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REPORT
THE AGE
OF SOCIAL
INFLUENCE
A study on the
impact digital
media and social
influencers have
had on brand
endorsemen...
Published November 2017
All rights reserved. No part of this publication may be reproduced or
transmitted in any form or b...
This is the second research report published
by Celebrity Intelligence that explores the
impact digital media has had on t...
07Executive summary
11Case Study: GAP
15The New Rules
of Engagement
09Introduction
The State of Influence
12Key Celebrity ...
17Case Study: Body Shop
27Case Study: Mango
34Future Trends
39References
22What Collaborations
have Driven Value?
28Challe...
AUDIENCE
respondents cite having a
relevant audience or following
is the most important attribute
brands are looking for i...
Key findings of this
report include...
EXECUTIVE SUMMARY
Marketers continue to identify
celebrities and influencer manuall...
Discover.
Connect.
Influence.
The only celebrity and influencer marketing
tool you need
Learn more at
www.celebrityintelli...
INTRODUCTION
THE STATE OF INFLUENCE
Speaking to British Vogue earlier in the year, influencer
Camille Charrière (with an I...
10
#MeetMeInTheGap
10
CASESTUDY
#MeetMeInTheGap
Gap’s global #MeetMeInTheGap Autumn/Winter 2017
campaign was a very recent example of establishe...
KEY CELEBRITY AND INFLUENCER
MARKETING TRENDS
Talent-led communications is a well-established
practice with 61% of respond...
Social media promotion remains a top priority
Little has changed over the past 12 months in regards
to the role that celeb...
Brands are beginning to craft more collaborative
arrangements with celebrities and influencers
A growing number of respond...
THE NEW RULES OF ENGAGEMENT
There’s little doubt that the distinction between
celebrities and digital-born talent has beco...
TheBodyShop
16
PROVES THE
IMPORTANCE OF
DIVERSITY AND
LEGITIMACY
CASESTUDY
The Body Shop’s ‘Forever Against
Animal Testing’ campaign
For ...
Data has become a critical part of decision making
In 2017, brands have begun to take a more data-driven
approach to their...
Not only are brands seeking out intelligence about a
celebrity or influencer’s audience and followers, but
for 41%, it is ...
59% of brands say email is
the most effective channel
for engaging a celebrity
Once a brand has identified the individual ...
33%
22%
19%
17%
8%
High levels of engagement
on social media is a critical
requirement for marketers
As Figures 9 below il...
WHAT COLLABORATIONS HAVE DRIVEN
THE MOST VALUE TO BRANDS?
The survey reveals that in 2017, digital influencers
represent t...
Female niche influencers are proving the most popular
A detailed breakdown on brand-talent collaborations across
different...
Which other types of influencers
have you worked with in the last
12 months?
Female reality TV stars currently represent t...
In 2017, only 8% of brands are using celebrities
for long term contracts (compared to 10% in
2016), highlighting one of th...
#mangogirls
26
MANGO
DEMONSTRATES
THE VALUE IN
MEANINGFUL,
ONGOING
ENGAGEMENTS
CASESTUDY
Influencer Camille Charrière is part of the
#Man...
THE CHALLENGES THAT EXIST
Despite some optimism within last year’s survey
that budgets for celebrity and influencer market...
A fifth of survey respondents agree that granting
celebrities the creative freedom they desire is an
ongoing challenge. It...
DIGITAL INFLUENCERS HAVE IMPACTED THE WAY BRANDS
WORK WITH CELEBRITIES
41% 43% 13% 3% 0%
IDENTIFYING THE RIGHT TALENT THAT...
One of the potential reasons for ROI measurement
being an ongoing challenge is that success continues
to be measured tradi...
Less than a third of
respondents are using
trackable links
It’s important for marketers to acknowledge that the
number of ...
33%
As Figure 24 below highlights, three-quarters of
respondents are continuing to identify influencers and
celebrities to...
THE FUTURE
OF CELEBRITY
ENGAGEMENT
This year’s survey findings point towards notable
maturity within the celebrity and inf...
2. Niche and emerging
influencers and
celebrities will rise
in popularity
Female niche influencers are likely to rise in p...
Which types of singers/
musicians would be most
relevant for your upcoming
endorsement work?
Which other types of influenc...
4. Data will become a
more fundamental
part of celebrity and
influencer marketing
As the industry continues to mature, it ...
CONCLUSION
Social media has made its impact at all
levels within the celebrity marketing
industry, and as we move into 201...
09
12
12
13
14
20-21
20-21
20-21
22
23
23
27
28
37
37
REFE	RENCES
http://www.vogue.co.uk/article/what-is-an-influencer
	 h...
The only celebrity and influencer
marketing tool you need
Learn more at
www.celebrityintelligence.com
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  1. 1. REPORT THE AGE OF SOCIAL INFLUENCE A study on the impact digital media and social influencers have had on brand endorsements and celebrity marketing In association with
  2. 2. Published November 2017 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright 2017 Centaur Communications Limited Celebrity Intelligence is part of Centaur Media plc. Celebrity Intelligence UK 4th Floor, Wells Point 79 Wells Street London W1T 3QN United Kingdom Telephone: UK 020 7970 4299 http://celebrityintelligence.com Celebrity Intelligence USA 350 7th Avenue, Suite 307 New York, NY 10001 United States Telephone: 1-800-680-5773 We are a powerful data intelligence tool thatcombinestheknowledgeandinsights you need to deliver a successful celebrity and influencer marketing strategy. Fromemergingtalenttomainstreamtaste- makers, we help businesses worldwide to discover and connect with only the most relevant celebrities and influencers ABOUT CELEBRITY INTELLIGENCE
  3. 3. This is the second research report published by Celebrity Intelligence that explores the impact digital media has had on talent-led brand partnerships and endorsements. There were 270 marketing specialists who responded to the research request this year, which took the form of an online survey. Respondents included in-house brand marketers, agencies, consultants and media owners. Detailed breakdowns of the respondent profiles are included in the Appendix. If you have any questions about the research, please contact Centaur Marketing’s content marketing manager, Priyanka Mehra Dayal by emailing METHODOLOGY CONTRIBUTORS This report features in-depth opinions from brands, agencies, publicists, independent consultants and influencers, including Insanity Group, Warm Street, ITB Worldwide, East of Eden, L’Oréal, The Body Shop, Tanya Burr, Michelle Goodall, the International Institute for Anti-Ageing and Talent Republic. Interviews were carried out over the phone and by email in October 2017. priyanka.mehra-dayal@centaurmedia.com
  4. 4. 07Executive summary 11Case Study: GAP 15The New Rules of Engagement 09Introduction The State of Influence 12Key Celebrity & Influencer Marketing Trends INDEX 4
  5. 5. 17Case Study: Body Shop 27Case Study: Mango 34Future Trends 39References 22What Collaborations have Driven Value? 28Challenges 38Conclusion 5
  6. 6. AUDIENCE respondents cite having a relevant audience or following is the most important attribute brands are looking for in a celebrity or influencer 85% DIGITAL INFLUENCERS have worked with singers or musicians 57% respondents worked with digital influencers 61% PRESSURE ON CELEBRITIES believe it’s critical a celebrity has high levels of engagement on social media with the right audience 33% respondents say that data and insight relating to a talent’s audience and followers has proven the most useful in identifying who to work with 45% DATA of respondents are investing in specialist engagement tools 59% FUTURE TRENDS Celebrities will retain cut-through and appeal for certain generations particularly Female niche influencers are set to rise in popularity over the next 12 months Digital influencers will be increasingly sought after by brands, largely driven by the demands and expectations of Gen Z £ DELIVERING STRONG ROI 17.21return from every £1spent on a talent-led-campaign. 6
  7. 7. Key findings of this report include... EXECUTIVE SUMMARY Marketers continue to identify celebrities and influencer manually Three-quarters of respondents are continuing to identify influencers and celebrities to work with via manual research across social media platforms and forums, etc. Additionally, almost half (47%) of respondents cite being able to identify celebrities who resonate with their target audience, as their greatest challenge. A further 84% agree that identifying celebrities that are a good brand fit is a hard, time consuming task. Campaign-specific contracts are on the rise In 2017, only 8% of brands are using celebrities for long term contracts (compared to 10% in 2016), highlighting one of the most critical ways in which digital influencers have impacted the celebrity marketing space. Instead, campaign-specific contracts have risen in popularity, with approximately a third of survey respondents saying they generally choose to work with celebrities in this way. Niche and emerging talent will rise in popularity Female niche influencers seem set to rise in popularity over the next 12 months, for approximately three- quarters of respondents. As some experts interviewed for this report explained, niche influencers offer something quite different, and if the talent is unknown and untapped commercially, it can be a great way for a brand to build a meaningful, ongoing relationship with an individual. Social media is placing increasing pressure on celebrities 33% of survey respondents believe it’s critical a celebrity has high levels of engagement on social media with the right audience, for them to be an attractive proposition. This is a view that 41% of respondents who are working with digital influencers as well as celebrities, agree with. These findings raise a question mark over what this means for celebrities who have made a conscious decision not to embrace social media, particularly when just 8% of respondents say they work with celebrities with no social media presence Digital influencers are the most popular choice for brand endorsements The survey reveals that in 2017, digital influencers represent the largest majority group that brands have worked with for endorsement and commercial opportunities. 61% of respondents say they have worked with digital influencers in the past 12 months, compared with 57% who have worked with singers or musicians, and approximately half who have worked with TV actors and models. Additionally, the largest majority of survey respondents (44%) believe digital influencers will be best suited to endorsement opportunities that they have coming up in the near future. Data is becoming more critical 59% of survey respondents say that data and insight relating to a talent’s audience and followers has proven the most useful in identifying who to work with. It’s also encouraging to see that 45% of respondents are investing in specialist engagement tools, when in last year’s survey just 36% of companies and 32% of agencies were taking this approach. Having a relevant audience or following is of utmost importance In 2017, having a relevant audience or following is the most important attribute brands are looking for in a celebrity or influencer, with 85% of respondents citing this as “critical” or “very important”. Additionally, 41% of brands claim a celebrity’s audience and how it resonates with their own target audience is the deciding factor in terms of who they decide to work with. Talent-led marketing is delivering strong ROI Survey respondents say that for every £1 spent on a talent-led campaign, brands are getting an average of £17.21 back. Budgets set to increase for 42% 42% of respondents said their budgets would increase moderately or significantly in the next 12 months. Yet, despite the need for a greater proportion of marketing budgets to be attributed to celebrity and influencer engagement, it seems more likely that funds will remain pretty much the same, for approximately half of survey respondents. 77
  8. 8. Discover. Connect. Influence. The only celebrity and influencer marketing tool you need Learn more at www.celebrityintelligence.com 8
  9. 9. INTRODUCTION THE STATE OF INFLUENCE Speaking to British Vogue earlier in the year, influencer Camille Charrière (with an Instagram following of 602k) said, “I know that if I want 8,000 likes on an Instagram post then I need to be wearing jeans and a T-shirt with Converse. In general, people like simplicity. They’re looking for reality, because that’s something they can emulate and buy into.” Her point is a salient one, and this desire for ‘reality’ and everyday life has gathered momentum in 2017 and clearly made its impact on the traditional world of celebrity engagement, which has resonated far beyond the fashion industry. While there of course remain myriad brand campaigns that demand a celebrity face, and no doubt will continue to do so, at the same time the lines between established celebrities and digital-talent are becoming increasingly blurred. Consumers, and particularly the younger generation, are placing their trust in individuals who are more like themselves, and consequently the commercial deals that would have once only been available to A-list celebrities are broadening in their scope to also include a sophisticated mix of non- traditional and digital talent, offering a new layer of engagement and credibility. As Emma Gregson, managing director at ITB Worldwide, explains: “If clients want ‘celebrity’, it’s still about celebrity, it’s not about influencers, because they still do very different things, and celebrities absolutely still have power and impact. But what we’re seeing much more of is a blend of a campaign that encompasses the two. What the celebrity does, if done correctly, is cut through the noise. They are of course influencers themselves and have impact with their demographic and audiences, and their profile enables them to roll out onto channels above and beyond where an influencer would live. They are the people that will get the paparazzi shots and the print journalists interested; and if it’s a TV spot you will know who that person is. Meanwhile digital influencers serve an alternative communications strategy and a different audience because they can deliver a more targeted and focused message, and reach very segmented audience types. With influencers you can be much more specific as to whether they are aligned with your brand, whether they have the same viewpoint, tone of voice, and an overall aesthetic that works.” “Unconventional talent” is entering the mix According to Gregson, after digital influencers and celebrities, a third strand of influencer has also entered the mix this year, which she refers to as “unconventional talent” who are experts in their niche content creation field or in their artistic or sporting discipline, providing brands with a new way to standout and be different. She explains that while the typical social influencer is likely to be someone who looks beautiful, possesses a strong social following and maintains a credible existing profile, unconventional talent is, by and large, untapped. It’s anyone that the consumer isn’t familiar with seeing and the significant difference between the two is that unconventional talent has almost certainly never had their social profiles utilised in a commercial way. “Our clients are looking for us to go above and beyond and search out these unique individuals who aren’t necessarily known as digital influencers in the traditional way. Increasingly we are being challenged to street cast via social media to find tap dancers, basketball dribblers, trumpeters, and all these wonderful individuals who all have their own content and story to tell, and they will tell it in their own way. If we can find these individuals and they match the client’s needs, then they are a really great vehicle.” Emma Gregson, managing director at ITB Worldwide 9
  10. 10. 10 #MeetMeInTheGap 10
  11. 11. CASESTUDY #MeetMeInTheGap Gap’s global #MeetMeInTheGap Autumn/Winter 2017 campaign was a very recent example of established celebrity and non-traditional talent coming together within one TV ad. Fronted by global pop icon, Cher, and producer and rap artist, Future, who had never met before, the campaign explored the concept of what can be made possible when we close the gaps that exist between us. To demonstrate this point further, a diverse blend of unknown digital talent was identified and recruited, including dancing duo Chloe Maud Arnold, basketball dribbler Corey The Dribbler, TV host and athlete Rachel DeMita, internet sensation flutist Tyler Bonafides, yodeller Kata Hay, beat boxer Kaila Mullady, auctioneer Jake Grizzard, artist Gloss Black, epic dancer Fik-Shun, trumpeter Christian Scott, cool girl-gang skateboarding crew the Santa Cruz Lady Lurkers and beat maker Beats By Jblack. A selection of concepts and meet-ups were created, and the talent collaborated on unexpected works of art. “This suite of amazing people that we found added an additional layer and some fantastic creative content into the mix,” explains Emma Gregson at ITB Worldwide, who was involved in the campaign. “When you see them in the TV spot, you don’t know who they are; they’re just great performers. But then there is a story told in a digital layer and that is where it really appeals to specific demographics.” CAMPAIGN BLENDS POP ICON WITH UNCONVENTIONAL TALENT 11
  12. 12. KEY CELEBRITY AND INFLUENCER MARKETING TRENDS Talent-led communications is a well-established practice with 61% of respondents saying it has proved “very effective” or “effective” for their organisation. This is taking into account that more than half of survey respondents (57%) have worked with celebrity influencers as part of their marketing strategy for five years or more. A very small minority, 11%, have only begun engaging celebrities in the past 12 months. Interestingly, those who have worked with digital influencers, in addition to celebrities, are even more likely to say their approach is working well. A combined total of 78% claim their celebrity and influencer marketing programmes are “very effective” or “effective, as Figure 2 below illustrates. What’s more, for every £1 spent on talent-led campaigns in 2017, brands say they are getting an average of £17.21 back; an impressive return by today’s marketing standards and particularly with rates for celebrities and digital influencers rising so rapidly. A recent study by Captiv8, for example, claims that an influencer with 3m- 7m followers can charge, on average, $187,500 for a post on YouTube, $93,750 for a post on Facebook and $75,000 for a post on Instagram or Snapchat. By way of a comparison, RhythmOne’s Influencer Marketing Benchmarks Report published this February found that advertisers who implemented an influencer marketing program in 2016 received on average $11.69 in Earned Media Value (“EMV”) for every $1.00 of spend, an increase of 4.4% on the previous year. For every £1 spent on talent-led campaigns, brands are securing an average return of £17.21 How long have you had celebrities as part of your marketing strategy? 11% 6% 10% 10% 6% 7% 50% Figure 1 LESS THAN 12 MONTHS 1 YEAR 2 YEARS 3 YEARS 4 YEARS 5 YEARS MORE THAN 5 YEARS How effective is your organisation’s overall approach to celebrity/influencer marketing? 33% 45% 20% 2% Figure 2 VERY EFFECTIVE EFFECTIVE SLIGHTLY EFFECTIVE NOT EFFECTIVE 12
  13. 13. Social media promotion remains a top priority Little has changed over the past 12 months in regards to the role that celebrities play within brand marketing strategies, and as Figure 3 4 reveal, social media promotion continues to be of top priority. Three- quarters of survey respondents say social media promotion is “critical” or “very important” within their celebrity engagement, and a resounding 92% of respondents who are also working with digital influencers agree. Furthermore, 100% of respondents believe their social media promotion is proving very effective. The impact of social media is being felt at many levels, but Nick Ede, CEO of charity campaign agency East of Eden, argues that above all, it has shifted celebrity marketing from macro to micro channels. “There is a lot of talk in the industry about how celebrities have moved from the billboards, to desktops, to mobile devices – a personal space where the user is in control. The campaigns we’ve planned recently have looked more and more towards this kind of grassroots promotion, engaging influencers across a targeted theme and working with them to create impactful, interesting content.” As one might expect, content promotion and distribution also continues to be “critical” or “very important” for just under half of respondents working with celebrities, which rises to 72% of respondents who are also engaging digital influencers in their marketing strategies. Also, a notable proportion of respondents say they are using celebrities as brand spokespeople; 60% of those working purely with celebrities cite this a “critical” or “very important” role, and 65% of respondents also working with digital influencers agree. There is currently much research to show that consumer trust is undergoing a significant shift, with clear generational divides, making it critical that brands are extremely careful in the celebrities or influencers they choose to speak for their brand. For example, a May 2016 survey conducted by Salesforce, which examined the most trusted sources for accurate product information by generation, found that while baby boomers (born post World War II) put more trust in brands themselves than their younger peers, millennials (who reached young adulthood in the early 21st century) felt online reviewers were more credible than corporate-sponsored messages. “We still have that generational divide that we simply can’t ignore,” argues Emma Gregson at ITB Worldwide. “The older generation simply wouldn’t buy something based on an influencer’s recommendation, but they might look twice if a respected celebrity such as Helen Mirren recommends it.” However Generation Z (the demographic cohort following the millennials), compared with any generation that has come before, is the least trusting of brands and has more faith in individuals than big institutions. “They are a tough audience,” argues digital marketing consultant, Michelle Goodall. “Smart, cynical and they can spot insincerity and a fake a mile away.” As a result, it makes sense that brands are using social media influencers as their voice, in an effort to appear more relatable, but it’s critical the individual is an authentic fit. What role do celebrities currently play in your marketing strategies? SOCIAL MEDIA PROMOTION 32% 43% 17% 8% CONTENT PROMOTION AND DISTRIBUTION 23% 26% 29% 22% EVENTS/WEBINAR PRODUCTION 21% 27% 27% 25% NEWSPAPER AND MAGAZINE ADVERTISING 17% 31% 16% 36% TV ADVERTISING 17% 14% 19% 50% PRODUCT LAUNCH 14% 33% 31% 22% BRAND SPOKESPERSON 14% 46% 24% 16% PRODUCT PLACEMENT/GIFTING 11% 23% 20% 46% PRODUCT DEVELOPEMENT 9% 36% 27% 27% STYLING, PHOTOGRAPHY, ETC 9% 27% 29% 35% OUTDOOR ADVERTISING 9% 17% 17% 57% CORPORATE COMMUNICATIONS 6% 26% 26% 43% CONCEPTUALISING CREATIVE CAMPAIGN IDEAS 6% 34% 37% 23% CRISIS MANAGEMENT 3% 18% 27% 52% DIGITAL ADVERTISING E.G. DISPLAY 3% 35% 27% 35% RADIO ADVERTISING 3% 17% 19% 61% CRITICAL VERYIMPORTANT QUITEIMPORTANT NOTIMPORTANT Figure 3 13
  14. 14. Brands are beginning to craft more collaborative arrangements with celebrities and influencers A growing number of respondents say they are using celebrities for product development, such as the creation of capsule collections, suggesting a move towards a more meaningful and collaborative relationship. Almost half (45%) of respondents working with celebrities say this is becoming a “critical” or “very important” role, which 34% of respondents also working with digital influencers agree with. Speaking to Marketing Week, L’Oréal’s UK general manager Adrien Koskas, shared how he had recently signed five British beauty bloggers, with a combined reach of 5.5 million, for a collaborative, ongoing partnership. “I don’t want to be like other brands where they try to use one influencer after the other for one launch or event – it just doesn’t seem very genuine and sincere,” he explained. Instead “we see it as a two-way relationship where they challenge us and we work alongside them. It’s very healthy for us as well to have those challenges from them in terms of the content we create, the tone of voice, as well as the products we launch. [These influencers] are true beauty addicts... They are a voice for the brand to think differently about our products.” What role do celebrities and influencers currently play in your marketing strategies? SOCIAL MEDIA PROMOTION 44% 48% 7% 1% PRODUCT PLACEMENT/GIFTING 28% 29% 29% 14% CONTENT PROMOTION AND DISTRIBUTION 26% 46% 21% 7% DIGITAL ADVERTISING E.G. DISPLAY 20% 39% 22% 19% PRODUCT LAUNCH 19% 48% 24% 9% STYLING, PHOTOGRAPHY, ETC 15% 40% 30% 15% BRAND SPOKESPERSON 13% 52% 24% 11% TV ADVERTISING 11% 17% 21% 51% NEWSPAPER AND MAGAZINE ADVERTISING 9% 29% 31% 31% EVENTS/WEBINAR PRODUCTION 6% 32% 26% 36% OUTDOOR ADVERTISING 6% 22% 32% 40% CONCEPTUALISING CREATIVE CAMPAIGN IDEAS 5% 35% 37% 23% CRISIS MANAGEMENT 3% 10% 18% 69% PRODUCT DEVELOPEMENT 1% 33% 35% 31% RADIO ADVERTISING 1% 14% 21% 64% CORPORATE COMMUNICATIONS 0% 23% 25% 52% CRITICAL VERYIMPORTANT QUITEIMPORTANT NOTIMPORTANT “Despite what you may hear, celebrity endorsements are still as valuable and effective as ever, but not everything hangs on the famous name or face associated with a brand. Celebrity makes up part of an integrated campaign rather than the whole thing. We have seen a swell of normal people operating at a level below celebrity, becoming real influencers. They don’t command the five-figure sums that many celebrities receive for social posting, but they do have genuine influence.” Figure 4 Expert tip: Nick Ede, CEO, East of Eden 14
  15. 15. THE NEW RULES OF ENGAGEMENT There’s little doubt that the distinction between celebrities and digital-born talent has become increasingly blurred in 2017, and as a result, this is having impact on the attributes brands are looking for most in the stars and talent they choose to work with. While many brands continue to look to celebrities as being the disruptor or noise maker, and a way to get reach and cut-through on a global scale; a larger majority are also recognising the need to forge careful, well thought out alliances, where moral and ethical values are shared. Having a relevant audience or following is of utmost importance, for 85% As Figure 5 illustrates, having a relevant audience or following is the most important attribute brands are looking for in a celebrity or influencer, with 85% of respondents citing this as “critical” or “very important”. It wasn’t very long ago that ‘number of followers’ was the highest currency, and while that still matters to some, it’s encouraging to see that having the ‘right’ audience is rapidly becoming more important. Davina Kumal, PR and influencer programme manager for the International Institute for Anti- Ageing, advises brands to “be careful when selecting an influencer based on their audience. The levels of engagement and whether the audience fits within your brand’s target market are much more important. Today, with five to six generations to consider, we have an interesting dynamic of a new breed of influencer emerging in the social media space, with an audience that listens to them.” In 2016, having the ‘right look’ was a critical factor, with 79% of companies and 84% of agencies saying this was “critical” or “very important”. This still remains important with 78% of respondents in this year’s survey citing it as “critical” or “very important”, but this is evolving into something less superficial, and gradually becoming more about what an individual stands for than their physical appearance, as The Body Shop case study demonstrates. Which attributes much a celebrity or an influencer you are looking to work with must have? AN AUDIENCE/FOLLOWING THAT IS RELEVANT TO MY BRAND 46% 39% 14% 1% HAS THE RIGHT LOOK FOR OUR BRAND 38% 40% 15% 7% THE ABILITY TO SWAY OPINIONS AND PROMPT ACTION BY TALKING, PRMOTING A PARTICULAR TOPIC 21% 42% 30% 7% POPLARITY - GLOBAL CELEBRITY STATUS 20% 32% 39% 9% BOASTS A SIZABLE SOCIAL COMMUNITY AND ONLINE FOLLOWING 19% 52% 27% 2% TALENT - TOP OF THEIR GAME/PROFESSION 15% 47% 26% 12% A THOUGHT LEADER AND ACTIVE PARTICIPANT IN DISCUSSIONS THAT RELATE TO PARTICULAR TOPICS/INDUSTRY 13% 21% 37% 19% SHARE OF VOICE, HAS A HIGH DEGREE OF PARTICIPATION IN A CERTAIN AREA 6% 47% 31% 16% CRITICAL VERYIMPORTANT QUITEIMPORTANT NOTIMPORTANT Figure 5 15
  16. 16. TheBodyShop 16
  17. 17. PROVES THE IMPORTANCE OF DIVERSITY AND LEGITIMACY CASESTUDY The Body Shop’s ‘Forever Against Animal Testing’ campaign For the past 30 years, The Body Shop has worked with its NGO campaign partner Cruelty Free International, to fight against animal testing in cosmetics. In 2013, as a result of its campaigning, the EU banned sales of cosmetics tested on animals, but 80% of countries worldwide still don’t have any laws against animal testing in place. Cosmetics and ingredients have been tested on animals for over 50 years. Cruelty Free International estimates that 500,000 animals are used for cosmetics testing globally each year. On 1 June 2017, The Body Shop launched its ‘Forever Against Animal Testing’ campaign, supported by the hashtag #ForeverAgainstAnimalTesting, and linked to a global online petition. A total of eight million signatures are needed for the brand to be able to present to the UN General Assembly in 2018, to call on the launch of a petition to ban animal testing at a global level. With new technological advancements, there are now plenty of viable alternatives to testing on animals that are often quicker, cheaper, and more effective. To help raise awareness of the campaign and the petition, The Body Shop needed some high profile individuals to front it and help kick-start signatures. Charlotte Adjchavanich, integrated international brand communications director of The Body Shop who headed up the campaign, shares, “as an ethical company, our filter is very stringent on who we work with. We look for people who stand for something, and are not just a pretty face. There are a lot of digital influencers out there who are focused on image, but we want to work with individuals who represent and champion a cause, such as veganism, or who refuse to wear fur. We use this same filter for celebrities as well as digital influencers. Their number of followers didn’t matter too much; it was more about legitimacy.” The Body Shop used a traditional cast of celebrities such as Kelly Osbourne, actress Maisie Williams and singer, songwriter Jhene Aiko, supported by a squad of social media influencers. Within individual markets it also teamed up with local influencers and even pets with established Instagram profiles. “Diversity was really important to us; we wanted to represent all ethnicities, colours, shapes and sizes,” says Adjchavanich. Celebrities and influencers were asked to publish a one-off post to Instagram, ideally wearing the campaign T-shirt (although this was optional), and doing the ‘bunny ear gesture’. The Body Shop retained the rights to re-post images. “Everyone wore the T-shirt with the exception of one,” says Adjchavanich. “We were keen for the posts to feel authentic and so we provided some suggested copy, but the influencers were free to repurpose it into what they felt comfortable with.” The short-term nature of the brief proved a challenge in some cases, according to Adjchavanich. “It is hard in the celebrity space to find individuals who will agree to a one-off post. Most celebrities want a longer-term contract. Some individuals declined the opportunity as they didn’t like the ad hoc nature of the job, which they felt might ruin more lucrative contract opportunities within the category or create a conflict of interests with other potential brand partners.” “We paid the celebrities to take part. ITB Worldwide helped us with the casting, outreach, negotiations, contractual obligations and legal requirements. There are new and country-specific laws for influencers, and we are extremely diligent about our influencers adhering to these. The amounts that we paid our celebrities and influencers varied, and some were so keen to be involved that they decreased their fee. We also seeded gifts to some. For phase two of the campaign, we hope that some of our celebrities and influencers will agree to post organically,” Adjchavanich shares. The overarching objective of the campaign was to secure signatures. To date, three million signatures have been achieved. According to Adjchavanich, the official KPIs set for the campaign were a total reach of 10m and a 2% engagement rate on talent channels. These were easily surpassed with a total reach of 26m and an average engagement rate of 4.3%. “Measurement we always find tricky; nothing is that accurate, and so we tend to gather results quite manually,” says Adjchavanich. “In 13 months time, when we have hopefully reached 8m signatures, we will be going to the UN and we would love our tribe of influencers to come with us.” The Body Shop also acquired 54,000 new followers in the weeks immediately following the launch of the campaign. “This is such an important campaign, and has proven that celebrities still hold a lot of power. Digital influencers are more about peer-to-peer influence, and while this works, what celebrities endorse, their fans really care about. The celebrities that we used weren’t over-subscribed with commercial deals, and they are globally recognised: they are the real deal,” concludes Adjchavanich.17
  18. 18. Data has become a critical part of decision making In 2017, brands have begun to take a more data-driven approach to their celebrity and influencer engagement, relying less on gut instinct or requesting who’s cool, and instead making a more informed decision about who best to collaborate with. As Figure 6 below shows, 59% of survey respondents say that data and insight relating to a talent’s audience and followers, has proven the most useful in identifying who to work with. A further 53% claim how an influencer resonates with their brand, in terms of their personal interests and values, is additional information that they are now seeking out. English fashion and beauty vlogger, Tanya Burr, agrees that over the past 12 months, she has seen brands taking more notice of audience intelligence data. “I think brands are definitely becoming more careful and considered about who they work with; briefs are more detailed and the demographic targets are becoming more specific. Now, not only does the influencer have to fit the brand but also hit key targets when it comes to their audience’s age and interests.” However, as with most things, it’s important to strike the right balance. Burr shares, “I love working with brands that have a key vision for their campaigns and key outcomes, but I also think open briefs can be just as effective. It can be very easy for a brand to have a set vision for the creative but it must be collaborative and fit with an influencer’s style which their audience is already familiar with.” Emma Gregson at ITB agrees, and says that when it comes to selecting a celebrity or influencer to front a campaign, it needs to be a mix of intuition as well as data. “You can look at reach and engagement numbers and audience sentiment, but unless you’re using product codes and swipe-up mechanics on Instagram, are you able to see the direct correlation to sales? That’s why people like us exist to have that insight into the entertainment industry and know who the new upcoming talent are and films coming out as we have to harness these cultural moments. It’s a lot of work and insight, and that’s why we have clients that come to us looking for that support.” Interestingly, just 27% of respondents say that information relating to a celebrity’s previous endorsement history is important. This may suggest that exclusivity clauses are becoming less prevalent, maybe in light of the growing need to be genuine and authentic. L’Oréal’s UK general manager Adrien Koskas, supports this view, claiming there’s no exclusivity request within any of his influencer collaborations. “They have full freedom in terms of editorial and what they can produce or say. We are not forcing or pushing them to speak or post about anything or to exclude any brands. They are free to comment or say anything about any brand. That’s the base of our relationship. I know they will continue to talk about other brands too, or sometimes be more critical. So I’m pretty confident and this is an open discussion with them – they keep their freedom and editorial point-of-view.”   When you are identifying talent to work with, what information has proved most useful? 59% 53% 49% 34% 27% 25% 6% “I love working with brands that have a key vision for their campaigns and key outcomes, but I also think open briefs can be just as effective.” Tanya Burr, Fashion and beauty vlogger Figure 6 TALENT’S AUDIENCE/FOLLOWER INFORMATION (DEMOGRAPHIC AND PSYCHOGRAPHIC DATA) TALENT’S PERSONAL INTERESTS AND VALUES ACCURATE CONTACT INFORMATION SOCIAL MEDIA HANDLES AND FOLLOWERS PREVIOUS ENDORSEMENT DEALS RATES GIFTING POLICY 18
  19. 19. Not only are brands seeking out intelligence about a celebrity or influencer’s audience and followers, but for 41%, it is the biggest deciding factor in selecting who to work with. This marks a big cultural shift in celebrity marketing, and indeed in last year’s survey, 49% of companies and 44% of agencies said they were choosing celebrities based on their personal contacts and connections, while 38% of companies and 44% of agencies were relying on gut feeling for who they thought would resonate best with their consumer audience. The illustration below paints a vastly different picture, with just 5% of respondents, for example, basing their decisions on celebrities that are currently ‘‘trending” or in the news. 41% of brands claim ‘audience’ is the deciding factor 41% 26% 7% 6% 6% 5% 3% 6% After identifying potential talent to work with, which statement best describes how you decide who to go with? Figure 7 WE CHOOSE CELEBRITIES WHOSE FOLLOWERS/AUDIENCE BEST RESONATE WITH THE BRANDS TARGET AUDIENCE WE UNDERTAKE IN-DEPTH RESEARCH TO ENSURE TALENT REFLECT CORE BRAND VALUES WE CHOOSE TALENT BASED ON THE BUDGET WE HAVE AVAILABLE WE WORK WITH SPECIALISTS WITHIN NICHE MARKETS/VERTICALS TO HELP US IDENTIFY NEW TALENT TO WORK WITH WE CHOOSE TALENT BASED ON PERSONAL CONTACTS/RECOMMENDATIONS WE TEND TO BASE OUR DECISION ON TALENT THAT ARE CURRENTLY IN THE NEWS WE REGULARLY SPEAK TO OUR CUSTOMERS SO INSTINCTIVELY KNOW THE RIGHT TALENT NONE OF THESE - WE DONT HAVE A SPECIFIC METHOD FOR CHOOSING TALENT 19
  20. 20. 59% of brands say email is the most effective channel for engaging a celebrity Once a brand has identified the individual they would like to work with, 59% of respondents say they find email the most effective way to establish contact with that celebrity or influencer, in the first instance. Last year, this figure was noticeably lower, with just 39% of companies and 46% of agencies ranking it as their preferred contact channel. In light of the in-depth research brands are carrying out into a celebrity’s audience and core values, etc, this year, this finding might indicate that brands are having a clearer and more fixed idea of who they would like to work with, and are thus more confident to enter direct dialogue via email. Publicists remain important, but not quite to the same degree. In 2016, two-third of respondents cited this as their most effective method of approach, but this year just over half (53%) of respondents favour engaging a celebrity via their publicist. The other more traditional method of contact, through a mutual acquaintance, has also fallen in effectiveness, by approximately 11% (45% in 2016, versus 34% in 2017). “Ask yourself why an influencer would want to work with you. Try building connections in advance, show you’re interested and supportive of their content by sharing and liking their posts. Demonstrate that you really like their style and keep up-to-date with what they’re up to.” Which channels do you think are the most effective when engaging a celebrity/influencer for the first time? 19% 10% 8% 3% 1% 59% 53% 34% 31% 20% 19% Figure 8 Top tip: Davina Kumal, PR influencer programme manager, the International Institute for Anti-Ageing (iiaa) EMAIL VIA PUBLICIST INTRODUCTION VIA MUTUAL ACQUAINTANCES PHONE CALL PR TEAM VIA CELEBRITY’S OWN WEBSITE EVENTS INSTAGRAM TWITTER FACEBOOK LINKEDIN OTHER 20
  21. 21. 33% 22% 19% 17% 8% High levels of engagement on social media is a critical requirement for marketers As Figures 9 below illustrate, 33% of survey respondents believe it’s critical a celebrity has high levels of engagement on social media with the right audience, for them to be an attractive proposition. These findings, while unsurprising, raise a question mark over what this means for celebrities who have made a conscious decision not to embrace social media, as well as increasing pressures for celebrities who are already active on social media. For example, Grey’s Anatomy star Ellen Pompeo recently published an Instagram story which parodied what’s expected from actors on social media. Within it she jokingly asked a co-star: “it’s Friday; have you fulfilled your social media obligations yet today?” IT’S CRITICAL A CELEBRITY HAS HIGH LEVEL OF ENGAGEMENT ON SOCIAL MEDIA WITH THE RIGHT AUDIENCE FOR US TO WORK WITH THEM WE ALWAYS CONSIDER A CELEBRITY’S SOCIAL MEDIA REPUTATION BEFORE ENGAGING THEM IT MATTERS THAT A CELEBRITY’S SOCIAL MEDIA PRESENCE IS TRULY AUTHENTIC BEING ASSOCIATED WITH A CELEBRITY NAME/FACE IS MORE IMPORTANT THAN THEIR NUMBER OF FOLLOWERS ON SOCIAL MEDIA WE WORK WITH CELEBRITIES WHO HAVE NO SOCIAL MEDIA PRESENCE Which of the following statements best describe your view on a celebrity’s social media presence? Figure 9 21
  22. 22. WHAT COLLABORATIONS HAVE DRIVEN THE MOST VALUE TO BRANDS? The survey reveals that in 2017, digital influencers represent the largest majority group that brands have worked with for endorsement and commercial opportunities. This marks a noticeable shift since last year’s survey, when singers and musicians were the most popular genre of celebrity that brands had collaborated with (for 40% of companies), closely followed by film actors (35%). As the figure below illustrates, 61% of respondents say they have worked with digital influencers in the past 12 months, compared with 57% who have worked with singers or musicians, and approximately half who have worked with TV actors and models. This is a game-changer for the industry, and interestingly, in last year’s survey, 43% of company respondents predicted social media stars would rise to the top within brand endorsement opportunities. This doesn’t take away from the continued relevance and popularity of respected celebrities, and the findings show clearly that singers/ musicians in particular still hold much clout and appeal with brands and their audiences. But, there is no longer any doubt over the growing pressure digital-born talent is placing on traditional celebrities, and over the next 12 months it will be critical that brands understand how to differentiate between the commercial opportunities that they have available. While there are many reasons for this, experts acknowledge an overarching driver has been the increasing prominence of Generation Z, the crop of young people born between 1996 and 2011, who have grown up in a digital era when information is available at all times. There is much that could be said about this rising generation of consumers, but in short, they are a collaborative generation, ethnically diverse, increasingly brand wary, see gender identity as a spectrum, egalitarian, and are not afraid to back the social movements they care about. For example, more than 25% of Gen Z respondents to a recent survey said that they had boycotted a brand because it did not align with their moral views. “Some of Generation Z are still influenced by traditional celebrities and influencers,” shares independent consultant Michelle Goodall. “For example my daughters are influenced and impressed by Emma Watson, they talk about some politicians and activists, authors such as JK Rowling and Jonathan Stroud, sportspeople and TV presenters as ‘celebrity’, but we have to understand that their traditional media time has been replaced by Snapchat Explore, Buzzfeed, YouTube and DMing mates through Snapchat, WhatsApp and Instagram.” “Digital influencers are breaking down barriers and finding themselves at the forefront of campaigns particularly in the US, and I think this will follow suit in the UK. A household name isn’t just someone who is seen on the TV anymore. However, you can also see traditional celebrities crossing over into the digital space. There is room for crossover for both digital and traditional celebrities in my opinion.” Which of these celebrity or influencer groups have you worked with in the last 12 months? 61% 57% 51% 49% 49% 42% 42% 38% 32% 6% Figure 10 Expert view: Tanya Burr, Leading fashion and beauty vlogger Digital influencers represent the largest majority group DIGITAL INFLUENCERS SINGERS/MUSICIANS TV ACTORS MODELS PUBLIC FIGURES PHOTOGRAPHERS/CREATIVE ARTISTS/MAKEUP ARTISTS ETC FILM ACTORS SPORTS PERSONALITIES AUTHORS/WRITERS OTHER 22
  23. 23. Female niche influencers are proving the most popular A detailed breakdown on brand-talent collaborations across different categories of celebrities and influencers this year: Exploring the digital influencer group in more detail, 75% of respondents have worked with female niche influencers in the past 12 months, representing the largest group (see Figure 11 below). Following closely behind are female micro and mid-tier influencers, whom 68% of respondents have worked with this year. Niche and micro-influencers, of less than 15,000 followers, offer brands an increasingly interesting proposition. Not only is their price tag much lower than a top-tier influencer, or an A-list film actor, for example, but there has been much research to show that their leverage around a particular subject can sometimes hold more clout. Consumers trust their opinion on a specific topic more, because they know it’s their passion. According to a recent study by Experticity, micro-influencers are asked their opinion on buying a product 22 times more than the average person. They are also more likely to have firsthand knowledge about a product or service and are generally better at explaining how a product could be used. Therefore when the brand match is a good one, the collaboration can seem a lot more credible and authentic. An intriguing finding is that male influencers appear notably less popular than female talent. A study earlier in the year by Instagram scheduler Hopper, based on two year’s worth of data, found that female Instagram users get five time more ‘likes’ than male users. The average number of ‘likes’ for female users, including celebrities, influencers and ordinary users, was 578, compared to 117 for male users. Men are also 10 times more likely to like, comment or regram a woman’s post than posts by men. Commenting on the findings, Mike Bandar, co-founder of Hopper said: “Instagram has always been a predominantly female platform, but these findings show just how tough it is out there for male-focused brands and influencers to build followings and reach audiences. It’s not all doom and gloom though, insights like this are an asset that can help users create content that will best connect with their audiences. It’s not just about great photos, regular posts and the right hashtags - and our savvy users recognise this and make it work to their advantage.” As the Figure below highlights, within the film actor group, aspiring talent is in just as much demand as well established, A-list talent. In fact, the most in-demand group over the past 12 months was emerging female stars, i.e. those who have only very recently made a name for themselves within the industry. Which types of digital influencers have you worked with in the last 12 months? Which types of film actors have you worked with in the last 12 months? Figure 11 Figure 12 MALE FEMALE NICHE INFLUENCERS (example: organic beauty) 25% 75% MICRO-INFLUENCERS (under 15,000 followers) 32% 68% MID-TIER INFLUENCERS (15,000 - 1m followers) 32% 68% TOP-TIER INFLUENCERS (+1m followers) with a global presence 41% 59% AUTHORITATIVE (expert representation of an industry body, journalist,/editor etc) 42% 58% MALE FEMALE ASPRING ACTORS (yet to be discovered but popular locally) 52% 48% A LIST FILM ACTORS (well known name and face that is recognisable to a global audience) 47% 53% B LIST FILM ACTORS (well known for their role in select films, supporting actor roles) 47% 53% EMERGING STARS (film actors that have recently made a name for themselves with a role or cameo) 45% 55% NICHE FILM ACTORS (known to a select group of people interested in the genre of films. eg:indie films, short films 45% 55% 23
  24. 24. Which other types of influencers have you worked with in the last 12 months? Female reality TV stars currently represent the most popular segment of TV talent, which one might safely assume is supported by a strong social media profile. Within the field of music, it’s intriguing that female background singers are the most sought after group, closely following by rising female stars. Robin Shaw, director of music creative agency Warm Street, says there’s much value to be had in identifying music talent to collaborate with, before they have become a recognised name. “If you really know the market and know where it is going, there are certain influencers who if you pick up early and support them, they will really appreciate it, and work with you long term.” However, he warns, “there’s a danger in going blindly into these sorts of artist relationships, not really knowing who they are, their music, why they wear these brands etc.” Social media has helped to make other artists, such as authors and photographers, far more accessible to their loyal fans, and they are consequently rising in influence and becoming any increasingly attractive proposition to brands, as the figure below reveals. As the figure below shows, the sports personality space is extremely male dominated. Only in two categories, athletics and gymnastics, are female influencers being sought after more. However this balances female popularity in the other celebrity and influencer groups highlighted above. Which types of TV actors have you worked with in the last 12 months? Which types of sports personalities have you worked with in the last 12 months? Which types of singers/ musicians have you worked with in the last 12 months? Figure 13 Figure 14 Figure 16 Figure 15 MALE FEMALE POPULAR TV ACTORS (lead actors in a popular TV show/series) 44% 56% EMERGING TV ACTORS (well known for their role in a few shows, supporting roles) 47% 53% TELEVISION PRESENTERS/ TV HOSTS 44% 56% REALITY TV STARS 41% 59% MALE FEMALE AMERICAN FOOTBALL 100% 0% BASKETBALL 92% 8% FOOTBALL/SOCCER 91% 9% BASEBALL 88% 13% GOLF 78% 22% CYCLING 63% 38% SWIMMING 63% 38% TENNIS 63% 38% ATHLETICS 48% 52% GYMNASTICS 13% 88% MALE FEMALE FAMOUS SINGER/MUSICIANS (a well-known name and face that is recognisable to a global audience) 49% 45% WELL ESTABLISHED SINGER /MUSICIANS (known mostly to a group of people interested in the particular genre of music eg:country,music, classical) 45% 37% RISING STAR (an emerging name in the world of music 37% 63% ASPIRING MUSICIAN (talent who is just starting out but has built a loyal local audience) 46% 54% A BACKGROUND SINGER (someone who performs solo or with other singers and musicians in a recording or commercial 33% 67% MALE FEMALE ACTORS/WRITER 49% 51% PHOTOGRAPHERS/CREATIVE ARTISTS/MAKEUP ARTISTS ETC 49% 51% PUBLIC FIGURES 43% 57% MODELS 25% 75% 24
  25. 25. In 2017, only 8% of brands are using celebrities for long term contracts (compared to 10% in 2016), highlighting one of the most critical ways in which digital influencers have impacted the celebrity marketing space. Instead, as the illustration below highlights, campaign-specific contracts have risen in popularity, with approximately a third of survey respondents saying they generally choose to work with celebrities in this way. This compares with 22% of companies who showed preference for campaign specific contracts in last year’s survey. Owing to the fast-moving nature of social media, brands within the fashion and beauty space particularly are finding success with quicker turnarounds in influencer/celebrity collaborations. Emma Gregson at ITB Worldwide advises: “As a brand, what are you looking to achieve? If it’s about telling a brand story, then a one-post moment isn’t going to cut it. You need to harness the right influencers who can tell their organic tales over the course of a campaign.” How do you generally work with talent when using them as part of your marketing strategy? Figure 17 Campaign-specific contracts are on the rise AS PART OF A LONG TERM CONTRACT 8% CAMPAIGN SPECIFIC CONTRACT 32% AS A ONE-OFF 19% VARIES 41% 25
  26. 26. #mangogirls 26
  27. 27. MANGO DEMONSTRATES THE VALUE IN MEANINGFUL, ONGOING ENGAGEMENTS CASESTUDY Influencer Camille Charrière is part of the #Mangogirls line-up, a brand campaign that enlists the help of around about 20 style influencers and taste makers across the globe each season.   The squad has the freedom to choose the garments they would like to wear from the season’s collection, and then Instagram themselves wearing the outfit, with the required hashtags. According to Mango’s communications director, Guillermo Corominas, the names are suggested by the “fashion fanatics” working at Mango’s headquarters, who all follow these influencers. He claims it isn’t so much about the number of followers that the girls have, but more about the fit between the style of the influencer and the brand. ITB Worldwide has been involved in running the #Mangogirls campaign for the past four seasons, and is also responsible for engaging all of the talent. #Mangogirls is a purely social campaign, with the girls activating exclusively on their Instagram account. Each season two or three of the girls are also chosen to be more involved, and shot featured in digital campaign content, such as for the Mango Journeys digital content series,” explains Emma Gregson. “Within our casting we make sure we have very aspirational girls involved who can help move the fashion needle for the brand. When you get it right, you build loyalty among the girls you work with, and that has naturally transcended itself and into the brand being seen as a bit of a champion for fashion influencers. The campaign has really helped define who Mango is as a brand, and they’ve seen a great shift in who is coming to buy.” Since the #Mangogirls campaign began (for SS16/AW16/SS17 – AW17 results still pending) it has achieved a combined reach of over 105m followers, a total of over 5m interactions (including likes and comments). The average number of interactions per campaign post are 19,500, with an average engagement rate per post of 2.3%. The @ mango Instagram profile has also seen its number of followers rise by 1.9m, which is a 26% uplift since before the #Mangogirls program launched.27
  28. 28. THE CHALLENGES THAT EXIST Despite some optimism within last year’s survey that budgets for celebrity and influencer marketing would increase (a view expressed by 39% of company respondents, and 49% of agencies), it appears budgets are continuing to prove a challenge for brand marketers. According to the majority of experts interviewed for this report, budgets for celebrity engagement are continuing to be a challenge, which is of increasing concern when the cost of celebrity and influencer endorsements is rising. According to Captiv8, the cost of a single Instagram post with a top tier influencer (3m to 7m followers) could be in the region of $75,000, while a YouTube collaboration with a similar influencer could cost $187,500. Figure 18 below shows that for the majority of respondents (41%), less than 10% of their overall budget is being allocated to celebrity or influencer marketing. Only 10% of respondents (combined) claim they are able to spend more than half of their budget on celebrity engagement. Arguably there’s an education gap that needs to be bridged: to create a stir on scale, brands need to learn through experience, and be realistic about the sorts on budgets that they need to be dedicating to celebrity and influencer engagement. Anne Batz, founding partner of talent-brokering consultancy Talent Republic, agrees that budgets are becoming more and more stringent, calling sometimes for more inventive solutions. “It’s important to be creative with a smaller budget in terms of how you structure the partnership. If it’s an appealing brand, the celebrity or talent may take a smaller fee in exchange for commodities, exposure and/or beautiful content,” she claims. As the Figure below reveals, almost half (47%) of respondents cite being able to identify celebrities who resonate with their target audience, as their greatest challenge. In the battle to remain authentic and trusted, brands are needing to be more vigilant than ever in terms of who they collaborate with. Emma Gregson at ITB Worldwide claims Generation Z is making it ever more critical that brands stay true to their roots, and invest in time, tools and expertise to identify the best possible partnerships. “Generation Z, they are peer-to-peer, and the challenge brands have is how do they retain who they are as a brand? How do they stay true to their brand DNA if they’re relying on hundreds of other people to talk about the brand? That’s going to be the next interesting development, and it is certainly posing a big challenge right now for the industry.” How much of your overall budget is currently spent on influencer/celebrity or entertainment marketing? What has been the biggest challenge in working with talent? Celebrity budgets are becoming more stringent 47% say “identifying celebrities who resonate with our audience” is an ongoing challenge LESS THAN 10% 10% 30% 30% 50% 50% 75% OVER 75% 41% 33% 16% 7% 3% IDENTIFY TALENT WHO RESONATE WITH OUR TARGET AUDIENCE 47% GETTING THEIR ATTENTION AND BEING ABLE TO ENGAGE THEM 36% KNOWING WHO TO REACH OUT TO 35% GETTING THEIR CORRECT CONTACT INFORMATION 23% GRANTING THEM THE CREATIVE FREEDOM THEY DESIRE 21% KNOWING THEIR ENDORSEMENT HISTORY 16% ACCURATELY DEFINING WHAT THE TALENT IS INTERESTED IN 14% Figure 18 Figure 1928
  29. 29. A fifth of survey respondents agree that granting celebrities the creative freedom they desire is an ongoing challenge. It can be a tricky balancing act, and experts interviewed for the report agreed that brands can often be seen trying to force creative on a celebrity, which maybe isn’t ideal for them. A collaborative approach is key, but due to the many in-depth layers of content that brands need from their celebrity talent nowadays, owing to the myriad social and communications platforms that need to be utilised, not only is there the TV or print ad to shoot or film, but there’s a growing need for behind the scenes footage, QA interviews, etc, and often this can amount to a huge volume of content which celebrities aren’t necessarily willing to give everything of themselves to. Actress Sophie Turner, speaking within the Sunday Times article referenced above, shares from a celebrity perspective the challenge of maintaining personal creative freedom and authenticity on social media, while respecting brand relationships and guidelines. Recently she was photographed wearing an item of clothing that she shouldn’t have been wearing. “I’m tied in to a brand...[and] unknowingly, in my naivety, I did something else with this other brand, not knowing it was a competitor,” she explains. “When I first saw the photos I was like, ‘Yeah, but no one cares’, but people cared! I had lawyers calling me up being like, ‘Hey, you can’t do this!’ And it kind of shook me up because I was like, ‘Oh f***, people are watching me, seeing what I’m doing, listening to what I’m saying.’” She admits this is “the price of fame”, but not all celebrities are happy and willing to adhere to such restrictions. Offering talent creative freedom is a challenge for 21% “Influencers know their own audience better than anyone. If you have decided to work with an influencer due to them being a good fit for your brand, you should trust their creative license. This will give your posts an authentic feel on the influencer’s social channels and will help to give you the result you want. They represent your brand, or endorse your brand, as a third party. Millennials for example will trust an influencer more than a piece of advertising. Influencers know their own audience better than anyone.” Expert Opinion: Davina Kumal, PR influencer programme manager, the International Institute for Anti-Ageing (iiaa) 29
  30. 30. DIGITAL INFLUENCERS HAVE IMPACTED THE WAY BRANDS WORK WITH CELEBRITIES 41% 43% 13% 3% 0% IDENTIFYING THE RIGHT TALENT THAT ARE A FIT FOR YOUR BRAND IS A HARD, TIME CONSUMING TASK 19% 48% 20% 13% 0% MEASURING ROI ON INFLUENCER/CELEBRITY MARKETING IS A CHALLENGE 17% 46% 34% 3% 0% A ONE-OFF ASSOCIATION WITH A CELEBRITY IS AS EFFECTIVE AS A LONG-TERM PARTNERSHIP 13% 28% 37% 21% 1% WITH DIGITAL MEDIA, WORKING WITH CELEBRITIES OR INFLUENCERS HAS BECOME MORE ACHIEVABLE/AFFORDABLE 11% 48% 26% 14% 1% WHEN IT COMES TO ENGAGEMENT, REACH IS MORE IMPORTANT IN THAT CONTEXT 6% 25% 36% 32% 1% Identifying the right talent that are a good fit for the brand is becoming increasingly laborious and time consuming, and stands out as one of the greatest challenges in 2017. In last year’s survey, 66% of companies and 58% of agencies agreed this was a problem, and this year that figure rises to 84% (see Figure below). It’s a notable finding, and goes to show that while brands understand the importance of a good match, they still haven’t really cracked the best way to go about it. Additionally, measuring the ROI of celebrity marketing is a challenge for 63%. The rise of social media and digital talent has undoubtedly complicated the measurement piece and as an industry, we are still some way from reaching a standardised ROI framework. One of the biggest obstacles is reaching consensus of opinion on what to measure: on the one hand there’s an abundance of social data and metrics available, but on the other hand the depth of this information can sometimes be limiting, making it tricky or impossible to drill down to a single influencer or product. “There is a lot of excitement about mid-tier influencers and the positive impact on ‘engagement’ compared to those who are followed by millions. It’s the diminishing law of return seen historically through social media: build your audience and see your engagement decline. There is a trend for marketer to view engagement as the most desirable metric for influencer marketing. Can I be blunt? Unless you can move the needle on some business building outcome, or can make a clear case for increased engagement = increased sales or some other valuable business benefit, then ‘engagement’ becomes the new vanity metric. Any CFO looking at your campaigns isn’t going to get excited about engagement, unless there is some way of tying increased engagement with ROI, e.g. sales, donations or cost savings/efficiencies.” Michelle Goodall, digital marketing consultant 84% agree that identifying talent that are a good brand fit is a hard, time consuming task STRONGLYAGREE AGREE DISAGREE STRONGLYDISAGREE NEITHERAGREE ORDISAGREE Figure 20 30
  31. 31. One of the potential reasons for ROI measurement being an ongoing challenge is that success continues to be measured traditionally. 60% of respondents say that press coverage received off the back of a celebrity collaboration is their primary gauge of success (see Figure 21 below), which 62% of respondents also working with influencers agree with (see Figure 22). Of course historically, column inches were crucial in the world of celebrity, and continue to be to some extent, but as digital influencers encroach on the celebrity engagement space further, brands need to be looking at more up-to-date metrics. Just 41% of respondents say they are measuring revenue generation, and 14% track lead referrals within a campaign. As one might expect, these figures are slightly higher for respondents also working with digital influencers, with 54% measuring revenue generation. Interestingly, these figures have fallen somewhat since last year’s survey, when 55% of companies said revenue generation was an important measure of success, and 24% were looking to lead referrals. This could indicate that conversion and sales are becoming less of a focus for celebrity marketing, with brands instead taking a longer-term view. However it could also mean that as social media dominates, brands are struggling to draw a direct link between celebrity and influencer marketing and sales, which is further complicated by the fact that revenue-based results won’t always be instant. Campaign success continues to be measured in ‘old’ metrics How do you measure the success of a campaign where celebrities have been used as part of the strategy? 60% 49% 46% 41% 41% 5% 14% 3% Figure 21 PRESS COVERAGE RECEIVED ON THE BACK OF IT WEB TRAFFIC GENERATED NUMBER OF ONLINE MENTIONS NUMBER OF TIMES CONTENT SHARED REVENUE GENERATION LEAD REFERRALS SENTIMENT OTHER How do you measure the success of a campaign where celebrities and influencers have been used as part of the strategy? 62% 59% 54% 51% 46% 15% 26% 2% Figure 22 PRESS COVERAGE RECIEVED ON THE BACK OF IT WEB TRAFFIC GENERATED REVENUE GENERATION NUMBER OF ONLINE MENTIONS NUMBER OF TIMES CONTENT SHARED SENTIMENT LEAD REFERRALS OTHER 31
  32. 32. Less than a third of respondents are using trackable links It’s important for marketers to acknowledge that the number of people who see a social media post by a celebrity or influencer will never be equal to the total number of followers. Brands need to be able to know how many impressions are being generated from sponsored posts, and via trackable links, be able to determine which celebrity or influencer drove specific referrals to a website or social media channel, which then led to a sale or alternative call to action (possibly just shy of sales). As Figure 23 below shows, the majority (63%) of respondents are relying on generic web analytics data for measuring ROI. Just 29% are using trackable attribution links within influencer content, and a further 28% are utilising trackable platform-specific metrics. A mere 12% are including floodlight tags within campaign content. Which of these tools/metrics do you use to measure ROI? 13% 63% 29% 28% 22% 20% 12% 13% Figure 23 Brands should be making better use of platform- specific measurement features. This year, Instagram, which is one of the fastest growing social media platforms, has rolled out new features and functionality that make it easier for brands to measure tangible ROI through the platform. For example, in the summer it released a standardised format for celebrities and influencers to tag a brand as the sponsor for their post, meaning that the post will include a “Paid partnership with” notification at the very top. (These disclosures can also show up on Instagram Stories.) Not only does this allow for enhanced transparency, but also the tag means the brand will automatically get access to the same data as the influencer around a post’s reach and engagement, and that data will show up in the same Facebook dashboard as the rest of their advertising data. Additionally, Instagram is now letting all business accounts with 10,000 or more followers add links to their Instagram Stories, which could be to a specific product page, for example. Via a swipe-up mechanic, brands can include a clear call to action, so that followers understand the intention of the link. OUR WEB ANALYTICS TRACKABLE ATTRIBUTION LINKS WITHIN CONTENT CREATED BY CELEBRITY OR INFLUENCER PLATFORM-SEPCIFIC METRICS E.G. TRACKABLE SHOPPING LINKS WITH INSTAGRAM SUCCESS METRICS PROVIDED BY CELEBRITY OR INFLUENCER SOCIAL MEASUREMENT TOOLS E.G.BRANDWATCH SPECIALIST SENTIMENT ANALYSIS TOOLS FLOODLIGHT TAGS OTHER 32
  33. 33. 33% As Figure 24 below highlights, three-quarters of respondents are continuing to identify influencers and celebrities to work with via manual research across social media platforms and forums, etc. In previous Celebrity Intelligence and Fashion Beauty Monitor research, it’s repeatedly emerged that marketers are carrying out influencer and celebrity research manually and in-house, without the aid of specialist research tools and databases. As we move closer towards 2018, the need for more efficient methods of research, incorporating audience intelligence and data-driven insight, is only going to increase, and brands would be well advised to consider the tools or experts they would benefit from investing in. It’s encouraging to see that 45% of respondents are investing in specialist celebrity engagement tools, such as Celebrity Intelligence, when in last year’s survey just 36% of companies and 32% of agencies were taking this approach. However with 41% still relying on recommendations from colleagues and industry peers, that’s a sizeable majority of brands who are really limiting their options in terms of the scope of celebrities and influencers they’re identifying to work with. Of course the likelihood of identifying ‘the right match’ decreases if limited research tools are available to the brand marketer. Independent consultant Michelle Goodall claims the overarching challenge to celebrity and influencer marketing will be poorly judged celebrity/brand relationships, where there’s little or no mutual value. The more insight and data brands have to hand about celebrities, the better the chance they will have of forging a meaningful partnership. “I genuinely believe the killer of influencer campaigns will be that consumers (and particularly Generation Z) ignore sponsored messages/posts or mentally ad- block influencer content if it gets too commercial,” she explains. “I know my kids visibly roll their eyes or say ‘that’s so sponsored!’ when their favourite YouTubers endorse products and it feels incongruous.” 75% continue to identify celebrities and influencers manually Which tools or methods do you currently use to identify talent when using them as part of your marketing strategy? 75% 45% 41% 29% 10% 10% Figure 24 MANUALLY SEARCHING SOCIAL MEDIA PLATFORMS AND FORUMS SPECIALIST CELEBRITY ENGAGEMENT TOOLS RECOMMENDATIONS FROM FRIENDS, COLLEAGUES OR PEERS IN THE INDUSTRY PHYSICALLY ATTENDING SPECIALIST EVENTS AND CONFERENCES FREE SOCIAL MEDIA MONITORING TOOLS PAID FOR SOCIAL MEDIA MONITORING TOOLS OTHER 33
  34. 34. THE FUTURE OF CELEBRITY ENGAGEMENT This year’s survey findings point towards notable maturity within the celebrity and influencer engagement space. The revelation that digital influencers have surpassed established celebrities, in terms of popularity for brand campaigns, is arguably the most poignant discovery. It brings to light the unprecedented impact social media has had upon the world of celebrity, and how the lines between celebrity and digital talent are increasingly blurred. But what does the future hold for celebrity engagement? Here are some key trends that this year’s survey data, and expert interviews, reveal... As one might expect, digital influencers will be increasingly sought after by brands, largely driven by the demands and expectations of Generation Z. As Figure 25 below shows, the largest majority of survey respondents (44%) believe digital influencers will be best suited to endorsement opportunities that they have coming up. Sitting below this are TV actors, with 38% of respondents claiming they would be most relevant to forthcoming campaigns, but this margin between digital talent and celebrities is only like to grow in size, unless it implodes, which one expert argued could be a possibility. Overall it seems likely that the emerging trend for campaigns that blend a frontline celebrity with rising digital talent, will continue. Celebrities will retain cut-through and appeal for certain generations particularly, and for the short term they will be continue to reach channels above and beyond what a social influencer can aspire to. Meanwhile, digital talent will serve a more targeted and engaged communications strategy, with the focus being on content creation for more niche and segmented audience groups. This will mean that celebrities who choose to stay off social media may be able to continue to do so, without ruling out lucrative brand deals. Nick Ede at East of Eden advises marketers to “use social influencers strategically, ensuring they are the right people, not just because they have a big following.” Several experts interviewed for the report also spoke of a move towards quality over quantity, where budgets are used for carefully, after thorough research, for the ‘right’ celebrity or influencer. Thinking about upcoming endorsement work you have planned, which types of celebrities would be the most relevant to your particular strategy? 44% 38% 37% 35% 27% 21% 24% 17% 14% 2% Figure 25 1. Digital influencers will prevail in popularity DIGITAL INFLUENCERS TV ACTORS FILM ACTORS SINGERS/MUSICIANS PUBLIC FIGURES SPORTS PERSONALITIES MODELS AUTHORS/WRITERS PHOTOGRAPHERS/CREATIVE ARTISTS/MAKEUP ARTISTS ETC NONE OF THE ABOVE 34
  35. 35. 2. Niche and emerging influencers and celebrities will rise in popularity Female niche influencers are likely to rise in popularity over the next 12 months, according to Figure 26 below. Approximately three-quarters of respondents feel this group of influencer would be most relevant for their upcoming endorsement work. As some experts interviewed for this report explained, niche influencers offer something quite different, and if the talent is unknown and untapped commercially, it can be a great way for a brand to build a meaningful, ongoing relationship with an individual. However, independent consultant Michelle Goodall predicts that top-tier celebrities and influencers will continue to be an interesting opportunity for brands, as they don’t have the desire to cash in on their fame in the way that mid-tier influencers might be driven to do so. “Top tier celebrities and influencers are looking for more creative, commercial tie-ups through the lens of ‘how does this brand match with my beliefs and what is important to me’. I believe those who can choose to be more selective with their partnerships, only choosing the brands that they believe ‘fit’ and offer absolute parity, will be the more meaningful propositions.” She cites British actress and activist Emma Watson, as savvy social media user, as a good example, who shows a “very focused approach to ethical goods, not just for the Beauty and the Beast ‘The press Tour’ Instagram account, which she created to raise awareness of the sustainability of her tour wardrobe, but also on an ongoing basis”. Reality TV stars are also likely to hold increasing appeal for brands moving forwards, particularly as they can often toe the line between celebrity and influencer. Kirsty Williams, COO of Insanity Group, offers the example of TOWIE star Lydia Bright, who today has 873,000 followers on Instagram. “Her audience has grown up with her, she’s very accessible, credible, and she’s celebrated by the weekly fashion magazines, as well as having access to mainstream TV, “ Williams explains. Her brand endorsements began small, but more recently she collaborated with Mercedes to promote one of its smaller SUV vehicles, following a successful campaign for its Smart car. “It felt like a genuine fit. Her audience are younger, but aspiring to become Mercedes customers in the future, and it’s meaningful because the relationship has been established over time.” As Figure 27 reveals, film actors will likely remain important to brand campaigns for quite some time, with female actors having slightly greater appeal. It’s revealing that emerging and aspiring actors will be more sought after than A-list talent. Figure 26 Figure 27 Figure 28 Which types of digital influencers would be most relevant for your upcoming endorsement work? Which types of TV actors would be most relevant for your upcoming endorsement work? Which types of film actors would be most relevant for your upcoming endorsement work? MALE FEMALE AUTHORITATIVE (EXPERT REPRESENTATIVE OF AN INDUSTRY BODY, JOURNALIST, EDITOR ETC) 35% 65% NICHE INFLUENCERS (FOR EXAMPLE, ORGANIC BEAUTY, GLUTEN FREE ETC) 26% 74% MICRO-INFLUENCERS (UNDER 15,000 FOLLOWERS) 35% 65% MID-TIER INFLUENCERS (15,000-1M FOLLOWERS) 35% 65% TOP-TIER/ALPHA INFLUENCERS (+1M FOLLOWERS) WITH A GLOBAL REACH AND PRESENCE 32% 68% MALE FEMALE A LIST FILM ACTORS (WELL-KNOWN NAME AND FACE THAT IS RECOGNISABLE TO A GLOBAL AUDIENCE) 47% 53% B LIST FILM ACTOR (WELL KNOWN FOR THEIR ROLE IN SELECT FILM, SUPPORTING ACTOR ROLES) 42% 58% NICHE FILM ACTORS (KNOWN TO A SELECT GROUP OF PEOPLE INTERESTED IN THE GENRE OF FILMS EG: INDIE FILMS, SHORT FILMS) 39% 61% EMERGING STARS (FILM ACTORS THAT HAVE RECENTLY MADE A NAME FOR THEMSELVES WITH A ROLE OR CAMEO) 39% 61% ASPIRING ACTORS (YET TO BE DISCOVERED BUT POPULAR LOCALLY) 36% 64% MALE FEMALE POPULAR TV ACTORS (LEAD ACTORS IN A POPULAR TV SHOW/SERIES) 42% 58% EMERGING TV ACTORS (WELL KNOWN FOR THEIR ROLE IN A FEW SHOWS, SUPPORTING ROLES) 32% 68% TELEVISION PRESENTERS/ TV HOSTS 37% 63% REALITY TV STARS 30% 70% 35
  36. 36. Which types of singers/ musicians would be most relevant for your upcoming endorsement work? Which other types of influencers would be most relevant for your upcoming endorsement work? Which types of sports personalities would be most relevant for your upcoming endorsement work? MALE FEMALE FAMOUS SINGER/MUSICIANS (A WELL-KNOWN NAME AND F ACE THAT IS RECOGNISABLE TO A GLOBAL AUDIENCE) 45% 55% WELL-ESTABLISHED SINGER/MUSICIANS (KNOWN MOSTLY TO A GROUP OF PEOPLE INTERESTED IN THE PARTICULAR GENRE OF MUSIC EG: COUNTRY MUSIC, CLASSICAL) 41% 59% RISING STAR (AN EMERGING NAME IN THE WORLD OF MUSIC) 44% 56% ASPIRING MUSICIAN (TALENT WHO IS JUST STARTING OUT BUT HAS BUILT A LOYAL AUDIENCE) 41% 59% A BACKGROUND SINGER (SOMEONE WHO PERFORMS SOLO OR WITH OTHER SINGERS AND MUSICIANS IN A RECORDING OR COMMERCIAL) 14% 86% MALE FEMALE PHOTOGRAPHERS/ CREATIVE ARTISTS/ MAKEUP ARTISTS ETC 39% 61% AUTHORS/WRITERS 50% 50% MODELS 35% 65% PUBLIC FIGURES 47% 53% MALE FEMALE BASKETBALL 89% 11% FOOTBALL/SOCCER 76% 24% AMERICAN FOOTBALL 71% 29% GOLF 70% 30% CYCLING 67% 33% TENNIS 62% 38% BASEBALL 60% 40% ATHLETICS 52% 48% SWIMMING 50% 50% GYMNASTICS 30% 67% OTHER 80% 20% Figure 29 Figure 31 Figure 30 3. Budgets will increase for 42% 42% of respondents said their budgets would increase moderately or significantly in the next 12 months. Yet, despite the need for a greater proportion of marketing budgets to be attributed to celebrity and influencer engagement, it seems more likely that funds will remain pretty much the same, for approximately half (47%) of survey respondents. In the next 12 months, will your budget for influencer/celebrity or entertainment marketing DECREASE REMAIN THE SAME INCREASE MODERATELY INCREASE SIGNIFICANTLY 11% 47% 36% 6% Figure 32 36
  37. 37. 4. Data will become a more fundamental part of celebrity and influencer marketing As the industry continues to mature, it makes sense that the number of brands taking a data-driven approach to celebrity and influencer marketing will increase. Moving forward, it will be crucial that brands replace subjective identification methods or personal recommendation, with data-based intelligence and analysis, so that they have an in-depth understanding of the celebrity or influencer and their audience, and can know for sure if their ideal consumer will be reached through the partnership. Additionally, as niche influencers rise in prominence, it will be even more critical for brands to have an in depth understanding of their audience, to ensure the match is a credible fit. Audience intelligence will be instrumental in leading this evolution, offering valuable insight into the most fitting and impactful influencers to be collaborating with, based on the characteristics, behaviour and demographics of their followers. 5. Brands will broaden their reach to international influencers For celebrity and influencer marketing to mature further and become a top priority at board level, it needs to be demonstrating global reach. While many A-list celebrities, such as actors, have global recognition, this generally isn’t the case for digital influencers. Increasingly, brands will need to seize the opportunity to reach out to new international markets through collaborations with local influencers, who are known and trusted within their region. Markets such as China, Japan and India offer exciting, largely untapped possibilities, and have unique influencer ecosystems that brands must immerse themselves in, in order to establish meaningful partnerships. For example, Josh Steimle, founder and CEO of international digital marketing agency MWI, says: “One thing that differentiates China from Western markets is that there’s no age barrier for mobile usage—it’s not uncommon to see an old guy using a smartphone while riding a bike. That has created a different market dynamic, where there are more opportunities for influencers to reach an older segment of the population on mobile.” It will be crucial that brands have access to influencer and audience data, to understand the platforms that are being used by country, such as WeChat in China, and to identify a good authentic fit. Simply translating content into Chinese, for example, and pushing out via a poorly researched Chinese influencer will be futile, as audiences will immediately spot the lacking authenticity. 6. Augmented reality and holograms will enable consumers to get closer to celebrities than ever before It might sound crazy, but augmented reality within the celebrity engagement space is closer than one thinks, which could enable consumers to get much closer to celebrities and influencers than ever before. China is one country leading the way with AR, and according to new research from Worldpay, 95% of survey respondents in China have used VR or AR technology in the past three months, indicating a growing consumer demand for the technology. Early AR prototypes were a bit rough around the edges, but current VR technology has the ability to present a clear and engaging three-dimensional image so vividly, that a truly dynamic user experience is possible. Experts interviewed for this report said they could foresee the technology being used in an experiential way in the future, enabling consumers to engage with celebrities and influencers in a far deeper and more meaningful way. During New York Fashion Week last year, Intel partnered with designers including Erin Fetherston, Prabal Gurung and Band of Outsiders, to live broadcast their shows in virtual reality. It provided fans with a fully immersive version of a classically flat live stream experience, enabling them to feel as though they were sat in the front row. Quite recently, Nicole Kidman starred in a five-minute short film for Etihad Airways, titled “Reimagine”, which took viewers on a 360-degree virtual reality story. The concept was to immerse viewers in an experiential journey following Kidman through one of Etihad’s new Airbus A380s flying non-stop between New York and Abu Dhabi. Shane O’Hare, SVP of marketing for Etihad, in an interview with Adweek, said: “Some things need to be experienced, not explained. You don’t explain the taste of a meal at a high-end restaurant or the feel of good linen in a five-star hotel bedroom. In the same way, our incredible A380 product cannot adequately be described by words alone, or by traditional film, or even by 3D film alone. It has to be experienced. Virtual reality allowed us to make that experience real for viewers.” Celebrity holograms are also another possibility for brands, meaning a convincing digital stand-in of an A-list actor, for example, could appear in a high street shop or at a fashion event. This was recently trialed at up and coming British designer Martine Jarlgaard’s show during London Fashion Week, where attendees wore Microsoft Hololens headsets to see the full spring/summer 2017 collection coming to life in the form of holograms in front of them, which they could interact with from all angles. The experiment turned a passive fashion show into something far more immersive and engaging. It was a clever PR stunt, but went some way towards showcasing how brands could use AR technology moving forward. For those lucky enough to see a budget increase, the impact will be marginal of less than 10%, for 46% of respondents. A mere 3% of respondents expect to see their budgets double. How much of your overall budget is currently spent on influencer/celebrity or entertainment marketing? LESS THAN 10% 10% 20% 20% 30% 30% 50% 50% 70% 70% 100% 46% 27% 12% 12% 2% 1% Figure 33 37
  38. 38. CONCLUSION Social media has made its impact at all levels within the celebrity marketing industry, and as we move into 2018, it appears digital influencers will be in higher demand for forthcoming endorsement opportunities than established celebrities. Does this take away from the continued relevance and popularity of respected celebrities? Of course not, at least not for the time being, and the majority of marketers interviewed for this report agreed celebrity engagement is still proving extremely effective. But, there is no longer any doubt over the growing pressure digital-born talent is placing on traditional celebrities, and over the next 12 months it will be critical that brands get to grips with how they marry the two. A blended campaign that encompasses celebrity with a digital influencer layer seems like the most logical way forward, as global brands like Gap and The Body Shop have already demonstrated. This will enable brands to achieve cut- through and those valuable column inches, while also talking to consumers in a more targeted and meaningful way. The question celebrities increasingly need to consider is how they use social media, if at all, and how they ensure it is authentic. It’s notable that just 8% of survey respondents say they work with celebrities with no social media presence, and this figure seems likely to decrease very gradually. Although it’s currently not a prerequisite for A-list celebrities to have active social media profiles, it may certainly make them less desirable if they don’t, and at this stage it’s tricky to be sure whether some have already alienated themselves from certain commercial opportunities. It’s an intriguing debate, and one which will reveal itself more over coming months. Overall, there is strong evidence that celebrity and influencer collaborations are becoming more meaningful, with brands taking greater interest in their audience following particularly, and how it resonates with their own audience. There is plenty of indication within the survey results that marketers will be taking an increasingly data-driven approach towards identifying the best influencers to work with, relying less on personal connections and gut instinct, or a crudely gathered group of individuals to choose from. Possibilities within the industry are clearly being hampered by budget constraints, and this is exacerbated by the growing need to demonstrate tangible ROI. While a year ago ‘engagement’ was the new buzz word, as an industry we have moved on from that quite quickly, and have arguably come full circle back to the need for brands to demonstrate that their efforts have moved the needle on important business objectives. Cracking the ROI piece will be fundamental for industry maturity in the future. APPENDIX Which of the following best describes your company or role? CLIENT SIDE (PART OF AN IN-HOUSE TEAM) 47% AGENCY/VENDOR/CONSULTANT 53% 38
  39. 39. 09 12 12 13 14 20-21 20-21 20-21 22 23 23 27 28 37 37 REFE RENCES http://www.vogue.co.uk/article/what-is-an-influencer https://www.economist.com/blogs/graphicdetail/2016/10/daily-chart-9 https://www.rhythmone.com/assets/insights/RhythmOne_FullYear2016InfluencerBenchmarks.pdf https://www.emarketer.com/Article/Consumer-Trust-Evolving-Digital-Age/1014959 https://www.marketingweek.com/2016/09/16/loreal-on-why-other-brands-are-using-influencers-the-wrong-way/ https://www.edelman.com/news/2017-edelman-trust-barometer-reveals-global-implosion/ https://www.interviewmagazine.com/film/scarlett-johansson-1#page3 https://www.thetimes.co.uk/article/sophie-turner-growing-up-on-game-of-thrones-l8b66936b http://www.ey.com/Publication/vwLUAssets/EY-rise-of-gen-znew-challenge-for-retailers/%24FILE/EY-rise-of-gen-znew-challenge-for-retailers.pdf http://go2.experticity.com/rs/288-AZS-731/images/Experticity-KellerFaySurveySummary_.pdf?_ga=1.52674216.1259934216.1472868059 http://digitalmarketingmagazine.co.uk/social-media-marketing/female-instagram-users-get-5x-more-likes-than-men/4209 http://www.vogue.co.uk/article/what-is-an-influencer https://www.economist.com/blogs/graphicdetail/2016/10/daily-chart-9 https://www.emarketer.com/Article/Influencers-Big-China-Influencer-Marketing-Underutilized/1016364 http://www.thedrum.com/opinion/2017/09/12/chinas-retailers-lead-augmented-and-virtual-reality-the-rest-the-world-follows 39
  40. 40. The only celebrity and influencer marketing tool you need Learn more at www.celebrityintelligence.com

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