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How to Make Influencer Marketing Your Top Performing Channel in 2016 RACHAEL CIHLAR & LAURA SMOUS
@thuelmadsen #KissWebinar @Kissmetrics #KissWebinar
RACHAEL CIHLAR LAURA SMOUS Senior Influencer Marketing Strategist, TapInfluence Director of Product Marketing, TapInfluence @raisinann @laurasmous Rachael strategizes, designs, implements, and optimizes influencer marketing campaigns and programs for top brands and leading digital and PR agencies, in addition to relentlessly monitoring trends and data in consumer buying behavior. Laura is the Director of Product Marketing, melding agency and SaaS experience with an obsessive quest for knowledge about the market, our customers, and our product to build actionable strategies that help grow revenue with influencer marketing automation.
WHAT YOU’LL LEARN TODAY 1 Why IM Became a Powerhouse Channel 2 Creating a Revenue Driving IM Practice Driving Programs & Performance with Goal Setting Optimizing Influencer Selection for Maximum ROI Reaching the Right Consumers with Audience Targeting 2 3 How You’re Losing Money If You’re Not Always-On 6 4 Identifying Metrics That Matter (And Those That Don’t) 5 Continuously Improving Your IM Effort with Analytics
@raisinann @Laurasmous @tapinﬂuence #KissWebinar
Why IM Became a Powerhouse Channel INFLUENCER MARKETING’S TUMULTUOUS RISE TO FAME
Marketers don’t control the consumer journey anymore. (LET’S ALL STOP TRYING)
CONSUMERS DON’T TRUST BRAND ADVERTISING Both the U.S. Congress and the federal government rank above advertising and marketing when it comes to who consumers believe practices integrity.
IT’S REACHED A TIPPING POINT “ 62% of people trust brands less. –PwC 32% of online consumers trust a stranger more than a brand. ” –Forrester “ 73% of people wouldn’t care if brands disappeared tomorrow. –Meaningful Brands Study
ESPECIALLY WITH AD BLOCKING As consumer distrust of brands grows, so does their use of ad blocking technology—so much so that consumers are more likely to survive a plane crash than click on a banner ad. Brands are losing billions.
…AND BOTS Image via Incapsula $29.6 billion was lost by advertisers to bot fraud in 2015 alone. Even Google admits, more than half the ads served on the Internet are never seen.
THE RESULT 90% 0.04% 40% Percentage of Americans Who Ignore Digital Ads The Click-Through Rate of Display Ads Percent of ad revenue loss by websites that target millennials due to ad block. - Harris Interactive, 2015 - DoubleClick, 2015 – President of IAB No one’s listening to you.
THEY ARE LISTENING TO EACH OTHER 74% 90% 84% Rely on social media to inform purchase decisions Trust peer recommendations. Only 33% trust ads. Take action based on the opinion of others. - ODM Group - Nielsen – Nielsen How do you reach today’s social consumer, who trusts strangers more than YOU?
ENTER INFLUENCER MARKETING Forcing the same product messaging into new channels wasn’t working (we tried that with social). Trying to meet consumers at every conceivable point on their journey with stuff we wanted to say was exhausting and costly (we tried that with content). What emerged was a new way to reach consumers, with messages about your product they actually want to hear, coming from voices they already trust. That’s influencer marketing.
75% of marketers are using influencer marketing. – AUGURE, THE STATE OF INFLUENCER ENGAGEMENT IN 2015
THE RISE OF INFLUENCER MARKETING Change in influencer marketing budgets in the U.S. 2015 Are you expecting your influencer marketing budget to increase or decrease over the next 12 months? 70.0% 60.0% 59% Share of respondents 50.0% 40.0% 30.0% 20% 20.0% 11% 10% 10.0% 0.0% Increase budget Note: United States; March 10 to 16, 2015; 125 Respondents; among marketing professionals Further information regarding this statistic can be found on page 39. Source: Various sources (Tomoson); ID 432177 Maintain budget Decrease budget Unsure
THE ROI IS CLEAR Average $9.60 earned media value for every $1.00 paid 51% report better customers—who spend and refer more—from influencer campaigns 81% of marketers who ran at least one IM program found influencer engagement to be effective.
THE CATCH To unlock the high potential ROI of influencer marketing —repeatably, predictably, scalably and cost effectively— you need influencer marketing automation.
TIME TO VALUE: MANUAL VS. AUTOMATION AUTOMATED THE MANUAL WAY IDENTIFICATION (200 INFLUENCERS FOR TARGET OF 20 INFLUENCERS) 5 HOURS X $38.50 = $192.50 40 HOURS X $38.50 = $1540 OUTREACH (200 INFLUENCERS) N/A, INFLUENCERS ARE OPTIN 200 INFLUENCERS, 10-15 MIN (ea) VIA EMAIL 40 HOURS X $38.50 = $1540 NEGOTIATIONS 0.5 HOURS X $38.50 = $19.25 20 INFLUENCERS X 1 HOUR X $38.50 = $770 CONTENT CREATION MANAGEMENT 8 HOURS X $38.50 = $308 80 HOURS X $38.50 = $3080 DAILY MEASUREMENT & REPORTING 0.25 HOURS X 5 DAYS X 4 WEEKS = $192.50 2 HOURS X 5 DAYS X 4 WEEKS = 40 HOURS X $38.50 = $1540 $885.50 COST OF YOUR TIME FOR A SAVINGS OF $7584.50 AND ALMOST 200 HOURS! $8,470.00
Creating a Revenue Driving IM Practice EVERYTHING YOU NEED TO KNOW IN 15-MINUTES
WISE WORDS “ Content that tries to sell, doesn’t. Content that tries to help, does. LINDA BOFF CMO, GE
Who Can Build a Practice? HINT: YOU CAN
WHAT YOU NEED TO BUILD A PRACTICE • Budget • Goals • Competitive Offerings • Resources
BUILD A REALISTIC BUDGET What is our total influencer marketing budget? What’s the cost-benefit of building an IM practice in house versus outsourcing to an agency? How much will we need to spend on influencers to reach our goals? What is our plan for distribution to maximize the value of influencer generated content?
SET GOALS AS AN ORGANIZATION Set goals upfront and expectations for meeting them: • Agencies – influencer marketing as a revenue stream, core competency to win new business • Brands – influencer marketing for brand awareness, market share, product launches, events, etc…
START WITH A COMPETITIVE OFFERING Agencies: • Pricing versus competitors • Campaign value versus competitors Brands: • Marketing plan versus competitors • Content advantages versus competitors
GET RESOURCES READY 1. Build a team 2. Scale to fit your business 3. Save on resources
PLAN FOR GROWTH Agency A – Program Growth Programs 35 30 25 20 15 10 5 0 March April May June July August September In six months: from 1 program a month to almost 30 programs per month.
PLAN FOR GROWTH Agency A – Influencer Utilization Influencers 700 600 500 400 300 200 100 0 March April May June July August September In six months: from using 1 influencer per month to over 600 per month!
PLAN FOR GROWTH Agency A – Influencer Spend Influencer Spend $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 In six months: from $50 in influencer spend to over $160,000!
PLAN FOR GROWTH Agency A – Influencer Team Influencer Team 9 8 7 6 5 4 3 2 1 0 March April May June July August September In six months: from 1 person team to 8!
Influencer Selection for Maximum ROI HOW TO OPTIMIZE
GUIDING YOUR INFLUENCER SEARCH Know how to search the basics: • Categories • Channels and Reach • Cost Per Engagement (CPE) • Experience and Voice
GUIDING YOUR INFLUENCER SEARCH Then learn how to search smart: • What are my goals and will this influencer help me achieve them? • Would this influencer normally speak about this topic or product ? • Which search criteria are most important for my goals?
TRICK QUESTION “ Which is more important: getting your message in front of a massive number of consumers—very few of whom will ever care about or be able to afford your product—or surgically targeting those that closely resemble your ideal customer? YOURS TRULY TapInﬂuence
KNOW YOUR AUDIENCE, AND TARGET THEM More isn’t necessarily better. We are much more likely to influence buying behavior by talking to people wo actually have the ability and inclination to buy. Activating that inclination to buy is much more likely to occur in close personal discussions than in massive groups, where the audience is only very loosely connected to the speaker. For that reason, when identifying influencers, look to individuals who have meaningful influence over your buyers rather than celebrities with massive followings. “54 percent of consumers agree that the smaller the community, the greater the influence.”
THERE’S NO END TO WHAT YOU CAN OPTIMIZE Pre-campaign: • Influencer focus groups • Previous influencer performance Post-Campaign: • Evaluate results & top performers • Test new influencers
Trends in Influencer Selection WHAT YOU NEED TO KNOW
TRENDS: INFLUENCERS What Marketers Want 4% Gamers 8% International Influencers 33% Male Influencers 39% Video influencers
TRENDS: EMERGING CHANNELS SNAPCHAT PERISCOPE • 48%* of influencer • 52% of influencer polled polled have Snapchat • 81%* of those have Periscope • 90% of those influencers influencers want want sponsored sponsored opportunities opportunities
How You’re Losing Money If You’re Not Always-On WHY YOUR IM STRATEGY WILL MAKE OR BREAK YOUR SUCCESS
Today’s customers distrust and resent one off campaigns that interrupt or intercept them. – FORRESTER
TRUST ISN’T SOMETHING YOU TURN ON AND OFF Consumers are asking their own questions, in their own buying cycles. Millions of people are forming their own opinions, whether or not you’re part of the conversation, that you won’t be able to overcome later. That’s why your marketing must feel like a natural continuation of a conversation with your customer.
Continuous engagement ensures that the initial purchase is only beginning of a customer’s value. – MARKETO, THE FIVE PRINCIPLES OF ENGAGEMENT MARKETING
IT WILL MAKE YOU MORE MONEY Repeat customers spend as much as 67% more than new customers, and 49% of companies say they achieve a higher return-on-investment by focusing on engagement rather than acquisition. – BAIN & COMPANY
IT WILL SCORE YOU MORE CUSTOMERS Loyal customers are positioned to become advocates for your brand, helping you to create new business. Engaging with customers throughout their lifecycle isn’t just about individual value—it’s also about the value of their networks. – BAIN & COMPANY
Unless you do it wrong. (WHICH MANY OF US ARE)
WHY ALWAYS-ON 1 Consistency 2 Saving Time and Money 3 Brand Lift and Amplification of All Other Marketing 4 Sustained Growth and Earned Media Value 5 Predictable Results and Scale
TWEET OF THE DAY The best influencer marketing campaigns don’t end with content creation. @NEILPATEL @Kissmetrics @TapInfluence #KissWebinar #TapMetrics
HOW TO MAKE EVERY PROGRAM ALWAYS-ON Repurpose on your brand’s site: • Blog content • Content hub • Branded community • Newsletters • Marketing materials
HOW TO MAKE EVERY PROGRAM ALWAYS-ON Repurpose on your brand’s channels: • Social editorial calendar • Social ads • Social artwork • Social testimonials
DON’T FORGET DISTRIBUTION Influencer distribution allows you to: • Increase the efficacy and lifespan of content • Generate revenue • Drive exponential additional value from existing programs and content, at only incremental additional cost • Gain predictability and ability to drive scale with spend • Get speed to performance • Bridge gaps between programs and remain “always-on”
Identifying Metrics that Matter (AND THOSE THAT DON’T)
TWEET OF THE DAY When you know better, you measure better. When you measure better, you know better. @NEILPATEL @Kissmetrics @TapInfluence #KissWebinar #TapMetrics
INFLUENCER MARKETING METRICS Thou shall always: 1. Know goals ahead of time 2. Know how to measure success 3. Know how to communicate success
INFLUENCER MARKETING METRICS
METRICS ALONG THE BUYER’S JOURNEY AWARENESS CONSIDERATION PREFERENCE PURCHASE LOYALTY Reach Clicks Sharing Clicks to e-commerce Sharing Views Votes Likes / Follow Conversions to sale Referrals Content Views Data Capture Coupons/ Exclusive Offers User-generated content Brand Study Social Listening Tracking tags Comments Brand Study
TRENDS: METRICS Going Up: • Sales (duh!) • Shares • Comments – positive sentiment • Coupon downloads Going Down: • Reach • Views
Continuously Improving Your IM Effort USING ANALYTICS TO SCALE PERFORMANCE AND ROI
DID YOU KNOW “ WOM is 50% more likely to trigger a conversion than ads. MAVRCK
INFLUENCER MARKETING ANALYTICS Step 1: Find a solution for analytics. Your solution should: • Report on all relevant metrics • Report in real-time • Measure different campaign types (video, blog, etc) • Optimize for you
INFLUENCER MARKETING ANALYTICS Step 2: Optimization – Influencer Performance Real Example: • Influencer A charges $12,000, delivers 58.3K engagements = $0.21 CPE • Influencer B charges $3000, delivers 13.4K engagements = $0.22 CPE
INFLUENCER MARKETING ANALYTICS Step 3: Optimization – Brand Elements Evaluate: • URL performance • Brand Messaging • CTA
TO DO INFLUENCER MARKETING WELL You Need: SCALE Access to the right, vetted influencers, through an automated tool, allowing streamlined workflow and time efficiencies. You Need: QUALITY Ability to control the content, timelines and FTC disclosures, without having to manually check and schedule each post and share. You Need: PERFORMANCE Measurement of performance, down to an ROI on an influencer-byinfluencer, action-by-action, channel-by-channel basis with the ability to optimize
Our Customers HOW WE HELP BRANDS AND AGENCIES DRIVE REVENUE
HOW WE HELP OUR CUSTOMERS
Questions? RACHEL CIHLAR LAURA SMOUS Sr. Influencer Marketing Strategist, TapInfluence Director of Product Marketing, TapInfluence @raisinann @laurasmous email@example.com firstname.lastname@example.org