The Future of Influencer Marketing

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The Future

of Influencer

Marketing

6 Predictions Your Brand or

Agency Can Bank On


Table of

Contents

1

4

Introduction

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

21

Prediction 3:

Brands will deepen customer relationships

through influencer marketing

Prediction 4:

Content distribution will drive content creation

26

31

Prediction 5:

Influencer marketing automation will bring new

efficiencies to marketers

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


2 Introduction

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.


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?

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.

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


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.

Adblockers

are one of the chief

killers of our digital ad

efforts today.

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: 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?

47%

of consumers

are using

adblockers 1

-Reuters

1

https://reutersinstitute.politics.ox.ac.uk/sites/default/files/Reuters%20Institute%20Digital%20News%20Report%202015_Full%20Report.pdf

2

http://www.npr.org/sections/alltechconsidered/2015/07/20/424630545/with-ad-blocking-use-on-the-rise-what-happens-to-online-publishers

3

http://9to5mac.com/2015/06/10/block-ads-ios-9-safari-iphone/

6

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 percent 4 .

metrics. This year, that amount could be as

high as $29 billion 5 .

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

http://oxford-biochron.com/downloads/OxfordBioChron_Quantifying-Online-Advertising-Fraud_Report.pdf

4 http://oxford-biochron.com/downloads/OxfordBioChron_Quantifying-Online-Advertising-Fraud_Report.pdf

5

https://www.thinkwithgoogle.com/infographics/5-factors-of-viewability.html

7 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 brands 6 . 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 decisions 7 .

And given the GlobalWebIndex finding 8 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?

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

9

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

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.

11


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.”

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.”

12

Prediction 2


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 today 9 .

And trust is where the brand challenge

lies, because brands now have to rebuild

broken trust.

92%

of people trust

strangers

over brands 9

9

http://www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html

13

Prediction 2


What’s your #1

job, your first

priority? Rebuild

consumer trust

How can you, on behalf of your brand, rebuild

trust? By understanding:

Who the consumer is

What she needs

What she wants

Where she lives online

Who she follows

Who she trusts

You’ll be poised to choose the right channels;

ready to create and distribute targeted

influencer content.

It won’t be easy. And it won’t happen

overnight.

But it will happen.

As consumers repeatedly see your content

and messages coming from

trusted influencers, you will, over time,

develop meaningful relationships and build

engagement.

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

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.

15


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

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

16

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 second 13

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 customers 14

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 channel 15 .

15

http://www.slideshare.net/BDMIFund/bdmi-influencer-marketing-overview-august-2014

19

Prediction 3


Battle 2:

Vlogger vs. brand

“celebrity” 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.

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 page 16 .

Knockout.

Battle 3:

Black Box-owned vs.

influencer content

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 prevailed 17 , generating:

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

http://www.l2inc.com/vloggers-outshine-celebrities

17

http://www.tapinfluence.com/customers/black-box-wines-success-story/

20

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.

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.

21


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 18 . And you need to know this

before you or your influencers create content.

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 campaign 20 …

and if 47 percent of marketers aren’t satisfied

with their ability to distribute content to the

right audiences 17 …

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

marketing programs 17 ?

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

10 21 .

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


24 Prediction 4

Sharing content through

influencers in your industry

can triple conversions


What kind of content

amplifies well?

Content that amplifies ... content that spreads

… content that consumers willingly distribute

… is content that’s real. By real, we mean:

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

Amplification in

action: an example

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.

How might you use

influencers and the

power of amplification

for your brand?

25

Prediction 4


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

months 22 ?

That’s right.

Influencer marketing is happening now. It’s

happening everywhere.

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.

22

This data is from a TapInfluence study of LinkedIn profiles conducted in July 2015.

26


A hypothetical: manually running an influencer

campaign with 20 influencers

Task Total number of hours Average task cost

@ $38.50 per hour

Identify 200 influencers to hit

an end target of 20

40 hours

(for scouring the Internet and social sites to find influencers that match your

chosen categories; verify their reach and content aesthetic)

$1,540 23

Recruit by sending emails to

those 200 influencers

Negotiate with your chosen

20 influencers

Manage the content creation

process

Measure and report on the

campaign

40 hours

(for writing emails; responding to queries;

discussing content strategy)

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

posts before they go live)

40 hours

(for tracking down content; capturing view /

engagement details; tying performance to KPIs)

$1,540

$770

$3,080

$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

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.

28

Prediction 5


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

The Automated Way

Task

Total number of hours

Average

task cost

@ $38.50 per hour

Total number of hours

Average

task cost

@ $38.50 per hour

Identify 200

influencers to hit

an end target of 20

40 hours

(for scouring the Internet and social sites to find

influencers that match your chosen categories;

verify their reach and content aesthetic)

$1,540 23

5 hours

(for using the platform to search for and

review target influencers)

$192.50

Recruit by sending

emails to

those 200 influencers

40 hours

(for writing emails; responding to queries;

discussing content strategy)

$1,540

None (influencers have opted in) -

Negotiate with your

chosen

20 influencers

20 hours

(for back-and-forth emails that outline tasks

and rates; tracking rates toward your budget)

$770

1 hour

(for minimal work; you already know rates for

each piece of content)

$38.50

Manage the content

creation process

80 hours

(for gathering content, reminding influencers of

requirements; approving posts before they go live)

$3,080

8 hours

(for reviewing and approving content

submitted through the system)

$3,080

Measure and report

on the campaign

40 hours

(for tracking down content; capturing view /

engagement details; tying performance to KPIs)

$1,540

5 hours

(for choosing, viewing, and

distributing reports)

$192.50

Cost of

Your time

220 hours $8,470

19 hours $731.50

29

Prediction 5


A comparison: dollars saved

The Manual Way

The Automated Way

Total number of hours

Task cost

@ $38.50 per hour

Total number of hours

Task cost

@ $38.50 per hour

220 $8470.00

19 $731.50

Amount Saved:

$7,738.50

30

Prediction 5


Prediction 6

Influencer marketing

automation will

change how you

influence

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.

31


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: predictions@tapinfluence.com

Call: 720-726-4074

Visit: www.tapinfluence.com

Let’s Talk / Get a Demo

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