Intelligence In Influence

A New Approach

Carat thinksFor over a decade the age of deference has been over. Instead, people are putting their faith in each other.

Peer recommendations and ratings drive the digital economy - according to McKinsey, marketing-inspired word-of-mouth can generate more than twice the sales of paid advertising, and those customers have a 37% higher retention rate. It’s in this context that influencer marketing has emerged, as marketers seek to align their brands with those we regard as “people like me”.

But when it comes to strategy, our approach to influencer marketing has often had to rely on a combination of reach and gut feel. Even Malcolm Gladwell’s attempt at a model misses the point: “Influence = Audience Reach (# of followers) x Brand Affinity (expertise and credibility) x Strength of Relationship with Followers”

At the heart of the issue is the fact that, to date, nobody has answered the deceptively simple question “who influences who to do what exactly?”

In partnership with Google and Nielsen, we set out to identify a more intelligent approach and critically, to help marketers establish a clearer link between decisions around influencer marketing and business outcomes.

The knowledgeIn the first bespoke study of its kind, our analysis helps us understand whether, why and how influencers drive brand impact and what kind of impact.

Based on interviews with 12,000 people in the US and UK aged 13 -34, over 500 videos were tested across over 20 categories, delivering new insights across the full range of influencer content formats and brand integrations. Three major insights emerged.

Who Profile of YouTube contributors

Influences who Profile of their followers we can identify within our M1 panel data across different client audiences

To do what exactly Measure impact along the consumer journey to understand whether Influencers can drive key stages from awareness through to purchase

Data from a global, large scale proprietary panel capturing lifestyle data including moti-vations, passion points, media consumption, social demographics and product usage. The panel is integrated into the platform and con-nected to Person & Device ID’s at an individual level with sophisticated models.

What is M1 panel?

What is M1 panel?

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1. Celebrities drive recall, influencers build understandingMany a headline-writer has announced influencers as the new, global superstars. But influencer marketing should not be confused with celebrity endorsement. They play different roles.

When it comes to pure recall, celebrities still have the edge. But the data shows that influencers have significantly more impact on brand familiarity (where the effect can be as much as 50% higher), advocacy and driving brand interactions. Importantly, it appears that these effects can vary widely between category.

Source: YouTube Carat Influencer research 2017, n=12,000, US and UK

Pre vs. post brand lift metrics % increase on each brand metric before and after seeing video with a creator

73%

84%

AWARENESS

(RECALL)

CELEBRITY INFLUENCER

25%

17%

BRAND

FAMILIARITY

BRAND

AFFINITY

16%

15%

BRAND

PURCHASE

21%

20%

BRAND

ADVOCACY

19%

16%

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AudiencesDon’t assume that influencers are all about millennial audiences. Our study uncovered a positive response to influencers among older audiences too, though it was by no means universal.

Attributes Influencers who are perceived as Funny, Successful and having Social Media Savvy tended to perform equally strong across all demographics – regardless of gender or age. But all influencers are definitely not the same. Critically, certain influencer attributes are highly predictive of specific brand KPIs:

Categories The impact of influencer marketing is well accepted in, for example, the beauty and gaming sectors. However, our research showed that app, toys, and movie & TV can also benefit, with brand lift and brand recall significantly improved across these sectors.

2. Beyond intuition – how influencers workDeciding on an influencer partnership can often come down to gut-feel or a perceived ‘affinity’ with the target audience. But across audiences, categories and attributes, our pre-conceptions about influencers are not always borne out in the data and there is significant scope for marketers to apply a more informed, intelligent approach.

Which attributes are significant predictors of each KPI?

Source: YouTube Carat Influencer research 2017, n=12,000, US and UK, Modelling by Nielsen:

**Most significant: 99%, *Also significant: 95%

BRAND

FAMILIARITY

BRAND

AFFINITY

SUCCESS

(Large existing fan base)

SUCCESS

(Large existing fan base)

SUCCESS

(Large existing fan base)

PURCHASE

INTENT

BRAND

ADVOCACY

IRREVERENCE* INFLUENTIAL* WHOLESOME** INFLUENTIAL*

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3. It’s not just the ‘who’ it’s the ‘how’It’s not just the choice of influencer type that will impact different brand goals, the choice of content and format also matters, with three types of content consistently working best – and effectiveness being particularly marked in specific categories:

Custom integration: Where content is unique, exclusive to the brand and fully integrated with influencer content e.g. Slow Mo Guys getting overalls dirty in slow motion and using Tide to clean them. Best for Gaming, Movies & TV

Brand integration: Where content may include other brands e.g. Toy influencer doing a doll review and including the new Barbie. Best for Apps.

Advertiser content: Where content is created by a brand, featuring an influencer e.g. Priceless Surprises content with Justin Timberlake on MasterCard channel. Best for Alcohol and Toys

GOAL

BRAND

FAMILIARITY

BRAND

AFFINITY

BRAND

PURCHASE

BRAND

RECOMMENDATION

CUSTOM

INTEGRATION

CO

NTE

NT

TY

PE

BRAND

INTEGRATION

16%

17% 22% 20%26%

25%

-4% -2%

21% 19%

ADVERTISER

CONTENT

16% 21%

PERCENTAGE INCREASE AFTER SEEING CONTENT

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Jamie Oliver and Gordon Ramsay – both renowned chefs. Both with large followings on YT: Jamie 2.4m, Gordon 2m.

Imagine you’re an olive oil brand. What’s the difference? Look under the bonnet and we find that Jamie’s followers want to cook his food. Gordon is followed by the same people, but for entertainment, not recipes. Jamie’s clocked up 37m book sales, Gordon’s sold just 3m.

According to follower numbers and profile, these two chefs look the same. But their impact on a brand will be very different.

Two peas in a pod?

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What we now knowOur research provides a more intelligent, strategic framework for marketers to apply to their influencer marketing approach. So what are the key learnings?

Start with Real People. Who do you want to Influence and why? Influence is a means to delivering results, rather than an end to itself.

Think beyond the clichés – Influencer marketing is often discussed in reference to teens and millennials but our work showed that it’s equally powerful for other audiences (so long as you’re clear on what you’re trying to do!)

Judge numbers on action (what people do) rather than exposure (how many people you can reach).

Don’t confuse Celebrities and Influencers – they have different strengths. Celebrities are great for driving recall (good for an awareness campaign) whereas Influencers are better for brand engagement (e.g. when you’re trying to build understanding).

Test what works for your category and brand goal. Our work found that successful content and format varied considerably by sector.

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What makes this study unique? MEDIA LAB DATA:

What works well and why?N-SCORE DATA:

Who works well and why?

The first bespoke study* of this kind

STRUCTURE:

• 50 videos across 20+ categories

• N=12,000 x 13-34 yr olds across US/UK

• All Influencer content types, e.g. fully integrated vs. product mentions

• Brand metrics, pre + post, e.g. Brand Purchase before and after seeing video

QUESTIONS WE CAN ANSWER:

• Which categories see the biggest brand lifts?

• Which Brand Metrics are impacted most?

• Does this differ by Target audience?

QUESTIONS WE CAN ANSWER:

• Which Talent attributes drive Influence?

• Which Influencers work best by Segments?

STRUCTURE:

• 100+ influencers assessed across US/UK

• N=6000+ respondents asked to rate Influencers across different attributes, e.g.

Likeability, Looks, Style, Humour, etc.

Modelled key attributes and how much they drive Brand Purchase, Affinity, etc.

DEP

TH

BREADTH

Followed up with extensive and various regression modelling run by Nielsen to determine which variables are the best predictors for influence. Two types of models used: stepwise regression and logistic regression

*Research conducted independently by Nielsen using a number of proprietary methods as well

as extensive follow up modelling techniques and analysis

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About CaratWe are the world’s first media agency. We believe in media’s ability to drive business performance. We pioneered the sector and have been redefining what media means for clients ever since.

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Talk to usglobalnb@carat.com +44 (0) 207 430 6000

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