Influencer Marketing Days is taking place in New York City on November 14 and 15, 2016. The following post is live blogging from a session within this conference.
The Panel Experts
- Adam Weiss, GM and SVP. Rakuten Affiliate Network
- Apu Gupta, CEO, Curalate
- Kamiu Lee, Head of Business Development and Strategy, Bloglovin’
- Moderator = Oliver Roup, Founder & CEO VigiLink
What are advertisers really buying when working with influencers?
This questions struck a chord with everyone on the panel. In each case, the response was based on the business objective of the brand. For some brands, content creation is crucial for brands that plan use the highly aesthetic and engaging content for the brand’s site. The brand works with this unique content to associate with a larger diversity. Apu provided an example with Crate and Barrel, who used inspiring, creative, and diverse images that resulted in a higher level of conversions and increased order value.
Other brands focus on traditional metrics, such as reach or revenue, which lend itself to definitive ROI. However, now brands look for a more granular level of data within these metrics, identifying what type of customers and sales are being driven. With this focus on metrics and ROI, Kamiu explained she is seeing budgets come from the traditional public relations budget as well as branding and media campaigns.
What can a top influencer or micro influencer expect to make? What do they do to stand out and increase their performance?
With the diversity of influencers, the panel agreed proposals have a significant range. Top tier influencers have agents and teams that negotiate budgets between $30,000 to $50,000. However, as influencers now broaden their monetization beyond sponsorship and ambassador relationships, the costs for these different type of engagements vary.
Apu shared how brands are turning everyday people into influencers. These micro influencers contribute and lift the brand without any monetization. He spoke to the success with the Urban Outfitters community where the brand invite peoples to share photos wearing their products. The brand focuses on the aesthetics and is very particular about which pictures make it onto the community. Urban Outfitters makes the content influential, not the influencer.
Adam mentioned how pricing varies greatly depending on brand and influencer. But the opportunity and money are definitely there. It is important to remain conscious that “the dollars are important but the influencer and brand relationship is even more critical. The influencer needs a ‘Why’ to promote the product. For successful influencers, dollars come second.”
What is the overall trend for popular social networks?
The panel was less focused on the specific social networks, as popularity can change quickly. Instead the trend of all social media platforms will be to incorporate tracking within their technology. Adam explains that platforms will be making it easier for influencers to monetize and give to justify value. Ease of use is crucial.
The mega trend that is happening is happening to commerce overall. Every single internet giant, brands and influencers are working to turn a picture into a point of purchase. It needs to be easy for consumers to transition from discovery to purchase. Why? The more clicks to purchase means the consumer is less likely to buy. Integration within social media of Buy buttons will be key. We are already seeing this happen.
Kamiu further drove home this point when discussing a recent survey her company Bloglovin’ ran. It showed that more than half the survey purchase a product or service after seeing it from an influencer. We know it works. Now we simply need to show it works.
Is there a role of talent agencies with influencers?
There will always be a place for the mega influencers to have agents or representatives. However the opportunity is for everyone. The panel agreed that the vast majority of influencers are ‘one person shops.’ Infuencers want a personal relationship and knowledge of the product or service. As stated earlier, the monetization is second. As such, it is important for the influencer to have direct contact with the brand.
Rakuten puts on several events for influencers to meet brands. People want to learn more about monetization and brands. Big or small, the reach doesn’t matter. Micro influencers are important as well. As such, an agency is not required for a successful relationship.
Oliver brought up the recent DigiDay article wrote by an anonymous and skeptical brand manager claiming that influencer marketing is on the verge of a breakdown. The moderator asked why people are still skeptical despite analytics proving influencer marketing successes. The panel was quick to point out the mere existence of this conference illustrates the staying power of the channel. Additionally, as tracking mechanisms further integrate within influencer platforms, the ROI will speak for itself. As we look beyond the simple metric of reach, there will be fewer skeptics.
Throughout the panel’s discussions, the success and importance of micromoments and smaller niche influencers resonated. Within these smaller influencer campaigns, the greatest ROI and success can be duplicated. In fact, Kamiu explained a test where the brand worked with 25 mega influencers and 25 micro influencers to compare results. The micro influencers brought the same level of engagement for half the cost. Micro influencers are closer with their followers due to shear scaling obstacles..
What is the trend to watch for over the next year and 5 years?
Kamiu echoed the focus on micro influencers. Two years ago, brands only wanted top influencers. Now brands are splitting budgets to allow room for micro influencers. Apu, who also works with micro influencers, sees the shift in content that brands display to be more editorial and resonate more on a personal level. Adam supported Kamiu and Apu with explaining how budgets will increase as well to support both the mega and micro influencers.
At the end of this panel, one thing was certain. Influencer marketing is beyond a buzzword and a passing trend. The data stands – influencers are having a positive impact for branding and revenue alike.
Stephanie Robbins, owner of Robbins Interactive, manages influencer marketing campaigns with a focus on incremental revenue and brand equity through affiliate marketing.
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