how to make influencer marketing your top performing channel in 2016
TRANSCRIPT
How to Make Influencer Marketing Your Top Performing Channel
in 2016 RACHAEL CIHLAR & LAURA SMOUS
#KissWebinar @Kissmetrics
#KissWebinar
@thuelmadsen
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.
RACHAEL CIHLAR Senior Influencer Marketing Strategist,
TapInfluence
@raisinann
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.
LAURA SMOUS Director of Product Marketing,
TapInfluence
@laurasmous
1 Why IM Became a Powerhouse Channel
2 3 How You’re Losing Money If You’re Not Always-On
WHAT YOU’LL LEARN TODAY
2 Creating a Revenue Driving IM Practice
6 4 Identifying Metrics That Matter (And Those That Don’t)
5 Continuously Improving Your IM Effort with Analytics
Driving Programs & Performance with Goal Setting
Optimizing Influencer Selection for Maximum ROI
Reaching the Right Consumers with Audience Targeting
@tapinfluence
#KissWebinar
@raisinann @Laurasmous
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)
Both the U.S. Congress and the federal government rank above advertising and marketing when it comes to who consumers believe practices integrity.
CONSUMERS DON’T TRUST BRAND ADVERTISING
IT’S REACHED A TIPPING POINT
–PwC
“ 62% of people trust brands less.
” 32% of online consumers trust a stranger more than a brand. –Forrester
–Meaningful Brands Study
“ 73% of people wouldn’t care if brands disappeared tomorrow.
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
$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.
Image via Incapsula
THE RESULT
No one’s listening to you.
90% 40% Percent of ad revenue loss by websites that target millennials due
to ad block. – President of IAB
Percentage of Americans Who
Ignore Digital Ads - Harris Interactive, 2015
The Click-Through Rate of Display Ads
- DoubleClick, 2015
0.04%
How do you reach today’s social consumer, who trusts strangers more than YOU?
THEY ARE LISTENING TO EACH OTHER
74% 84% Take action based on the opinion of others.
– Nielsen
Rely on social media to inform
purchase decisions - ODM Group
Trust peer recommendations. Only 33% trust ads.
- Nielsen
90%
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.
ENTER INFLUENCER MARKETING
75% of marketers are using influencer
marketing.
– AUGURE, THE STATE OF INFLUENCER ENGAGEMENT IN 2015
THE RISE OF INFLUENCER MARKETING
59%
11% 10%
20%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Increase budget Maintain budget Decrease budget Unsure
Sha
re o
f res
pond
ents
Are you expecting your influencer marketing budget to increase or decrease over the next 12 months?
Change in influencer marketing budgets in the U.S. 2015
Note: United States; March 10 to 16, 2015; 125 Respondents; among marketing professionals
Source: Various sources (Tomoson); ID 432177
Further information regarding this statistic can be found on page 39.
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 ROI IS CLEAR
THE CATCH
To unlock the high potential ROI of influencer marketing—repeatably, predictably, scalably and cost effectively—you need influencer marketing 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 OPT-IN
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
COST OF YOUR TIME $885.50 FOR A SAVINGS OF
$7584.50 AND ALMOST 200 HOURS!
$8,470.00
TIME TO VALUE: MANUAL VS. AUTOMATION
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 BOFFCMO, GE
Who Can Build a Practice?
HINT: YOU CAN
Agencies Brands
• Budget
• Goals
• Competitive Offerings
• Resources
WHAT YOU NEED TO BUILD A PRACTICE
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?
BUILD A REALISTIC BUDGET
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…
SET GOALS AS AN ORGANIZATION
Agencies:
• Pricing versus competitors
• Campaign value versus competitors Brands:
• Marketing plan versus competitors
• Content advantages versus competitors
START WITH A COMPETITIVE OFFERING
1. Build a team 2. Scale to fit your
business 3. Save on
resources
GET RESOURCES READY
In six months: from 1 program a month to almost 30 programs per month.
0
5
10
15
20
25
30
35
March April May June July August September
Programs
PLAN FOR GROWTH
Agency A – Program Growth
In six months: from using 1 influencer per month to over 600 per month!
0
100
200
300
400
500
600
700
March April May June July August September
Influencers
PLAN FOR GROWTH
Agency A – Influencer Utilization
In six months: from $50 in influencer spend to over $160,000!
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Influencer Spend
PLAN FOR GROWTH
Agency A – Influencer Spend
In six months: from 1 person team to 8!
0
1
2
3
4
5
6
7
8
9
March April May June July August September
Influencer Team
PLAN FOR GROWTH
Agency A – Influencer Team
Influencer Selection for Maximum ROI
HOW TO OPTIMIZE
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?
GUIDING YOUR INFLUENCER SEARCH
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 TRULYTapInfluence
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.”
KNOW YOUR AUDIENCE, AND TARGET THEM
Pre-campaign:
• Influencer focus groups
• Previous influencer performance
Post-Campaign:
• Evaluate results & top performers
• Test new influencers
THERE’S NO END TO WHAT YOU CAN OPTIMIZE
Trends in Influencer Selection
WHAT YOU NEED TO KNOW
Gamers
International Influencers
Male Influencers
Video influencers
4%
TRENDS: INFLUENCERS
What Marketers Want
8%
33%
39%
SNAPCHAT
• 48%* of influencer
polled have Snapchat
• 81%* of those
influencers want
sponsored opportunities
PERISCOPE
• 52% of influencer polled
have Periscope
• 90% of those influencers
want sponsored
opportunities
TRENDS: EMERGING CHANNELS
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
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.
TRUST ISN’T SOMETHING YOU TURN ON AND OFF
Continuous engagement ensures that the initial
purchase is only beginning of a
customer’s value. – MARKETO, THE FIVE PRINCIPLES OF ENGAGEMENT MARKETING
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.
IT WILL MAKE YOU MORE MONEY
– BAIN & COMPANY
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.
IT WILL SCORE YOU MORE CUSTOMERS
– BAIN & COMPANY
Unless you do it wrong. (WHICH MANY OF US ARE)
1 Consistency
2
Brand Lift and Amplification of All Other Marketing
4
3
Saving Time and Money
Sustained Growth and Earned Media Value
5 Predictable Results and Scale
WHY ALWAYS-ON
TWEET OF THE DAY
The best influencer marketing campaigns don’t end with content creation.
@NEILPATEL
@Kissmetrics @TapInfluence #KissWebinar #TapMetrics
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
HOW TO MAKE EVERY PROGRAM ALWAYS-ON
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”
DON’T FORGET DISTRIBUTION
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
Thou shall always:
1. Know goals ahead of time
2. Know how to measure success
3. Know how to communicate success
INFLUENCER MARKETING METRICS
INFLUENCER MARKETING METRICS
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
METRICS ALONG THE BUYER’S JOURNEY
Going Up:
• Sales (duh!)
• Shares
• Comments – positive sentiment
• Coupon downloads
Going Down:
• Reach
• Views
TRENDS: METRICS
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
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
INFLUENCER MARKETING ANALYTICS
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-by-influencer, action-by-action, channel-by-channel basis with the ability to optimize
TO DO INFLUENCER MARKETING WELL
Our Customers
HOW WE HELP BRANDS AND AGENCIES DRIVE REVENUE
HOW WE HELP OUR CUSTOMERS
OUR PLATFORM
LAURA SMOUS Director of Product Marketing, TapInfluence
@laurasmous
RACHEL CIHLAR Sr. Influencer Marketing Strategist, TapInfluence
@raisinann
Questions?