How To Make Influencer Marketing Your Top Performing Channel in 2016

How to Make Influencer Marketing Your Top Performing Channel

in 2016 RACHAEL CIHLAR & LAURA SMOUS

#KissWebinar @Kissmetrics

#KissWebinar

@thuelmadsen

Rachael strategizes, designs, implements, and optimizes influencer marketing campaigns and

programs for top brands and leading digital and PR agencies, in addition to relentlessly monitoring trends

and data in consumer buying behavior.

RACHAEL CIHLAR Senior Influencer Marketing Strategist,

TapInfluence

@raisinann

Laura is the Director of Product Marketing, melding agency and SaaS experience with an obsessive quest for knowledge about the market, our customers, and our product to build actionable strategies that help

grow revenue with influencer marketing automation.

LAURA SMOUS Director of Product Marketing,

TapInfluence

@laurasmous

1 Why IM Became a Powerhouse Channel

2 3 How You’re Losing Money If You’re Not Always-On

WHAT YOU’LL LEARN TODAY

2 Creating a Revenue Driving IM Practice

6 4 Identifying Metrics That Matter (And Those That Don’t)

5 Continuously Improving Your IM Effort with Analytics

Driving Programs & Performance with Goal Setting

Optimizing Influencer Selection for Maximum ROI

Reaching the Right Consumers with Audience Targeting

@tapinfluence

#KissWebinar

@raisinann @Laurasmous

Why IM Became a Powerhouse Channel

INFLUENCER MARKETING’S TUMULTUOUS RISE TO FAME

Marketers don’t control the consumer journey

anymore.

(LET’S ALL STOP TRYING)

Both the U.S. Congress and the federal government rank above advertising and marketing when it comes to who consumers believe practices integrity.

CONSUMERS DON’T TRUST BRAND ADVERTISING

IT’S REACHED A TIPPING POINT

–PwC

“ 62% of people trust brands less.

” 32% of online consumers trust a stranger more than a brand. –Forrester

–Meaningful Brands Study

“ 73% of people wouldn’t care if brands disappeared tomorrow.

ESPECIALLY WITH AD BLOCKING

As consumer distrust of brands grows, so does their use of ad blocking technology—so much so that consumers are more likely

to survive a plane crash than click on a banner ad. Brands are losing billions.

…AND BOTS

$29.6 billion was lost by advertisers to bot fraud in 2015 alone. Even Google admits, more than half the ads served on the Internet

are never seen.

Image via Incapsula

THE RESULT

No one’s listening to you.

90% 40% Percent of ad revenue loss by websites that target millennials due

to ad block. – President of IAB

Percentage of Americans Who

Ignore Digital Ads - Harris Interactive, 2015

The Click-Through Rate of Display Ads

- DoubleClick, 2015

0.04%

How do you reach today’s social consumer, who trusts strangers more than YOU?

THEY ARE LISTENING TO EACH OTHER

74% 84% Take action based on the opinion of others.

– Nielsen

Rely on social media to inform

purchase decisions - ODM Group

Trust peer recommendations. Only 33% trust ads.

- Nielsen

90%

Forcing the same product messaging into new channels wasn’t working (we tried that with social). Trying to meet consumers at every conceivable point on their journey with stuff we wanted to say was exhausting and costly (we tried that with content). What emerged was a new way to reach consumers, with messages about your product they actually want to hear, coming from voices they already trust. That’s influencer marketing.

ENTER INFLUENCER MARKETING

75% of marketers are using influencer

marketing.

– AUGURE, THE STATE OF INFLUENCER ENGAGEMENT IN 2015

THE RISE OF INFLUENCER MARKETING

59%

11% 10%

20%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Increase budget Maintain budget Decrease budget Unsure

Sha

re o

f res

pond

ents

Are you expecting your influencer marketing budget to increase or decrease over the next 12 months?

Change in influencer marketing budgets in the U.S. 2015

Note: United States; March 10 to 16, 2015; 125 Respondents; among marketing professionals

Source: Various sources (Tomoson); ID 432177

Further information regarding this statistic can be found on page 39.

Average $9.60 earned media value for every $1.00 paid

51% report better customers—who spend and refer more—from influencer campaigns

81% of marketers who ran at least one IM program found influencer engagement to be effective.

THE ROI IS CLEAR

THE CATCH

To unlock the high potential ROI of influencer marketing—repeatably, predictably, scalably and cost effectively—you need influencer marketing automation.

AUTOMATED THE MANUAL WAY

IDENTIFICATION (200 INFLUENCERS FOR

TARGET OF 20 INFLUENCERS)

5 HOURS X $38.50 = $192.50 40 HOURS X $38.50 = $1540

OUTREACH (200 INFLUENCERS)

N/A, INFLUENCERS ARE OPT-IN

200 INFLUENCERS, 10-15 MIN (ea) VIA EMAIL

40 HOURS X $38.50 = $1540

NEGOTIATIONS 0.5 HOURS X $38.50 = $19.25 20 INFLUENCERS X 1 HOUR X $38.50 = $770

CONTENT CREATION MANAGEMENT 8 HOURS X $38.50 = $308 80 HOURS X $38.50 = $3080

DAILY MEASUREMENT & REPORTING

0.25 HOURS X 5 DAYS X 4 WEEKS = $192.50

2 HOURS X 5 DAYS X 4 WEEKS = 40 HOURS

X $38.50 = $1540

COST OF YOUR TIME $885.50 FOR A SAVINGS OF

$7584.50 AND ALMOST 200 HOURS!

$8,470.00

TIME TO VALUE: MANUAL VS. AUTOMATION

Creating a Revenue Driving IM Practice

EVERYTHING YOU NEED TO KNOW IN 15-MINUTES

WISE WORDS

“ Content that tries to sell, doesn’t. Content that tries to help, does. LINDA BOFFCMO, GE

Who Can Build a Practice?

HINT: YOU CAN

Agencies Brands

•  Budget

•  Goals

•  Competitive Offerings

•  Resources

WHAT YOU NEED TO BUILD A PRACTICE

What is our total influencer marketing budget? What’s the cost-benefit of building an IM practice in house versus outsourcing to an agency? How much will we need to spend on influencers to reach our goals? What is our plan for distribution to maximize the value of influencer generated content?

BUILD A REALISTIC BUDGET

Set goals upfront and expectations for meeting them:

• Agencies – influencer marketing as a revenue stream, core competency to win new business

• Brands – influencer marketing for brand awareness, market share, product launches, events, etc…

SET GOALS AS AN ORGANIZATION

Agencies:

• Pricing versus competitors

• Campaign value versus competitors Brands:

• Marketing plan versus competitors

• Content advantages versus competitors

START WITH A COMPETITIVE OFFERING

1.  Build a team 2.  Scale to fit your

business 3.  Save on

resources

GET RESOURCES READY

In six months: from 1 program a month to almost 30 programs per month.

0

5

10

15

20

25

30

35

March April May June July August September

Programs

PLAN FOR GROWTH

Agency A – Program Growth

In six months: from using 1 influencer per month to over 600 per month!

0

100

200

300

400

500

600

700


Influencers

PLAN FOR GROWTH

Agency A – Influencer Utilization

In six months: from $50 in influencer spend to over $160,000!

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

Influencer Spend

PLAN FOR GROWTH

Agency A – Influencer Spend

In six months: from 1 person team to 8!

0

1

2

3

4

5

6

7

8

9


Influencer Team

PLAN FOR GROWTH

Agency A – Influencer Team

Influencer Selection for Maximum ROI

HOW TO OPTIMIZE

Know how to search the basics:

•  Categories

•  Channels and Reach

•  Cost Per Engagement (CPE)

•  Experience and Voice

GUIDING YOUR INFLUENCER SEARCH

Then learn how to search smart:

•  What are my goals and will this

influencer help me achieve them?

•  Would this influencer normally speak

about this topic or product ?

•  Which search criteria are most

important for my goals?

GUIDING YOUR INFLUENCER SEARCH

TRICK QUESTION

“ Which is more important: getting your message in front of a massive number of consumers—very few of whom will ever care about or be able to afford your product—or surgically targeting those that closely resemble your ideal customer? YOURS TRULYTapInfluence

More isn’t necessarily better. We are much more likely to influence buying behavior by talking to people wo actually have the ability and inclination to buy. Activating that inclination to buy is much more likely to occur in close personal discussions than in massive groups, where the audience is only very loosely connected to the speaker. For that reason, when identifying influencers, look to individuals who have meaningful influence over your buyers rather than celebrities with massive followings. “54 percent of consumers agree that the smaller the community, the greater the influence.”

KNOW YOUR AUDIENCE, AND TARGET THEM

Pre-campaign:

•  Influencer focus groups

•  Previous influencer performance

Post-Campaign:

•  Evaluate results & top performers

•  Test new influencers

THERE’S NO END TO WHAT YOU CAN OPTIMIZE

Trends in Influencer Selection

WHAT YOU NEED TO KNOW

Gamers

International Influencers

Male Influencers

Video influencers

4%

TRENDS: INFLUENCERS

What Marketers Want

8%

33%

39%

SNAPCHAT

•  48%* of influencer

polled have Snapchat

•  81%* of those

influencers want

sponsored opportunities

PERISCOPE

•  52% of influencer polled

have Periscope

•  90% of those influencers

want sponsored

opportunities

TRENDS: EMERGING CHANNELS

How You’re Losing Money If You’re Not

Always-On

WHY YOUR IM STRATEGY WILL MAKE OR BREAK YOUR SUCCESS

Today’s customers distrust and resent one off campaigns that interrupt

or intercept them. – FORRESTER

Consumers are asking their own questions, in their own buying cycles. Millions of people are forming their own opinions, whether or not you’re part of the conversation, that you won’t be able to overcome later. That’s why your marketing must feel like a natural continuation of a conversation with your customer.

TRUST ISN’T SOMETHING YOU TURN ON AND OFF

Continuous engagement ensures that the initial

purchase is only beginning of a

customer’s value. – MARKETO, THE FIVE PRINCIPLES OF ENGAGEMENT MARKETING

Repeat customers spend as much as 67% more than new customers, and 49% of companies say they achieve a higher return-on-investment by focusing on engagement rather than acquisition.

IT WILL MAKE YOU MORE MONEY

– BAIN & COMPANY

Loyal customers are positioned to become advocates for your brand, helping you to create new business. Engaging with customers throughout their lifecycle isn’t just about individual value—it’s also about the value of their networks.

IT WILL SCORE YOU MORE CUSTOMERS

– BAIN & COMPANY

Unless you do it wrong. (WHICH MANY OF US ARE)

1 Consistency

2

Brand Lift and Amplification of All Other Marketing

4

3

Saving Time and Money

Sustained Growth and Earned Media Value

5 Predictable Results and Scale

WHY ALWAYS-ON

TWEET OF THE DAY

The best influencer marketing campaigns don’t end with content creation.

@NEILPATEL

@Kissmetrics @TapInfluence #KissWebinar #TapMetrics

Repurpose on your brand’s site:

•  Blog content

•  Content hub

•  Branded community

•  Newsletters

•  Marketing materials

HOW TO MAKE EVERY PROGRAM ALWAYS-ON

Repurpose on your brand’s channels:

•  Social editorial calendar

•  Social ads

•  Social artwork

•  Social testimonials

HOW TO MAKE EVERY PROGRAM ALWAYS-ON

Influencer distribution allows you to:

•  Increase the efficacy and lifespan of content

•  Generate revenue

•  Drive exponential additional value from existing programs and

content, at only incremental additional cost

•  Gain predictability and ability to drive scale with spend

•  Get speed to performance

•  Bridge gaps between programs and remain “always-on”

DON’T FORGET DISTRIBUTION

Identifying Metrics that Matter

(AND THOSE THAT DON’T)

TWEET OF THE DAY

When you know better, you measure better. When you measure better, you know better.

@NEILPATEL

@Kissmetrics @TapInfluence #KissWebinar #TapMetrics

Thou shall always:

1.  Know goals ahead of time

2.  Know how to measure success

3.  Know how to communicate success

INFLUENCER MARKETING METRICS

INFLUENCER MARKETING METRICS

AWARENESS CONSIDERATION PREFERENCE PURCHASE LOYALTY

Reach Clicks Sharing Clicks to e-commerce Sharing

Views Votes Likes / Follow Conversions to sale Referrals

Content Views Data Capture Coupons/ Exclusive Offers

User-generated content

Brand Study Social Listening Tracking tags

Comments Brand Study

METRICS ALONG THE BUYER’S JOURNEY

Going Up:

•  Sales (duh!)

•  Shares

•  Comments – positive sentiment

•  Coupon downloads

Going Down:

•  Reach

•  Views

TRENDS: METRICS

Continuously Improving Your IM Effort

USING ANALYTICS TO SCALE PERFORMANCE AND ROI

DID YOU KNOW

“ WOM is 50% more likely to trigger a conversion than ads. MAVRCK

Step 1: Find a solution for analytics. Your solution should:

•  Report on all relevant metrics

•  Report in real-time

•  Measure different campaign types (video, blog, etc)

•  Optimize for you

INFLUENCER MARKETING ANALYTICS

Step 2: Optimization – Influencer Performance Real Example:

•  Influencer A charges $12,000, delivers 58.3K engagements = $0.21 CPE

•  Influencer B charges $3000, delivers 13.4K engagements = $0.22 CPE


Step 3: Optimization – Brand Elements Evaluate: •  URL performance •  Brand Messaging •  CTA


You Need: SCALE Access to the right, vetted influencers, through an automated tool, allowing streamlined workflow and time efficiencies. You Need: QUALITY Ability to control the content, timelines and FTC disclosures, without having to manually check and schedule each post and share. You Need: PERFORMANCE Measurement of performance, down to an ROI on an influencer-by-influencer, action-by-action, channel-by-channel basis with the ability to optimize

TO DO INFLUENCER MARKETING WELL

Our Customers

HOW WE HELP BRANDS AND AGENCIES DRIVE REVENUE

HOW WE HELP OUR CUSTOMERS

OUR PLATFORM

LAURA SMOUS Director of Product Marketing, TapInfluence

@laurasmous

[email protected]

RACHEL CIHLAR Sr. Influencer Marketing Strategist, TapInfluence

@raisinann

[email protected]

Questions?