We Are Social's influencer marketing research report, featuring qualitative and quantitative consumer and influencer research.

1. Why Australians have fallen for the
charms of social media influencers and
how marketers CAN CAPiTALISE.
November, 2017

2. * Media brands consumed in the last 7 days; 12 months to June
2017; Roy Morgan
** Source: Linqia report, 2016
Australian YouTuber twins Danny and Michael Philippou have over 4 million subscribers on YouTube (RackaRacka)
I
The niche
fIeld that
went
mainstream
nfluencer Marketing
has gone mainstream.
As well as native
credibility, Influencers
are offering brands
enormous audiences:
Australia’s Top 10 Influencers
now have more subscribers
on average (9.4m) than the top
10 Australian media companies
are reaching each week (7.7m)*. And
with 94% of marketers who use Influencers
believing the tactic to be effective**, the
field’s rapid growth looks set to continue.
But as with all new disciplines, best practice
takes time to be established. Hence our
motivations in producing this report, and
commissioning the original research that
underpins it: firstly, to properly understand
the phenomenon - just why have Influencers
become so popular? And secondly, to share
some considered but concise insights,
grounded both in research and our own
experience. We hope you find it useful.

3. WHAT IS
AN INFLU-
ENCER?
No dictionary definition of ‘influencer’ captures
the multiple dimensions of today’s social media
Influencers. First, they can be what traditional
media calls ‘talent’, i.e. front-of-camera.
Secondly, they’re also behind the camera,
acting as what traditional media might call a
director/photographer/stylist etc, which in
Social we’d call a content creator. Thirdly, to
again draw a parallel with a traditional medium
such as magazines, they’re not just shooting the
magazine cover, and appearing on the magazine
cover... they actually are the magazine. They
are the media, with their own audiences, in the
form of their fans and followers.
The dictionary says an influencer is
simply someone who has the power to
influence others.

5. Many Influencers are experts in their
field. They’re fitness gurus, professional
photographers, or beauty experts. And
indeed, our research found that 63%
of Australians who follow an Influencer do
so because they’re a trusted source of
information. And yet ‘Authority’ was only the
second most popular source of Influencers’
appeal. ‘Entertainment’ rules, with 85% of
Australians describing Influencer content as
entertaining, and 77% citing it as the main
reason they enjoy Influencer content.
“Parentingcanbeatoughslogandlikeproviding
those 90 seconds of hilarious escapism that
take the piss out of parenting stereotypes and
makes people feel better about their day!”
NZ content creator, @howtoDADnz
Inspire me, teach me,
challenge me… but
above all, entertain me
Beauty expert, @shaaanxo

6. Although Entertainment and Authority are
the top two reasons Australians are turning
to Influencers, a significant and perhaps
surprising proportion - 62% - agreed with
the statement that “Influencers help me
shape my identity.” Our research found this to
be especially true for the 16-35 age group - no
doubt because they’re still in the age of self-
discovery - and for people needing to redefine
themselves because they have entered new
life stages… for example, new Mums, who lap
up content from Mum Influencers.
“It started because we wanted to share, raw,
refreshing and intimate stories from our lives
and other women we adore, showing we are all
living and feeling similar things as we try and
find the ever-elusive balance of motherhood,
career, love and friendship.”
Mum Infuencers, @showandtellonline
Influencers aren’t just
helping people entertain
themselves - they’re
helping people defIne
themselves

7. Today, 49 percent of Australians were either
born overseas or had one or both parents
born abroad* prompting Junkee’s news and
political editor, Osman Faruqi, to observe that
“the more diverse Australia becomes, the more
obviously out of step our TV
programming and newspapers
are in reflecting it”. **
But with Influencers, it’s a
completely different story.
From Mychonny to Superwog,
and Shammi to Natalie Tran,
these YouTubers are strikingly more diverse
than the mass media, with a degree of gender,
cultural and sexual diversity that mainstream
media networks have failed to embrace.
*Australian Bureau of Statistics, 2016 Census
**Osman Faruqi in Meanjin, 2016
“WhydobreakfastprogramsontheABC,Seven,
Nine and Ten exclusively feature white people?
Why do our news journalists so rarely reflect
the population they are reporting on?”
Editor, Osman Faruqi @oz_f
The people on TV
aren’t like me
YouTubers, @superwog1
Creator, May Leong-Korobacz
@hellomissmay

8. ‘Inspiration’ ranked as the fourth most
importantmotivationforfollowingandengaging
with Influencers according to our research,
with 61% of respondents seeing it as part of
Influencers’ appeal. The first point to note is
perhaps the sheer breadth of inspiration now
available to consumers, on everything from
fashion, to fitness, to thriving on a vegan diet.
Because it’s no longer expensive to create or
distribute content, an army of creators who
could never have afforded to create their own
magazineorTVshowarenowabletosharetheir
ideaswithanaudience.Andtheveryfunctionality
of social media has aided discoverability for the
audience, with algorithms surfacing suggested
content and features like searchable hashtags
ensuring inspiration is instantly accessible.
“If you’re going through a rough time, someone
always seems to be sharing something at the
right time and then you feel really good for the
rest of the day. I’m really influenced by that and
I’ll share it around.”
25 year old, female
Inspiration is
now instantly
accessible
Teacher, Home Baker and Author,
@katherine_sabbath

9. Everyone has a smartphone, anyone can upload
toYouTubeorInstagram.Therefore,anyonecan
become an Influencer. But the low barriers to
entry don’t mean consumers hold Influencers
in low regard. In fact our research showed
that the attainability of the Influencer lifestyle
actually heightens their appeal, because -
comparedtocelebrities-Australianconsumers
find Influencers so much more relatable. This
new phenomenon, of ‘attainable aspiration,’ is
fuelling the growth of Influencers.
The Influencer
lifestyle is not
just aspirational
- it’s attainable
“Influencers portray a more natural & authentic
imageoftheirdailylives;itallowstheirfollowers
to look into everything they do and feel it’s
aspirational but attainable. Unlike the major
celebrities that live the ‘dream life’, we just live
our normal lives and it’s more relatable.”
Travel Blogger, @alexhayess
Tavel Blogger, @alexhayess

10. Influencers don’t just pump out content to
their fans. They respond to their comments,
and even tailor material to their community’s
requests. Influencers’ openness is a huge
part of their appeal, with 71% of research
respondents saying they like seeing behind
the scenes of an Influencer’s life.
“Online creators tend to be sharers, more
often than not they will open up to their
viewers, bringing them along through their
day-to-day life. Viewers are allowed much
more access than you would typically find in
mainstream media.”
Online comedian, @LounaTuna
Influencers are letting
fans see behind the
curtain. Not just into
their dressing room,
but into their creative
process.
Fashion Blogger, @carmengracehamilton
Travel Blogger, @samearp

12. There isn’t a magazine, newspaper or TV show in
the country that beats our biggest Influencers,
in terms of audience size. In many categories,
Influencers can give advertisers the reach that
mainstream media no longer can. For example,
when the boys from Mighty Car Mods created
a ‘Mod Max’ video series promoting the release
of Roadshow Films’ ‘Mad Max: Fury Road’ it
reached more than 4 million people. That’s 4x
the highest audience ever achieved by ‘Top
Gear Australia’, and with a fraction of the
investment of a major TV campaign. However,
when choosing creators, brands should review
their demographic and geographic reach to
ensure there’s optimal alignment.
YouTubers, Mighty Car Mods video series, by We Are Social
Influencers are the
new media channels

13. Today’s Influencers grew up shooting. The
barriers faced by previous generations never
existed for them. With minimal equipment
and no crew, many are producing stunningly
good content. Our research with Influencers
revealed their motivation isn’t primarily to make
money - it’s to make great content and growing
their audience.. This means that for marketers,
getting the best results is less about how much
money you can pay, and more about how much
creative freedom and opportunity you can give.
And this high quality content can live beyond
the influencers channels, on brand channels
too.
“While anyone with a camera can do
it, it’s now super professional. I like
to watch people who travel around
the world. Their content is great.”
21 year old, male
The successful
Influencer is an amateur
who produces content to
a professional level
@samevanslife

14. Our research showed that Influencers have a
disproportionate appeal amongst people aged
16-30. This group is in a self-discovery phase;
Influencers can act as role models, helping
them shape the way they live their lives. The
importance of Influencers seems to be less
pronounced for those aged 0-15 (whose key
influences are family and school) and for the
over 35s (whose identity is largely defined).
However, if you’re talking to under 35s and don’t
have an Influencer strategy, there’s potentially
a blind spot in your media plan.
The influencers’
key audience
is those who
are still easily
influenced:
the young
Mimicry Self
dIscovery
Commitment Legacy
CREATINGIDENTITY
LIFE STAGE
0- 15 yo 16 - 30s yo 30s - 60s yo 60+ yo
“Eventually you stop listening to what other
people are liking and find what you like. When
you’re young everyone is just trying to fit in
and be the same person. As you get older,
you find your own sub-culture, become
your own person and start doing what you
want to do with more independence.”
31 year old, female

15. As ad blocking evolves from a trend
into an epidemic, native content is
becoming ever more powerful. But to
realise the potential of native content,
the brand activity must fit seamlessly
into the Influencer’s feed. An example: for
the launch of Netflix, popular Influencer
Troye Sivan invited his fans to ‘watch
along’ with the Netflix show Unbreakable
Kimmy Schmidt - exactly the kind of show
you’d expect Troye to watch. Result: the
hashtag #TroyeWatchesKimmySchmidt
trended worldwide, and reached 90 million
people. But when it’s not seamless, it’s a
problem: 67% of our research respondents
said they ‘do mind’ if Influencers promote
things they don’t use or don’t believe in.
“If it bears some similarity to what
they do, then I’m fine with it.”
23 year old, male
The product doesn’t
interrupt the
editorial.
It is the editorial.
Singer-songwriter, Actor and YouTuber, @troyesivan

16. When it comes to celebrity endorsement,
consumers fully understand that the star
doesn’t really use the product, and has merely
been paid to play. But Influencer endorsement
(when correctly done) is seen as authentic and
trustworthy, with 59% of respondents in our
research agreeing Influencers are ‘a trusted
place to find things out’, and 60% saying they’d
‘try a product recommended by an Influencer’.
Influencer
endorsement is seen
as more credible
than celebrity
endorsement
Any brand partnership, relationship
or project I work on has to come from
a place of interest and authenticity.
It is this authenticity in our own
brand that our audience thrives on
and keeps them engaged. ”
Surfboard Designer and Entrepreneur, Hayden Cox @haydenshapes

17. As long as an Influencer’s brand-funded
activity is sympathetic to their usual style of
content, and the commercial relationship is
transparently stated, our research found that
85% of consumers don’t resent them doing it.
And as long as Influencers are delivering against
the audience’s expectations of content quality,
consumers understand and appreciate “they
need to make money” and get that it’s a quid
pro quo.
“The ones that are making money have the
best content. If I’m looking into surfing videos,
the guys at the top have the best content. I
know they are being paid for it but I get to see
the best surfing video”.
22 year old, male
Influencers live
the dream. and
audiences accept
someone needs to
pay for it

18. Marketers should be looking to partner with
Influencers who have credibility - not just a big
audience. Our research found that consumers
have started to categorise Influencers into
a hierarchy. At the top are those who have
earned authority for their talents. At the bottom
are “wannabe celebrities” and “social media
exhibitionists” – seen as using social media to
gain exposure and exploit fame for its own sake.
Though they may retain large audiences, their
authority (and hence ability to influence) has
plummeted. Additionally, it’s vital that a brand
deploys an Influencer in a relevant context. If
they are used for an area in which they lack
authority, the content won’t resonate.
“One Olympic silver medallist rower I follow is
insightful,knowledgeableandgivingsomething.
Others who haven’t even gone to a world
championship but are talking are pathetic. If
you’ve got a talent first then it’s legitimate”.
22 year old, male
Dan Conn @Daniel_DC_Conn, who has the
credibility of an NRL career with the Roosters,
Bulldogs and Titans, and is the founder of fitness
chain F45, has gained a substantial social media
following.
Talent is marketable,
fame is disposable

19. Our research with Influencers revealed that
they believe it’s their honest and authentic
voice which keeps their audience engaged.
We’ve found that simply attaching a brand to
the Influencer like a badge creates a negative
reaction, and undermines the potential to
influence. A better strategy is for an Influencer
to display products - 59% of consumers ‘don’t
mind seeing products’ in an Influencer’s feed,
according to our research. But the real power
is unlocked when the message is packaged as
an experience. If the Influencer is seen to be
doing something (within a suitable context), it’s
far more inspirational, authentic and powerful.
“People smell BS from a mile away,
and as soon as that happens,
you’ve lost their interest.”
Creator, @samevanslife
Creator, @samevanslife
“It’s more inspirational seeing people doing
something. You can’t fake an experience. It
doesn’t look like they’re hardcore selling.
They’re doing something that’s cool.”
32 years old, female
Don’t give them
something to sell,
give them something
to do

20. Having outlined the enormous audiences that
Australia’s biggest Influencers now command,
it would be remiss of us not to highlight the
opportunities represented by the so-called
‘micro-influencers’ (10K - 50K followers).
Covering everything from cupcakes to physics
to Japanese public drunkenness, they’re
the specialist magazines (think ‘Fly Fishing
Weekly’) of our times. For brands that operate
within a specific niche, or want to reach one,
micro-influencers can offer high engagement,
affordable fees, and in many cases, huge
creative talent.
Why a small
audience
can have a
big appeal
Left: Photographer, @nightsnlights
Top: Artist, Elliott Routledge @funskull
Bottom Right: Muscian, @kindermusicofficial

21. ROII
DISTRIBUTION INFLUENCECREATION
INVESTMENT
“The main value for my audience is laughter. Although laughter is not
a concrete, measurable analytic. The other analytics can become
a reflection of how well I’ve done as an entertainer. The same
feedback loop applies for a performer in real life and a performer
online. Once you’ve identified the key value for your audience,
the stress is to ensure you continue to deliver that value. ”
YouTuber, @ozzymanreviews
How to measure
your ROII (Return on
Influencer Investment)
Measuring impact is quite rightly an important
concern for marketers, and has proved especially
challenging in the field of Influencer marketing. As
with all things in marketing, the starting point is
your objectives and structuring the measurement
around how those objectives are being met. At
We Are Social, we tend to look at how impact of
influencer activity can be measured across 4 broad
areas:
1 - Executional impact: looking at how the
audience consumed and engaged with the
activity (reach, likes, shares, comments etc)
2 - Media impact: measuring the efficiency of
distribution. We use a bespoke framework we
call ROII (Return on Influencer Investment)
3 - Brand impact: analysing the impact of the
activity on the audience’s perception of the
brand (usually by aligning and attributing
activity to a brand tracker)
4 - Behavioural impact: looking at how the activity
affected behaviour such as a website visit.

22. 1 - Define the objective of your activity.
Consider whether it’s awareness, affinity,
or even trial, as this may have a significant
bearing on which Influencers you select
and how you choose to engage them.
2 - Use social tools to identify the most
influential voices in the category.
3 - Explore their identity, their reach, their
engagement, the demo of their audience,
and their style of content.
4 - Look at previous brand activity to ensure
the Influencer is effective and there’s no
conflict.
5 - Consider whether you want them to
create content for distribution on their
social channels, on your social channels,
or whether you want to use the content
in other places like point of sale or your
website.
6 - Outline the value you want them to deliver
in exchange for what you’re offering. Take
into account the format of the content,
which channels it will be distributed on,
whether personal appearances or PR
placements are required, and whether
you require product or brand exclusivity.
7 - Contract them.
Ready to jump in?
Go through this
checklist first

24. FOCUS
GROUPS
Quant.
Survey
INFLUENCER
Interviews
PHASE 1 PHASE 2 PHASE 3
7 x age-band groups of
Australians who use social
media at least weekly, and
who follow Influencers.
Representative sample
of 1024 Australians, who
use social media at least
weekly, and who follow
Influencers.
10 x Influencer depth
interviews to gather
learnings about how to
foster more effective
brand partnerships.
Through Pureprofile
June 2017
Through Forward Scout
May 2017

25. We Are Social
107 Regent Street
Chippendale
2008
Australia
wearesocial.com.au
Suzie Shaw
Managing Director
suzie.shaw@wearesocial.net
+61 2 9046 3710
ADDRESS CONTACT
CONTACT