What we know about influencer marketing
Source: WARC Best Practice, July 2020
Downloaded from WARC
Looks at how influencer opinions and recommendations via word-of-mouth or through social networks
play a significant role in spreading ideas and delivering marketing messages to consumers.
Influencer opinions and recommendations via word-of-mouth or through social networks play a
significant role in spreading ideas and delivering marketing messages to consumers. While much
influence takes place online it's important to note that influence happens offline too in places such as
the playground, workplace and bars. Marketers are still trying to find the correct strategy for utilising
influencers as a marketing tactic. There are different types of influencers such as 'mega-influencers'
who have accrued an audience of millions and micro-influencers who have smaller audiences, often
with niche interests.
Definition
An influencer is an individual who has above-average reach or impact through word-of-mouth or social
marketing. Influencers are often highly knowledgeable about a specific subject such as food, fashion, beauty or
technology. Many marketers look to influencers such as celebrities, bloggers or vloggers with huge followings to
do brand promotion.
Key Insights
1. Influencers can be more effective than TV ads
Influencers can generate a significantly stronger emotional response and higher levels of memory encoding than
TV ads, according to neuroscientific research. Respondents carried out a series of tasks as normal – watching
TV, YouTube videos and browsing their Facebook feed – during which they were shown a series of ads that
formed part of brand campaigns. Measurement of brain activity showed quite different responses for TV ads and
influencer ads – TV response was much weaker. Comparing key metrics across the formats revealed that
participants reacted far more strongly to influencer ads than TV ads: the former generated 277% more emotional
intensity and 87% more memory encoding (which correlates to future action and decision making). The study
also highlights an influencer priming effect. Users tend to be put off by the interruption of TV, Facebook and
YouTube ads, but if they’ve seen an influencer post from the same campaign beforehand they’re more ready to
watch the TV ad.
Read more in: The science of influencer and its impact on influencer measurement
2. Gen Z prefers a different kind of influencer
The strategy of getting talent with as big a social following as possible to mention your product to their followers
no longer works for Gen Z, according to UK research by creative agency We Are Social. The research found
that celebrity influence over Gen Z is very limited if the celebrity is trying to sell something outside their realm of
expertise, while influencers with mega popularity are totally unappealing. Rather Gen Z prefers micro-influencers
and super fans – people who bring real, earned credibility to brand endorsements – and messages connected to
something that they find valuable such as learning more about a skill or discovering a new talent. To reach Gen
Z, brands therefore need to think about a network of relatable peers who already have a connection with the
business or have a talent that compliments the brand.
Read more in: Why influencers are losing their influence
3. Social commerce is creating a new influencer economy
Social commerce is transforming platforms into malls. Instagram already enables brands to sell directly within the
app, and now influencers are looking to sell directly too – either their own products or products from preferred
brands. Instagram is already testing ‘Shopping from Creators’ with select influencers having access to its
‘checkout’ feature to make transactions easier and save influencers’ time. Furthermore, apps such as Depop
and Storr are offering peer-to-peer, social shopping for second-hand and new, brand-name products
respectively. Influencers are also exploring ways to sell access to themselves or their content and creative
output, or building membership-based businesses, such as BuyMeACoffee. Tips and gifting are another
opportunity being explored by influencers active in entertainment, including social entertainment platforms such
as Twitch or TikTok.
Until now, brands have helped influencers and the social platforms monetise by using advertising-style metrics,
paying for reach or perhaps an agreed number of posts. If brands are not able to sponsor content or have paid
partnerships with influencers, they will need to think about how to add value. One option is a retail partnership
model, with brands providing exclusive products to individual influencers. The opportunity for brands in tipping
and social entertainment is less clear-cut but might involve integration into the entertainment itself.
Read more in: Wake up to the dawning of a new influencer economy
4. Influencers can play a role for brands during the COVID-19 crisis
Social media influencers are seeing more traffic from home-bound audiences looking to navigate the crisis. With
some consumers expecting their social spend to increase, brands can deploy influencers to ease the process.
For example, Nike saw a 36% increase in digital sales in China for the quarter ending 29th February thanks to
Taobao (Alibaba’s e-commerce platform) livestream bloggers broadcasting during lockdown. Striking the right
tone is a key challenge for influencers during the lockdown but consumers do have a lot of new needs and are
looking to influencers for help and diversion. Outdoor brand Dakine has been getting it right through creating
social content with its partner athletes around how they are coping at home and going outside responsibly – and
has seen a significant boost in site visits as a result.
Read more in: The business of influence has changed during COVID-19
5. Meaningful partnerships are a win-win for brand and influencer
There are six considerations for ensuring brand-influencer partnerships are mutually beneficial:
Partner choice – while the influencer brings access to their audience, the brand needs to give the
influencer access to events and content their audience wouldn’t otherwise have
Longer-term partnership – to keep engagement and the brand messaging alive for longer, to enhance
authenticity and depth of audience engagement and to see the measurable rewards.
Engagement as the key metric
Avoid over-branding to avoid inauthenticity and losing the audience
Appropriate compensation for quality content creation
Balance the use of media and messaging to satisfy the influencer audience and the brand’s needs
Read more in: An influencer’s six tips for building meaningful brand partnerships
6. Influencer marketing ROI is a key concern
Determining the return on investment of influencers is the greatest concern that US marketers face, according
to research from influencer marketing platform Linqia. Marketers want to be able to benchmark and predict how
influencers perform relative to other digital advertising channels. Influencer marketing companies are seeking to
address this with measurement tools that look at the likes of brand metrics, e-commerce clickthrough and offline
purchase, and creative impact. These tools work best when clearly defined objectives are established upfront
and guide the choice of influencer and campaign tactics.
Read more in: The ROI of influencer marketing
7. Use of influencer marketing is growing – and Asian brands have the most to gain
Influencer marketing is set to grow to a $10 billion market by 2020. The growth is attributed to social media use
and a desire to combat ad blocking, be more authentic, drive engagement and reach younger audiences. More
than half of major brands investing in influencer marketing use paid media to amplify influencer campaigns.
2020 research conducted by Group M, looking at consumer sentiment towards influencers, found that Asian
consumers are much more likely to report more positive impressions of brands that use influencers – apart from
Mexico, Asian countries represent the top 13 countries with the strongest consumer sentiment towards
influencers. This contrasts with much lower positive sentiment in Western Europe, the US, Canada, Australia
and New Zealand.
Read more in: Influencers anchor $600-billion brand-activation practice, The growing influence of
influencer marketing and Influencers perform best in Asia, worst in Germany and France
8. Instagram is a key platform for influencer marketing
Sponsored Instagram posts reached 3 million in 2019, up 42% versus the previous year, despite growth
slowing in the last quarter. South Korea, the United Arab Emirates and Canada showed the strongest growth
in 2019, though the US continues to dominate with a 42% share of posts. Micro-influencers around the 10,000-
follower mark are seen as the most important segment due to their authenticity, close bond with their audience
and potential for genuine word of mouth. Brands will want to work with influencers who have a good ‘brand fit’
and can help them reach key demographics. The creation of influencer business accounts lends itself to
transparent signposting of promoted brand content. However, brands also need to be on the lookout for fake
influencers on the platform by looking at key follower and engagement metrics. The introduction of IGTV in 2018
opened up new influencer opportunities on Instagram with the removal of the one-minute time limit on video
content. This could be of particular interest to retailers without a full digital presence. Marketers - particularly in
the beauty sector - are also using sponsored Instagram Stories to boost e-commerce, with 90%
encouraging the viewer to swipe up and visit an external page.
Instagram suggests seven ways to create content for better organic reach and engagement through influencer
partnerships:
Use the Live feature in Instagram Stories for engagement and content promotion
Get the most out of the different channels on Instagram by tailoring content and ensuring cohesion across
them
Ensure content has a point of view
Enable influencer partners to be authentic to themselves
Work with creators who align with the brand and can make it part of their life convincingly
Create a regular rhythm of posts
Trust the influencer, let go the need for control
Read more in: Three key trends in influencer marketing, Eight tips for spotting fake influencers on
Instagram, How new brands capture the influence of influencers – while traditionalists don’t and Seven
tips for better branded IG content and working with influencers
9. Influencers with the biggest audience are not necessarily the best
A study by social media analytics company Shareablee and content company Fullscreen, looking at influencers
of all sizes, from Celebrity (+20m followers) through Digital Creators (1m – 19m) to Micro-influencers (250K-
999K) found that influencers with smaller audiences were more impactful. The study found that Digital Creators,
with an engagement rate of around 0.6%, outperformed both Celebrities (0.4%) and Micro-influencers (0.35%).
Digital Creators were also the most trusted (45%) and celebrities the least trusted (29%). Those who engaged
with Micro-influencers were most likely to try a recommended product (45%), though Digital Creators were the
most likely to drive purchase (between 28 and 30%). Separate research from influencer marketing marketplace
TRIBE found micro-influencers with less than 100k followers attract much higher engagement than those with a
larger following. The research is borne out by the experience of footwear brand TOMS. While celebrities were
important to the brand when it launched initially, more recently it has had more success with a host of micro-
influencers who tap into consumer interests. Also, chocolate brand Maltesers has chosen to connect with Gen Z
teens via relatable online creators for its launch in the US. There is also a trend towards nano influencers (1-
5K followers), who are paid low rates but drive very high engagement thanks to the strong connection with their
audiences – brands need to work with a lot of them to achieve sizeable reach. Niche influencers, delineated by
specialism rather than audience size, are also emerging in a whole host of interests, providing the kind of honest
advice, help and support a friend might.
Read more in: The best influencers are not who you think, Buy or nurture? Two approaches to using
micro-influencers, TOMS’ formula for connecting with young consumers and How Mars' Maltesers bites
into US market
10. Influencer fraud is undermining trust in influencer marketing
When in June 2018 Unilever announced it would no longer partner with influencers who buy followers and
inflate their reach, the spotlight fell on influencer fraud. It called for the removal of misleading engagement and
improved transparency from social platforms to help brands measure impact – or risk destroying trust in the
channel, which has been declining since 2014. With increased investment in influencer marketing and
purchasing fake followers cheap and easy to do, there is now an estimated $100 million problem of fraudulent
influencers – with Asia a particular problem. As a result, new tools have emerged to better measure influencer
campaigns and brands are putting more effort into vetting partners. Social platforms such as Twitter are also
cracking down on false accounts. Further standards, guidelines and third-party verification are needed to ensure
full transparency and trust in the channel.
Read more in: Influencer marketing's wake-up call, Unilever’s keys to mastering influencer
marketing and Brands aim to boost influencer marketing budgets
11. Influencer selection requires an analytical approach
Social media analytics company Shareablee suggests engagement metrics, rather than size of following, better
measure how connected the influencer’s community is to the content and therefore potentially to your brand’s
activation with that influencer. Brands should therefore look at five things when assessing a potential influencer:
Scale and reach of engagement on a regular day/month
Consistency of content creation
Velocity or the trend in performance
Average content performance
Size of potential audience (fans and followers)
In addition, thought should be given to the type of influencer(s) to best support the brand and campaign
objectives and the fit of the influencer and its audience with the brand.
Communications marketing firm Edelman suggests the “RARA system” which scores potential influencers on
their reach, authority, relevance and accessibility in relation to the brand and its objectives, based on data
analytics and qualitative analysis.
Read more in: Celebrities, macro-influencers, rising-star creators and micro-influencers: What brands
need to know and Using influence to capture audience attention
12. Virtual influencers are stunt tactic, not proven marketing tool
As influencer marketing has become tarnished by adverse publicity surrounding some high-profile figures and
the practice of buying followers, some brands have experimented with CGI-created virtual influencers. The key
advantages are greater control of output and cost-effectiveness. However, there are questions about the notion
of authenticity - meaning virtual influencers may not work so well in categories outside fashion where they
largely operate currently. On the other hand, some argue that consumers are fed up with overly-contrived social
media posts that claim to showcase “real” life and may prefer the unashamed artificiality of a virtual influencer.
Read more in: Trend Snapshot: Virtual influencers
13. Transparency of brand-influencer relationships is critical
All influencer content related to a brand should be explicit and clear on the relationship between the two parties
to avoid complaints to regulatory authorities. Use of #ad or #sponsored hashtags on social media is one, but not
the only, way. Tech accessories company Belkin has successfully partnered with influencers for new product
launches and has insisted on influencers using hashtags to make the relationship obvious. In early 2019 a
number of leading influencers in the UK pledged to be more transparent about product endorsements after
warnings from regulators, who deemed hashtags to be insufficient disclosure.
Read more in: The highs and lows of influencer marketing and user-generated content and Influencers to
come clean over online endorsements
14. Influence happens offline as well as online
The widely used influencer marketing model that relies on online data to identify mega-influencers is outdated
because influence is not constrained by social media – it occurs offline too. As such, a new approach is
suggested which de-prioritises online reach and looks at the offline drivers of influence. Marketers are advised
to shift to an influencer model built around:
Combining qualitative and quantitative research. The former for insight and determining a plan of action,
the latter for exploration and validation at scale.
Leveraging micro-influencers. Mega-influencers are now so famous, arguably, they have become
inaccessible to their audiences. In contrast, micro-influencers, those with smaller, niche audiences, often
have far greater engagement with their audience and can impact attitudinal and behavioural change.
Going beyond an influencer list. It's important to understand an influencer's own personal agendas, and the
agendas of their audiences, and find the sweet spot where it overlaps with your own brand objectives.
Further, aligning the brand with the right influencer, in other words, having the right brand 'fit', is an important
consideration.
Brands should also consider the “influencer next door” – the one in ten consumers who frequently make
recommendations to their network. Research shows these unpaid everyday influencers have impact online and
offline, contributing to short-term sales and long-term brand equity.
Read more in: How to work with influencers and The power of everyday influencers in driving business
outcomes
More on this topic
Admap: Influencer marketing: beyond the hype - summary deck and Influencer marketing: beyond the
hype
WARC Topic Page: Influencers
WARC Best Practice: What we know about influencers in China
WARC Webinars: 5 things to consider when selecting an influencer
WARC Data Points: Influencer Marketing, Top sponsorship industries
WARC Case Studies: Lead media: WOM, influencers
2020 Media Strategy Report: Insights from the WARC Media Awards
Effective Social Strategy Report: Lessons from the 2019 WARC Awards
Further reading
Marketers prefer Twitter over TikTok for influencer campaigns
Influencer marketing in India to get big boost in 2020 but fake likes hit Instagram
J-beauty and Instagram key SE Asia beauty trends
Gaming influencers see highest YouTube engagement
How PepsiCo builds an influencer-marketing funnel
How American Express develops and measures and influencer marketing
Sephora sparks engagement by crowdsourcing its influencer selection
How JetBlue uses influencers as focuses in support of broader tactics
How DTC brand Gymshark created an influencer strategy for long-term performance
MADE.com’s five tips for better influencer marketing
Q Mixers concocts a new influencer strategy by tapping into bartender pride
Nescafé, Danner and Skinny subvert influencer strategies
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