Geno Prussakov

CEO, AM Navigator (marketing management agency)Chair, Influencer Marketing Days (conference)

888-588-8866 | Washington, DCwww.amnavigator.comgeno@amnavigator.com

Advertiser’s Crash Course in Influencer Marketing

Introduction

“Breakout Term”

Source: Google Trends

Mass Media Storm

Mass Media Storm

Facts & Stats

Blog.Tomoson.com March 2015 Influencer Marketing Study

Facts & Stats

Blog.Tomoson.com March 2015 Influencer Marketing Study

“We've actively decided not to get involved in influencer

marketing.”

0%

Facts & Stats

Facts & Stats

ROI vs. EMV

ROI (Return on Investment) “measures the amount of return on an investment relative to the investment’s cost.”

Investopedia.com

Source: TapInfluence.com/ROI

Facts & Stats

“Sales directly attributable to the positive (online) word of mouth” surrounding the iPhone’s launch “outstripped those attributable to Apple's (own) paid marketing sixfold.”

A new way to measure word-of-mouth marketingMcKinsey.com

McKinsey Quarterly – April 2010

Facts & Stats

Source: TapInfluence.com/ROI

“EMV (Earned Media Value) – the dollar value that can be attributed to publicity, social sharing, and endorsement,

and other unpaid digital media exposure.”

RhythmOne.com

Facts & Stats

Source: RhythmOne 2015 Influencer Marketing Benchmarks Report

Outline

• Introduction• Types of Influencers• Identification & Onboarding• Influencer Activation• Measurement• Conclusion

Types of Influencers

Type #1Macro-Influencers

Case Study 1

+ 25% MoM

Case Study 2

+ 16%

Macro-Influencers

o Musicianso Actorso Professional athleteso Business leaderso “Platform sensations”

“… have developed an elevated status” (on specific social media platforms) by building a hyper-engaged audience, one that brands may want to reach through them.”

RhythmOne.com

Evaluate based on your primary goals.What are you trying to achieve?

Reach (vs. Engagement)

Instagram Marketing: Does Influencer Size Matter?Markerly.com, April 2016

Type #2Micro-Influencers

The reason:

Characteristics of Micro-Influencers

• Non-celebrity• Expertise• Passion• Fewer than 100k followers• High rate of engagement• Capacity to motivate (action)

Engagement / Followers

Definition

Micro-influencer – a non-celebrity individual who influences a relatively small but highly-engaged follower base.

Examples

• Instagram reviewer• Kayak fishing fan on YouTube• Photographer blogger

• Thought leader / “Brandvidual”

Brandvidual

a) Focused on developing their personal brand

b) Creates content based on intelligence, experimentation, observation

Advantages

Deep audience engagement Better approachability Lower costs Long-term relationships potential Better flexibility High conversion potential

“For $25,000, you can activate several micro-influencers within your chosen verticals and get in front of roughly 5 million combined followers. That same amount will barely get you in the door with a celebrity.”Why You Should Think ‘Micro’ When Planning Your Next Influencer CampaignSarah Ware, TheHuffingtonPost.com, April 15, 2016

Type #3Brand Advocates

83% of consumers trust recommendations from people they know above all other forms of advertising.Global Trust in Advertising 2015 report by Nielsen

Definition

Brand advocates “are a different breed of consumers” – they are happy to “evangelize their favorite brands and products.” And they do it “without cash or coupons, payments or perks.”

Brand Advocates: Turning Enthusiastic Customers into a Powerful Marketing Force by Rob Fuggetta

Characteristics of Brand Advocates

Product fans

Happy to tell others

Do not require incentives

5 Techniques to Identify Advocates

I. Ask “The Ultimate Question”

5 Techniques to Identify Advocates

I. Ask “The Ultimate Question”II. Contact repeat customersIII. Employ social listeningIV. Monitor online reviewsV. Turn to fans and followers

3 Ways to Support Advocates

I. Advocate Communities

3 Ways to Support Advocates

I. Advocate CommunitiesII. Inside Information

3 Ways to Support Advocates

I. Advocate CommunitiesII. Inside InformationIII. Spotlighting Them

Advocacy is always:a) strategic/ongoingb) earned

Identificationand Onboarding

Principles of Identification

Key Criteria

i. Audience Resonance

ii. Audience Engagement

iii. Lack of Brand Contradiction

The Influence Formula

Reach × Brand Affinity × Relationship with Followers ___________________________________________

_INFLUENCEThe Explosive Growth Of Influencer Marketing And What It Means For You

Kyle WongForbes.com, September 10, 2014

Influencers’ Role in the Marketing Funnel

Razorfish Social Media Influence Marketing Report, 2009

• shorten the sales cycle• amplify other marketing

Tools to Consider

self-service

full-service

discovery

tracking

analytics

…and more!

2 archetyp

es

databases

influencer networks

Influencer Databases

Definition

Influencer databases are structured sets of data regarding publishers of digital content.

Influencer Databases

Platform-specific

Holistic (cross-platform)

Influencer Databases (Examples)

Little Bird (for Twitter) Inkybee (bloggers and Twitter) GroupHigh (bloggers and their social imprint)

Influencer Networks

Definition

Influencer networks are networks of opted-in influencers, who have been vetted by the network.

Common Functionalities

Create a campaign

Select influencers

Track & analyze performance

Influencer Networks (Examples)

Whalar (for Instagram) Grapevine (for YouTube and Instagram) BlogMint (bloggers) FameBit* (cross-platform) TapInfluence (cross-platform)

* Acquired by Google on October 11, 2016

Influencer Networks

…can be vertical-specific

Health & Wellness (e.g. Wellness Amplified) Fashion & Lifestyle (e.g. Shopping Links) Travel (e.g. iAmbassador) Outdoors (e.g. GravityFed)

Conclusion

Influencer Activation

Principles of Activation

3 Facets

I. Definition (of activation)II. Setting incentives in placeIII. Consistency

I. Define Activation

Examples:• Mention on social media• Review within content• Traffic referral• Conversion(s)

II. Set Suitable Incentives

TransactionalRelational

1.Transactional Incentives

Examples:• Cash payment• Free product• Recurring payments tied to consumer actions

2. Relational Incentives

Examples:• VIP Treatment• Event invite• Sneak peek• New product trial

III. Stay Consistent

Conclusion(We must have) a clear, unbiased

understanding of the situation at hand, deep insights into the vagaries of human nature, the establishment of appropriate and reasonable expectations and goals, and the constructions of a balanced set of incentives.

Bronwyn Fryer, “Moving Mountains” (Harvard Business Review on Motivating People, 2003)

III. Stay Consistent

1. Start with the truth2. Appeal to greatness3. Make them proud4. Provide constant and consistent communication channel5. Build trust6. Care for the little guy7. Set different incentive levels

Bronwyn Fryer, “Moving Mountains” (Harvard Business Review on Motivating People, 2003)

Activation in Action

3 Phases

I. Pre-activationII. ActivationIII. Post-activation

I. Pre-Activation

I. Pre-Activation

Source: GroupHighCompensating Influencers While Maintaining Trust, 2015

Consider:Influencer type

Relationship with brand

II. Activation

i. Back them up

ii. Equip them

Equip with…

o Customer demographicso Content about producto Lists of bestsellerso Keywordso Testimonialso Videos

III. Post-Activation

Support them via:

• Social media • Guest blog posts• Feature them in your own marketing

The majority of influencers are motivated when brands help them boost their image and grow their audience.

It’s a “win-win” situation!

Measuring Influencer Marketing

“Measurement is the first step to control & improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”

— H. James Harrington

Measurement Problem?

…or blurry goals?

Customer Journey (AIDA)

Awareness

Interest

Desire

Action

Marketing Funnel

Awareness

Consideration

Action

Awareness KPIs

Views/Reach New followers Re-posts Likes Traffic New links

Consideration KPIs

Views of specific pages Email submissions Free trial/demo request Items in cart Searches Comments Social sharing Newsletter sign-ups

Action KPIs

Revenue ROI Conversion New v. Returning Average Order Value Lifetime Customer

Value

In Conclusion…

It’s all about the imprint

Thank You! Q&A Time