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Inbound marketing influencer_marketing qube

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Inbound marketing influencer_marketing qube

  1. 1. IN ASSOCIATION WITH INBOUND MARKETING InfluencerMarketing
  2. 2. 2 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Contents The contents of this report are the exclusive copyright of Digital Doughnut, findings in this report can be used for non commercial purpose as long as Digital Doughnut is attributed as the source under the Creative Commons Attribution – Non Commercial No Derivatives 4.0 International licence. About The Author Andrew Seel is CEO of Qube Media, a UK award-winning digital advocate marketing agency and leading influencer and advocate marketing platform Qubist. Contact details: Email: hello@qubemedia.net About Digital Doughnut Digital Doughnut connects the global marketing community both on and offline. Members of the community gain access to skills and resources, the latest thinking on key marketing topics, crucial insights and best practice learnings that enable them to make better business decisions. Digital Doughnut both leverages and provides value to the community by tapping into the collective intelligence of the network to create high value content that’s based on actual market conditions and informed by practitioners experience. Summary 3 Introduction 3 TheGuide 4 Part 1: Understanding influencer marketing: the hierarchy of word of mouth Part 2: Four reasons why brands need to consider influencer marketing Part 3: How to succeed in influencer marketing Case study: Integrated campaign from luxury travel brand buying decisions Case study: Micro-influencers collaborate with top beauty brand Guerlain Conclusion 7 TopTips 8 FurtherReading 9 PowerTools 9
  3. 3. WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING 3 In partnership with INBOUND MARKETINGInfluencer Marketing Introduction Summary In this guide we look at why influencer marketing is shaping up to be the biggest trend in digital marketing in the coming few years. Whether you’re new to influencer marketing and want to understand the hype, or are looking for new ways to get the edge over competitors and build a deeper relationship with your customers, this guide looks at what influencer marketing is, why it’s driving customer referrals and loyalty, what success looks like and how to solve the main challenges. Introduction Marketing-inspired word of mouth now generates more than twice the sales of paid advertising and is the primary factor behind 20% to 50% of all purchasing decisions.1 (McKinsey) A number of trends have led us here. Social media gave immediate access to customer reviews and peer recommendations, and consumers are increasingly sceptical about advertising and push marketing, using and information overload. This shift in consumer behaviour is forcing brands to find new ways to reconnect in an authentic way with their customers, to build lasting sustainable relationships. Now more than ever, brands, consumers and influencers are looking to work together towards a more mature and fruitful relationship with each other. And as technology enables brands to scale up, research suggests the potential return is significant. 1 http://www.mckinsey.com/business- functions/marketing-and-sales/our- insights/a-new-way-to-measure-word- of-mouth-marketing “Word of mouth is the oldest marketing there is, but technology has super-charged this area and is now allowing brands to roll out programmes at scale.” Andrew Seel, CEO, Qube Media
  4. 4. 4 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Understanding influencer marketing: the hierarchy of word of mouth There are many tiers to influencer marketing and consistent language use is still emerging, but some commonality of definitions are coming through within the industry. When we talk about influencer or advocate marketing, what we mean generally is word-of-mouth marketing, all sitting under the umbrella of earned media, that is spread the word. Who is an influencer? An influencer is broadly recognised as someone who has the power to influence the purchasing decisions of another. Press and celebrities sit at the top of the hierarchy, in terms of follower numbers, but genuine influence does not always equate to popularity, as found in a recent study by Markerly2 of five million Instagram unpaid posts. They found that as an influencer’s follower numbers increase, their rate of engagement drops. In 2016, top brands are starting to look beyond the big follower numbers of celebrity influencers, and are turning to a new breed of influencer – known as micro- influencers. These new influencers may have fewer followers than a celebrity, but they have huge influence genuine ability to persuade fans of the value of a brand. What is influencer marketing? It is a broad term within which there are multiple layers and niches of top tier and micro-influencers (e.g. travel Instagrammers, football YouTubers, fashion bloggers, food vloggers). An influencer would communicate in partnership with a brand. Influencer marketing can include: What is advocate marketing? An advocate, sometimes referred to as a brand ambassador, is a superfan who loves a brand, and is vocal about this brand loyalty – they can’t be bought directly, they will have an already existing relationship with the brand. They can be customer or employee advocates. Advocates, compared to micro-influencers, may have fewer followers but they are affiliated on a much stronger level within their network of peers, friends and family, and are making a significant impact on the purchasing decisions of that network. Advocate marketing can include: In a joint study from Twitter and Annalect, “56% of users surveyed said they rely on recommendations from friends, 49% said they would rely on influencers before making a purchasing decision.” 3 The Guide Part 1 2 http://markerly.com/blog/instagram- marketing-does-influencer-size-matter/ 3 http://www.adweek.com/news/ technology/twitter-says-users-now- trust-influencers-nearly-much-their- friends-171367 Press Celebs Influencers (top tier) Micro-influencers Customer advocates Employee advocates Social media fans
  5. 5. 5 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Four reasons why brands need to consider influencer marketing 1. Word of mouth is helping customers decide which brand to buy consumer decisions. Influencer and advocate marketing helps customers evaluate brands when they are deciding to buy. For brands optimising their customers’ experience a key role at the awareness and consideration stages. It is now imperative for brands looking to convert new customers and maintain loyalty with existing customers. experience with the brand, and success is defined by their relationship with it.4 2. Consumers trust influencers more than brands Over 80% of people trust recommendations from friends compared with advertising when making a decision to purchase,5 while ad blockers are estimated to be used by 47% of consumers, with a 70% increase since 2014.6 This suggests that consumers want more authentic content and top marketers are having approach consumers who are pushing back against brand advertising and push marketing. Influencer and advocate marketing is one route to cut through that fatigue and re-connect with consumers. 3. Brands need cost-effective ways to create content to meet demand According to Nielsen, the amount of content we consumed on a daily basis in 2014 was nearly 11 hours – two hours more per day than in 2012.7 With people consuming more content, it is getting harder for brands to create sufficient compelling content. The key is to expand your network of content creators, and collaborate with influencers on co-created content customers. The key to success is to have a solid understanding of your own audience, and then find the right influencers to match. Influencers are able to create rich content for brands across multiple platforms to reach new audiences like never before. 4. Data shows influencer marketing delivers on ROI for driving referrals as online consumer behaviour continues to evolve.8 And the fastest growing online customer-acquisition method is influencer marketing. Deloitte figures show a 37% higher retention rate when customers are referred by other customers.9 And top marketers are putting their budgets into earned media in the coming year – 58% of marketers surveyed are doing some form of customer advocacy marketing. Of those not already doing it, 42% plan to in the next 12 months.10 4 org/2015/04/why-strong-customer- relationships-trump-powerful-brands 5 http://www.nielsen.com/us/en/ insights/news/2013/under-the- influence-consumer-trust-in- advertising.html) 6 http://www.thedrum.com/ news/2015/06/20/40-uk-consumers- use-ad-blockers-finds-reuters-study 7 http://www.nielsen.com/us/en/ insights/news/2014/how-smartphones- are-changing-consumers-daily- routines-around-the-globe.html 8 http://fortune.com/2015/08/18/ facebook-google/ 9 http://www.forbes.com/sites/ ekaterinawalter/2013/09/17/8- essentials-of-creating-a-sustainable- advocacy-program/#1e1a08e23052 10 http://www.qubi.st/blog/qube- announce-the-state-of-advocate-and- influencer-marketing-2016-report Part 2 SALES EXPERIENCE LOYALTYAWARENESS CONSIDERATION
  6. 6. 6 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Part 3 1. The most successful campaigns are integrated The most successful campaigns work as one piece, with paid building awareness and amplifying engagement, and high value earned driving key messages and influencing or changing behaviour. In practical terms, this means a brand using a number of top-tier and micro-influencers alongside an army of advocates on an integrated campaign to optimise the overall impact. CASE STUDY Integrated campaign from luxury travel brand a UGC competition to encourage advocates to share photos from their holidays at Constance, followed by a seven-week influencer campaign across all hotels, supported by paid media. Results: 80% increase in Instagram brand followers and 2.5 million engagements with the unique brand hashtag #MyConstanceMoment. 2. Micro-influencers and advocates hold the power to influence your customers’ buying decisions There’s been a shift in the last year from brands wanting to work with celebrity influencers – big names with huge followings but little genuine connection with a brand – to seeking out micro-influencers and customer advocates they can work with in the longer term. Yet this vast pool of new influencers still remains largely untapped by brands. millions to throw at an influencer campaign. Second, influence is evolving and, as influencer marketing becomes more widespread, we are getting a better understanding of what works and what doesn’t. New data reveals that as an influencer’s follower numbers increase, the level of engagement on their content decreases. CASE STUDY Micro-influencers collaborate with top beauty brand Guerlain In 2015 French beauty brand Guerlain tapped into the beauty blogger community and ran a campaign with seven micro-bloggers from the Style Coalition they were able to appeal to a broad consumer base of Results: Nearly one million women reached and 15% increase in brand awareness around the products promoted. How to succeed in influencer marketing
  7. 7. 7 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Conclusion Marketers in 2016 are being prompted to rethink their game, with brands trying to find ways to create a deeper connection with their customers to cut through the noise and stay ahead of competitors. Influencer marketing is at a tipping point and we are starting to see a shift in how brands prioritise paid, owned and earned media to create fully integrated campaigns. Top brands and marketers now realise that by finding the right influencers to partner with, they can build trust with new and existing audiences around core brand values to increase brand reputation, reach more consumers across multiple platforms and increase customer loyalty and retention. As technology develops and opens up new opportunities to scale up and measure results, there has never been more to play for.
  8. 8. 8 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Top Tips Here are a few tips to meet the main challenges brands are facing: Collaborate with the right influencers Trust plays a key role in influencer marketing – consumers have to believe the influencer has a genuine interest filter potential influencers (see power tools). Develop a robust brief that defines brand messages, requirements and goals, yet allows room for the creativity and personalisation from the influencer. Stay within the rules Transparency is key, and new disclosure laws in both US and UK state that influencers must declare if they have been on a sponsored trip or received a product for free. Consider payment and contracts Fundamentally, consumers need to know what payment/freebies an influencer received to promote the brand. As influencer marketing matures, paying influencers are becoming the norm and contractual agreements will follow. Fees still vary hugely, depending on the influencer-brand relationship. Scale up activity to grow your business faster Social listening tools and influencer outreach list builders to word-of-mouth platforms are maturing quickly and automating what was until recently a time-consuming manual process. Capture the right data to measure results A significant challenge for influencer marketing remains how to measure the bottom line impact of influencer campaigns. This new wave of influencer and advocate platforms such as Qubist – with a tech-driven approach and easy-to-interpret dashboards – allows you to measure results, so you know where to focus your budget and Screen from Qubist dashboard
  9. 9. 9 WWW.DIGITALDOUGHNUT.COM TEL: +44 (0)207 193 4600 © DIGITAL DOUGHNUT 2016 In partnership with INBOUND MARKETING THEKNOWLEDGE INBOUND MARKETING INFLUENCER MARKETING Influencer Marketing Further Reading State of Influencer and Advocate Marketing 2016 report, Qube Media http://www.qubi.st/blog/qube-announce-the-state-of-advocate-and-influencer-marketing-2016-report Free report on: Qubist – Advocate marketing solution Find out how to supercharge your social media and grow your business faster http://www.qubi.st/ How to turn satisfied customers into superfans http://www.qubi.st/customer-superfans-advocate-marketing-methodology Why doesn’t anyone share your social media content? http://www.qubi.st/why-doesnt-anyone-share-your-content-online A new way to measure word of mouth marketing http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-new-way-to-measure-word- of-mouth-marketing Power Tools Qubist advocate software solution – request a free trial http://www.qubi.st/ Tools to help you find influencers and identify and filter influencers relevant to brands: Klout – https://klout.com Kred – http://home.kred/ Mention – https://mention.com/en/influencers/ MozBar – https://moz.com/products/pro Traakr – http://www.traackr.com/ PeerIndex – https://www.brandwatch.com/peerindex-and-brandwatch/ Klear – http://klear.com/ FollowerWonk – https://moz.com/followerwonk/sort Fashion and Beauty Monitor – http://www.fashionmonitor.com/#/ NinjaOutreach – BuzzSumo – http://buzzsumo.com/ LittleBird – http://www.getlittlebird.com/
  10. 10. info@digitaldoughnut.com digitaldoughnut.com +44 (0)207 193 4600 Digital Doughnut London, E2 8AA© DIGITAL DOUGHNUT 2016

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