influencer marketing - Brandnew IO

INFLUENCER MARKETING – WHAT DRIVES INFLUENCERS?

www.influencer-secrets.com

2/12 INFLUENCER MARKETING – WHAT DRIVES INFLUENCERS? FOREWORD

0 No doubt , influencers are currently on everyone‘s lips – and everyone’s feed! It’s about time that we explore their minds. Their appeal and relationship with followers have become one of the most important strategic marketing tools for brands. Brand messages can be globally distributed in seconds via their blogs, YouTube channels, Instagram, Twitter and Facebook profiles. Millions of followers - and not just millennials - draw inspiration from it. The numbers prove Influencer Marketing to be effective: strong reach, high user engagement and even often increased sales. As a result, brands are well advised to start cooperations with influencers and incorporate Influencer Marketing as an integral part of their marketing mix.

Francis Trapp, Founder and CEO

But what DO influencers really care about? What’s their motivation? Generally and with regard to brands and advertising? Is it just about money? Fame? Which decision criteria play a role in the cooperation with brands? Brandnew - the first technology platform in Europe to connect brands and influencers - has just released the largest study on the motivation of influencers: 1,200 influencers from around the world were asked what actually drives them. We‘ve summarized the survey results in our latest whitepaper for you. Learn how to discover high-profile influencers, what their preferred industries and platforms are and how to engage them convincingly.

Toan Nguyen, Partner and Executive Strategy Director

Teja Töpfer, COO and Co-Founder


3/12 INFLUENCER MARKETING – WHAT DRIVES INFLUENCERS?

WHAT IS AN INFLUENCER AND WHY SHOULD INFLUENCER MARKETING BE PART OF THE MARKETING MIX?

THE SELF-PERCEPTION AND IDENTITY OF INFLUENCERS

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1 Influencers are opinion leaders who convey information in the form of recommendations, thereby significantly influencing the buying behavior of others. Let’s be frank: the phenomenon isn’t particularly new to digital marketing. It’s at the core of digital marketing! Users become creators! Once silent recipients have long become active brand ambassadors. At the heart of Influencer Marketing is a new generation of digital natives – the so-called millennials! A target group increasingly difficult to reach with traditional marketing activities such as print and TV. The truth is: millennials have a certain skepticism about advertising (which they tend to skip) and increasingly prefer to rely on the experience of influencers. In recent surveys, 92 percent of respondents said they trusted influencers more than brand advertising. And most probably this doesn’t come a suprise to you. Daily interactions across multiple channels, through photos, stories or live sessions, create a form of closeness and trust, hard to achieve by

traditional non-participatory media advertising. Influencers are often more tangible to their fans than traditional celebrities. And don’t worry: Influencer Marketing doesn’t only reach millenials. Depending on the influencer you can also target recipients 30+ – especially when it comes to special interest topics. Influencers are not always experts and experts are not always influencers. It‘s often their personality that makes them so attractive: their credibility, honesty and spontaneity. Depending on the industry, high-profile influencers have knowledge of conventional experts, a clear style and larger networks.

BLOGGER? CREATOR? INFLUENCER? HOW DO THEY ACTUALLY CALL THEMSELVES?

The surveys of Brandnew are based on the answers of 1,200 influencers. All of them have blossomed into the smaller or larger celebrities they are now, only through their own internet presence. In fact, none of them were already famous. But are influencers actually aware they are influencers, and if so, is that why they have become influencers in the first place? The first part of the Brandnew survey is dedicated to the identity of the individual. The result: almost 90 percent of respondents actually refer to themselves as influencers.

THE BIG QUESTION: WHY ARE INFLUENCERS BECOMING INFLUENCERS? Yes, of course it’s about money – but there’s more to it. For many influencers it’s about having a creative outlet – for example, to share their photographs with the public. “I really like writing.”, would be a common answer, if you asked them for their motivation, or, “I’m creative and enjoy the process.”. 60 percent of respondents said they wanted to make an actual impact as an influencer. Nearly 50 percent said it was important to build an online audience and increase their own popularity (49%), as well as to be perceived as an opinion maker in their own field (48%). Earning money only comes in fourth place (45%) and thus – if you don’t count the mention of „Other“ as a reason – it’s actually last. What does that say about the nature of content creators?

INFLUENCER

Brands are faced with the challenge of understanding the millennial generation – after all, they will shape the markets of the future – not just in terms of product development, but also in product marketing. It is important to reach the target groups in their distinct tone, on their preferred channel and to find influencers, whom they like to follow at every turn.

So apparently, the term “blogger“ does not really suit or appeal anymore. Other titles, such as “Creator“ and “Photographer“ were also among most selected job titles. The option “Other“, which had to be specified, revealed more about the different industries influencers find themselves in i.e. as artists, musicians, models, athletes, or as mentioned “bloggers“ or actors.

CREATOR

MAKER

PHOTOGRAPHER

WRITER

OTHER

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DEMOGRAPHICS OF INFLUENCERS AND THEIR FOLLOWERS

3 INFLUENCERS ARE RATHER YOUNG AND RATHER FEMALE. Another Brandnew study “Sponsored Posts - A Data Science Paper“ and the study “Behind the Hype I“ – which was conducted in collaboration with the data scientist Orestis Chrisafis and Jung von Matt/SPORTS – offers interesting conclusions about the demographics of Instagram influencers and followers. Findings from the Chrisafis study were based on a record of 703 influencers. The sample shows that the majority of Instagram influencers are female. At 62 percent, they are well ahead of their male counterparts, who are represented at 38 percent. The age groups hardly differ: male influencers are on average 28, female 27 years old. Comparing these results with the question from the Brandnew survey confirms the assumption that influencers are predominantly millennials. Depending on the content, however, they sometimes reach significantly older target groups.

The desire to live out their own creativity, to follow their own passion, to make a difference and to put monetary compensation at the end of their wishlist are some of the main characteristics of this generation.

THIS IS WHAT FOLLOWERS LOVE ABOUT THE WORK OF INFLUENCERS

4 “I CAN BE JUST ME!“ Many influencers have built their followings over the years on different channels and know their communities very well. When asked what their followers value in their work, 70 percent of the surveyed influencers said something to the extent of “that I‘m authentic, honest, funny, open and willing to report things the way I see them.“ A significant result - concludes Francis Trapp, founder and CEO of Brandnew especially for the German market, which fears that collaborations with influencers could not seem authentic enough and possibly lead to shitstorms.

“Influencers know that authenticity is the main reason why influencers‘ audiences are engaged. That means when influencers choose brands to collaborate with, in-

fluencers make sure that the brand stands for what the influencer stands for. Is it a love brand for the influencer?“ says Trapp. In addition, around 50 percent of surveyed influencers said their followers valued their content as it was highly interest-based and in line with market developments. Generally speaking: authenticity is their greatest added value.

balance the quality of the posts and the volume of interactions between influencers and followers. With 27 top performers (13%), Germany is in the lead. UK, USA, Italy and Russia follow at great distance. Only recently, the latest Instagram user numbers for Germany were published: more than 15 million. As was said: “It’s not just a hype.“

GEOGRAPHICAL DATA

5 EUROPE LEADS THE WAY. The sample distribution of the countries shows: most influencers are in the UK, closley followed by the influencers in Germany. The US ranks third. At a large distance, France follows in fourth place. It is not surprising that influencers who have their base in the UK also generate followers from the UK. Correspondingly, Germany also draws followers from Switzerland. THE TOP PERFORMERS in the large crowd of Instagram influencers come from Germany. This can be captured using multiple criteria. Crucial to Chrisafis‘ study are the most likes and the highest engagement rate. He chose these selection criteria to

CREATORS

AUDIENCE



TOP 20 27

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INDUSTRIES – WHICH BENEFIT FROM INFLUENCER MARKETING?

7 DOES IT LOOK NICE? AESTETIC PROPERTIES AND VISUALISATION MATTERS.

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INSTAGRAM – FAVORITE CHILD TO MANY INFLUENCERS

6 “MOVE OVER FACEBOOK, THIS IS AN INSTA-GAME“ Over 76 percent of the surveyed influencers named Instagram as the most important platform for them. Instagram has 800 million active users worldwide. The personal blog comes in second place, followed by Facebook. Twitter is fourth. These four platforms score with text- and image-based content. This is also the case with Snapchat – nevertheless, Snapchat is still behind Youtube, which also, but exclusively, transports video content. Bottom is Linkedin. This raises the question of whether the B2B-driven platform is last on this list precisely because of its B2B focus.

Leading the way for all other sectors, the fashion industry has long been on Instagram. As early as mid-2015, 96 percent of US fashion brands had their own account on Instagram. The fashion industry has been relying on Influencer Marketing for some time, especially in the US. In the fashion sector, Instagram Influencer Marketing works particularly well, partly because fashion demands high-quality images, partly because fashion advertisement that’s not focusing on the brands, but style-conscious fashion stars, works very well. In Germany, the most successful fashion bloggers have become household names in the industry: Leonie Hanne, Caroline Daur and Xenia van der Woodsen. The latter is a former star blogger and reaches over 120.000 subscribers with just one Instagram story on her account „Ohhcouture“. Caroline Daur is followed by over a million people on Instagram. At the beginning of last year, she ran at the Milan Fashion Week for Dolce & Gabbana.

Falko Kremp recently had his article “Why Influencers Are The Models of Tomorrow“ published on Horizont.net and provides very compelling reasons for this title. The chart by Mediakix shows which US sectors invest in Instagram Influencer Marketing via celebrities: the fashion sector alone has a share of 61 percent. The next-ranked industries – at just eight and seven percent – are travel, followed by food & drinks.

According to Statista, the value of posts by pamela_rf, who has over 3 million followers, averages at 14 thousand US dollars.

Travel is a very grateful topic. It provides unconventional footage and is especially popular with users. Although their numbers – compared to the bombastic figures of the fashion industry – are rather low, experience shows that the interaction rates of travel enthusiasts are highest.

ELECTRONICS AUTO BEAUTY APPS

In fact, the published content is what counts, not the number of followers. In Germany, the field of sports and fitness comprises about 200 influencers. This industry currently experiences – similar to food & drinks – quite some hype. This is mainly due to the content creators and their followers: people who value a conscious handling of their body and their health – among them many millennials. The German sports and fitness influencers also make a good impression globally.

MUSIC

FOOD&DRINKS

TRAVEL

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THE TYPES OF ADVERTISERS SPONSORING CELEBRITIES



THE KEY QUESTIONS IN THE SEARCH FOR SUITABLE INFLUENCERS.

FINDING INFLUENCERS – KEY QUESTIONS AND SELECTION CRITERIA

8 THE NUMBER OF FOLLOWERS MATTERS – BUT ONLY AT FIRST GLANCE! It‘s no surprise, many brands pay attention to the number of followers when they are looking for suitable influencers. Certainly, this is a very important criterion – after all, this number can be used to measure the reach of an influencer – nonetheless: “It can be an influencer who does not have huge follower numbers but is followed, for example, by fifteen top CIOs and CEOs in the world. In this situation, quality is more important than quantity“ says Amisha Ghandi, SAP Marketing Strategist. Not many but selected influencers often make the difference. Kyle Wong of Forbes provides a solid formula for this: “Influence = Audience Reach x Brand Affinity x Strength of Relationship with Followers“. Wong simply multiplies the number of followers by a measure of the influencer’s brand affinity.

Does the brand fit the influencer? Is the brand a true love brand for him or her? Will he or she represent them in a credible way? Finally, according to Wong, these variables must be multiplied by the relationship of influencers and followers: is there a connection? A trusting basis? For example, interaction rates can be a very important measure for the strength of the link between influencer and follower. According to Francis Trapp experience has shown that the greatest challenge is finding suitable influencers at all. This is reported by 75 percent of the marketers interviewed by Brandnew. Attracting the attention of influencers (69%) is another difficulty, as many top influencers receive numerous requests daily. Finally, the performance measurement of successful campaigns poses major challenges (53%). For these reasons, the SaaS-based platform provides opportunities to discover and build relationships with a pool of more than 100,000 quality influencers.

INTERESTING: A LOT OF INFLUENCERS HAVE ALREADY WORKED WITH BRANDS. With regard to the Brandnew study, 42 percent of surveyed influencers said they had already worked with brands via plat-

@virginiavarinelli forms. 68 percent said they were collaborating with brands via PR and marketing agencies, 84 percent are in direct contact with a brand. Platforms that connect influencers and brands entail additional benefits. They are especially helpful for marketers who are newly confronted with the challenges of Influencer Marketing.

The search for influencers on brandnew. io for instance can be refined using filters, such as desired channel, most-used hashtags, CVs and more. Especially interesting in Brandnew is the influencer search for the desired target group. Which influencer helps

me best to reach my target group? To simplify workflows, the platform provides tools for controlling influencers and campaigns. Everything is handled via a central campaign-brief. All means will be measured and reported in real-time.

REFINE COOPERATION – WHAT INFLUENCERS WANT FROM BRANDS

9 We recall: money was named in third place in the study of Brandnew. But what else



can brands offer? Influencers are first and foremost mindful of the brand itself: does it suit them? Can they express through it? Does it bring them fun? More than 40 percent state that the brand itself is crucial to their decision. The second factor was the relevance of the brand to the followers: what significance does the brand have for its followers? Would they like to receive contributions to it? These results underline the importance of the authenticity and transparency of influencers. WHICH FACTORS PRIMARILY DETERMINE WHETHER INFLUENCERS ACCEPT AN OFFER? Actual sales numbers as a measuring instrument for success factor at penultimate place. In contrast, impressions, traffic and likes are in the top three spots. Influencer Marketing is not about performance. Shares and brand mentions are named as the least important factors in the last place. Comments, however, rank in the midfield.

WHAT WERE THE BIGGEST BRAND-SIDE MISTAKES IN WORKING WITH INFLUENCERS?

HOW WOULD INFLUENCERS LIKE TO COLLABORATE WITH BRANDS IN THE FUTURE?

TRAFIC LIKES (OR THE EQUIVALENT)

When it comes to payment, brands seem to make the biggest mistakes by far: Seventy-two percent of the influencers interviewed by Brandnew state that not paying adequate wages was the biggest mistake made by brands. Excessively strict content guidelines come in second place. Also, that brands do not or not sufficiently involve influencers in the creative processes, influencers consider as one of the biggest mistakes. They also see the wrong expectations of brands as a large potential for misunderstandings. For example, too many social shares are expected on the brand side, or content is shared across too many channels. Influencers fear to lose their authenticity and honesty. Timings that are too short and close coordination processes before publishing content are also things that influencers don’t like.

73 percent of the surveyed influencers said they would like to be more involved in the creative process. This suggests that the creation is still strongly controlled by the companies and influencers only work as reach amplifies for prefabricated content. 68 percent of the influencers say that they would like to act as brand ambassadors and are therefore interested in long-term collaborations with brands. With 57 percent approval among influencers, the desire to participate in more events is also a strong signal to brands. Brand experience is not to be underestimated. An in-depth look at the question further suggests that a majority of influencers prefer to be paid for their work rather than receive branded products. After all, the 17th free handbag won‘t pay their rent.

I WOULD LIKE TO BE MORE INVOLVED IN THE CREATIVE PROCESS

NOT OFFERING ADEQUATE COMPENSATION

I WOULD LIKE TO BE INVOLVED IN AMBASSADORSHIPS

OVERLY RESTRICTIVE CONTENT GUIDELINES

I WOULD LIKE TO REVIEW MORE PRODUCTS

NOT PROVIDING ADEQUATE TIME

I WOULD LIKE TO RECEIVE MORE GIFTED PRODUCTS

REQUIRING TOO MANY SOCIAL SHARES OR SHARING TO EVERY SOCIAL CHANNEL

I WOULD LIKE TO ATTAND MORE EVENTS

REQUIRING PRE-APPROVAL OF CONTENT

OTHER (PLEASE SPECIFY)

One reason for this is that performance measurement in Influencer Marketing is still the Holy Grail.

IMPRESSIONS


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WHAT ARE SOME OF THE BIGGEST MISTAKES BRANDS MAKE WHEN WORKING WITH YOU? (CHECK ALL THE APPLY)

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COMMENTS SHARES OF YOUR POST TO SOCIAL CHANNELS ENGAGEMENT OF BRAND OUTSIDE OF SOCIAL MEDIA SALES

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HOW MUCH ARE THE INFLUENCERS INTERVIEWED BY BRANDNEW GETTING PAID PER CAMPAIGN? It is estimated that advertisers invest one billion euros annually in posts on Instagram - and the trend is rising. Instagram Influencer Marketing is forecasting $ 5-10 billion in revenue over the next five years. Nearly 20 percent said they were receiving giveaways instead of money. Corresponingly, 80 percent of influencers receive cash for their services. Between 10 and 25 thousand dollars per campaign - only eight of the 1,200 influencers interviewed fall into that category. Three of those were over $ 25,000 per campaign. However, the most popular category (33%) was less than $ 500 per campaign. 28 percent of respondents receive between 500 and 1000 US dollars. Rumor has it that leading fashion influencers in Germany make over one million in revenue each year. HOW DO INFLUENCERS DETERMINE THEIR PRICES?

The majority of the influencers surveyed by Brandnew (66%) determined their

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compensation rate based on the number of their followers, fans or monthly visitors. 61 percent went by the effort for the design of sponsored content. The involvement of the public is also decisive for the pricing: for example, 23 percent stated that the average number of likes, comments and shares determines their fees. The individual answers indicated that some influencers determined their prices according to the size of the commissioning brand. The rule: the bigger the company, the higher the price.

Orestis Chrisafis makes it clear in his “Sponsored Posts - A Data Science Paper“ study: “Brands have to invest smartly,“ he says. Because large investments do not bring great success. As expected, however, content creators should be paid more than $ 5,000 per post, provided that they reach 50% more engagement than other influencers.

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A post by pamela_rf is worth an average of 14 thousand US dollars. “To get the reach of her post, a company would need to invest about that amount in Instagram Ads“ says Statista. DON’T BE CHEAP: INVEST REAL MONEY, OR TRY TO FIND SOMETHING ELSE!

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DECLARING SOMETHING AS AN ADVERTISEMENT IS ACTUALLY NOTHING BAD!

LEGAL ISSUES

11 DO BRANDS REQUIRE INFLUENCERS TO TAG SPONSORED POSTS AS ADVERTISEMENTS?

Sponsored posts showed a statistically significant 9% increase in engagement rates versus unmarked posts. The reasons for this are not clear to the data scientist. But the fact is: posts declared as advertisements, which obviously make commercial interest clear, have no negative impact on community engagement. They even seem to welcome them. To comply with the laws, Instagram is currently testing its tagging and insights tool: influencers can use it to tag their contributions by the brand they collaborate with.

Consumer protection requires advertising to be labeled as such. Therefore, Influencers must mark photos and stories paid by brands accordingly. Does that disrupt the flow of Influencer Marketing? Only 24 percent of the surveyed influencers said brands always wanted it. For 76 percent (“sometimes“ / “never“) things could get narrow in the future.

Postings or stories are then subtitled “Paid partnership with.“ In addition, the Instagram account of the corresponding brand is displayed by tag.

Only 39 percent of respondents felt that the open tagging of posts as advertisement would have a negative impact on engagement. A good reason for brands to always urge influencers to tag sponsored content as advertising is not just the law:

To make it more attractive for brands and influencers, the tool comes with features to measure the success of posts – for both content creators and brands. That way brands can also keep an eye on their investment.

For more than four years, data scientist Orestis Chrisafis has been evaluating data from influencers who have tagged paid content as such and found that:

Instagram is currently making the tool available to selected influencers and brands, and will soon make it available to everyone concerned.

RECOMMENDATIONS FOR ACTION

12 The survey results of the Brandnew study show clear recommendations for the cooperation of brands with influencers: - Appreciation and adequate remuneration for their services. - Less control, but more confidence in their skills in the creative process. To review and release content before it is published should of course be possible. - More reliance on their flair: after all, they know their followers and their preferences best. Ultimately, the trust and close connection between influencer and follower form the basis for successful Influencer Marketing. If brands misuse this base, not only the image of influencers will be harmed. Even brands lose significant ambassadors and audiences. Advertising content can only be communicated effectively if it is weaved into the real content of influencers. Brands can achieve this by granting more freedoms to influencers and involving them in the creative process. Thus, the authenticity of the influencers remains preserved.

For the protection of brands and a secure communication strategy, simple guidelines can provide. Less is sometimes more. Not only can too many shares on too many channels make you untrustworthy: too many influencers engaging in a “One Shot“ campaign can have the same effect. Consistency is key: Brands have to keep up their level of successful “One Shots“ - for example on new products and product launches. According to Futurebiz, long-term cooperations with selected brand ambassadors are most attractive here.



BRANDNEW + FACELIFT BBT + JUNG VON MATT

13 The cooperation between Facelift bbt, Brandnew and Jung von Matt will allow us to offer customers an extension of our services through a complementary software solution. Customers of Brandnew and Facelift benefit from the integration of both platforms and thus from a central control of all Social Media Marketing activities - from the search for suitable influencers to the monitoring via just one cockpit. Contact us. We are happy to show you all the benefits of Facelift Cloud and Brandnew for your Social Media Marketing.

@nathanyelbns

@carina_witthoeft



SAMPLE & METHOD

14 In 2017 Brandnew set up a survey questioning more than 1,200 influencers and creators. Brandnew surveyed a mix of micro- and macro-influencers as well as high profile celebrities from their platform, to gather their opinions and insights on the dynamic business of Influencer Marketing. The participating influencers were 60% female and 40% male and mainly came from the UK, Germany and the US.

This new study was created using all the information gathered from the influencer survey. The dataset was formed into a database form for the purposes of the evaluation. Francis Trapp, founder and CEO of Brandnew, analysed the main findings of the survey, by reviewing the answers provided and then clustering all the individual responses.

Brandnew’s survey comprised 20 questions, including free text comments. These questions were designed to provide a good insight into the current market, and as a follow up to key findings of the recently published study “Behind the hype” in cooperation with Jung von Matt.

Trapp’s company Brandnew was founded more than five years ago. During this time he has gained an in-depth understanding of the influencer marketing industry, which enabled him to setup this survey and provide an interesting and relevant study.



IMPRINT

15 The rights to this study are with Brandnew. The study as well as detailed results can be requested by the study direction. Brandnew IO GmbH Francis Trapp, Founder Marienstraße 10 10117 Berlin Facelift brand building technologies GmbH Teja Töpfer, COO and Co-Founder Facelift Cloud Gerhofstraße 19 20354 Hamburg Jung von Matt/SPORTS GmbH Toan Nguyen, Partner and Executive Strategy Director Glashüttenstraße 79 20357 Hamburg

P R E SS I N Q U I R I E S A N D CO N TA C T : Lena Wanders [email protected]

INFLUENCER

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THE TYPES OF ADVERTISERS SPONSORING CELEBRITIES

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