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Into the Mainstream: Influencer Marketing in Society

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INTO THE
MAINSTREAM
INFLUENCER
MARKETING
IN SOCIETY
PREPARED SEPTEMBER 2020
WWW.TAKUMI.COM
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01
MU...
Influencer marketing is
an industry estimated to
be worth $15 billion by
2022, almost double its
value in 2019 ($8 billion...
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TAKUMI surveyed over 3,500 consumers, marketers, and influencers across the UK, US, and Germany to uncover the latest trends in the sector. The report ‘Into the mainstream: Influencer marketing in society’, uncovered divided opinions on what consumers want to see and what brands are willing to engage with influencers on.

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TAKUMI surveyed over 3,500 consumers, marketers, and influencers across the UK, US, and Germany to uncover the latest trends in the sector. The report ‘Into the mainstream: Influencer marketing in society’, uncovered divided opinions on what consumers want to see and what brands are willing to engage with influencers on.

https://runfrictionless.com/b2b-white-paper-service/

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Into the Mainstream: Influencer Marketing in Society

  1. 1. INTO THE MAINSTREAM INFLUENCER MARKETING IN SOCIETY PREPARED SEPTEMBER 2020 WWW.TAKUMI.COM
  2. 2. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01 MULTI-CHANNEL CAMPAIGNS AND SHIFTING BUDGETS . . . . . . 03 S E C T I O N 1 INFLUENCERS MORE TRUSTED THAN NEWS OUTLETS . . . . . . . 10 S E C T I O N 2 INCLUSIVITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 S E C T I O N 3 FUTURE OF INFLUENCER MARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . 18 S E C T I O N 4 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 S E C T I O N 5 METHODOLOGY AND CONTRIBUTIONS . . . . . . . . . . . . . . . . . . . . . . 24 S E C T I O N 6 @abbienaija CONTENTS
  3. 3. Influencer marketing is an industry estimated to be worth $15 billion by 2022, almost double its value in 2019 ($8 billion). This research paper digs under the surface of what makes this industry tick, and what’s on the horizon according to marketers, consumers and influencers themselves. Despite the COVID-19 pandemic and its impact on the economy, this transatlantic research study in fact indicates positivity, highlighting the industry’s resilience and continued growth despite the global economic downturn. Marketers are increasingly putting their faith and budgets in multi- channel influencer campaigns and seeing value in their creative content. Not only that but it’s clear that creative influencer talent is breaking ‘into the mainstream’: providing authentic reflections of the values and principles that INTRODUCTION 1 @thestylecat
  4. 4. consumers hold as well as making forays into the broader marketing and advertising channel mix. As the influencer marketing industry continues to scale and diversify, its wider social responsibility increases. This presents a challenge in terms of regulation and ethical conduct but also bolsters the potential for positive change that the influencer industry can drive. Following the outbreak of the virus, research by the Reuters Institute for the Study of Journalism found that celebrities and politicians with large social media followings were the key distributors of information relating to coronavirus. Prominent public figures and influencers were responsible for 69% of total social media engagement with pandemic information despite only accounting for 20% of related content - showing the powerful role of social media on public opinion. Even the World Health Organisation (WHO) launched its own influencer marketing campaign, supported by TAKUMI, to spread accurate hygiene messaging and positivity. As part of this shift into the mainstream, constructive questions have, and will continue to be directed towards the sector over data protection, diversity and ethical conduct, all of which are ultimately helping to shape it and improve it for the better. Despite the economic context and increased scrutiny, our research shows influencer budgets are continuing to grow. But how can marketers use their spend wisely in an increasingly competitive field and what does the future hold for influencer marketing? In an industry that is continually evolving, this paper examines the priorities and expectations of over 4,000 people on all sides of the industry and across the UK, US and Germany. Our focus spans four key themes; multi-channel campaigns and shifting budgets, influencers as communicators, inclusivity, and the future of influencer marketing. 2 WHO: Safe Hands campaign
  5. 5. Perceptions of influencer marketing are evolving among marketers. Whereas working with influencers may previously have been considered an unknown quantity, a risk or a luxury that not all brands could budget for, marketers now value influencers much more highly as a core advertising channel and creative force. This has led to a far broader range of brands and sectors investing in influencers, and a diversification of the role of influencers in campaigns. To accommodate this increased activity, budgets have also risen. Where are marketers shifting budgets? According to our research, almost three quarters of all marketers (73%) are now allocating a greater proportion of their resources to influencer marketing than they were a year ago. MULTI-CHANNEL CAMPAIGNS AND SHIFTING BUDGETS 3 @matthewandryan
  6. 6. Evan Horowitz, CEO and Co- founder - Movers+Shakers: Marketers in sectors more traditionally associated with influencer marketing are among those most in agreement with this statement, including retail (79%) and sales, media & marketing (76%). However, other more alternative sectors are also significantly reporting a greater allocation of resources towards influencer marketing in the past twelve months, including legal (79%), manufacturing (75%), education (75%), IT & telecoms (75%), architecture, engineering & building (73%), finance (71%), arts & culture (60%), healthcare (63%), travel & transport (47%). Encouragingly for the industry, and perhaps surprisingly, marketers in more traditional advertising channels are among those most increasing resources for influencer marketing, including ‘Out Of Home’ (OOH), digital and billboard advertising (83.3%), print (80%) and TV & Radio (81.3%). This reflects marketers’ growing familiarity with influencers and a heightened trust in their ability to deliver ROI across a more diverse range of channels. Exploring new social channels Marketers’ rising confidence in influencer marketing is increasingly seeing them explore additional channels for this activity. Our research shows the majority (57%) of marketers across the UK, the US and Germany have worked with influencers on multi-platform campaigns - most commonly in the US (61%) and Germany (60%) compared with the UK (51%). Evan Horowitz, CEO and Co- founder - Movers+Shakers: The ‘Secret Sofa by Häagen-Dazs’ campaign is an example of this growing trend towards a multi- channel approach and the benefits it can have for brands. During the UK lockdown, TAKUMI supported an exclusive partnership between Häagen-Dazs and Secret Cinema as they pivoted to an at-home immersive cinema experience. Influencers led the campaign promotion over its eight week duration, securing a two-fold increase in week-on-week sales for Häagen-Dazs and over 80,000 new subscribers for Secret Cinema as a result. 4 THE COVID CLIMATE HAS LED US AND OUR CLIENTS TO LEAN MORE HEAVILY INTO INFLUENCERS. FROM A CULTURE PERSPECTIVE, WITH SOCIAL MEDIA CONSUMPTION UP SIGNIFICANTLY, INFLUENCERS ARE MORE INFLUENTIAL THAN EVER.” “ % of marketers that have worked with influencers on multi-platform campaigns: US 61% UK 51% GERMANY 60% WE FOCUS ON TAILORING EACH ASPECT OF A CAMPAIGN TO THE PLATFORM IT’S LIVING IN. GENERALLY, THAT MEANS WORKING WITH INFLUENCERS WHO GREW UP IN EACH PLATFORM AND REALLY EXCEL AT IT, RATHER THAN WORKING WITH THE SAME FACES ACROSS CHANNELS.” “
  7. 7. Arjoon Boose, Europe-Australasia marketing head, culture and brand experience at General Mills: At TAKUMI, we have continued to witness the growth in popularity of multi-platform marketing campaigns. Adopting this approach allows brands to reach new audiences who are active on each of the platforms and in different ways using the various content types they each support. Jim Meadows, Chief Strategy Officer, TAKUMI: In the UK and Germany, 29% of influencers now work with brands across two platforms on average, rising to three platforms in the US (24%). The demand from influencers to explore these channels also matches that almost exactly: a third of US and UK influencers (32% and 31% respectively) aren’t working on multi-channel brand campaigns but said they want to explore it in future - although this falls to 17% of German influencers. f0urbr0thers, comedy creators and TAKUMI X ambassadors @f0urbr0thers: So what are the channels of preference for influencer collaborations? 5 WITH SECRET SOFA AND #HAAGINDOORS, IT WAS THE IDEAL MOMENT TO PLUNGE INTO A BOOMING ENTERTAINMENT-FIRST PLATFORM LIKE TIKTOK THAT PERFECTLY RESONATED WITH OUR AUDIENCE ALLOWING FOR OUR FIRST MULTI- PLATFORM INFLUENCER CAMPAIGN COMBINING IT WITH INSTAGRAM. WHICH WAS OVERALL STANDOUT IN TERMS OF COLLABORATION, CREATIVITY OF CONTENT, CULTURAL CONVERSATION AND ACTION ON E-COMMERCE AND IN DRIVING PARTICIPATION.” “ ADOPTING A MULTICHANNEL STRATEGY GIVES US THE CAPACITY TO COMMUNICATE OUR MESSAGE NOT ONLY TO VARIED AUDIENCES BUT TO DIFFERENT INTENTIONS. EACH CHANNEL OFFERS DIFFERENT OPPORTUNITIES TO COMMUNICATE.” “ WE HAVEN’T MIGRATED INFLUENCER MARKETING ACTIVITY ACROSS MULTIPLE CHANNELS YET, BUT WOULD LIKE TO ONCE OUR FOLLOWING ON OUR OTHER PLATFORMS IS LARGE ENOUGH TO BENEFIT BRANDS. BEING AS DIVERSE AS POSSIBLE WITH YOUR REVENUE INCOME STREAMS IS IMPORTANT FOR A SUCCESSFUL BUSINESS.” “ Preferred channels for influencer collaborations over the next 12 months: 50% 40% 30% 20% 10% YouTube Instagram Online advertising TikTok TV advertising OOH advertising Twitch Triller 60%
  8. 8. Over the next 12 months, 58% of marketers are considering working with influencers on YouTube, followed by a further 55% on Instagram, 43% on online advertising, 35% on TikTok, 29% on TV advertising, 20% on OOH advertising, 20% on Twitch, and 10% on Triller. Jim Meadows, Chief Strategy Officer, TAKUMI: To capitalise on this, influencers will need to grow their presence across more channels and develop a significant following. Currently, Instagram is the most popular among influencers with 100% of those surveyed in the US and Germany active on it and 97% in the UK. Perhaps surprisingly, Pinterest was ranked the second most popular channel in the US (38%) and in Germany it was TikTok (33%), however adoption of both channels was far lower in the UK, with only 9% and 14% of influencers working on either respectively. Exploring newer social media channels will be an especially important exercise for influencers in Germany, where marketers are most considering campaigns on newer platforms including Twitch (23% compared with 17% in the UK and 19% in the US) and Triller (11% compared with 8% in the UK and 10% in the US). However, these newer channels still have plenty of ground to cover on their competitors if they are to deliver the same resonance and ROI for marketing campaigns. Among consumers, TikTok was named only the fifth most popular channel for engaging with influencers (14%), with just Twitch (8%) and Triller (2%) ranking below it. Meanwhile, YouTube remains the most common channel for consumers to engage with influencers (47%) followed by Instagram (37%), Pinterest (17%) and Snapchat (15%). Expanding influencers’ channel mix As well as their reactions to influencers on social media channels, consumers also shared their verdict on influencers featuring on more traditional advertising channels such as TV and print. Over a third (38%) of consumers we surveyed are open to the idea. However, almost as many (31%) disagree, showing a clear divide most noticeably among the different age groups. 16-24 year olds are most open to the idea of seeing influencers appear in traditional media channels, with over half agreeing (54%). This number decreased steadily across the older age groups, with almost half (43%) of over 55s being actively opposed to influencers appearing in more traditional mediums. Consumers in the US are also most amenable to influencers appearing in traditional media channels (45%), far exceeding popular opinion in Germany (37%) and the UK (31%). 6 Platform most popular for engaging with influencers among consumers: 40% 30% 20% 10% 0% YouTube Instagram Pinterest Snapchat TikTok Twitch Triller 50% AS ADVERTISERS WE CAN UTILISE CREATOR INSIGHTS AND CHANNELS TO POSITION OUR MESSAGE WHEN PEOPLE ARE IN THE RIGHT MODE OF THINKING - THIS IS SOMETHING TV ADVERTISING HAS NEVER HAD THE POWER TO DO.” “
  9. 9. This appetite to see more influencers in traditional media channels is not lost on marketers, who have this trend on their radar - especially in the US and UK. Roughly a third (35% of US and 31% of UK) marketers would be open to including influencers in TV advertising compared with just 20% of German marketers. Similarly 21% and 20% of US and UK marketers would be open to the idea of including them in print or billboard advertising compared with 18% of German marketers. Orlando Buddle, US fashion, lifestyle and travel influencer @orlandoxbuddle: With traditional TV ad production being both costly and far more challenging over the global summer lockdown, brands increasingly considered influencers as an alternative resource. Skilled at engaging audiences and able to create a diverse mix of unique, high-quality and personable creative content at a fraction of the price and at a faster rate, influencers were unsurprisingly an attractive proposition to brands, who desperately wanted to connect with consumers. Evan Horowitz, CEO and Co- founder - Movers+Shakers: As we’ll explore later, social media content consumption skyrocketed - and the medium offered brands a lifeline when trying to reach consumers who may usually visit stores, see billboards, or engage physically with their brands and businesses. Influencers’ priorities Although marketers are looking to engage influencers across multiple owned channels, very few influencers have tapped into this potential. Our survey showed they unanimously prioritised ‘having a dedicated and engaged audience’, and ‘creating innovative and authentic creative content’, over ‘expanding into mainstream media channels’. Less than 1% of UK influencers said it was the most important aspect of working in the influencer marketing industry, while none of the US and German influencers surveyed identified it as a top priority. In fact, despite growing marketer and consumer appetite, 34% of UK influencers, 22% of US influencers and 33% of German influencers ranked ‘expanding into mainstream media channels’ as their lowest priority. Milan Reddy-Devlin, MUA creator and TAKUMI X ambassador @milanreddydevlin: 7 MARKETERS SEEM TO BE MORE WILLING TO HAVE INFLUENCERS JUMP ON [MAINSTREAM MEDIA CHANNEL] CAMPAIGNS, AS IT WILL SAVE THEM A LOT OF MARKETING DOLLARS.” “ SINCE SOCIAL DISTANCING MAKES TRADITIONAL VIDEO PRODUCTION DIFFICULT, WE’RE LEANING ON INFLUENCERS’ ABILITY TO FILM THEMSELVES AND CREATE FRESH CONTENT.” “ % of marketers open to including influencers in TV advertising and print / billboard advertising: 40% 30% 20% 10% 0% US UK Germany TV Print / Billboard
  10. 10. So, as the role of the influencer evolves and their presence on different advertising channels broaden, where can marketers find the best ROI? Where are marketers finding the best ROI? A third (30%) of consumers agree that brands that use influencers to communicate are more compelling and our research shows that marketers clearly recognise the strong ROI potential: almost two thirds (60%) agree that influencer marketing provides the best ROI for brand marketing campaigns, when compared with traditional advertising. This majority rises to 64% and 63% of German and US marketers, although UK marketers are slightly less convinced (54%). Interestingly, marketers operating in more traditional advertising channels, including OOH (69%) and TV & Radio (68%) were among the strongest supporters of influencers for brand marketing campaigns compared to other forms of advertising, underlining influencers’ value beyond social media channels. Overall, online advertising was voted the best marketing channel for ROI on influencer campaigns. A fifth of marketers agreed across the three markets (21%), followed by Instagram (18%), YouTube (18%), TV advertising (10%) and then TikTok (6%). However, marketers across the three countries report varying ROI from each channel. In the UK, marketers consider Instagram as delivering the best overall for ROI on influencer marketing campaigns (21%), while in Germany it is YouTube (23%) and in the US it is online advertising (28%). And, when it comes to emerging channels such as TikTok, US marketers consider more highly its qualities as a channel that delivers ROI (9%) despite the possibility of a nationwide ban, compared with Germany (7%) and the UK (3%). That said, in the wake of huge user increases, many brands are only now foraying into paid campaign partnerships on TikTok. Similar variances also occur in the consumer survey data across different markets and channels, as well as demographics. Above all other channels, over a fifth of consumers (21%) agree TV advertising is the most likely to lead to a purchase, followed by YouTube (16%), Instagram (11%), online advertising (8%) 8 Best marketing channel for ROI on influencer campaigns: 20% 15% 10% 5% 0% Online advertising Instagram YouTube TV advertising TikTok Most likely channel to lead to a purchase, % of consumers: 20% 15% 10% 5% 0% TV advertising YouTube Instagram Online advertising Print or billboard advertising I DO THINK CONTENT CREATORS ARE OVERLOOKED AS I THINK THERE IS STILL A STIGMA AROUND SOCIAL MEDIA AND HOW IT ISN’T CLASSED AS A ‘SUCCESSFUL’ OR ‘RESPECTABLE’ CAREER CHOICE. IT’S SEEN AS MORE OF A HOBBY TO MANY AUDIENCES AND NOT A LONG TERM CAREER.” “
  11. 11. and print or billboard advertising (4%). However, this drastically changes across age groups and nationalities. A quarter (25%) of 16-24 year olds believe Instagram is the most likely to lead to a purchase, followed by YouTube (21%) - significantly more than TV advertising (12%). This was consistent with the research results of our 2019 whitepaper which revealed 91% of 16-24 year olds in the UK and US credited advertisements on social media with influencing their purchasing habits and a further, 60% of this age group credited influencers on social media with driving purchases within the previous six months. Evan Horowitz, CEO and Co- founder - Movers+Shakers: Meanwhile, YouTube leads the way among 25-34 and 35- 44 year olds (23% and 21% respectively), whereas 45-54 year olds and 55+ year olds consider TV advertising the most likely to lead to a purchase (23% and 28% respectively). Only 3% overall believe TikTok is the most likely channel to lead to a purchase, showing it still has plenty of ground to make up on more established marketing channels. Beyond using influencers as a lead conversion tool, marketers are also finding they have a significant positive impact on brand awareness and engagement. We looked at this engagement in more depth. 95% of consumers engage with influencers on YouTube and TikTok at least once a week - more than any other channel, followed by Instagram (94%), Snapchat (92%), Pinterest (87%), Twitch (83%) and Triller (75%). Higher proportions of 16-24 year olds engage with influencer content across every social media channel compared with other age demographics. For example, only 6% of 16-24 year olds don’t use social media to engage with influencers compared with 51% of consumers aged 55 and above. Similarly, US consumers are more likely to engage with influencers across all channels compared with their European peers. In total, 68% of US consumers engage with influencers across at least one of the social media channels compared with 58% of Germans and the 54% of Brits. A noticeable gender split was also apparent across the social media channels with women more likely to engage with influencers on Pinterest (23%) and Instagram (40%) than men (11% and 33% respectively). Whereas men engage more with influencers on YouTube (50%) compared with women (45%). This engagement is highly valued by influencers. Market-wide a ‘dedicated and engaged audience’ was ranked as one of the two most important factors about working in the industry, with agreement from 69% of influencers in the UK, 62% in the US and 73% in Germany. 9 THE YOUNGER GENERATIONS ARE GROWING UP WATCHING AND ADMIRING SOCIAL MEDIA INFLUENCERS MUCH MORE THAN TRADITIONAL CELEBRITIES. GEN Z IS SOCIAL- FIRST, CONSUMING WAY MORE YOUTUBE OR TIKTOK THAN TELEVISION. SAVVY BRANDS TURN TO INFLUENCERS TO GRAB THIS GENERATION’S ATTENTION.” “
  12. 12. As well as expanding budgets and exploring new channels, marketers are also engaging with influencers across a more diverse range of objectives. Increasingly, consumers are turning to influencers not only for product endorsements but also for advice and information. For example, the WHO’s pandemic-related information campaign earlier in the year and Siemens’s #GetCheckedChallenge campaign to raise awareness during Breast Cancer Awareness Month. Consumers’ growing trust in influencers as credible media outlets is transforming their role as creative communicators. 10 @theposhpt INFLUENCERS MORE TRUSTED THAN NEWS OUTLETS
  13. 13. In fact, almost a quarter of all consumers (25%) are more likely to source news updates and opinions from influencers than journalists and established news outlets. Scott Guthrie, Influencer marketing professional advisor: This rises to more than two thirds of 16-24 year olds (38%), 25-34 year olds (38%) and 35-44 year olds (34%). US consumers are particularly likely to agree with this statement (28%) compared with UK and German consumers (24% and 23% respectively). Luke Franks, presenter, influencer and TAKUMI X ambassador @mylifeasluke: Brands are of course not competing with news outlets but they are increasingly vying for poll position when it comes to content creation that grabs consumers’ attention. Increasing trust in influencers is good news for the industry (along with appropriate regulation) but marketers are nevertheless wary of the potential risks involved with using them as an informative or educational communications tool. Last year’s research explored the shared responsibility of regulators, brands and influencers in accurately labelling content and self-regulating to tackle misleading information, and found that more than half (56%) in the UK and the US felt the ASA or FTC guidelines, although clear, needed further development. While in Germany, 35% also called for further clarification. This year, the landscape shows a similar call for greater regulation from governing bodies: 71% of marketers believe it is legislators’ responsibility to stop the spread of misinformation. However, a similar amount (75% and 74% respectively) also believe it is the responsibility of the social media platforms and the influencers’ and brands’ responsibility. Scott Guthrie, Influencer marketing professional advisor: 11 THE MARKETING LANDSCAPE HAS CHANGED TO MIRROR THE SHATTERING OF THE MEDIA LANDSCAPE. CONTROL HAS MOVED FROM MEDIA AND BRANDS TO THE CONSUMER. COMMUNICATORS NEED TO ENTERTAIN AND INFORM RATHER THAN INTERRUPT WITH OVERT SALES MESSAGES.” “ THIS IS A BIG ISSUE AND ONE THAT NEEDS ADDRESSING. I THINK SLOWLY PEOPLE ARE STARTING TO REALISE THAT YOU CAN’T ALWAYS JUST BELIEVE WHAT PEOPLE SAY AT FACE VALUE, ESPECIALLY IF IT’S JUST OPINION. WE’RE ALL BEGINNING TO UNDERSTAND IT MORE, BUT I THINK IT’S OUR INDIVIDUAL RESPONSIBILITY TO CHECK SOURCES AND SAY THINGS THAT ARE BASED ON FACT. I THINK SOCIAL PLATFORMS SHOULD HAVE AN OPTION ALONGSIDE ‘LIKE’ AND ‘REPOST’ THAT SAYS ‘MISLEADING’.” “ INFLUENCERS HAVE A DUTY OF CARE TO THEIR COMMUNITY OF FOLLOWERS - AND TO SOCIETY AT LARGE. INFLUENCERS ARE ADEPT AT CARRYING IMPORTANT MESSAGES INTO SECTIONS OF SOCIETY WHO NO LONGER READ A NEWSPAPER, LISTEN TO THE RADIO, OR WATCH “
  14. 14. This signals an awareness of a shared collective responsibility by all involved in the making, the hosting and the regulating of influencer content. This can only help to improve the quality of content and consumer trust - especially when it can be so damaging, for example coronavirus ‘fake news’. f0urbr0thers, comedy creators and TAKUMI X ambassadors, @f0urbr0thers: But despite growing media attention on the role of social media channels in spreading misinformation - culminating in Facebook appearing before US Congress in July - influencers don’t appear too concerned. In the UK, US and Germany, tackling the spread of misinformation was ranked the least important aspect of influencer marketing by 30%, 54% and 35% of influencers respectively. Luke Franks, presenter, influencer and TAKUMI X ambassador @mylifeasluke: In the UK, only 8% of influencers ranked it among the top three most important aspects of working in the industry. In the US and Germany, none of the influencers surveyed ranked it in their top two. Only 3% of US influencers and 8% of German influencers ranked it as their third most important aspect of working in the industry. This general apathy among influencers towards eliminating misinformation appears out of sync with the rest of the industry and will need to be addressed with support from brands, industry trade bodies and third party agencies if consumer trust in the industry is to continue to grow in the future. Creative control for creators Instead of increased guidance and restrictions however, influencers continue to value having more creative control. Although significantly down on our research findings from last year’s whitepaper, when on average 79% of influencers across the three markets said it was their number one priority, this year it remained highly important. 49% of US influencers and 44% of German influencers ranked ‘creative control and autonomy over content’ as the most important aspect of working with brands - higher than their British peers (28%). It’s important that influencers continue to be trusted by brands with greater creative control and autonomy from the start to the finish of the campaign to secure the best possible ROI for brands. Influencers know their audiences and what makes them tick better than any marketers and so a certain level of consultancy over the creative should be provided on brand campaigns from inception. In response to this industry trend, TAKUMI recently pioneered a creator-led approach to influencer marketing. 12 THERE SHOULD BE GREATER MEASURES IN PLACE TO ENSURE MISINFORMATION IS NOT SPREAD AT THE BENEFITS TO A COMPANY AND THE DETRIMENT TO HUMAN HEALTH. WHEN YOU FOLLOW AN INFLUENCER YOU GET TO KNOW THEM AND FEEL IN SOME WAYS THEIR FRIEND, SO YOU TAKE THAT INFORMATION WITH GREATER WEIGHT THAN A JOURNALIST WHO YOU’VE NEVER HEARD OF.” “ I THINK THERE NEEDS TO BE MORE EDUCATION ON HOW TO CHECK FACTS BEFORE WEIGHING IN ON A TOPIC JUST ACROSS THE BOARD GENERALLY. I THINK MOST INFLUENCERS WHO AREN’T IN IT FOR CLICKBAIT ARE GENERALLY GOOD AT THIS BUT OBVIOUSLY THE ONES THAT GRAB THE HEADLINES ARE NOT. I THINK THAT’S THE SAME AS TRADITIONAL MEDIA.” “ FREE-TO-AIR, LINEAR TELEVISION. WE’VE SEEN THIS THROUGH INITIATIVES FROM THE UNITED NATIONS AND THE WHO HARNESSING THE POWER OF INFLUENCERS TO CARRY MESSAGING ABOUT SOCIAL DISTANCING AND THE IMPORTANCE OF HANDWASHING.”
  15. 15. Jim Meadows, Chief Strategy Officer, TAKUMI: Designed for existing and emerging platforms, TAKUMI X facilitates this relationship between creators and brands, with creators bringing their own insights and expertise into the process from the very beginning. That said, a collaborative co- creation approach is still vital. A fifth (20%) of influencers across all markets ranked ‘a clear brief’ as the most important aspect of the working relationship with brands. This is especially meaningful to UK influencers, 31% of whom cited a clear brief as the single most important aspect of working with brands compared with 15% in the US and 15% in Germany. Overall, influencer marketing content will be improved with greater input to the brief from the influencers themselves, allowing them to create more authentic content that is more closely integrated within their feeds. The result is a more compelling brand promotion and content that resonates better with the consumers’ lifestyles. 13 BRANDS MUST UNDERSTAND THAT THERE’S A REASON WHY CREATORS ARE ABLE TO PRODUCE CONTENT THAT SPEAKS VOLUMES AND WHY THEIR AUDIENCE TRUSTS THEM.” “
  16. 16. Our research last year also revealed a need for greater trust across the industry as a whole, with consumers, marketers and creators agreeing. As the influencer marketing industry has matured, we’ve seen a decrease in the number of influencers who believe a lack of trust and transparency is the principal issue that needs to be tackled by the industry. However, concerns do remain. Almost a fifth (19%) of German influencers and 12% of UK influencers still cited trust as the key issue that must be addressed. Overall, there was less concern in the US, where only 6% of influencers agreed. In the UK, a recent debate around whether influencers and advertisers should be forced to declare digitally enhanced imagery on social media underlines the significance of ongoing conversations around trust and transparency – the backbone of the industry. It also throws into question the importance of INCLUSIVITY 14 @being__her
  17. 17. inclusivity and the representation of wider society - which has emerged in this research as a more pressing and nuanced issue than just ‘trust’ as a whole. Consumers find influencers more relatable Over time, influencers have become communicators in their own right, and consumers have responded positively to this shift in relationship dynamic. With the emergence of nano and micro influencers especially, creators have gradually become more relatable to consumers’ everyday lives and wider society, more so than brand advertising in some cases. We examined this issue of representation and authenticity in more detail and found that 32% of consumers across the UK, US and Germany find influencer content more relatable to their real lives than brands’ own advertising content. This is particularly true among US consumers (41%), compared with UK (29%) and German (26%) consumers. Scott Guthrie, Influencer marketing professional advisor: Younger generations are also far more likely to agree with this statement, showing older generations’ continued preference for traditional advertising. This reflected our 2019 whitepaper results which found over a quarter (27% combined) of UK (23%) and US (29%) consumers trust social media influencers more than high profile public figures/celebrities that promote brands which are relevant to them, rising to over a third (35%) among the German consumers surveyed. Which channel is considered most representative of society? Even though consumers and influencers have shown an affinity towards using newer platforms for engaging with and sharing content respectively, consumers and marketers agree that legacy channels such as YouTube and TV advertising most accurately represent wider society. Across all markets, consumers (26%) and marketers (20%) consider YouTube the channel most representative of wider society, followed by TV advertising, where 18% of consumers and 17% of marketers agreed. Elsewhere, Instagram and TikTok scored much higher among younger consumers - especially 16-24 year olds - 23% of whom selected Instagram and 14% selected TikTok as the channels most representative of society. Influencers tackling societal issues Influencers have embraced their new roles as communicators. There has been an increase in consumer appetite for content that addresses culturally relevant topics, and for social media channels to be used as platforms for mobilisation. The Black Lives Matter (BLM) movement has been propelled into the global news agenda again this year, with the pandemic significantly increasing digital news consumption.This ignited critical conversations around 15 AS CONSUMERS, WE’RE MOVED TO ACTION BY CREDIBLE RECOMMENDATIONS BASED ON FIRST-HAND EXPERIENCES. WE TURN TO AN INFLUENCER’S EXPERIENCE TO FORM OUR OWN EVIDENCE. WE PLACE CELEBRITIES ON PEDESTALS WHILST INFLUENCERS WE BELIEVE ARE PEOPLE LIKE US; RELATABLE, UNVARNISHED.” “ % of consumers that find influencer content more relatable than brands’ own advertising: US 41% UK 29% GERMANY 26%
  18. 18. race and facilitated the spread of awareness and information around discrimination and rights. Simultaneously, it shone a light on the role of brand activism and the wider conversation around diversity within the industry. Many brands were called out for participating in the social media #BlackoutTuesday, but not demonstrating any tangible commitment to solidarity nor reflecting diversity within internal structures. It also highlighted the need for brands to get comfortable with influencers and their consumers taking a stance on ‘everyday activism’. Orlando Buddle, influencer and TAKUMI X ambassador @ orlandoxbuddle: Consumers want to see social media influencers taking a strong social stance on important current affairs. 41% of consumers agree that social media influencers should use their platforms to discuss current affairs and everyday activism. This is highest among younger generations, with over half (58%) of 16-24 year olds and 25-34 year olds (56%) agreeing. In the US and Germany, consumers are more likely (45% and 44%) to agree with this sentiment than in the UK (34%). However, a high proportion of UK consumers (41%) don’t have strong opinions either way. Across all markets, a quarter (25%) of consumers think social media influencers shouldn’t use their platforms to discuss current affairs and everyday activism. Scott Guthrie, Influencer marketing professional advisor: These trends are repeated when consumers were asked about ethical stances. Just under a third (31%) of consumers disagreed with this statement. At TAKUMI, we are witnessing more brand campaigns that are driven to tackle social issues, with many influencers building long- term relationships with brands who are or aspire to be good corporate citizens. This may indicate brands’ lack of confidence to communicate on these topics authentically. 16 % of consumers that agree social media influencers should use their platforms to discuss current affairs and everyday activism: 60% 50% 40% 30% 20% 16-24 25-34 35-44 45-54 55+ “ Over 39% of consumers say social media influencers have a greater influence on them if they show they have a social conscience or strong ethical stance: MANY BRANDS AND MARKETERS WILL SUPPORT IN THE MIDST OF POLITICAL UPROARS BUT ONCE IT DIES DOWN THEY ARE NOWHERE TO BE FOUND AND EVERYTHING GOES RIGHT BACK TO SQUARE ONE. IT WOULD BE GREAT TO HAVE MORE AUTHENTIC SUPPORT FROM BRANDS AND MARKETERS THAT WAY MORE INFLUENCERS WHO RECOGNISE THEMSELVES AS A MINORITY CAN FEEL LIKE THEY HAVE A VOICE.” “ INCREASINGLY WE EXPECT THE BRANDS WE BUY FROM TO STAND FOR SOMETHING BEYOND MAKING MONEY. A SHARED PURPOSE AND SHARED VALUES HAVE BECOME A PART OF OUR INTERNAL CHECKLIST WE RUN THROUGH BEFORE DECIDING WHICH COMPANIES TO ASSOCIATE WITH. BUYING IS BECOMING A POLITICAL ACT.”
  19. 19. Reflecting consumer opinions that influencer content is more relatable to real life than brands’ own advertising content, 56% of marketers think influencers communicate better about political and social issues than brands. German marketers most strongly agree (60%), compared with the US (59%) and UK (50%). In return, influencers want to establish relationships with brands who are aligned with their moral standpoints. A quarter (25%) of influencers ranked this as one of the top two most important aspects of working with brands. However, over half (55%) of marketers surveyed across the UK, US and Germany indicated they would be anxious about working with an influencer who is vocal about social and political causes. Smaller marketing firms are more open to the prospect, with 62% of marketers working at associated firms saying they’d be open to working with these sorts of influencers. This is compared with companies with bigger budgets who generally feel more nervous about the prospect - 67% of relevant marketers stated they’d be anxious about working with an influencer who is vocal about politics and social causes. This demonstrates a split across the industry, with some marketers embracing influencers as platforms for mobilisation, and others approaching with more caution. Now more than ever, influencers are taking on more ethical and social responsibility, generating content that is much more relatable than brands’ own content in the eyes of the consumer. 17 % of marketers that think influencers communicate better about political and social issues than brands: US 59% UK 50% GERMANY 50%
  20. 20. Influencer marketing has come a long way since its inception, and as our research has demonstrated, global perceptions of the industry have shifted. Self-made talent has overwhelmingly been breaking into media channels outside of social platforms, and the concept of an influencer now carries far more weight than just in association with Instagram. These creatives are becoming increasingly powerful professionals. We’ve seen content creators who started out on social media now creating their own brands, products and services, as well as entering mainstream entertainment channels, writing books and appearing on television. What comes next looks to be an exciting chapter – so what does the future of influencer marketing hold? And what consumers and marketers want to see from it? FUTURE OF INFLUENCER MARKETING 18 @beautifully_defected
  21. 21. TikTok is a channel marketers can put their faith in for the future, but data privacy concerns must be resolved Despite recent controversy around TikTok in the US, with President Trump threatening to ban the app and CEO Kevin Mayer leaving his position after just two months after joining from Disney, consumer perceptions of TikTok are still positive overall. 14.2% of consumers across all markets use TikTok, 94.6% of whom use it at least once a week. And research shows there hasn’t yet been mass migration to competitor platform Triller as feared. Less than 2% of consumers surveyed use Triller to engage with influencer content, the lowest figure of all social media channels. TikTok is likely to establish itself as a facilitator of long-term brand- influencer relationships, but must address the lingering concerns around data privacy, a topic which has recently dominated the mainstream news agenda. When asked which marketing channels were the most data secure, only 1.6% of consumers chose TikTok, the lowest scoring of the more well-known channels. Consumer confidence around data security is highest with TV advertising, followed by YouTube, print or billboard advertising, Instagram and Pinterest. Marketers have a slightly different view. The majority of marketers perceive online advertising to be the most data secure channel (15.5%), followed by print or billboard adverts (14.0%), TV advertising and YouTube (13.5), Instagram (11.1%), with TikTok bringing up the rear at 5.6%. Data privacy is also recognised by influencers as a growing concern across the industry. Over a third (34.6%) of UK influencers believe data privacy is a fundamental issue that needs to be tackled. 27.9% of US influencers and 23.1% of German influencers agree. Luke Franks, presenter, influencer and TAKUMI X ambassador @mylifeasluke: Data privacy is an ongoing and industry-wide issue that the sector is facing as a result of new technology rapidly propelling social media growth - and platforms must take responsibility for the online safety of its users. Influencers must avoid recycling content As the industry matures and consumers become more vocal about how, where and why they consume creator content on social media, influencers must refine their approach on different channels - especially, as increasing numbers of consumers (38%) are following the same influencer across more than one platform. 19 Marketer perceptions in % on how data secure each channel is: 20% 15% 10% 5% 0% Online advertising Print or billboard adverts TV advertising and YouTube Instagram TikTok % of influencers by country who believe data privacy is a fundamental issue that needs to be tackled: US 28% UK 35% GERMANY 23% AS ALWAYS, AS AN INFLUENCER I THINK IT’S ALWAYS IMPORTANT TO DO YOUR RESEARCH. IF YOU ARE SUPPORTING A BRAND OR PRODUCT, PEOPLE WILL TRUST YOUR OPINION ON IT SO YOU NEED TO BE HAPPY THAT IT’S SAFE AND HAS EVERYONE’S BEST INTEREST AT HEART. I THINK THERE IS ALSO A RESPONSIBILITY AT THE BRAND/SOCIAL MEDIA PLATFORM LEVEL TO BE TRANSPARENT AND SOME COMMON SENSE AT THE CONSUMER LEVEL TO ALWAYS DO YOUR OWN RESEARCH.” “
  22. 22. Over a third (37.1%) of consumers across the UK, US and Germany prefer influencer content that is adapted for various social media channels, rather than re-posted. Half (50%) of US consumers agree, compared with 30% of UK consumers and 32% of German consumers. Younger consumers have stronger views on this than older audiences, however overall sentiment remains the same. 61.3% of 16-24 year olds want to see content that is curated specifically for the channel on which they are engaging with influencer content. To echo this point, 41.6% of consumers actively dislike when influencers repost the same content on different channels, and 41.3% are ambivalent. Our research found this to be consistent across the three markets, with 38.9% of UK consumers, 44.8% of US consumers and 44.2% of German consumers agreeing. Consumers want influencers to be transparent and have a clear ethical stance Consistent with last year’s research, consumers still say they’d most like to see more influencer transparency around commercial relationships with brands – almost a third (32.6%) of consumers surveyed across the three markets agree. We are also witnessing the emergence of some interesting trends and attitudes as the industry has matured, namely relating to creators’ principles. A strong ethical stance features highly as a key consumer desire for the industry. This is particularly popular among younger generations of consumers, with 39.2% of 16-24 year olds agreeing they’d like to see more of an ethical stance from influencers in the future. Diversity must be taken seriously Conversations around diversity within the industry have become increasingly urgent, with influencers across the globe (especially in the UK and US) extremely aware that issues surrounding diversity in brand partnerships must be addressed if influencer marketing is going to thrive - and continue to be the relatable reflection of real life that consumers want. Bushra Sidd, UK fashion, lifestyle and beauty influencer @bsiddlife: This trend is reflected when influencers were asked what they’d like to see more of in the future. 20 29.8% of consumers across UK, US and Germany agree they’d like to see more of this from influencers in the future: I THINK AN ACTIVE EFFORT NEEDS TO BE MADE TO IMPROVE DIVERSITY RIGHT NOW, FOR EXAMPLE WITH SOMETHING LIKE HAVING QUOTAS, FOR IT TO BECOME MORE SEAMLESS IN THE FUTURE. BUT WITH RECENT EVENTS & ATTENTION TOWARDS THIS TOPIC, I CERTAINLY SEE IT HEADING IN THE RIGHT DIRECTION!” “
  23. 23. Over half of UK and US respondents (56.6% and 57.3% respectively), and exactly 50% of German respondents ranked diversity within campaigns as a principal issue that needs to be considered by marketers moving forward. Scott Guthrie, Influencer marketing professional advisor: There must also be a greater focus placed on female creators. Our research shows that 55% of female consumers feel brands tend to misconstrue the notion of what it is to be feminine. 94% of women between 15-35 years old spend an hour a day shopping online and as a whole, women drive 70-80% of all consumer purchasing decisions. When planning campaigns, brands must seriously consider engaging some of the creative and entrepreneurial female influencer talent on offer, in order to really tap into their target demographic. Jim Meadows, Chief Strategy Officer, TAKUMI: TAKUMI works to empower influencers, creators and brands alike, and has launched TAKUMI X Female Collective, an Insight Collective designed to connect brands with purpose-driven influencers to open a dialogue between young women and everyday brands. The Female Collective will shape brand narratives that represent their experience in culture. Marketers must tackle the issue of fair and equal pay To establish successful long-term relationships, which inevitably pique consumer interest and lead to higher levels of engagement and campaign success, marketers and influencers must take each other’s priorities into consideration. What marketers across the UK, US and Germany want most is to identify the right influencers for a brand campaign (55.4%), to find a balance between brand and influencer creative control (46.2%), to demonstrate ROI (43.3%) and to build long-term (and retain) strong influencer relationships (42.3%). However, influencer priorities are very clear. In order for marketers and content creators to work successfully with each other moving forward, the issue of fair and equal pay must be taken seriously by marketers. This is a sticking point especially in Germany, where 71.2% of influencers believe that equal pay is the number one issue that needs to be tackled by marketers in the future - and 44% of UK influencers and 52.9% of US influencers agree. 21 % of respondents that ranked diversity within campaigns as an issue to be considered: US 57% UK 57% GERMANY 50% INFLUENCER MARKETERS WITH ENLIGHTENED CLIENTS ARE CALLING FOR A BREADTH OF TALENT. A DIVERSITY OF TALENT. A TRUE REPRESENTATION OF THEIR CUSTOMER BASE AND OF SOCIETY AT LARGE. THIS PUSH FOR INCLUSIVENESS IS A MARRIAGE OF ETHICS AND SOUND BUSINESS SENSE.” “ WHILST MOST ADVERTISING APPEARING TO BE FEMININE IS DIRECTED AT WOMEN, ALL TOO OFTEN IT’S OBVIOUS THAT THE ADVERT WAS MADE BY A MAN (FROM THE OBVIOUS LACK OF UNDERSTANDING FROM A WOMAN’S PERSPECTIVE DISPLAYED IN THE AD)” “ % of influencers that believe equal pay is the number one issue that needs to be tackled: US 53% UK 44% GERMANY 71%
  24. 24. Influencer marketing has rapidly evolved in its short lifespan, with industry perceptions shifting significantly as it has matured. Increasingly influencer marketing is on the public’s radar, and consumers overwhelmingly believe influencers have become compelling communicators, challenging household names and journalists alike. As a result, influencer budgets have continued to grow, with marketers shifting resources towards emerging social media channels which are providing competition for legacy platforms. Digital consumption is at its peak and will continue to do so, and brands are excited to tap into new audiences who are active across each of the various platforms. Content creators have reached the mainstream, and are making waves in terms of consumer trust, which is increasing in tandem with CONCLUSION 22 @jack_anstey
  25. 25. the growth of the industry. As a result, marketers and influencers must be prepared to tackle the spread of misinformation. As with last year’s research, consumers still value trust and authenticity – it has become a base-level requirement for any influencer who wants to be taken seriously. Bushra Sidd, UK fashion, lifestyle and beauty influencer @bsiddlife: With conversations around diversity, race and culture thrust into the fore at the height of the pandemic, our research has found consumers to be hungry for content produced by influencers who take a stance on societal and political issues. Influencers who use their platforms to discuss current affairs and everyday activism will be key for marketers moving forward, and any anxieties around engaging these sorts of content creators must be quelled. For marketers to develop meaningful working relationships with influencers ongoing, current concerns around fair and equal pay must be addressed, with a significant proportion of content creators surveyed agreeing this is a principal issue that needs to be tackled. Influencer marketing is evolving at an exponential rate. As brands and content creators continue to adapt to meet consumer appetite, the industry looks to be unstoppable. 23 I THINK MOST PEOPLE WILL LOOK AT MAXIMISING THEIR OWN BENEFITS FIRST & FOREMOST SO IT’S IMPORTANT TO BE AWARE OF ONE’S RIGHTS & WORTH. THAT BEING SAID, THERE’S ALSO BEEN COUNTLESS TIMES A BRAND HAS HAD AN INFLUENCER’S BACK & FOUGHT IN THEIR CORNER TO PROVIDE FAIR COMPENSATION.” “
  26. 26. In August 2020, TAKUMI commissioned and executed this research based on 3,592 respondents. TAKUMI conducted research via online surveys, interviews and focus groups. Survey Monkey was commissioned by TAKUMI to execute a study of 291 influencers in the UK, US and Germany. Censuswide was commissioned by TAKUMI to execute a study of 3,010 nationally representative consumers (aged 16+) and 756 marketers in the UK, US and Germany. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. METHODOLOGY 24 @anotherblondetraveler
  27. 27. @takumihq @TakumiHQ @takumihq Takumi Jim Meadows Chief Strategy Officer, TAKUMI f0urbr0thers Comedy creators and TAKUMI X ambassadors Instagram: @f0ub0thers TikTok: @f0ub0thers YouTube: Four Br0thers Orlando Buddle Orlando Buddle, US fashion, lifestyle and travel influencer Instagram: @orlandoxbuddle Milan Reddy-Devlin Milan Reddy-Devlin, MUA creator and TAKUMI X ambassador Instagram: @milanreddydevlin TikTok: @milanreddydevlin YouTube: MilanReddyDevlin Evan Horowitz CEO and Co-founder - Movers+Shakers Arjoon Boose Europe-Australasia marketing head, culture and brand experience at General Mills CONTRIBUTIONS Thank you to all of the industry commentators, influencers and creators who contributed their viewpoints and experiences for this report. Scott Guthrie Influencer marketing professional advisor Luke Franks Presenter, influencer and TAKUMI X ambassador Instagram: @lukefranks TikTok: @mylifeasluke YouTube: Yep Luke Franks Bushra Sidd UK fashion, lifestyle and beauty influencer Instagram: @bsiddlife TikTok: @bsiddlife

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