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A white paper by WARC

Aligning marketers
and influencers
Shifting perspectives on influencer
marketing across the funnel
© Copyright WARC 2022. All rights reserved.
WHY
INTRODUCTION
WE NEED TO TALK
AND ABOUT
CONTENTS
BRAND

About this Contents

report Foreword from WARC 3

This report, developed by WARC surveyed more than 400


WARC and impact.com, marketers and 400 influencers across
The view from impact.com
4
analyses influencer marketing, Europe, North America, Asia, and
Australia to better understand the
exploring how marketers and Chapter 1
evolving role of influencer marketing.
influencers align and differ in Influencer marketing is shifting
8
We also conducted a series of in-
perspective. It will help identify depth marketer and influencer
ways the two can create Chapter 2
interviews. Our team combined the
The consumer angle: Growth and opportunity 16
true partnerships to drive data from this research with a review
marketing effectiveness. of WARC’s global data, industry
Chapter 3
knowledge, examples, and expert
Influencing marketing in the mix
25
contributions.

Chapter 4
Perspectives from marketers: Partnership and innovation
35

Conclusions
53

© Copyright WARC 2022. All rights reserved. 2


FOREWORD FROM WARC

Foreword from WARC


Influencer marketing has grown steadily cut down on the options available to Typically, brands tightly control their content
in importance in recent years. At WARC, consumers, and the Internet became by far and messaging. But with influencers, the
we’re seeing a growing number of the most important source of entertainment, key to their relationships with their followers
communication and advice – fertile ground is authenticity. Successful influencers are
marketers ask an ever-expanding range
for influencers. Influencers also helped plug a perceived as genuine and trustworthy by a
of questions about integrating influencer
gap while content production became difficult. loyal and engaged fan base. If brands interfere
marketing into their plans, and the best While lockdowns have ended in most parts of with that relationship by overtly influencing
ways to do so. the world now, influencers were able to use that influencer content, both parties will lose out.
time to create lasting relationships with their Brands have to learn to give up control, which is
That’s in sharp contrast to only a few years ago,
audiences. And on the flip side of the equation, not an easy or comfortable option for many.
where non-celebrity influencers were seen more as
engaging with influencers has become an
hobbyists, and influencer marketing was primarily Another outcome of this increased
established behaviour for consumers.
seen as an experiment for the majority of brands. professionalisation is the growing complexity
And it’s not just marketers whose thinking has With the cost of living crisis upon us, consumers of navigating this sector. There are a variety
evolved – influencers themselves have become are being more careful with their spending. of influencers, some with massive followings
Aditya Kishore
more sophisticated in the ways that they engage This is most likely to benefit online platforms. and some with small, but extremely tightly-
Director of Insight
with brands. Consumers are more likely to look for deals, knit bases. Combining size, reach, subject
WARC
and the web is better suited to that behaviour matter expertise and positioning effectively,
Increasingly, influencers are turning into content
than the high street. And with high fuel prices is becoming a significant challenge for
creators, offering imagery, advice, opinion,
and lower discretionary income, going out marketers. Working with agencies and platforms
entertainment and even commerce. They are also
is also going to become less common. So that specialise in this space can be useful in
using new technologies and platforms to generate
entertainment is once again going to have to be maximizing the marketing impact of influencer
revenue via different channels. This makes them
found at home, via inexpensive channels such partnerships.
less reliant on brands to make their living, and
as influencers.
changes the equation between the two.

COVID has also played a part in accelerating the


However, to work successfully with influencers, Enjoy the report!
brands need to make one major adjustment.
significance of influencer marketing. Lockdowns

© Copyright WARC 2022. All rights reserved. 3


THE VIEW FROM IMPACT.COM

The view from impact.com


We’ve experienced a near avalanche Brands rely on influencers to build brand love depending on the topic. The more marketers’
of changes in technology, consumer and trust with their consumers. Think of it as perceptions about influencers and influencers’
building a solid bridge to connect a brand to its perceptions about marketers line up, the better
trends, and online shopping
audience. To create a lasting connection, which their partnerships can succeed. However,
(particularly thanks to the pandemic), many brands value more than just revenue, you the disparities in perception prompted
which has caused considerable shifts need to identify with your audience, show them impact.com’s collaboration with WARC in
in – and toward – influencer marketing. who you are, and give them what they want. developing this white paper.
Today, many consumers look to Influencer marketing does all of this.
Authentic partnerships drive success and
influencers to guide their purchasing Effective influencer marketing isn’t just about generate lasting brand love and loyalty. When
decisions, no matter what stage they catching the biggest fish in the mega-influencer done right, influencer marketing benefits
may be at in their buyer’s journey, and or celebrity pond. For example, younger everyone involved, from the influencer to the
audiences gravitate toward micro- and nano- marketer, brand, and consumer – throughout
their appetite for influencer content
influencers. It brings it back to authenticity and the buyer’s journey. Effective influencer
Jaime Singson continues to grow. connection – they don’t want to feel like they’re marketing happens when consumers feel
Senior Director of Product
So what do influencers offer that can being sold to. they’re connecting with people who share their
and Content Marketing
complement the benefits of other, more values.
impact.com These days, the spend for influencer marketing
traditional advertising channels? Well,
is at an all-time high – and we can expect With insights into industry-leading influencer
consumers identify with influencers more than
more growth over time. Since marketers and management technology from impact.com and
advertising. Consumers value authenticity
influencers can mutually benefit from working WARC’s global data, expertise, and industry
from influencers and are willing to purchase
together and influencer marketing’s growth, knowledge, you can uncover the differing
what they see as genuine recommendations
these two parties need to align. perceptions about influencer marketing. This
compared to ads. Influencers rely upon their
white paper seeks to align influencers and
built-in trust and connections with consumers, Marketers and influencers both align and differ marketer perceptions so they can better create
which drives sales for brands. in their perceptions about influencer marketing, flourishing partnerships.

© Copyright WARC 2022. All rights reserved. 4


INTERVIEWEES FOR THE REPORT

Marketing leaders and influencers interviewed


for this report

Becky Yeung Guillermo Font Shekinah Monee


Regional Head of Brand Partnerships Marketing Head Lifestyle Influencer
Warner Music Asia FMCG & Healthcare
Mars

Michael Flatt Yusuf Chuku Adi Adara


Director of Global EVP Finance Influencer
Integrated Marketing Client Strategy and Insights
Xbox NBCUniversal Media

© Copyright WARC 2022. All rights reserved. 5


EXECUTIVE SUMMARY

Executive summary
The influencer marketing sector The influencer market was thriving pre-
is experiencing a new wave of pandemic, but COVID-19 has kickstarted
a new wave of investment and innovation.
innovation. It’s evident in how
Marketers turned to influencers to deliver
influencers themselves are content when other routes such as out-
evolving and the sophistication of-home, cinema and in-store advertising
of some of the tools available were inaccessible. Influencers, in turn,
to marketers. Consumer social responded by further professionalising
media trends reflect audiences’ their content. The rise of the content
creator reflects this trend and ushered
appetite for influencer content,
in a new era with collaborations between
and ad spend is following that marketers and influencers.
consumer engagement with
influencers. This report, developed in association
with impact.com, analyses influencer
marketing, exploring how marketers
and influencers align and differ in
perspective. WARC surveyed more than
400 marketers and 400 influencers
across Europe, North America, Asia,
and Australia to better understand the
evolving role of influencer marketing.
We also conducted a series of in-depth
marketer and influencer interviews.
Our team combined the data from this
research with a review of WARC’s global
data, industry knowledge, examples, and
expert contributions.
© Copyright WARC 2022. All rights reserved. 6
EXECUTIVE SUMMARY

Top findings include:

1 2 3 4 5
Invest in Explore Approach Consider how to Communicate
understanding partnerships with influencer use influencer your KPIs to
influencer influencers and marketing as a long- marketing across influencers
marketing external platforms term opportunity the full funnel
and agencies

Increasing marketing Content creators offer authentic Even if you want to use The trust and positive Align their remuneration to
spend, social media trends, relationships allowing deeper performance-based tactics emotional response that your business outcomes. The
cultural shifts, and industry connections with customers, like affiliate links and voucher influencers deliver has been dissonance between marketer
innovation are all creating while outside agencies provide codes, test and learn so you linked to purchase intent. focus on outcomes and
new opportunities that other coordination and measurement, can optimise and improve Complement performance- influencer focus on authentic
channels may not be able to and safeguard brand fit. performance over time. Put in based tactics with brand content can be resolved by
provide. place the right measurement engagement higher up the better bringing the two parties
programmes to support this. funnel. together on measurement
practices.

© Copyright WARC 2022. All rights reserved. 7


Chapter 1

Influencer
Invest for
growth
marketing is
shifting
The debate over advertising effectiveness
often focuses on variables such as creativity
or media choice. And, as we’ll see, those
certainly do matter.

© Copyright WARC 2022. All rights reserved. 8


INFLUENCER MARKETING IS SHIFTING

The changing shape of


influencer marketing
Technology, consumer trends and in production costs and continued
the impact of the pandemic have to deploy influencers as part of their
had a significant impact on the field ongoing marketing programme.
of influencer marketing.
YouTube, the original influencer platform,
During the pandemic, our home-based launched 17 years ago. Since then,
lives provided the perfect conditions influencer marketing has and continues
for influencer marketing to thrive. With to become increasingly professionalised.
brands unable to rely on stores to It is now used by global brands such as
showcase their products, many turned to Microsoft and L’Oréal as an integral part
influencers instead. Consumers no longer of their marketing programme.
asked beauty consultants for advice. They
didn’t learn about all the features of the
latest Beats wireless headphones in store.
Instead, they heard about them from
influencers.

As influencers rose to the challenge, their


content became more sophisticated,
and their marketing expertise grew.
Many professionals and experts became
influencers within their fields during the
pandemic, raising the bar of content
creation for all. Marketers saw the savings

© Copyright WARC 2022. All rights reserved. 9


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IS SHIFTING
BRAND

The rise of the content creator


In our influencer survey, 54% of followers via subscription models and How influencers define themselves
respondents identified themselves merchandising their own products. This
has caused a shift in the power dynamic 54% identify themselves as Content Creators
as “Content Creators”. A full 86%
between brands and influencers. Brands 60%
of marketers said they worked with could view influencers as a threat as
54%
“content creators” (see overleaf). they become less reliant on this form of
revenue. However, while influencers build
Our research suggests that influencers are 50%
their understanding of how to engage
paving the way for the professionalisation of and monetise their audiences, brands can
the category. They don’t see their influencer leverage these insights for their brand
status as a hobby-turned-profession but 40%
building and sales conversion purposes.
view themselves as experts with unique
and engaging content to share. This status Though we’re seeing a shift, it needs to be 32%
differs from the earlier influencer wave that noted that 77% of content creator income 30%
made money from selling access to their still emanates from brand partnerships,
audience. In many cases, influencers who according to The WARC Guide to brands
trade on both of these assets – followers and the creator economy. 20%
and content – attract the most lucrative
brand partnerships.

Some content creators have diversified 10%


6%
their revenue streams by monetising their 3% 2% 2% 2%
content directly, rather than only relying on
selling their reach to brands. Influencers 0%
Content Lifestyle Brand Affiliate Thought Natural Other
who identify as content creators charge creator influencer ambassador leader / brand
professional advocate /
loyal
customer

Source: WARC x impact.com survey – Influencers


Q: Which of the following do you think best defines what type of influencer you are?
© Copyright WARC 2022. All rights reserved. 10
WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IS SHIFTING
BRAND

Most popular influencers types for The shift to content creators is


“For me, I’m focused on building an
changing the shape of influencer
brands to partner with audience, but it’s different for some
marketing. Content creators want more content creators. Logik, aka Julian
86% of marketers work with “content creators”
control over the content they create for Gillam, ex-creative at Google, creates
brands. They expect the relationship to art for the likes of Chicago Bulls and
Often Sometimes Rarely Never operate like a partnership rather than Coinbase etc. And he is really on the
content creation side.”
a simple fee structure. In fact, 50%
Content
creators 49% 37% 12% of influencers say balancing creative Adi Adara, Finance Influencer
freedom with brand requirement is a
Lifestyle In marketing literature and industry
48% 39% 9% challenge. 68% of marketers agree and
influencers commentary, the terms ‘influencer’ and
are open to ideas but there will always
‘content creator’ are used interchangeably.
Brand be limits.
ambassadors
35% 44% 16% Marketers love what is new, so ‘content
creator’ has become a popular term.
Thought leaders /
26% 35% 29% 10%
professionals

Loyal
15% 32% 34% 19%
customers
68%
Affiliates 11% 27% 33% 29%

Employee
8% 23% 39% 30%
50%
advocates Marketers
agree and are open to ideas but
0% 20% 40% 60% 80% 100% Influencers there will always be limits
say balancing creative freedom with
brand requirement is a challenge
Source: WARC x impact.com survey – Marketers
Q: What kind of influencers do you / your clients work with?

© Copyright WARC 2022. All rights reserved. 11


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IS SHIFTING
BRAND

The value of nano and micro-influencers


Influencers come in all sizes.
“It’s no secret that if you work with
Influencers come in all sizes
Macro influencers boast micro and nano influencers, you Micro influencers dominate but nano influencers are also popular
followings in the millions, while have a higher engagement than
50%
nano influencers engage with less when you’re working with a mega 46%
than a thousand followers. or macro influencer. The higher
you go in the influencer pyramid,
Content type also categorises influencers the more awareness you get, 40%
– they are gamers, bloggers/vloggers, but the engagement goes down.
33%
photographers. They are also categorised Nano influencers bring that extra
by their niche, for example, specialist authenticity to the brand because
knowledge about travel, sports and consumers can see how much they 30%

fitness, beauty, fashion or parenting. are loving the brand.”

Consider reach, engagement and fit Vita Clausen, Global PR and 18%
20%
before reaching out to influencers. Macro Influencer Director, Pandora
influencers have a more extensive reach,
but working with the right group of Brands might prefer to use macro
nano influencers may fit your marketing influencers for a big product launch to 10%
strategy better. help them drive awareness. However,
3%
where brand advocacy is required, working
with nano influencers on an ongoing basis
0%
can be more effective. Nano influencers Nano influencers Micro influencers Macro Celebrity
have very active communities of followers, (less than (10K or more influencers influencers
10K followers) followers, but (100K or more (1M or more
increasing their potential to influence less than followers, but followers)
purchase decisions. 100K followers) less than
1M followers)

Source: Why nano influencers can be more powerful than influencers with a Source: WARC x impact.com survey – Influencers
mega following Q: Which of the following tiers best represents the number of your followers?
© Copyright WARC 2022. All rights reserved. 12
WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IS SHIFTING
BRAND

Lifestyle influencers and brand ambassadors


There are different types of celebrities or more well-known influencers voice that helps brands connect to their
influencers, such as lifestyle in mainstream channels, alongside an audiences with credibility – regardless of
influencer marketing programme. Thought the audience size or creator status.
influencers and brand
leaders follow a similar approach but often
ambassadors. Lifestyle take a stance on an important topic. This “You’re essentially always trying –
influencers, who can be a type of technique tends to be effective when a when you are advertising – to turn
key opinion leader (KOLs), typify brand wants to support an issue such as someone else into an advocate.
diversity or the environment. With influencer marketing, you’re not
a more conventional approach to
talking from your own brand’s voice,
influencer marketing. Loyal customers and staff make great
but rather hearing it from someone
influencers because they can speak from
else and delivering it with their own
“I try to be as authentic as possible. experience and provide credibility. British
opinion.”
I try to research before I engage retailer John Lewis took this approach
and agree to work with someone. when they rebranded in 2018. According Becky Yeung, Regional Head of
If I’m posting about the brand, I will to an article in the Guardian, “John Lewis Brand Partnerships, Warner
authentically post what the journey started working with staff on social Music Asia
was like for me with them.” media in 2017 and there are now 366
with Instagram accounts linked to their
Shekinah Monee, Lifestyle work. The company provides social media
Influencer coaching and training on how to create
engaging content but the staff have full
Partnering with brand ambassadors gives editorial control over what they post”.
an individual or group of individuals a more
official status as a figure representing Influencers represent a brand, speak
the brand. These brands collaborate with on their behalf and offer an authentic

© Copyright WARC 2022. All rights reserved. 13


INFLUENCER MARKETING IS SHIFTING

Activity: • Curve model Mollie Campsie focused on


using Canescool as part of her daily life
To launch Canescool, Canesten executed focusing on instances where she might be
a digital campaign on relevant mobile wearing tight clothing for shoots.
platforms, ranging from the UK’s first
Canesten TikTok social channel to a • Self-love advocate Lydia Dinga creatively
creative influencer campaign. Working positioned Canescool within her day-to-
with leading influencers enabled Canesten day routine via the ongoing use of sanitary
to destigmatise the symptoms and bring products.
Canescool into the broader conversation by
• Demi Donnelly, a body confidence guru,
educating young women about the common
talked about her daily washing regime.
causes of daily irritations through relatable

Canesten and engaging content.

They executed a paid Instagram campaign Results:


across multiple verticals with four mid-
tier influencers, covering fitness, fashion, • Sales for 2021 exceeded internal
lifestyle, and wellbeing, alongside an earned targets by 91%
Background and objective: products help women feel clean and fresh,
they can impact sensitive areas and cause micro-influencer outreach programme.
Canesten, the UK’s leading intimate health They chose mid-tier influencers because • Reach of 617,000 surpassed KPIs
irritation.
brand, launched a campaign in the UK they recognised this was the ‘sweet spot’
• An average engagement rate of 5.5%
targeting younger consumers to drive Canesten Cool’s mission is to empower for well-positioned brand awareness and
surpassed the industry average with
awareness, engagement, and sales of a women to feel more comfortable in their engagement. The team selected Influencers
106,000 views, 156,000 impressions,
new product. Knowledge of intimate health skin without shame or discomfort. In based on their ability to bring Canescool
and more than 7,000 interactions
conditions such as thrush is low amongst January 2021, they launched Canescool to life via engaging and relevant ‘in situ’
young women. Most of their engagement Intimate Care Soothing Cream Gel, providing moments with honest, relatable content.
with the category comes from the use of affordable symptomatic relief from irritations
caused by the products women use daily. • Body positivity supporter Victoria Spence
feminine hygiene products. Though these
communicated the effectiveness of
Canescool via a fun and engaging ‘dance’
Source: Canesten
Canescool-it Influencer Campaign
workout.

© Copyright WARC 2022. All rights reserved. 14


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IS SHIFTING
BRAND

Key takeaways

1. 2. 3.
The pandemic led to increasing The range and type of influencers you Marketers will need to evolve their
sophistication in influencer content. can work with is diversifying. Stay up approach when working with ‘content
More marketers are working with to date with emerging trends in this creators’ who expect more of a
them as a way to reduce production fast-moving space to leverage these partnership. Marketers will have to
costs. opportunities. get used to allowing these creators
more freedom and control over the
content they produce.

© Copyright WARC 2022. All rights reserved. 15


Chapter 2
1

The consumer
Invest for
angle:
growth
Growth and
The debate over advertising effectiveness

opportunity
often focuses on variables such as creativity
or media choice. And, as we’ll see, those
certainly do matter.

© Copyright WARC 2022. All rights reserved. 16


THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

More platforms for


influencers
As social media has grown, The pandemic further accelerated the
influencers have thrived, proliferation of social platforms as
some segments of society experienced
with many seeing increasing
more free time to engage in social
numbers of followers. Facebook, media. According to a 2020 report from
Instagram and YouTube are GWI ‘The Age of Influence’, 72% of
established platforms, but consumers who follow influencers in the
newer players have emerged in US and the UK said they were spending
more time on social media daily over
the last five years.
the pandemic. Additionally, around two-
The most significant in terms of reach thirds of this group claimed they were
is TikTok and Twitch. Twitch, a live- likely to continue using social media
streaming gaming and entertainment to the same extent post-pandemic. As
platform launched in 2011, has grown people spend more time on social media,
rapidly in recent years. TikTok usage the opportunity for influencer marketing
surged over the pandemic as the grows. However, marketers need to
platform broadened its demographic consider which platforms to invest in.
reach. More platforms naturally present
more opportunities for marketers,
especially as their capabilities evolve.

© Copyright WARC 2022. All rights reserved. 17


66

THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Influencers favour Instagram and TikTok


While YouTube and Facebook Popular influencer platforms TikTok delivers on engagement
command the largest social 92% of influencers mostly post on Instagram; 43% mostly post on TikTok The WARC Best Practice guide ‘What we
media audience, influencers know about influencer marketing’ found
Instagram 92%
favour Instagram and TikTok. that while YouTube and Instagram are the
Ninety-two percent of TikTok 43%
most marketer-preferred channels for
influencers said they mostly influencer campaigns, TikTok offers the
highest engagement rates. According
post on Instagram and 43% said Facebook 41%
to WARC data, TikTok has an average
they mostly post on TikTok. engagement rate of 7.50%, more than
Blog 39%
With TikTok already overtaking twice as high as second-placed Instagram
Facebook, it’s a platform to Pinterest 20% at 3.22%.
watch in terms of influencer
15%
marketing. YouTube

4%
However, some marketers Snapchat

remain cautious about TikTok Other 3%


as a newer platform that is
new to influencers. Others LinkedIn 2%

have concerns about brand


Podcast 1%
reputation, given the content
nature. Twitch 1%

0% 20% 40% 60% 80% 100%

Source: WARC x impact.com survey – Influencers


Q: Which of the following platforms do you mainly post on?

© Copyright WARC 2022. All rights reserved. 18


THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Different social platforms for different audiences


According to the Pew Research Centre, Most favoured influencer platforms in US (by generation)
there are stark differences by Age gaps in Snapchat, Instagram use are particularly wide, less so for Facebook
generation regarding which platforms % of US adults in each age group who say they ever use…
US audiences favour.
Youngest –
Instagram and TikTok attract younger audiences, oldest
whereas Facebook appeals broadly across Age 65+ 50-64 30-49 18-29 DIFF
different age demographics. Younger generations
2 65
show a clear preference for both static and video Snapchat +63%
image-led social media – an environment in
which influencer marketing can naturally thrive. 13 71
According to CreativeX, more than 84% of brand Instagram +58%
communication is now visual. As smartphones
49 95
have allowed consumers to create images and YouTube +46%
videos easily, brands have had to follow them to
inherently visual platforms. 4 48
TikTok +44%
7 42
Twitter +35%
50 70
Facebook +20%

0% 20% 40% 60% 80% 100%


Note: All differences shown in DIFF column are statistically significant. The DIFF values shown are based on subtracting the rounded values in the
chart. Respondents who did not give an answer are not shown.
Source: Survey of U.S. adults conducted Jan 25-Feb. 8, 2021.“Social Media Use in 2021”
PEW Research Center
© Copyright WARC 2022. All rights reserved. 19
THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Younger generations
gravitate towards
creators and nano or
micro influencers
Teenagers prefer creators over Research from We Are Social backs
celebrities when it comes to this up. The study found that using
celebrities to target Generation Z is
influencer marketing. According
limiting, especially if the celebrities are
to data from ThinkwithGoogle, trying to sell something outside their
70% of YouTube teenage core area of expertise. Generation
subscribers say they relate Z instead prefers micro influencers
to influencers more than – people they see as superfans that
bring real, earned credibility to brand
celebrities.
endorsements and drive authentic
brand love.

© Copyright WARC 2022. All rights reserved. 20


THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Following for education and entertainment


According to a report from GWI’s Main motivators to follow content creators
“You only have one or two seconds
‘The Age of Influence’, 51% of
% of customers who follow influences that cite those reasons for to catch the viewer’s attention. You
followers are primarily motivated really want to make sure that it’s
following content creators
to follow influencers to learn relevant. I think that you can teach
something new, and 49% follow age-old financial concepts, but [by]
using new concepts like concert
for entertaining / uplifting content 51% To learn 49% For entertaining 49% To pass the time
something / uplifting
tickets, to teach about stocks and
or to pass the time. However, new content
crypto. I would say ‘Be relevant, be
Generation Z is more likely trendy’. Because when you do a
to follow influencers to do an finance hashtag, you are going to get
activity (i.e. a workout), and Baby a really finance-focused audience.”
Boomers are more likely to cite 43% Shared interests
/ passions
38% To gain
inspiration
37% News updates

Adi Adara, Finance Influencer


getting news updates.

30% To learn about


new brands /
27% To feel motivated
/ challenged
23% To keep up with
professional news
products

23% To do an activity
(e.g. follow a
22% To see their
lifestyles / see
14% To get access to
promo codes /
workout) things I can't see discounts
in real life

Source: GlobalWebIndex Influencer Custom Research, May 2020


Base: 1,056 (UK) and1,038 (U.S.) consumers who follow influencers aged 16-64
© Copyright WARC 2022. All rights reserved. 21
THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Brands benefit from the halo effect


Brands partner with influencers Encountering recommendations from
to reach and engage audiences, an influencer can lead to positive
associations with that brand. In the
but also to benefit from a halo
best examples, brands can borrow
effect. Influencer marketing identity cues from influencers and have
works on the basis of some a stronger relationship with specialist
fundamental psychological audiences. For example, brands can
principles. Humans are innately work with communities that are active
in sharing make-up tips to bring their
social creatures who want to
products and brands to life via tutorials
fit in. Influencers represent and product reviews.
aspirational figures – following
There are differences in the qualities
them reflects our desire to be
part of what is popular and
audiences look for from the influencers Gen Z Millennials Baby boomers
they follow. According to the GWI report, look for creativity look for humour look for trustworthiness
belong to a broader group of 58% of Gen Z look for creativity – this
people with shared interests. is their top desired trait – while 50% of
Millennials prefer humour. Lastly, 60% of
Baby Boomers look for trustworthiness.
Interestingly, trustworthiness has grown
for all audiences during the course of the 58% 50% 60%
pandemic.

© Copyright WARC 2022. All rights reserved. 22


THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Brand discovery and Which channels complement influencer marketing


in the media mix?
purchase motivation Gen Z Millennials Gen X Baby boomers
(aged 16-23) (aged 24-37) (aged 38-56) (aged 57-64)

It’s the trusted relationship that Word of mouth from family / friends 46% 39% 45% 49%
followers have with influencers “The efficacy of influencer content
relies on authenticity. Audiences Brand/product websites 33% 26% 32% 32%
that is really key for brands if they
have the right to know that there
want to have an impact on metrics is a material connection between
Ads seen on social media 32% 33% 33% 30%

like purchase intent. the influencer and the brand, even Recommendations / comments on social media 30% 25% 28% 20%
if the influencer may genuinely love
The GWI study digs deeper into this Ads seen on TV 30% 35% 44% 49%
the product or the brand. And when
relationship and uncovers that it is based
it happens, that shows. That’s the Ads seen on websites 28% 24% 28% 29%
on three important factors:
beauty of influencer marketing –
Endorsements from creators / influencers I follow 28% 20% 22% 17%
1. The passion influencers have for their when it’s well known and when it
specialist area. comes naturally.” Search engines 28% 36% 40% 41%

2. The subject matter knowledge they Guillermo Font, Marketing Head, Ads seen before online videos or TV shows start to play 22% 25% 20% 19%

have. FMCG & Healthcare, Mars


Consumer review sites 19% 24% 29% 29%

3. The transparency they demonstrate The study further found that a third of
In-store promotions 18% 25% 31% 31%
when working with brands. all consumers discover brands through Ads in magazines or newspapers 15% 13% 22% 26%
social channels, especially among younger
audiences. Media channel data shows that Ads seen on music-streaming services 14% 12% 10% 7%

Generation Z ranks recommendations on Ads / sponsored content on podcasts 13% 15% 11% 8%
social media ahead of search engines and
on par with TV.
Source: GlobalWebIndex Influencer Custom Research, May 2020
Base: 141 Gen Z (aged 16-23), 804 millennials (aged 24-37), 910 Gen X (aged 38-56), and 239 baby boomer (aged 57-64) consumers
who follow influencers

© Copyright WARC 2022. All rights reserved. 23


THE CONSUMER ANGLE: GROWTH AND OPPORTUNITY

Key takeaways

1. 2.
Newer platforms that are video based are fertile ground The trusted relationship influencers have with their
for influencers. TikTok is seeing high levels of engagement, followers not only provides a halo onto brands but can also
presenting opportunities for brands. drive purchase intent.

© Copyright WARC 2022. All rights reserved. 24


Chapter 3
1

Influencer
Invest for
marketing
growth in
the mix
The debate over advertising effectiveness
often focuses on variables such as creativity
or media choice. And, as we’ll see, those
certainly do matter.

© Copyright WARC 2022. All rights reserved. 25


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IN THE
BRAND
MIX

Increasing spend
Spending on influencer marketing Influencer marketing global market size set to grow to $16.4bn in 2022
is growing significantly. In the US, a
report from Influencer Marketing Hub $20bn
predicts the industry is set to grow
to approximately $16.4bn in 2022,
up 26% year on year. More than two- $16.4bn
thirds (68%) of marketers plan to
$15bn
increase their influencer spending $13.8bn
this year.
Lockdowns very likely helped drive increased
spending on influencer marketing. With
$10bn $9.7bn
conventional methods off the table, marketers
used influencers to capture video footage of
their products in real-life settings. For example,
$6.5bn
when lockdown restrictions prevented travel,
brands used influencers to model swimwear
$5bn $4.6bn
near seaside locations. Many continue to use
this approach post-pandemic because of the $3.0bn
production costs saved.
$1.7bn

$0bn
2016 2017 2018 2019 2020 2021 2022

Source: Influencer Marketing Hub

© Copyright WARC 2022. All rights reserved. 26


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IN THE
BRAND
MIX

This strategy works well in beauty and Top three purchase categories by demographic cohort
fashion, but also in other categories.

“We use influencer candidates regularly.


We’ve seen an exponential curve in terms of GenZ Millennials Women Men
how regularly we use candidates as a part
of all of our marketing programmes. They

1 1 1 1
play a part in some form – whether they are
extending campaigns or whether they are Apparel Household items Apparel Grocery
the focal point. But we’ve got to a point now
that all our marketing programmes involve
influencers. That wasn’t the case even three
to five years ago. I would say that they are a
really crucial component of our marketing
programme.”
2 Food –
delivery / takeaway 2 Furniture
2 Beauty
2 Hardware

Michael Flatt, Director of Global Integrated

3 3 3 3
Marketing, Xbox Food –
Beauty Luxury Home electronics
delivery / takeaway
Category ad spend naturally followed consumer
shopping baskets. According to a report by
Essence, the top categories consumers have
purchased or intend to purchase via social
media in the next 12 months include apparel,
food, and beauty.

Source: Social Commerce Report, Essence (November 2021)


© Copyright WARC 2022. All rights reserved. 27
INFLUENCER MARKETING IN THE MIX

The influencer appeal for awareness and engagement


As we make room for influencer
marketing in the mix, where and Marketers Influencers
when should it be deployed?
According to our survey, 75%
of marketers use it for brand
awareness and 73% for brand
engagement. Our survey with
influencers sees a different
response. Their top reason for
working with marketers is to Brand Brand Authentic
create authentic content (58%). awareness engagement content
Marketers are more concerned with brand
outcomes, whereas influencers focus on
their output. This disconnect is a reflection
of varying skill sets. Brands and influencers

75% 73% 58%


also see repurposing content through a
different lens. Influencers recognise its
strength – ranking second – but marketers
don’t see the same value. Brands have
an opportunity to get greater value from
influencer content by reusing it to help
build authenticity and brand love.

© Copyright WARC 2022. All rights reserved. 28


WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IN THE
BRAND
MIX

Thinking ahead: Using influencers to drive lower


funnel metrics
Our survey showed that marketers This analysis revealed that ‘converting The rise of direct-to-consumer brands
traffic’ is a more significant motivator “Many marketers are starting to use (DTC) is also noteworthy since they
mostly focus on top-of-the-funnel
amongst those using influencers on an influencer marketing to sell on their successfully drive lower-funnel metrics.
metrics such as awareness and platforms. Almost like a US infomercial
ad hoc basis. Forty-six percent of marketers According to Criteo, DTC trends
engagement. use influencers for a few posts, compared style. L’Oréal has done some really accelerated over the pandemic, with 28%
to 22% for those deploying programmes great stuff. When you have someone, of global consumers purchasing something
We also analysed those who use who consumers connect with, telling
that run from three months to over a year. direct for the first time.
influencer marketing on an ad hoc The challenge is that traffic conversion
them the benefits and being able to
see it on them, it really works. China’s DTC brands are heavily data-centric and
basis versus those who use it more improves the longer you work with an
definitely leading the way from the rely on digital touchpoints and first-party
regularly. We grouped together influencer as they test and learn. This is
e-commerce perspective, utilising data to optimise their spend. Typically, DTC
marketers committed to three-to an example of mismatched expectations
different formats to be able to reach brands use blogs, social media and search,
between marketers and influencers.
six-month programmes, annual audiences.” partnering with influencers to tell their
programmes and commitments While this expectation may be true of less
Becky Yeung, Regional Head of Brand
brand story.
that span years. experienced marketers, it is also a more Partnerships, Warner Music Asia
realistic trend that is reflected in variances
by category. Beauty and fashion brands are
much more likely to use influencer marketing
for lower funnel objectives, particularly in
Asian markets. L’Oréal heavily focuses on
making influencer marketing work on this
basis.

© Copyright WARC 2022. All rights reserved. 29


INFLUENCER MARKETING IN THE MIX

Activity:
Results:
ZOE’s buyers were younger than expected
and had fundamental questions about • The cost per hour watch time of only
electromobility, for which they turned to €1.49 was 59% lower than the value for
YouTube. This led to a campaign strategy that the control group, showing the user’s
turned information into infotainment. The brand interest was kept high with precisely
recruited respected YouTuber, Alex Bangula. tailored content
Alex has been testing products related to
electric mobility for years and has built up • Sales were up 39% vs. the previous
a high level of credibility. He became the month, making it the most successful
entertaining mouthpiece for a fun campaign month in the history of the ZOE to date
which ran on TV, radio, OOH and digital. The

Renault highlight: how many hamsters does it take to


charge an electric car?
• They succeeded in their mission to
remain the best-selling electric car in
Germany
The campaign started at the top of the funnel
• 30,376 vehicles were sold in 2020, of
Background and objective: further attention. This is fuelling the with attention-grabbing and high-reach media
which almost 50% took place after the
launches of high-class competitors, such such as TV, radio and OOH. Within the media
The Renault ZOE has been the best-selling infotainment videos began in late 2020
as the Volkswagen ID 3 or Tesla’s Model 3. mix, digital media had a high weighting and
electric car (e-car) in Germany since 2017. In Furthermore, purchase decision processes included display, social, audio and video. As • The already ambitious benchmark from
2019, however, market leadership diminished in the field of electromobility take longer, are part of the comprehensive video strategy and 2017 of a 44% lead over closest rivals
to only a small margin due to the growing more complex and require more information in addition to other digital placements, the VW Golf and Tesla was surpassed with
competition in the e-sector. In 2020, the aim – the risk of losing customers in the process infotainment videos were programmatically a new 74% lead for the ZOE
was to ensure that the Renault ZOE defends is enormously high. Many potential buyers served to users in the middle and lower
this title and grows back to be the clear are unsure whether an electric car is the right funnel, who specifically dealt with questions
market leader in the e-car segment. The choice for them. Tied to this general question around electric mobility before. The data
topic of electromobility is gaining increasing are many other questions regarding details used for targeting ranged from custom intent
relevance in the context of climate change. and functionality. What is the range? Where (EV* interest mapped via website visits at
can I charge my vehicle? How do I charge and competitors landing pages, reviews, EV-search
In addition, the e-car subsidy introduced
how safe are electric cars anyway? terms, etc.) to first-party data (ZOE website- or
in the wake of the pandemic is generating
configurator-lookalikes) to electromobility and
Source: Renault ZOE
How many hamsters does it take to charge an e-car? small car affinity target groups.
© Copyright WARC 2022. All rights reserved. 30
INFLUENCER MARKETING IN THE MIX

Authenticity is the biggest strength of influencer marketing


Marketers and influencers Influencer strengths
“I think influencers can be the most
align more closely regarding Marketers and influencers align on importance of engagement, trust and authenticity
authentic spokespeople for us. We
the strengths of influencer will often look at their values, but Marketer stream Influencer stream
marketing. Both cited high levels also the content they produce. They
of trust and authenticity as a are successful in their own right, so Higher levels of 69%
significant strength. Influencers far be it from us to interfere with that. engagement 55%
It’s all based upon trust and respect.
felt strongest about it at 85%,
People receive information well from
and marketers chose it as second Higher levels of 67%
people who they like and trust.”
at 67%, after engagement. trust / authenticity 85%

Interestingly, for marketers who Michael Flatt, Director of Global


Integrated Marketing, Xbox 46%
use influencers over a longer Reach hard-to-reach
audience niches 42%
period, trust and authenticity
The two audiences pull apart when
ranks at 73% – six percentage
citing shortening sales cycles, with 39% Ability to shorten sales
18%
points higher – demonstrating the of influencers seeing this as a unique
cycles / speed up purchase
decisions from my followers 39%
value of a partnership. strength versus only 18% of marketers.
This difference is likely because part of an
influencer brief often involves discussing I do not see any 6%
unique strengths 2%
and demonstrating products and services.
However, marketers need to see sales
uplifts to recognise these benefits fully. 3%
Other
3%

0% 20% 40% 60% 80% 100%

Source: WARC x impact.com survey – Marketers & Influencers


Q: What do you see as the unique strengths of influencers?
© Copyright WARC 2022. All rights reserved. 31
WHY
INFLUENCER
WE NEEDMARKETING
TO TALK ABOUT
IN THE
BRAND
MIX

Relevance: How influencers help tackle ad avoidance


We see from GWI data that In 2018, the AA found that trust in advertising was affected The AA set up a ‘Trust Action Plan’. The
trustworthiness is a key attribute by the following factors: research it undertook to inform this serves
to underline the importance of trust and
valued by consumers. Data from
what the industry must do to maintain and
the Advertising Association (AA) improve standards.
underlines how important this
Influencer marketing faces the same
quality is to marketers. The AA
challenges. However, in terms of
has tackled trustworthiness in irrelevance and obtrusiveness, it provides
advertising in its ongoing study an opportunity to avoid some of the
‘Public Trust in Advertising’. pitfalls other marketing channels face. The
way that influencer marketing operates
naturally lends itself toward highly relevant
targeting. As we have seen, it’s often used
as an authentic way to talk to audiences in
Volume Repetition Obtrusiveness Irrelevance a voice that comes from their community
The number of Frequent exposure Adverts that delay In terms of the
and speak to their passions and interests.
adverts to the same adverts or disrupt the product or service
user experience advertised or the Irrelevance is often avoided not only in
creative execution terms of targeting but also in terms of
execution. Furthermore, marketers avoid
low attention caused by poor frequency
capping as, influencers control the
frequency of posts, guarding against
volume and repetition.

© Copyright WARC 2022. All rights reserved. 32


INFLUENCER MARKETING IN THE MIX

Working with influencers generally How often the influencer experience works or fails Those new to influencer marketing have
steers marketers away from more much to navigate. They see the growing
77% of marketers find influencer collaborations effective more often than not opportunity and understand the potential
intrusive tactics, especially when
role in the mix. But they might feel
they work collaboratively with 70% nervous about ceding creative control to
these individuals. This tactic may 65% influencers. In addition, they may worry
explain why 77% of marketers about putting brand reputation at risk.
found that using influencers 60% Marketers may also feel intimidated by
the sheer volume and range of different
works more often than it fails or
types of influencers and the different
it almost always works – a strong 50% agency types. Then there’s the questions
performance in terms of perceived about measurement. We address these
effectiveness. questions in the next chapter.
40%

30%

21%
20%

12%
10%

2%
0%
It never quite It fails It works It almost
works out more often more often always works
than than
it works it fails

Source: WARC x impact.com survey – Marketers


Q: Which of the following statements best describes your experience working with influencers?
© Copyright WARC 2022. All rights reserved. 33
INFLUENCER MARKETING IN THE MIX

Key takeaways
1. 2. 3.
Influencer marketing spend is Influencer marketing is predominantly Authentic content is a key strength
increasing, with categories such as used at the top of the funnel for of influencer marketing. There is an
beauty and fashion benefiting most as awareness driving. However, forward- opportunity for marketers to leverage
marketers follow consumer content thinking marketers are using it for this better by repurposing influencer
behaviour. conversion and leveraging full-funnel content in broader marketing
effects. channels.

4. 5.
Influencer marketing presents an For this opportunity to be fully
opportunity to resolve some of realised, there needs to be a greater
the challenges facing marketers in link between authentic content and
general – namely bombardment plus brand outcomes such as purchase
irrelevant and intrusive marketing intent, turning a key strength into
messages. tangible results and resolving the
conflict between influencer and
marketer perspectives.

© Copyright WARC 2022. All rights reserved. 34


Chapter 4
1

Perspectives
Invest for
from marketers:
growth
Partnership
The debate over advertising effectiveness But more focus should be given to the ‘structural’ conditions that help determine
a campaign’s success. Understanding how factors such as brand size, campaign

and innovation
often focuses on variables such as creativity investment and category dynamics will determine effectiveness is a key first step
when it comes to setting budgets and agreeing on objectives. Getting the right
or media choice. And, as we’ll see, those framework for investment is crucial if a campaign is to meet its potential.
certainly do matter.

© Copyright WARC 2022. All rights reserved. 35


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Leveraging experts to navigate the influencer landscape


So, where do you start if you want How brands identify the right influencer partners
to embark on influencer marketing? Marketers use internal and external teams and platforms to find the best fit
Many marketers work with influencer
tools, agencies, or strategists to We browse social media platforms
and manually flag accounts that 50%
develop their influencer marketing seem like good fits

programmes. Others rely on We use an influencer marketing


platform to find the best-fit influencers 43%
their in-house teams to build out
programming from scratch. Some We use an agency to
populate target lists 42%
rely on a combination of both. Our
survey found that 50% of marketers We use social media
advanced search tools 34%
use internal teams to search social
media platforms for appropriate We look at our most loyal customers
to discover organic brand advocates 21%
influencers, whilst 43% work with
We turn to affiliate networks to
external platforms and 42% work discover affiliates in our category 14%
with external agencies.
We use search engines (e.g. Google)
13%

Other
6%

We have no outbound strategy;


influencers reach out to us 3%

0% 10% 20% 30% 40% 50%

Source: WARC x impact.com survey – Marketers


Q: How do you / your clients identify the right partner for an influencer marketing campaign?
© Copyright WARC 2022. All rights reserved. 36
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

It’s important to recognise that working How influencers identify the right brand partners
with outside expertise gives you a
Influencers rely on external platforms to connect them to brands
perspective from both sides, with 50% of
influencers relying on companies such as
influencer marketing platforms to connect
I find them through an influencer
them to brands, whilst 45% of influencers
marketing platform / network 50%
approach brands directly. In a market
which is naturally fast moving and driven
by trends, working with outside expertise
brings continuity to your influencer I identify appropriate brands and
approach them directly 45%
marketing programme, minimising the risk
of a scattergun approach and bringing
central coordination and the opportunity
for a long-term strategy. I don’t; brands approach me
and I decide who to work with 37%
“We have trusted, long standing
agency partners that we work with.
We have these guys rigorously Other 8%
check the backgrounds of all of the
candidates that we’re on the verge
of working with. So there absolutely
I work with a talent manager /
has to be checks in place. There
talent management agency
8%
have been times in the past where
we’ve had to make a call not to
work with candidates.”
I have my own internal team
Michael Flatt, Director of Global to source opportunities 5%
Integrated Marketing, Xbox

0% 10% 20% 30% 40% 50% 60%

Source: WARC x impact.com survey – Influencers


Q: How do you identify the right brand partner? 37
© Copyright WARC 2022. All rights reserved.
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Capitalising on Client-side teams in charge of influencer marketing


Social media and digital marketing teams tend to lead the way

cross-functional Our social media team 40%


benefits
Our digital marketing team 33%
Influencer marketing doesn’t naturally
align with any specific marketing team. Our brand marketing team
28%
Responsibility can sit within one team or
spread across multiple teams. Our PR team 22%
The specialism can sit in any of the following
departments – the social media team in 40% Our influencer marketing team 18%
of cases, the digital marketing team for 33% of
marketers or even the brand marketing team for
28% of marketers. This disparity could make it Our media team
14%
challenging to develop holistic approaches to
influencer marketing. Our marketing team; we don’t have
specialised teams within marketing 10%

Our affiliate / partnership team 8%

Others 8%

0% 10% 20% 30% 40%

Source: WARC x impact.com survey – Marketers


Q: Which team is responsible for influencer marketing in your / your client’s organisation?
© Copyright WARC 2022. All rights reserved. 38
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

The importance of content that showcases the brand


Once an organisation sets up an Marketers & influencers’ best ways of working Alternative tactics include promoting the
use of the brand over a period of time –
influencer marketing programme, Developing content to showcase the brand works best for both sides
typically demonstrating usage and showing
the brand must consider the best Marketer stream Influencer stream their followers how they integrate it into their
tactical approach to working with The influencer develops routine – which has been great for FMCG
80%
them. Developing content which content that showcases
76%
products. Some 42% of marketers favour a
the brand
showcases the brand is the most strategy where they announce their use of a
The influencer consistently brand’s product or service. Interestingly this
preferable type of partnership promotes usage of the
43%
41% announcement-based strategy is seen as
- 80% of marketers find this brand over a fixed time period
much more successful amongst influencers,
approach successful. The influencer 42% with 72% of them claiming it works – a full
announces their usage of
72% 30 percentage points more than marketers.
the brand on social media
Similarly, 31% of influencers felt using them
The influencer works as 20% as a brand ambassador was effective, while
an affiliate of the brand 18% only 18% of marketers agreed.

The influencer is 18% These differences between the perceptions


announced as the official
31% of the two cohorts suggest opportunities
brand ambassador
for developing more effective marketing
11% initiatives to maximise the value of
The influencer directly
sells the product 6% influencers.

5%
Other
2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: WARC x impact.com survey – Marketers & Influencers


Q: What influencer marketing tactics do you see as most successful / well-received?
© Copyright WARC 2022. All rights reserved. Q: In your experience, what type of partnership has worked best with brands? 39
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Innovating influencer payment mechanics


Brands also need to get A hybrid mode of combining a flat fee Most popular forms of compensation
compensation right. In the with payment based on conversion
Flat fees appeal to marketers and influencers
is increasingly popular. Interestingly,
early days, an exchange of free Marketer stream Influencer stream
influencers prefer this model, revealing
products was enough to entice that they have confidence in their content Flat fee
59%
84%
influencers. Although this can to deliver results. Influencers also welcome
still be part of the package, a stable, monthly fee – but considerably Hybrid mode (flat fee + pay for 36%
participation / conversion) 47%
increasingly, influencers require fewer marketers appear convinced about
that option. Product gifting / seeding 32%
payment. A flat fee ranks highest 46%
– 84% of influencers and 59% of Getting remuneration right ensures
26%
marketers attract the best talent and Monthly fee for length of contract
marketers find this acceptable. 56%
provides the conditions for a high-
Payouts for conversions (% of sale, 24%
performing relationship. 23%
fixed $ per lead, fixed $ per signup)

Tiered fee based on number of engagements 18%


“I really like affiliate partnerships as and / of contributions to buyer journey 11%
they scale with the influencer. So if
16%
the video goes viral, they get paid Performance bonuses 22%
that proportionate amount and if it
doesn’t, no worries, they get paid that 13%
Cost per click 16%
proportionate amount.”
5%
Participation bonuses 18%
Adi Adara, Finance Influencer
5%
Other
2%

0% 20% 40% 60% 80% 100%


Source: WARC x impact.com survey – Marketers & Influencers
Q: Which of the following ways of compensation would you or your clients find acceptable when contracting with influencers / brands?
© Copyright WARC 2022. All rights reserved. 40
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Influencer marketing
can work in the long and
short term
Influencer marketing is being used
“I’ve seen great results in
both on an ad hoc basis and for
e-commerce. If you use an artist,
partnerships from three months to then one part of the campaign might
several years. Let’s dive deeper into be a live stream performance with
some perspectives and examples no expectations to drive sales. But
across the marketing funnel. you might then use that artist in a
different area of the ‘e-commerce’
Campaigns focused on platform using them to actually do
live stream selling.”
performance-based metrics
often come from the FMCG, Becky Yeung, Regional Head
retail, entertainment and food of Brand Partnerships, Warner
delivery categories. This is likely Music Asia

because these are more frequently


lower ticket items with a higher
propensity to be activated by
influencer purchase prompts.

© Copyright WARC 2022. All rights reserved. 41


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Activity:
Results:
For the 18-24 year old market, the most
popular off-trade opportunity is pre-drinking: • Being well-suited to lockdown life – as
the drinks you have before you go out to bars the campaign ran between April and
and clubs. Pre-drinking is exciting – it’s with July 2020 – it delivered a better than-
your friends, your tunes, your food and your expected 7% redemption rate and
drinks. It’s also full of anticipation and is often repeated later in the year
more fun than the night out that follows.
• The activity reversed the decline, and
Pre-drinking contains several core elements. increased off-trade sale
Games are crucial and social media is

Jägermeister integral: Instagram, Facebook, and YouTube • 29% of 18-24s recalled seeing at
are ever-present sources of interaction and least one campaign execution
entertainment. Jägermeister invited their
• Two thirds of 18-24s said the creative
audience to ‘Pre with us’. They created the
‘made me feel more positive about
Jägermeister lounge where influencers could
Background and objective: Jägermeister’s place as a late-night fixture, Jägermeister’
come to ‘Pre with us’ before a night out and
Jägermeister needed to grow in the off-
treat the space like home: kick back, play • 57% of consumers said they were
Jägermeister, a liquor brand, launched a trade. Even before COVID-19 hit, there had
games and pour ice-cold shots. Jägermeister more likely to consider buying
campaign in the UK to increase off-trade been a long-term decline in the number of
recruited big names – influencers with 100,000 Jägermeister
sales over the pandemic, when bars were UK clubs and pubs / bars – more than one
followers or more (and their friends) – to drop
closed. Jägermeister is a shot-based drink thousand had closed between 2017 and • 46% of 18-24s agreed ‘they made me
in for a ‘chilled one’. To keep things interesting,
primarily associated with big nights out. They 2019. So this strategy was crucial to the think of Jägermeister as being really
they recruited a mix of talents, from streetwear
wanted to increase volume and value of the long-term success of the brand. Increasing different from other social drinking
vloggers and gamers to comedians and
alcohol by increasing at-home drinking. sales in this area is not easy when you have options’
unboxers. During lockdown, when nights out
such a strong image as a late-night icon.
In 2019, approximately 70% of sales came were mandated as nights in, they extended
Their strategy was designed to get more
from late night, high-energy occasions in the idea to a perfectly timed partnership with
people buying Jägermeister to drink at
on-trade venues. Whilst it was vital to keep Deliveroo. The activity also included an on-
home.
pack shot-glass giveaway.
Source: Jägermeister
Getting in Early Doors

© Copyright WARC 2022. All rights reserved. 42


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Long-term partnerships with influencers deliver results


Collaborating with influencers
“It’s working with people who are
for the long term involves letting
credible, who are authentic, who make
go of creative control. However, the right type of content that we’re
as we shall see in the case studies excited by and have the right following.
and marketer perspectives that I think when you have checked out
follow, this comes with brand all of those things, you’ve got a really
healthy partner who is going to speak
benefits and can even enhance
naturally about what we’re like as a
brand reputation. brand and about the products and the
services that we offer. It’s just so much
more powerful to reach out to their
“Brands can’t expect an influencer to
audience who they have a really strong
be scripted or say exactly what they
and trusted relationship with.”
want them to say. I think that there
needs to be an understanding that Michael Flatt, Director of Global
you need to let go a bit and have a bit Integrated Marketing, Xbox
less control. But the results deliver
a lot more than what you could have
achieved on your own.” Campaigns focused on long-term
awareness, salience, and brand
Becky Yeung, Regional Head
engagement can come from any category.
of Brand Partnerships, Warner
However, categories with less frequent
Music Asia
buying cycles and higher ticket prices – for
example, automotive, luxury and furnishings
– are more likely to rely on longer-term,
brand-building approaches.

© Copyright WARC 2022. All rights reserved. 43


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Telekom recruited young opinion leaders various Generation Z talents further


and influencers who were an embodiment amplified this by announcing the campaign
of their tech-positive strategic message. via their social media accounts. The film was
These influencers told authentic stories subsequently shared organically by millions
designed to inspire the younger generation of viewers worldwide.
and show that they can make a difference
with the power of mobile technology. Results:
The campaign was centred around a film
• 78% target group penetration (vs. 50%
by Billie Eilish and Deutsche Telekom titled
benchmark)
‘What We Do Next’. The film showcased

Deutsche Telekom
the outstanding accomplishments of • The number of Gen Zers following the
young people. Accompanied by the voice brand’s Electronic Beats Instagram
of Billie Eilish, six young enthusiasts were account and YouTube channel grew by
scouted from different parts of the world to 14% and 9% respectively
speak about their area of expertise. From
Background and objective: and consideration. Gen Zers were often • The What We Do Next film was viewed
advocating gender equality and fighting for
unfairly accused of being addicted to their more than 142 million times, with an
Deutsche Telekom, a German human rights to building businesses and
phones and disconnected from the real impressive completion rate of 72%
telecommunications company, needed to campaigning for change, these talented
world, so Deutsche Telekom wanted to
better engage Generation Z, the most price- young people all shared the same common • A study from Kantar showed that
showcase how important technology was to
sensitive and least loyal age segment. While goal – to use technology to work towards an awareness within the target group saw
their achievements.
Gen Z can be loyal to a premium-priced egalitarian future. an additional 17.7% increase (vs. 5.3%
industry benchmark)
brand, Deutsche Telekom brand values Activity: The campaign was launched across nine
had not resonated with them enough to • Brand favourability grew by 6.2% (vs 1.7%
European markets on UN International Youth
earn such loyalty. To ensure commercial The campaign aimed to tackle social bias, benchmark)
Day (12th August) designated by the United
competitiveness within this group of shape a positive discourse around
Nations to call attention to youth issues
customers, it was therefore imperative to Gen Z’s online behaviour, and ultimately help • Brand consideration recorded an
worldwide. Billie kicked off the campaign by additional 10.9% uplift – 10 times more
establish a meaningful connection with this Deutsche Telekom build a strong connection
sharing the film with her 68 million followers than the telecoms industry benchmark
generation, increasing brand favourability with the generation of the future. Deutsche
on Instagram and YouTube. Simultaneously,
Source: Deutsche Telekom
What we do next? – celebrating Gen Z’s online activism

© Copyright WARC 2022. All rights reserved. 44


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

One of the benefits of working age, and he has a unique approach that Influencers’ challenges when
the brands themselves would struggle to “At the start of my TikTok career
with influencers over longer
replicate. I definitely accepted brand deals
working with brands
periods is that brands can Linking value with compensation plus creative
from a bunch of different brands. I
test and learn, improving needed to learn to focus on a few freedom are obstacles for influencers
“I teach personal finance content
performance. on TikTok, with the main goal of key partnerships. Now I’m in the
Correctly linking
being entertaining and tricking credit space, the stock space and the value I create 60%
with compensation
“We are a very data-driven viewers into learning. I find that the crypto space – I have one key
company. We constantly test and personal finance as a general topic partner for each and I focus on Balancing my creative
learn. If we see something that isn’t exactly what people come to those relationships.” freedom with the 50%
brand’s requirements
works, and there’s real impact in TikTok for. But they do come for
Adi Adara, Finance Influencer
terms of reach and engagement, entertaining skits and to laugh. And Getting clear metrics
related to my 26%
then it’s something that we’re so my goal is to make them laugh performance
absolutely going to go back to.” and enjoy the video but walk away Notably, the top challenge for
with ‘Oh wow, I learned something’ influencers when working with Aligning my goals
22%
Michael Flatt, Director of Global brands is correctly linking the value with the brand’s goals
and then have that fuel their love for
Integrated Marketing, Xbox they create with compensation. This
personal finance and continue to Fitting into the broader
work towards financial freedom.” suggests they may welcome more brand strategy and 19%
communications
discipline around measurement if it
Furthermore, a long-term relationship
Adi Adara, Finance Influencer was linked to payment. Incentivising
means an influencer gets to know a Convincing my audience
them based on important metrics that my support for 18%
brand. That enables the influencer to the brand is honest
Influencers are keen to work with brands could help align both parties and
align their message better and build
collaboratively and see the benefits deliver improved results from the Dealing with
trust with their followers. There are bureaucracy and 12%
of the long-term partnership for relationship. cultural differences
also opportunities in lower interest
themselves and their followers. However,
categories (e.g. finance) to connect to
they recognise that there is a balance 4%
new audiences via a personality that Others
regarding their creative freedom – 50%
authentically resonates. Adi Adara does
of influencers highlight this as the
this for various finance brands, including 0% 10% 20% 30% 40% 50% 60%
second most significant challenge when
PayPal and Visa. His audience is school
working with brands. Source: WARC x impact.com survey – Influencers
Q: What are the most significant challenges you have come across when working
with brands?

© Copyright WARC 2022. All rights reserved. 45


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

The challenge Brands’ challenges when working with influencers


72% of marketers struggle to measure influencer impact correctly

and opportunity Measuring their impact correctly 72%

of measurement
Aligning their goals with the brand’s goals 46%

Seventy-two percent of marketers


Ensuring that influencers do not say or do
said the biggest challenge when anything in conflict with your brand values 36%
working with influencers is
measuring their impact correctly. Understanding what circumstances,
messages and requirements 33%
they can best support

Dealing with personality and


professionalism issues
29%

Identifying the right incentives and


compensation metrics
26%

Selling their value internally 11%

Others 6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Source: WARC x impact.com survey – Marketers


Q: Regardless of your own individual experience, what do you see as the most significant challenges in working with influencers?
© Copyright WARC 2022. All rights reserved. 46
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Like any newer marketing tactic, How marketers and influencers measure impact For influencers, this may require more
influencer marketing needs to prove education around measurement. Most
Marketers and influencers align on increased engagement but disconnect on brand lift
influencer performance metrics are self-
its value in the mix, and nowadays Marketer stream Influencer stream generated by social media platforms.
marketers rely on data to inform Tracking brand uplift would require more
72%
their decision-making. So what type Increased engagement sophisticated tools or an independent
70%
of data is typically used to measure study. Not only will influencers be less
55% familiar with this type of reporting, but
performance? Seventy-two percent Social media traffic increase
67% it also involves them looking at things
of marketers rely on engagement Conversions lift (e.g. non-sales
50% from a marketer’s perspective rather than
metrics, and 55% on social media actions such as leads, downloads,
sign-ups, registrations) 33% thinking about their own performance.
traffic increases. There is a high Marketers have an opportunity to resolve
47%
degree of similarity between Increased positive sentiment
42%
the disconnect by sharing these metrics
marketer and influencer responses with influencers so they can understand the
45% value of their contribution more broadly.
on engagement, but less so on Brand metrics lift
23%
other listed options, particularly
41%
conversions and brand lift. Brand lift Increased web traffic
43%
ranks fifth with marketers at 45%
38%
but recognised less by influencers Sales lift
27%
at only 23%. 15%
More efficient ad spend
18%
13%
Lower content production cost
20%
3%
Others
4%

0% 10% 20% 30% 40% 50% 60% 70% 80%


Source: WARC x impact.com survey – Marketers & Influencers
Q: How do you/your clients/brands measure the value of influencer marketing/your contribution?

© Copyright WARC 2022. All rights reserved. 47


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Perhaps the most critical Where influencer marketing scores highest


requirement for success as an “We’re no longer just hoping that
something’s going to work. It’s so 32% of marketers cite increased engagement as the top metric
influencer is being able to connect where influencer has delivered
targeted and it’s actually so easy
with their audiences. No surprise to extract data from the people
then that engagement is the best- that you’re working with. You can Increased engagement 32%
performing metric for influencer actually read the data that you get
marketing. Thirty-two percent of back and it’s so specific in terms of
the audience that they’re reaching
Social media traffic increase 19%
marketers agree that increased
in terms of the number of views,
engagement is the measure most the likes, the duration, so you can Brand metrics lift 11%
effectively delivered by influencer actually learn and you can tweak.”
Conversions lift (e.g. non-sales
marketing. actions such as leads, downloads, 10%
Becky Yeung, Regional Head sign-ups, registrations)
of Brand Partnerships, Warner
Increased web traffic
Music Asia 9%

Increased positive sentiment


6%
“We use a similar approach to what
we would do with other media
platforms. I consider influencer
Sales lift
5%
marketing the same as any other
media touchpoint. We use the More efficient ad spend
3%
classics like reach, impressions, CTR,
engagement rate. We have a library Lower content production cost 3%
of results which tell us the sorts of
influencer marketing activities that Others 2%
have performed better than others.”

Guillermo Font, Marketing Head,


0% 10% 20% 30% 40%
FMCG & Healthcare, Mars
Source: WARC x impact.com survey – Marketers
Q: Which of these measures have been most effectively delivered by influencer marketing?
© Copyright WARC 2022. All rights reserved. 48
PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Aligning measurement with KPIs


Measurement practices in influencer
marketing are incredibly varied. In “The best way to assess the value of
influencer marketing is to integrate it with
recognition of this, The Association
other marketing and measure it in an
of National Advertisers (ANA), the integrated way. If you are using it for
advertising industry’s oldest and awareness, you should measure
largest trade associations body that accordingly. If you are using it to drive
represents and promotes influencer purchase, you need to use those metrics.”

marketing in the US, has just issued Yusuf Chuku, EVP, Client Strategy and
the first guidelines for influencer Insights, NBCUniversal Media
marketing measurement.
Technology has facilitated improvements in
These guidelines are designed to create more
measurement practices, and many platforms
common ground and establish best practices.
and agencies are now offering the ability to
The 12-page document provides standard
measure beyond social media metrics such as
definitions for awareness, engagement, and
engagement. These types of solutions make
conversion measurement. Marketers are likely
it possible to be more sophisticated, helping
to welcome this, given the wide disparity of
to align a measurement programme with KPIs,
methodologies and metrics across social media
supporting full path attribution, and tracking
platforms.
and monitoring performance via automated
Of course, practicalities affect measurement processes and platforms.
decisions. Brands can only measure what
platforms and technology allow. However,
marketers should aim to measure based on
campaign objectives.

© Copyright WARC 2022. All rights reserved. 49


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Measurement evolutions
will drive effectiveness and
credibility
Marketers identified measurement The future then lies in linking a
as their biggest challenge with measurement with a reward to achieve a
virtuous circle that drives effectiveness.
influencer marketing. Meanwhile,
It is key to the sector’s future that a wider
influencers cited that correctly variety of metrics beyond views and
linking the value they can create engagement are shared between marketer
with the compensation/payment and influencers so that influencers can
they receive was their biggest build their understanding of measurement.
These should include metrics that relate
challenge. The appetite exists for
to KPIs and more qualitative metrics
influencers to be rewarded based evaluating the relationship users have
on their performance, and the with influencer content, how influencers
measurement tools required have drive participation in the buyer journey
been developed. and the ability of influencer campaigns to
move brand and conversion metrics. This
will add credibility to influencer marketing
and help to get buy-in from senior brand
management.

© Copyright WARC 2022. All rights reserved. 50


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Driving purchase Where marketers think influencers


could become more valuable
Where influencers think they could be
more valuable to brands
intent is key 59% believe that building purchase intent is the key
to increasing the value of influencers
79% of influencers are looking to build a long-term,
collaborative relationship with the brand

to the future By building interest &


59%
I can build a long-term,
79%

of influencer
purchase intent collaborative relationship
with the brand
By creating more suitable
content for our brand 51% I can introduce new
audiences to a brand
61%

marketing By building a long-term, collaborative


relationship with our brand

By introducing new
50% I can create more suitable
content for the brand 48%

I can help build interest


audiences to a brand 49% and purchase intent 47%

Building purchase intent is the By understanding the


43% I can grow the number
41%
brand’s requirement better of my followers
key to increasing the value of By allowing more flexibility for I can allow more flexibility for
influencers, according to 59% content usage rights (e.g. whitelisting, 30% content usage rights (e.g. whitelisting, 40%
boosting, lengthening usage rights) boosting, lengthening usage rights)
of marketers. Incentivising By being more professional
25% I can be more timely,
in their interactions responsive and accommodating 38%
influencers based on a purchase
or purchase proxies would be one
I can understand the
By gaining more followers 17% brand's requirements better 37%
way to achieve this. By selling more I can give brands more
product directly 13% creative control 20%
At the same time, it’s important to By giving brands more
9% I can sell more
15%
remember the contribution that influencers creative control products directly

can deliver at the top of the funnel. They Other 2% Other 2%


are more focused on this aspect of their
value, with 79% believing they can become 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80%
more valuable by building long-term
collaborative relationships with brands. Source: WARC x impact.com survey – Marketers Source: WARC x impact.com survey – Influencers
Q: How can influencers become more valuable to brands? Q: Which of the following options do you think would help you become more valuable to brands?

© Copyright WARC 2022. All rights reserved. 51


PERSPECTIVES FROM MARKETERS: PARTNERSHIP AND INNOVATION

Key takeaways

1. 2. 3.
Influencer marketing needs to be Working with influencer marketing Working with influencers over more
widely understood across functional experts or leveraging influencer extended periods delivers the best
teams – such as brand and digital – so marketing solutions rather than results. Even with performance-based
that it can be better integrated into manually browsing social media conversion objectives, the ability to
the broader marketing plan. platforms can provide broader reach test and learn over time improves
and better insight. performance over the long term.

4. 5.
Influencer measurement should align to Influencer remuneration can be
objectives, such as awareness amongst designed around these metrics to
key audiences, brand impact, purchase help incentivise influencers to better
intent, and sales, rather than relying align with campaign objectives.
only on socially generated metrics such
as engagement.

© Copyright WARC 2022. All rights reserved. 52


CONCLUSIONS

Conclusions

1 2 3 4 5
Invest in Explore Approach Consider how to Communicate
understanding partnerships with influencer use influencer your KPIs to
influencer influencers and marketing as a long- marketing across influencers
marketing external platforms term opportunity the full funnel
and agencies

Increasing marketing Content creators offer authentic Even if you want to use The trust and positive Align their remuneration to
spend, social media trends, relationships allowing deeper performance-based tactics emotional response that your business outcomes. The
cultural shifts, and industry connections with customers, like affiliate links and voucher influencers deliver has been dissonance between marketer
innovation are all creating while outside agencies provide codes, test and learn so you linked to purchase intent. focus on outcomes and
new opportunities that other coordination and measurement, can optimise and improve Complement performance- influencer focus on authentic
channels may not be able to and safeguard brand fit. performance over time. Put in based tactics with brand content can be resolved by
provide. place the right measurement engagement higher up the better bringing the two parties
programmes to support this. funnel. together on measurement
practices.

© Copyright WARC 2022. All rights reserved. 53


Who we are About impact.com

At WARC, our purpose is to save the world from Today, we help 75,000+ marketers across 100+ impact.com is the leading global
ineffective marketing by putting evidence at the countries. Our clients include the world’s leading partnership management platform
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owners, research companies and universities – enterprises manage and optimize all types
We believe that effective marketing is based on including the top-five largest agency groups and of partnerships – including affiliates,
facts and not opinions. top-five largest advertisers in the world. influencers, commerce content publishers,
Since 1985, we’ve brought confidence to marketing B2B, and more – since its founding in 2008.
Learn more about WARC Advisory here.
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projects contact imaad.ahmed@warc.com or by automating the full partnership life
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To learn more about how impact.com’s


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Our Offices global enterprise brands such as Walmart,
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