencer has
influencers within the broad fashion, jewellery complete creative freedom. If they are writing an
and art sectors, but learnt quickly that jewellery article we will usually request copy approval first.
influencers worked the best for us. People buy
jewellery in a very different way to fashion, and the
influencers we work with are well established within
the jewellery media industry and their followers are
OUT
after their knowledge, more than their aesthetics. COME
They also have a strong network of contacts within The forging of organic influencer relationships has
the industry.” What sets Ananya apart from most proved very successful for Ananya, and not only
influencer campaigns is that it has never paid have these influencers supported the brand’s
for influencer content. “All our collaborations are soft launch in the UK, but they have also become
based on organic relationship building, where no deeply engrained in the business.
money ever exchanges hands,” Mehta explains. “Our jewellery influencers are so knowledgeable
and the excitement that builds between them and
our brand is infectious. In this industry, it requires a
lot of passion to be successful. We love to hear their
opinions, see what gemstones they love, hear what
pieces really work for them, and this in turn helps
us to really understand the market,” Mehta shares.
The brand claims it sees more customer interest in
its jewellery pieces that are posted by influencers
and is able to see a clear correlation between the
timing of an influencer’s post and click-throughs
to its website, and new followers to its profile on
Instagram which is a core channel for the brand.
“We decided that we wanted to do everything
organically and at a slow pace, and it is an
approach that requires a lot of patience,” explains
Mehta. “If in the future we decide to enter sponsored
partnerships, it will be off the back of already
existing organic relationships with influencers.”
22
100% of marketers
agree that ‘relevance’
is the most sought-after
attribute in an influencer
Figure 10
An audience/following that
is relevant to my brand 65% 31% 4% 0%
Commoner/business/product
insight and experience 8% 23% 43% 25%
23
84% of industry respondents also see ‘expertise
in their field’ as being an important attribute in
an influencer. This is a view supported by 32%
of consumers. ‘Expertise’ has become a fluid
concept within the world of social influence and
today is less about intelligence or genius in a
particular field, and more about having relevance
along with a clear passion and interest, i.e. they
could be a curator of sneakers, but not necessarily
a sneaker maker. As Bexy Cameron, Head of
Insight at Amplify, also explains: “It is important
to consider what the influencer’s audience would
consider as expertise e.g. if they’ve been part of a
pocket of sub culture for five years, their following
would see that as expertise.” The Young Blood 2
report, published by Amplify, found that more than
half of young people are much more likely to do/
buy something if it is endorsed by an expert.
24
54% of marketers say
audience insight data
is an essential part of
influencer identification
As Fig. 11 below reveals, just over half of marketers
(54%) say audience insights are the most useful BELLA HADID
TOTAL REACH: 19M
information in identifying relevant influencers CELEBRITY EQUITY SCORE: 52
to work with. Within this, a talent’s social media APPEAL: 56% | AWARENESS: 77%
Figure 12
Other 3%
26
One of the main reasons for the difficulty brands are
having in identifying relevant talent is that 54% of
respondents say they are continuing to search for
influencers manually, via social media platforms
and forums (see Fig. 13 below). A further 38% are
also continuing to rely on recommendations from
friends and contacts within the industry, indicating
that there remains a very ‘human’ element to the
influencer selection process. The fact that 86% of
the industry is failing to make use of specialist talent
engagement tools available is a missed opportunity.
Specialist talent
engagement tools e.g. 14%
Influencer Intelligence
Other 4%
27
Confusion continues
to plague disclosure
guidelines
When it comes to the transparency of influencer
collaborations, 65% of marketers admit there is a
blurry line between advertisements and genuine,
organic recommendations (see Fig. 14). This lack of
transparency is creating audience scepticism, with
66% of consumers claiming paid-for influencer
content is no different to advertising.
Brands are fully aware that consumer trust in
sponsored influencer content is eroding, and
64% of marketers feel that drastic action to
prove transparency is critical (see Fig. 23 below). and potentially misleading members of the public.
As Lucy Lendrem, Head of Talent UK at Gleam This came after the FTC sent out 90 letters in
Futures, asserts: “There is so much content, it is the US to well-known celebrities and digital
quite ungoverned, and the wider the landscape talent including supermodel Naomi Campbell
gets the harder it is to navigate”. A third of and actress Lindsay Lohan, asking if they had
marketer respondents, for example, admit they been paid to endorse brands and products on
regularly avoid disclosers where they can. Instagram. Some of the letters addressed some
Currently guidelines set by the Advertising disclosures that are not sufficiently clear, pointing
Standards Authority in the UK (ASA) and Federal out that many consumers will not understand a
Trade Commission (FTC) in the US are just that: disclosure like “#sp,” “Thanks [Brand],” or “#partner”
guidelines. Historically they have taken a reactive in an Instagram post to mean that the post is
approach, tightening up guidelines as and when sponsored.09 Lucy Lendrem, Head of Talent
needed, and dealing with reported breaches on UK at Gleam Futures, argues: “Anyone creating
a case by case basis. Experts interviewed for this content with a brand they love should be proud to
report agreed that the guidelines are too open to make it clear that they are working with that brand
interpretation, and particularly where influencers and being compensated. If anyone is ashamed of
are involved as they don’t necessarily have a legal using #ad at this point, given how many people are
team advising and supporting them. doing it, then they probably shouldn’t be working
Recently, however, the regulatory bodies have with that brand.”
begun to take a harder line on individuals who Indeed, within the consumer survey, 54% say
are not properly disclosing their commercial sponsorship disclosure such as #spon and #ad
brand relationships. In August, the Competition does not take away from the credibility of a post
and Markets Authority (CMA) launched a major providing the partnership is genuine. However,
investigation into some of Britain’s biggest to balance this, Emma Usher, Company Director
celebrities and influencers who it thought of RunRagged Media, a talent booking agency,
may be endorsing goods or services without warns that “for brands who have failed to profile
declaring their commercial interests properly, their influencer carefully, #ad can be extremely
damaging, so it is really important to profile and
then find out who is a genuine fan of your brand
and then #ad will not dilute the impact of what your
brand is trying to do.”
Industry experts interviewed say there is a strong
case for more clearly defined rules that are not
so open to interpretation. For example, under
the ASA’s rules, for an influencer’s post to be
classified as an advert they must have been
paid in some form and the brand must also
have had some sort of ‘control’ over the content.
Sponsorship arrangements, where there hasn’t
been any sort of ‘control’ by the brand, isn’t
covered by the ASA’s code of practice. This in
itself, experts claim, is a grey area which some
influencers are failing to understand properly.10
“People are very confused and out of this confusion
new hashtags are appearing, having been created
by influencers, but these are not recognised by
the ASA,” says Emma Usher, Company Director of
RunRagged Media. “There are so many grey areas
now and brands and influencers alike are unsure of
best practice and this uncertainty around disclosure
28 guidelines needs clearer boundaries setting.”
Figure 14
Figure 15
30
It is notable that just 1% of respondents rank
protecting their social responsibility towards a
younger audience as their greatest concern. The
impact social media can have upon mental health
has been well documented over the past couple
of years, and it is critical that brands understand
their responsibility in this area, and particularly
with the younger generation. “Young people are
creating their own content now on social media
which is gritty and unedited, and that is the stuff
that is really resonating with them,” explains Bexy
Cameron, Head of Insight at Amplify. “It doesn’t
take a lot to start to win with young people; they
just want realistic stuff.”
Investment in
In the fashion and beauty sector, where brand and
influencer content very often present a flawless
influencer marketing
version of reality, this can be far from what the remains cautious
average teenager looks like or is experiencing.
“Brands are very aware of what they are doing, Despite the soaring costs of influencers, 53% of
but they still want to sell the dream,” says Marianne marketers have less than 10% of their marketing
Fakinos, Senior Influencer and Partnership budget to spend on influencers (see Fig. 16
Manager at TMW Unlimited. “In the beauty sector below), indicating an ongoing lack of confidence
especially, there is little interest in diversity currently. or buy-in from the c-suite.
This is slowly beginning to change, but it is our job Some of the experts interviewed for this report
to push it forward, and it will take time.” claimed that brands are often restricted by
campaign-specific budgets, which makes it difficult
Many of the experts interviewed for the report for them to secure longer-term budget allocation.
claim that we are slowly seeing a new wave of “Brands are often looking at campaigns in isolation
influencers, who for want of a better phrase, are and have budgets signed off for just that particular
focused on ‘keeping it real’. Lucy Lendrem, Head activation, and budgets can also fluctuate greatly
of Talent UK at Gleam Futures, says: “Instagram from campaign to campaign,” shares Natasha
Stories has meant that even if you are producing Mensah Benjamin, managing partner at Beyond
overly aspirational content on your grid, you are Talent. A talent and influencer procurement
able to show a little bit of the behind the scenes agency. “It is still difficult for brands to commit
reality there. Brands and influencers have a upfront to 12-month budget, for example, and they
responsibility to do that more and more. People also want to see how well the first piece of activity
want real, or they will disengage.” is received. This means that they are missing out
on opportunities for economies of scale, currently.”
For example, US discount retailer Target’s most
recent swimwear campaign avoids any airbrushing Figure 16
or reshaping of the models, and the pool of talent
used is incredibly diverse, focused on portraying How much of your marketing
women’s bodies as they really are. Designers communication budget is currently
Rebecca Minkoff and Diane von Furstenburg are spent on influencer marketing?
also eliminating professional models altogether in
favour of “real” women, according to Glamour.11 53%
27%
13%
5%
1%
1%
Less
than 10% 20% 30% 50% 75%
10% 20% 30% 50% 75% 100%
31
S TUDY SOLU
KELLOGG’S: TION
CA S E
INVESTMENT
Takumi to help it select relevant female lifestyle
influencers to partner with. “We knew its talent
WHEN THERE
demographic fitted well with our brand and target
consumer, that being females aged 18-30,” says
Harper. Six mid-tier influencers were chosen,
LINK TO
art, beauty, travel, food, sports & fitness and
parenting. The content needed to speak about the
PURCHASE
food, since an important objective of the campaign
was to drive some purchase intent. But Kellogg’s
wanted to give its influencers as much creative
freedom as possible: a tall order for such a large
FMCG brand, with stringent nutritional guidelines
to comply with. “We know the less prescriptive
CHA our briefs are the more likely we are to get great
content from our influencers but letting go of
LLENGE creative control is still the biggest sticking point for
Breakfast cereal brand Kellogg’s had been us,” admits Harper.
experimenting on a small scale with influencer It was agreed that the #PoweringYou campaign
marketing for its Special K brand, but the brand would focus on communicating the wide variety
faced a critical challenge. of nutrients and benefits that make up Special
Joseph Harper, Social Media Manager, UK K, and influencers would have the freedom to
& Ireland, Kellogg’s explains: “in the online choose those that were most relevant to them. For
environment, we have no direct link to purchase example, one influencer was heavily into kickboxing
available. Most of our sales are still done through and focused on the nutritional benefits of Special
bricks and mortar stores and we therefore K that would fuel their hobby. “We allowed the
don’t have a quantitative way to measure the influencers to remove any visual reference to our
effectiveness of our influencer collaborations.” in product as we understand their hobbies and what
relation to ROI and sales. “All we can rely on are feeds their motivation doesn’t necessarily revolve
vanity metrics, and this makes it difficult for me to around the breakfast table,” Harper shares.
secure further investment for influencer marketing The influencer content compliance and approval
particularly.” process proved a massive piece of work for Harper.
Beyond this, Kellogg’s faced a further issue. “It is the thing we discuss the most and which
Historically, Special K had been positioned causes the most inertia, workload and workflow
as a ‘diet’ brand targeted at women for shape issues internally,” he admits. Kellogg’s has a strict
management and weight loss. It was one of the and rigorous internal approval process: content
most successful FMCG brands of its era, running must first be checked by its nutrition team who
popular advertising campaigns such as ‘Drop ensure all nutritional claims are substantiated and
a jean size’ and ‘The Special K diet’, which had the correct language used, for example, the brand
helped to drive sales and awareness around the can’t show an image of a bowl of cereal unless it is
world. But as times had changed, the story had of the portion size indicated on the side of the pack.
become out-dated, but the legacy of the campaign “It has been a long piece of work for me to bring the
had stayed with the consumer. The challenge was approvals team to a point where they are happy
to create new narratives for the Special K brand with how much visibility they have on an influencer’s
which were more aligned with positive nutrition, its work before it goes live. With the #PoweringYou
vitamin and minerals contents, and the nutrients campaign, the second images went live, there
women can get from our products on a daily basis,” was a live checking process to ensure the assets
Harper explains. were complaint, so that if there was a major red
Kellogg’s had struggled to shift the dial on flag it could be taken straight down,” says Harper.
sentiment through its own content and so it “There is a huge focus on FMCG companies to be
was optimistic that influencer content might compliant with industry guidelines and if we make
have greater impact. “We wanted to leverage the a mistake we will get caught out.”
credibility of influencers, tap into their advocacy
and generate assets and content that we could
then use as our own,” says Harper. RES
ULTS
The influencer campaigns proved highly successful,
promoting the nutritional benefits of Special K
while reminding people that it is still a delicious
food. In total, 171 pieces of content reached a total
of over 4.7m users, with an average engagement
rate of 2.6% - much higher than the brand would
usually achieve on its own channels. Net positivity
for the period also reached 44% on Instagram, in
part due to the nature of Instagram and the fact
that the channel drives significantly more positive
32 conversation than other social networks.
MEASURING
SUCCESS
Engagement is the
number one benchmark
for success
When it comes to measuring the impact of
influencer marketing, 85% of marketers say
engagement data, such as comments and
content shares, is the biggest metric of success
for influencer marketing (see Fig. 17 below). What
was once an industry that measured its success
according to big follower numbers and volume of
‘likes’, has matured significantly to focus on how
audiences are reacting to and interacting with
influencer content.
Suri Singh, Influencer Expert at ITB Worldwide,
shares: “three years ago, measuring engagement
was never part of our remit, but as this space has
evolved and as more and more people have come
to understand that it isn’t all about having a million
followers, it naturally has become part of our remit.
Engagement is now a key metric that everyone is
looking for.”
Figure 17
33
Brands are also seeing success with engagement,
with 79% of respondents agreeing that influencers
have helped to boost their brand’s engagement
and interaction with consumers (see Fig. 18 below).
Within the consumer survey, 87% of respondents
“strongly agreed” or “somewhat agreed” that
they are happy to engage with influencers whose
interests, passions and skills match their own.
The finding demonstrates further the importance
of brands working with influencers who are a
natural and relevant match for them, and their target
audience.
Above all, it seems influencers are helping brands
to build awareness, around the brand or specific
products; a view that’s supported by 86% of
industry respondents. The consumer view supports
this, with 62% of respondents agreeing that being
introduced to new and/or independent brands is the
primary way in which they are influenced by talent-
led content and collaborations.
Figure 18
How have influencers supported your marketing strategy over the past
12 months?
34
Overall, it seems brands are becoming better
educated in the ways available to them to measure
the success of their influencer collaborations, and
the expert interviews carried out for this report
reveal that many are now having the confidence
to request analytics from the influencer directly.
For example, Suri Singh, Influencer Expert at ITB
Worldwide shares: “within Instagram stories we
look specifically at the post reach and we request
screenshots from our influencers of their profile,
which we can then verify, to give us a depth of
engagement-based analytics for that individual.”
There are a myriad of metrics and tools that brands
can be using to track the impact and performance of
their influencer-led activity, and Fig. 19 below shows
that brands are becoming more sophisticated
in their measurement approaches. Campaign
hashtags, for example, are how extremely prevalent
within digital marketing and 61% of industry
respondents say they are using these to assess
the impact of their influencer investments. Almost
half (46%) say they are using trackable attribution
links, enabling them to see how an individual is
performing for them. Trackable shopping links,
such as those within Instagram, are also being
utilised by 40%.
Figure 19
Other 3%
35
Only 18% are including
influencer marketing
within their overall
digital marketing ROI
calculations
A resounding 84% of marketers agree that
being able to demonstrate the ROI of influencer
marketing will be critical to its future (see Fig.
23 below). Yet despite this, 31% say influencer Figure 20
marketing is peripheral to their digital marketing How does influencer marketing fit
ROI calculations, and a further 21% say it is too within your overall digital marketing
much of a challenge to include influencer marketing
ROI calculations?
within their overall ROI measurements. Only 18%
of respondents claims influencer marketing is
Influencer marketing is
an intrinsic part of their overall digital marketing peripheral to our digital 31%
ROI calculations. This is surprising considering the marketing ROI calculations
array of data marketers say they are collecting, as
shown in Fig. 19 above. As Lucy Lendrem, Head It is too much of a challenge to
of Talent UK at Gleam Futures, asserts: “ROI is include influencer marketing 21%
within our overall ROI
the biggest question facing the influencer industry
right now.” Influencer marketing is an
intrinsic part of our digital 18%
One of the potential reasons for this is that marketing ROI calculations
influencer marketing is often measured by ‘softer Influencer marketing
metrics’ such as engagement and sentiment, metrics are used as more of
and how these relate to conversions and revenue a pulse on how our digital 17%
can sometimes be tricky to quantify. Furthermore, marketing is performing
the impact of influencer marketing isn’t always
We have no immediate
instant and can sometimes prove a lengthy sales
plans to include influencer
cycle. For instance, within the consumer survey, 55% marketing within our digital 12%
of respondents said influencers most commonly marketing ROI calculations
“inspire them with a new look or style”, and 50%
said they encourage them to add a product to
their wish list for potential purchase in the future,
while only 28% say influencers encourage them
to immediately clickthrough and buy something.
One of the pitfalls of marketing ROI is that it is easy
to focus on incremental profits in short-term sales
and underestimate the long-term benefits that
marketing brings to brand equity and customer There is little doubt that influencer marketing
relationships over time. Experts interviewed for the budgets need to rise and become more flexible,
report also cited the lack of industry benchmarks and as Fig. 21 below reveals, 51% of industry
available currently for influencer marketing ROI. respondents say they are regularly reviewing their
investments already and adjusting accordingly.
Natasha Mensah Benjamin, managing partner
at Beyond Talent, says: “It is important to ensure
that every factor of the campaign is optimised, from Figure 21
timing to content and analytics, so that we can
quantify the ROI potential, and continually refine the
How do your influencer marketing
campaign along the way.” It is also critical that there ROI calculations impact your future
are no gaps in data, and increasingly social media strategy and planning, if at all?
platforms themselves are supporting brands with
this. For example, the Instagram paid partnerships We review regularly, and
adjust our investment
feature has the potential to give brands a lot more 25%
in individual influencers
transparency on the effectiveness of individual accordingly
influencers.
We review regularly,
and adjust our investment
in specific social channels 26%
accordingly
36
WHERE
DOES THE
INDUSTRY
NEED TO
BE IN 2020?
Authenticity must
prevail, and we will see
a rise in influencers
who are ‘keeping it real’
A common theme throughout both the industry
and consumer survey findings, is that authenticity
must prevail for the influencer marketing industry to
survive. As Fig. 22 below reveals, 83% of industry
marketers say they need better data and metrics
on influencers to allow for greater transparency and
authenticity, and Fig. 23 confirms that brands and
influencers alike need to be taking authenticity
more serious for it to be sustainable long term.
37
Figure 22
Better data and metrics to allow for more transparency and authenticity 83%
38
The cost of working with
influencers will level out
and budgets will rise
Over the past couple of years, the cost of
influencer marketing has risen exponentially, and
to some extent influencers have been at liberty
to charge whatever they like which brands have
paid on trust and sometimes naivety. But as Figure
23 below shows, 58% of industry marketers
believe that by 2020 influencer marketing will
be entirely data-driven, and with this depth of
analytics and information marketers will be more
easily able to assess what an influencer is worth.
Experts interviewed for the report spoke of the
lack of industry benchmarks currently available,
but greater access to data will make these more
possible to establish.
Figure 23
39
Brands will invest in
building influencer
marketing skills internally
Several of the experts interviewed for this report
claimed they were seeing a notable rise in brands
bringing influencer expertise in-house and
taking the work away from agencies. As Fig. 23
above illustrates, 33% of industry marketers agree
we will see the integration of influencers into in-
house roles, over the next couple of years, such as
Puma’s collaboration with singer and style icon
Solange, which saw the athletic footwear brand
appoint her as art director.12
APPE
NDIX
Figure 24
35%
32%
24%
Figure 25
Junior executive 6%
Other 13%
41
REF
ERENCES
01
http://mediakix.com/2017/03/instagram-influencer-
marketing-industry-size-how-big/#gs.8Earhxg
02
https://issuu.com/weareamplify/docs/yb2_book_issu
03
https://www.vogue.co.uk/article/what-is-an-influencer
08
https://fashionista.com/2015/01/img-we-love-your-genes
04
https://www.glamour.com/story/why-fashion-brands-cast-
09
employees-in-ad-campaigns
https://www.ftc.gov/news-events/press-releases/2017/04/
ftc-staff-reminds-influencers-brands-clearly-disclose
05
https://www.forbes.com/sites/
10
cherylsnappconner/2018/06/08/celebrity-influencer-
marketing-is-dead-report-says-real-employees-and-
customers-are-better/#769ffddb4b0d https://www.asa.org.uk/uploads/assets/uploaded/3af39c72-
76e1-4a59-b2b47e81a034cd1d.pdf
06
https://www.glossy.co/fashion/how-macys-is-using-its-
store-employees-and-stylists-as-instagram-influencers-to- 11
https://www.glamour.com/story/targets-2018-swimwear-
drive-sales ads-photoshop-free
07
https://issuu.com/weareamplify/docs/yb2_book_issu 12
https://www.hollywoodreporter.com/news/solange-
becomes-pumas-art-director-659537
13
https://www.thedrum.com/news/2018/10/03/unilever-
pushing-long-term-partnerships-with-influencers-fight-
against-fraud
42
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