Influencer marketing

McCann Content Studios Unites Social and Creator Capabilities

McCann has announced McCann Content Studios. It intends to offer businesses worldwide the capability of integrated social commerce, influencer marketing, and social media marketing. This new studio will include performance monitoring, audience development, creator relationships, and creative services. It will include comprehensive social and creator strategy and execution in a single organization. It will help streamline the process for customers working on social and creator-led campaigns. The network’s social and influencer strategy skills, as well as those for social creative ideation and content creation, social audience, connection tactics, and activation, influencer content co-creation and production, performance measurement, and optimization, will all be housed at McCann Content Studios. The addition of expertise from ITB and McCann LIVE should help the unit get off to a solid start.

McCann Content Studios

McCann Content Studios will implement the innovative influencer agency ITB from IPG. It was established in 2006 and has offices in London, New York, and Los Angeles. For clients like Unilever and Mastercard, the agency has a proven track record of success in leveraging influencers to promote brand platforms. The studio will also incorporate the global social practice, McCann LIVE. It has influenced the social policy of businesses like Converse in the US and Aldi in the UK.

As the distinctions between social media and the creator economy become more hazy, the new content studio is positioned as a full-service provider. The expected expenditure on influencer marketing would increase 3.5 times faster than spending on traditional social media ads. The ongoing Hollywood strikes may also encourage more creators to look for endorsement deals when productions come to a standstill. Customers, however, continue to rely on creative and engagement trends generated from popular Gen Z apps such as TikTok.

Read More: Red Havas ME Launches Influencer Marketing Initiative “SWAY”

The new unit leadership

The agency has chosen Amit Sutha to lead McCann Content Studios as president and global chief client officer. He will report to Daryl Lee (CEO). Sutha has had a global career spanning continents. Most recently, he served as Global Chief Client Officer and Global President of Performance & Campaign Content at Mediabrands Content Studios. Sutha has built both creative and media firms into leadership positions in their industry. His work at Mediabrands, which combined the best in media, storytelling, talent, data, and collaboration, significantly changed the concept of creative media content.

McCann and McCann Content Studio have promoted Monica Tailor, formerly the Global Director of McCann LIVE, to Chief Social Marketing Officer. Under Tailor’s direction, McCann LIVE swiftly established itself as an essential component of McCann’s core client offering, fusing brands with culture in exciting and unique ways. She developed a brand voice and brand storytelling that maximized social attention and conversions, assisting McCann’s integrated Aldi team in becoming internationally known.

Crystal Malachias, who was previously SVP of Global Growth & Innovation at ITB, has been named Global Head of Influencer at McCann Content Studios. She has extensive experience in influencer marketing and has worked with Hearst, and Say Media, and helped launch Refinery29 in the UK.

Here’s what they said

McCann global CEO Daryl Lee said in a statement,

Brands are increasingly interacting today in social communities in dialogue with fans, creators, and influencers. McCann Content Studios will provide our clients with a way to participate in the creator economy and co-create with them without losing their brand’s unique perspective and social voice, getting the best of both worlds.

He further added, 

We have some of the industry’s very best leading McCann Content Studios. Amit is a content entrepreneur with a proven track record of commercial success. Monica is a pioneer of brand-driven social marketing for some of the world’s most socially impactful brands. Crystal is a trailblazing influencer marketing talent who understands the power of creators to shape culture and advocate for brands. Together, they represent a powerhouse of expertise that will help guide brands to new frontiers of co-creativity

Read more: 10 Game-Changing AI Tools for Digital Marketing in 2023

Kofluence Unveils Kofinity, An Assured Path to Brand Partnerships

Prominent AI-led platform, Kofluence, has debuted Kofinity, its newest offering. It serves as a forum for emerging artists to collaborate with businesses. Every content creator who uses the product has the chance to earn money from their social impact thanks to brand partnerships. According to Kofluence, with the introduction of Kofinity, creators can concentrate completely on producing content and increasing brand visibility. Additionally, it will give creators the tools to monetize their passion.

Kofluence has executed over 1600 campaigns effectively across 30 verticals. They also claim to have 550k collaborators on board and a reach of over 6 billion people. Without a doubt, Kofluence is the pioneer in influencer marketing tools.

Kofinity for Creators

Kofinity gives creators a chance to develop business relationships with brand partnerships and earn profit. Through the website ‘kofluence.com/in‘, which will act as the main interface for these deals, the product enables consumers to get a free, distinctive URL. By partnering with brands, creators may profit from every purchase made through their unique link. Through social and messaging channels, users can share offers and promotions from brands with their followers. ‘Always-on’ campaigns allow creators and businesses to collaborate. Additionally, the business guarantees earnings on any purchases made using the customized link.

Kofluence further states that top performers on Kofinity can make more than INR 25,000 every week. Guaranteed selection for collaborations with minimal content development and no prior content review comes along with that. Getting premium offers typically involves meeting eligibility requirements or considering costs. Kofinity, however, enables content producers to communicate these offers to their audience. They can therefore readily and freely use them without meeting any such requirements.

Here’s what they said

Speaking about the launch Ritesh Ujjwal, CEO and co-founder, Kofluence said,

We’re thrilled to introduce Kofinity! With this launch, we’re confident that Kofluence is well-positioned to lead the charge in this rapidly evolving industry. We aim to foster India’s thriving creators economy by monetizing 100k influencers in the next 12 months, enabling creators on their journey to becoming creator-preneurs.

Sreeram Reddy Vanga, co-founder of Kofluence, stated,

As excited as we are about the launch, what I’m looking forward to is Kofinity being a means of self-sufficiency for all the budding creators. Kofinity is expanding its horizons beyond social media like Instagram and Youtube. Now, creators can easily share their offers and deals within their social circles through multiple social networking platforms by using their unique link.

About Kofluence

Ritesh Ujjwal and Sreeram Reddy Vanga founded Kofluence, a leading AI-driven influencer marketing platform in India. The platform’s powerful proprietary AI & ML powered platform, which lets brands and influencers generate revenue from their social influence, revolutionizes the Ad-tech sector. The company has utilized its extensive category experience to service over 400 companies across 30 industries. With the help of technology, Kofluence offers a technology-driven interconnected network where businesses and social media users may find and be found by one another, choose the partners they want to collaborate with and do so at transparent prices with no additional fees. Additionally, Kofluence provides a distinctive, feature-rich Brands App and Creators App that makes collaboration simple and allows for end-to-end campaign management.

Read More: 10 Game-Changing AI Tools for Digital Marketing in 2023

Red Havas ME Launches Influencer Marketing Initiative “SWAY”

Red Havas Middle East, the Havas Group’s public relations branch in the Middle East, has announced the beginning of SWAY, a global influencer marketing program. The information was released on all of the PR firm’s social media channels. The influencer marketing effort, which had just been introduced in the area, became global on July 17, 2023. SWAY by Red Havas is a complete solution to an influencer marketing platform. It intends to assist companies in generating effective, entertaining, and realistic brand discussions via influencers.

SWAY for Influencer Marketing

SWAY by Red Havas combines PR, social media, and experiential marketing teams to create social media-first marketing campaigns with influencers that have a real impact on the bottom line. Influencer marketing is becoming more recognized as a performance channel. This led to the creation of an international practice. Through yearly market-leading insights and patterns, in-house specialist-led creative workshops, and panels with partner talent agents, the SWAY specialists will also push the influencer agenda at an industry level. Additionally, it includes premier centers in the Middle East, Australia, Asia, Europe, and North America.

Through a five-step recommended framework from recognition through measurement, the project provides an end-to-end solution for influencer marketing.

• A roadmap for a strategic cadence with a focus on genuine, long-lasting connections.
• Defined channel roles across all social media outlets.
• Provide guidance and brand reputation management for novel and developing technology trends.
• Close interactions with industry partners, and access to the best data and social media technologies.
• Tailored proxy metrics for thorough campaign assessment and reporting.

Read More: Havas Invests in Uncommon Studios in A Bold Pledge to Creativity

Here’s what they said

James Wright, global CEO of the Red Havas Group, and global chairman of the Havas PR Global Collective said in the announcement,

More brands than ever before are adapting their broader strategy and communications to include significant influencer activity. Some even put influencer marketing front and center, recognizing it as a full-funnel marketing channel. It’s no longer just a paid transaction. Brands are building long-term relationships with influencers who advocate their messages and experiences.

He continued by saying that the Red Havas Group has worked in this area for years. The next logical step would be to explicitly focus on this as a worldwide practice as they are now working with more than 100 businesses and organizations on their influencer activities.

Dana Tahir, Managing Director, Red Havas Middle East added, 

SWAY empowers us to leverage the technical prowess of the Red Havas network, combined with deep local understanding, to guarantee unparalleled influencer campaigns to our clients, both at a regional and worldwide scale. The role of influencers, particularly in the Middle East, holds paramount significance as they hold the ability to bridge connections and foster authentic engagement, establishing a profound impact on the audiences they reach.

Read More: Mastering Digital Marketing: Insights from Kosal Malladi, VP at Madison Loop

Lemon8, TikTok’s sister app struggles in the US, users cite inorganic feel and influencer bias

Lemon8, the sister app of TikTok by ByteDance started off positively. Thanks to TikTok’s reach and success in the international market, it became widely popular. But like every new app launched, Lemon8 too has become saturated for a very good reason. While U.S. lawmakers were debating on a ban on TikTok earlier this year, parent company ByteDance was quietly preparing the launch of its social media app Lemon8.

TikTokers were excited about the latest platform, and the app downloads skyrocketed placing the app at #2 in the App Store in the U.S. Before we dive into what issues that app is facing, here is a brief description of Lemon8 for those who have never heard of it.

Lemon8, what is it?

Lemon8 is a social media platform, best known for fusing Instagram and Pinterest. A lifestyle-based app, it allows content creators to share photos and videos curated around a specific topic. Initially launched in Japan in 2020, it quickly gained traction before reaching its peak popularity in the western markets three years later. The app features a main side-by-side vertical feed where users can post images and videos and decorate them with in-app templates. The platform broke the barriers between audiences and influencers with its feature that allowed creators to tag their posts with product details, links, and price breakdowns.

Specifically designed with the younger Gen Z audience in mind, the app is more about aesthetics and DIY tips, unlike other social media spaces. Food, wellness, fashion, beauty, home, travel, and productivity are the seven content categories. Under each topic, one can find recommendations, video tutorials, and perfectly crafted content that appeals to the eye.

But as the initial hype died down, like any other newly launched application, users faced problems with the app. Lemon8’s popularity tanked and since then, its DAUs have nearly halved from 11,930 to 6,360.

Users say Lemon8’s algorithm lacks the magic of its sister app TikTok: “I mostly get bible content from religious people and weight loss tips, and I’m not interested in either of those”https://t.co/GlSBCKlS1k

— Rest of World (@restofworld) July 19, 2023

 

Aesthetically curated or just a gimmick?

Lemon8, launched as a follow-up app for TikTok, flopped in the U.S. Users complain that the app is too pretty and well-curated to the point of feeling fake. Here are some problems users feel need to be addressed

• The app feels inorganic and well-manicured
• It focuses more on influencers’ needs rather than ordinary users
• Feed crafted to blandness
• Feels like an app created for creators, by creators
• Ordinary users feel left out
• Algorithm lacks gauging user preferences and keeps showing recommendations that users were not interested in.
• App does not support sharing external links, making it difficult to build a brand on social media.
• Everything was well presented and well-crafted when users refreshed their feed
• Users complained of declining engagement

The app sets unrealistic standards and idealizes lifestyles. One user commented that the app reminded her of Pinterest in its early days when it was just “white girls” who posted about their lifestyles. The app is filled with topics like “The time I realized skinny privilege is real”, “Hot Girl Lunch Ideas” and more.

Another user pointed out that niche topics like dark academia, or cottagecore did not gain as much traction as conventional topics did. The user also mentioned that the app did not feel ready to have a real-world conversation. Lemon8 is also recruiting lifestyle influencers to collaborate with them on a paid partnership. In return, the creators are promised exposure and guidance. One of the ads posted by the platform stated that they were looking for “U.S. based women aged 18-25, and had an ‘It Girl’ aesthetic with a background in creating ‘high quality’ beauty and fashion content.

A Chinese app rip off?

Lemon8 is a replica of the Chinese social media giant and e-commerce platform called “XiaoHongShu” which literally translates to a “Little Red Book.” It has been deemed the “lifestyle bible” and hosts more than 200 million monthly active users. In simple terms, it can be described as China’s own Instagram. The platform targets women in their 20s and 30s from first and second-tier Chinese cities. Thus, women belong to affluent families with higher spending capacity. The female-to-male ratio on the app is 8:1 (88.8% of females and 11.1% of males).

Users share their lifestyles, shopping experiences, and other content in the form of photos, videos, texts, and live streams. Content can range from beauty and cosmetics to food, fashion, travel, fitness, entertainment, etc.  Social features allow users to discover the latest brands. It is immensely popular among beauty and fashion brands like Chanel and Dior.

ByteDance saw the absence of such a platform on the global market as an opportunity to replicate XiaoHongShu’s domestic success. Therefore, they launched an “overseas Little Red Book” Lemon8 in the hopes of capitalizing on TikTok’s reach and success.

Our thoughts

In their optimism about imitating a widely successful app, ByteDance, and Lemon8 failed to consider the drawbacks. XiaoHongShu users also complained that the app set unrealistic standards for women’s beauty and wellness. Over in the US, its adversary faces similar problems. When one opens Lemon8, the very first thing that runs through the mind is that it is filled with clickbait-ish content, including how to lose weight in 40 days, apps to get free products from any brand, etc.

In addition, the app was full of white women between the ages of 20 and 30. They promoted beauty, Christianity-related posts, and high fashion, which not many users can relate to. This in many ways contrasts with the ongoing body positivity initiative that encourages women to feel comfortable in their own skin. As there are no brands allowed on Lemon8, it is impossible to convince people to make a purchase. Despite losing active users, ByteDance is still promoting the app to increase outreach, and posting upcoming job listings as well.

Lastly, the app lacks inclusivity. Lemon8 is women-dominated with next to zero male audience. It is highly likely that Lemon8, which is also owned by a Chinese company, will be banned like TikTok.

All in all, like every new app, Lemon8 too has had its fair share of fame, is becoming less and less relevant to its audience. It has come to this point also because the platform has not taken any plausible action to convert targets into users. The app feels like a space with pretty content, but not relatable. Users have mentioned giving it a try again, if and only if the platform brings changes to make it more than what it already is.

What do you think is the future of this obsolete social media app?

Read More: TikTok Gets More Visual, Launches ‘Interactive Add Ons’ For In-Feed Ads 

Mastering Digital Marketing: Insights from Kosal Malladi, VP at Madison Loop

Kosal Malladi, the accomplished Vice President of Madison Loop, is renowned for his expertise in digital marketing and media planning. With a rich background in the industry, he has made remarkable contributions, working with diverse clients in sectors like Auto, BFSI, Entertainment, Social, and FMCG. His extensive experience spans both agency and client sides, providing unique insights into data-driven marketing, influencer collaboration, social media management, and the exciting future of the digital marketing landscape.

In this exclusive interview, we explore his vision, leadership, and the exciting journey that led him to the forefront of digital marketing innovation.

1. Can you provide an overview of your experience and background in the field of digital marketing and media planning?

My interest in digital marketing started during my MBA. Google held a competition where they provided INR 1000 vouchers to each team and tasked them with setting up Google AdWords campaigns. This experience sparked my interest in digital marketing, and I further developed my skills during an internship at ESPNStar, where I implemented what I had learned.

I began my career in Digital Media Planning with Media2Win, where I gained valuable experience and eventually took on leadership roles in managing digital mandates for clients such as Mondelez and Asian Paints, among many others. This field is constantly evolving, and I find it exciting to continually learn and adapt to new trends and strategies

2. In your opinion, how has the intersection of data and technology transformed the landscape of digital marketing and media planning? What opportunities and challenges does this convergence present?

The biggest challenge for digital marketing is data, whether it’s too much or too little. Initially, the focus shifted towards tracking leads/sales, neglecting brand building. Short-term gains became more tempting than long-term benefits. However, with increased spending, the demand for accountability has grown. Technology allows us to analyze data and derive actionable solutions from it. Nonetheless, the absence of a universally accepted authority like Broadcast Audience Research Council (BARC) poses a challenge for digital marketing. Until then, disputes will persist. The ultimate solution lies in digital marketing delivering positive business outcomes, which we are witnessing today.

3. What initially attracted you to lead the digital creative unit ‘Madison Loop’?

Media is only a part of digital marketing; creative aspects are equally important in driving positive business metrics. I have noticed a tendency for media and creative teams to blame each other when campaigns fail. Creative individuals often lack a grasp of numbers, while media professionals may struggle with creativity. Madison Loop was founded to bridge this gap between media and creative, symbolized by its name. At Madison Loop, we strive to complete the business loop and achieve results.

4. How do you approach social media management to effectively engage audiences and drive brand awareness?

Social media thrives on authenticity, but that doesn’t mean you can’t promote your brand. It’s important to be transparent about your intentions when selling. The key is to create authentic content and tap into the latest trends and fads. If you have to choose between posting high-quality content infrequently or good content regularly, opt for the latter. Consistent posting increases the chances of gaining traction. However, it’s important to note that there’s no guarantee of virality. Focus on regularly sharing good content, and something is likely to gain momentum—whether it’s tomorrow, a week later, or even a month later.

5. Would you like to share a successful social media campaign you managed on a specific platform like Instagram, LinkedIn, or Twitter, and explain how you tailored the content and engagement to match the platform’s unique characteristics?

 For content to gain traction on social media, a hook is essential. Social trends often have a hook step, sound, or movement that captures attention. Dance steps, for instance, can go viral due to a catchy hook step. We have successfully utilized this principle numerous times. A recent example is Vicco’s campaign featuring Alia Bhatt, where she performed a unique action of showing her teeth to the dentist while making the sound “eeeeee.” We capitalized on this hook by collaborating with influencers who created their own versions of the hook. This strategy gained momentum, with millions of others joining in with their own “eeeeeeee.”

6.How do you effectively identify and collaborate with influencers, considering factors such as authenticity, engagement levels, and suitability for your client’s target audience in influencer marketing?

Today, the beauty of influencer marketing lies in the fact that anyone can become an influencer. This opens opportunities for brands to collaborate with everyday individuals and share their brand stories on a larger scale. However, precautions need to be taken.

At Madison Loop, we have implemented tools that help us identify influencers based on factors such as their location, topics of interest, demographics, and follower base. Additionally, we have an authenticity scoring system that considers factors like follower growth/fall, follower location, and more. These measures enable us to ensure the credibility of the influencers we work with.

7.Can you share your perspective on the future of digital marketing and media planning? What emerging technologies or trends do you believe will have a significant impact on the industry in the coming years?

In the past, digital planning was done blindly, but we have evolved to utilize available or claimed data for our plans. Over the years, data analysis and automation have played a crucial role in optimizing the process. The future will revolve around AI, driven by data analysis and automation. AI has already made significant strides and will continue to advance.

Some express fear about AI, believing it will replace their jobs. However, I believe it is not AI itself, but rather people who possess the knowledge of how to use AI effectively, who will take away those jobs. Human intervention will always be necessary in this field, although the nature of that intervention will evolve.

8. Can you share a valuable lesson or piece of advice that you have learned throughout your career in digital marketing and media planning?

 Digital is a constantly evolving field. What is effective today may not be tomorrow. It is important to remain open to trying new strategies and approaches. Never assume that you know everything because there is always something new to learn.

9. How do you manage the pressure and demands that come with leading a digital creative unit, and how do you maintain a healthy work-life balance?

 Finding a balance between work and personal life is essential. While work may seem never-ending, it’s crucial to establish a predefined end time for the day. Once you embrace this concept, achieving a balance becomes more natural. Personally, I find that prioritizing my personal time enhances my focus on work, allowing both aspects to thrive separately.

Mindshare and HUL shine at Impact Digital Influencer Awards

Exchange4media unveils the winners of the second edition of Impact Digital Influencer Awards held in Mumbai, India. This award recognizes brands, agencies, and individuals who have produced great influencer-driven content. In the world of Digital Marketing, influencer marketing has become increasingly important and has gained momentum. The INCA-e4m Influencer Marketing Report 2022 estimates the influencer market to be valued presently at Rs 1275 crore and gross 2800 crore by 2026 with a CAGR of 25%.

Mindshare bagged the honor of ‘Agency of the Year’ and Hindustan Unilever Limited (HUL) was named ‘Brand of the Year’.

Mindshare wins also included 17 gold metals for its Boost campaign #GameStaminaKa – Breaking Gender Barriers in Gaming in the Best FMCG Campaign category. Continuing the gold winning spree, the agency won for ‘Making the In The Making’ campaign for Instagram,  the Best Platform – Specific Content Campaign category. Another bagged for PepsiCo India’s and Brooke Bond campaign under the Best Food and Beverages category. Yet another gold came for Pepsodent for HUL. The agency has also garnered silver and bronze metals

Other gold wins include:

Efficacy Worldwide – 2 gold, 

Edelman India – 2 gold, 

FoxyMoron – 2 gold, 

INCA–GroupM -1 gold, 

Interactive Avenues -3 gold 

Additionally, other gold winners named were MediaCom, Kulfi Collective, Tonic Worldwide, Blitzkraig, Voxxy Media, galleri5, Alliance Advertising & Marketing Pvt. Ltd, White Rivers Media and Pivotroots.

Schbang, Wavemaker India, Hive Minds, Qyuki Digital Media, Adani Digital Labs, are a few names that won silver. The ‘Best Influencer of the Year’ award was given to Shlok Srivastava while Shlok Srivastava bagged the award for ‘Best Tech Influencer’.

Read more: The Ultimate A-Z Glossary Of Digital Advertising!

 

 

Influencer Marketing Comes Back Strong Amidst Pandemic Crisis

The pandemic had disrupted every industry forcing marketers to shift their plans and thrust into an uncertain and swiftly changing landscape. Brands are looking for independent creators than productions due to pandemic restrictions such as sheltering in place.

The industry was in troubled waters as pandemic had put a pause on all the plans, took many industries out of the market, and affected many influencers’ content. Some marketers even continued with Facebook boycotts or social media pauses. 

It has been quite a challenging period for influencers. However, the influencer industry is recovering and bouncing back, showing incredible resilience and creativity. Consumers are spending more time on social media interacting with content creators after being cooped up at home. With budgeting constraints and large scale, ad production is difficult, brands are turning to independent creators for a quick, less-expensive, and easy-to-produce creative content. This is providing the much-required boost to the influencer marketing industry.

Numbers Says It All

Social Bakers released the State of Influencer Marketing Report and found out that there is a fall in sponsored content from March to May and a pivot towards micro-influencers. Yuval Ben-Itzhak, CEO, Socialbakers said, 

“Nano and micro-influencers are now seen as high-value resources, bringing high impact without the big price tag of macro and mega influencers. As budgets remain tight, savvy brands will likely continue to expand partnerships with these smaller influencers as part of a smarter social media strategy in the wake of the continuing worldwide pandemic.”

Another finding by Shareablee, an audience-based social media measurement company states that branded content from influencers on Facebook, Instagram, and Twitter was up 21% in July from March despite a decline in sponsored influencers post- 87% on Instagram and 57% on Facebook in April compared to last year.

Influencer marketing has changed in several ways during the outbreak. There is a shift in consumer behavior more towards digital in this pandemic due to the lockdown. The engagement with branded influencers posts grew 5 times faster to 57.2 million total actions in July compared with March, according to Shareablee. 

A rise in sponsored posts is seen since July after the volume fell almost 17 percent in March and another 6 percent in April reveals Data from CreatorIQ.

This proves that the industry is still very strong and influencers are quick to adapt with conversion rates increased across platforms in the pandemic. As quoted in Adage, Melissa Rosenthal, co-founder at Circle said, 

“Brands took a few weeks to figure out how to position themselves for a new world. Now I’m seeing probably 5 times the outreach I was seeing pre-pandemic. Small brands, large brands, new brands, everyone.”

The pandemic is benefitting the influencers with the increase in viewership as alternate media or sports events have declined drastically. Presently, influencers are the only production houses that are open and can make new, creative, and custom content for brands amidst pandemic restrictions. According to the eMarketer report, followers are looking for more DIY activities and short videos.

Clorox Followed The Influencer Way!

Clorox.Co is getting back to sponsored influencer work after a pandemic pause. Through the Reach Agency, Clorox recently teamed up with YouTube comedians The Try Guys to market its latest scent of Fresh Step cat litter. In the video, the creators open the world’s smelliest foods to demonstrate the ability of new Fresh Step cat litter with Febreze Freshness and Gain Scent covers the odors. The video garnered nearly a million organic views on its first day on August 15. The partnership with Try Guys who have 7.3 million subscribers is Clorox’s third venture into influencer-led demo-tainment.

 

Clorox shifted the plan of conventional ads to influencer content while planning the campaign in March as the pandemic situation would make it hard to produce ads. Another major decision taken by the brand was to boycott  Facebook and Instagram advertising for the remaining year while the project was ongoing.

As reported in Adage, Deb Crandall, director of marketing and studio lead said, 

“We have had to ask our partners not to post this on their Facebook or Instagram channels, and we’re not putting any paid support behind it. It definitely takes a channel out of the mix to reach our audience, but that’s why we’re excited about the results we’re seeing. To reach almost a million views without Facebook or Instagram makes us think we’re onto something.”

Finally, brands and creators are learning to operate in the ‘ new normal ’. In the time of crisis, savvy social media influencers are engaging with their followers in a fairly two-way communication that even brands could never have on their own.

Top 10 Emerging Indian Ad Tech Startups You Should Know About

The market for advertising technology is expected to record exponential growth between now and 2023.

-CMO Adobe

Just as advertising is the business of making advertisements, ad tech is the business of using technology to make advertisements faster, quicker, and efficient. The business is driven by powerful algorithms and data points.

The Adtech ecosystem consists of two major entities – the advertiser (Demand-side) and the publisher(Supply-side). Adtech helps advertisers and publishers achieve their goals in harmony by providing solutions that meet the demands of both parties. 

Learn more: A One-stop Guide On All You Ever Need To Know About AdTech In 2020

The Growing Ad Tech Trends

The year 2020 is full of technological advancements – Artificial Intelligence, data-driven marketing, and much more. Digital commerce is going strong and growing, leading to new paths such as mobile, programmatic, analytics, data management, and more. With new tools and technologies emerging every year, marketers can choose from a plethora of options across digital marketing to connect to a new audience and promote their products.

According to Emarketer’s survey, by 2020, digital ad spending will be 50% of total advertising. The statistics prove that there is a shift from the traditional medium of marketing to digital platforms.

Here are six significant ad tech trends in 2020 that will change the advertising world

1. Programmatic Advertising: 

Programmatic advertising is becoming a star strategy, and businesses spend almost $60 billion every year. It is projected that programmatic transactions two-thirds of digital display ad spend around the globe in 2020.

Programmatic needs to resolve many challenges before realizing its true potential, such as in the absence of the cookie, the industry needs to search new ways for retargeting and personalization, keeping customers’ privacy in mind. Meanwhile, first-party data is essential in the success of programmatic advertising. Lack of transparency, ad fraud, and efficiency are vital concerns that need to be addressed adequately.

The largest programmatic markets are the U.S, China, and the U.K with a double-digit Y-o-Y growth rate. Indonesia, Brazil, and India will be the fastest-growing programmatic digital ad market in 2020.

There are top three auction type segments for the global programmatic advertising display market which has gained momentum are :

• Global programmatic advertising display market by open auction: Buyers are allowed by publishers to participate in the public sale. It is likely to be the leading segment in the programmatic market with more number of buyers entering the digital market that allows publishers to get the best price for their inventory.
• Global programmatic advertising display market by automation guaranteed: Publishers are allowed to reserve inventory while keeping the price fixed. The inventory in this segment is premium advertisement such as the Super Bowl, or pre-launch page of a website and the growth prospects for automated guaranteed are big. It is forecasted by 2021, 88% of all digital display ad spending will flow via automation.
• Global programmatic advertising display market by invitation only: It is a private marketplace limited to buyers with an invitation only. The growth driver for this segment is more control over ads that are being run, and the relativity of ads is high due to which advertisers are ready to bid high to get the ads placed.

2. Mobile Advertising: 

Mobile advertising continues to take share with substantial gains over the last five years. A report by a research firm Berg Insight forecasted that the global mobile advertising market is expected to grow at the compound annual growth rate of 43%. Another eMarketer report projects that mobile ad spending will reach $400bn by the year 2023, up from $286bn this year. The numbers say it all! It is evident that the industry is growing and projects to represent  80% of global digital ad spend. 

A lot of in-app is driven by gaming. A spike in gaming is witnessed during COVID with 1.2 billion weekly mobile game downloads. Buyers are eyeing a vast opportunity to reach a diversified audience within the data-rich environment. There is an exponential growth of in-app advertising. Comscore research says that 75% of digital users consume all their social media, lifestyle, travel, news, and utility content using mobile apps. 5G will also be a considerable contributor to boost mobile-in app advertising, opening doors of opportunity and creativity for advertisers. With technologies such as OM SDK and app-ads.txt rolling out, the industry is moving towards a cleaner and more measurable environment.

Consumer time spent on media is shifting towards mobile, and eMarketer reports India and Thailand will witness the fastest mobile advertising growth in 2020.

3. Video Advertising:

The video will remain the key driver and cannot underscore its role in 2020. With large-scale events postponed and ad budgets cut down, marketers rely on video advertising as effective means across platforms. It is projected to account for 31% of the overall display ad spending next year.

Verizon research shows, almost all (96%) advertisers will be investing in at least one video ad format this year, and more than three-quarters say they plan to invest more in premium video content in 2020. The reason is ROI.

Advertisers and marketers plan to invest in shoppable and interactive emerging video ads formats. With shelter in place and people continue to work from home, there is a rise in digital and mobile usage with  CTV and OTT becoming increasingly dominant. Verizon research states.36 percent plan to invest more in Connected TV ads, while 30 percent intend to increase their spend on mobile video. USD 70 billion ad spend from linear is shifting towards OTT channels. Major companies are keen to take advantage of the changing scenario with the right technology.

4. Digital 360 services:

Marketers are focusing on areas like the personalization of media and content marketing. Voice and visual searches are playing a huge role in the ecosystem, and marketers are developing new techniques to enhance it. Many companies are offering 360 digital services that include social media marketing, SEO, content marketing, analytics, automation and transparency, and many more.

TheDrum indicates that by 2022, the global digital software industry will grow by $74.96 billion. CMO predicts that around 87% of marketing budgets will be spent on digital marketing by 2022. 

Another fastest growing digital marketing trend is interactive content – click on, swipe, or interact with online. Outgrow states 93% of marketers rate interactive content as highly effective at educating the buyer. The cutting edge technology like augmented reality and 360-degree videos offer a dynamic, engaging, and immersive experience.

5. Influencer Marketing:

The influencer marketing industry is set to hit USD 15 billion by 2022. With a high ROI, the industry will witness tremendous growth in the coming years.

Influencer marketing is in the early stage, but its usage growth is impressive. Less than one third (27.9%) marketers have been using influencer marketing for over three years, 20.9 %have been using for less than a year, and 7% have never used it. Reach and engagement is critical factors in an influencer mix and there is a negative correlation between engagement rate and followers. Most marketers prefer micro-influencers, typically followers between 10,000 and 100,000.

 

In the series of Global View For AdTech Start-Ups, we bring you ‘Top 10 India-Based Ad Tech Start-Ups’ -a curated list of promising start-ups from industry-main anchors to up-and-comers leading the advertisement industry in India.

Company: ADZ Junction

Founder:  Ashok Nain

Category: Digital Services, Ad- Affiliate Network, Mobile Advertising

Geo-Markets: India, Dubai, U.S.A

What they do: ADZ is the brainchild of Ashok Nain started with Mobile advertising and expanded the business to video and web gradually. Their services also include Digital Strategy, Content, Development and Marketing, and Search Marketing. Since its inception, the company is focused on delivering high-quality traffic to clients who have scalability issues and help them to identify their targeting audience, especially in Mobile advertising. 

How it’s changing adtech: 

• With its innovative advertising solutions and strategies, the company has built a robust affiliate marketing platform that can assist clients in real-time tracking and analytics.
• The 360-degree digital provider has 100+ clients from various sectors with a business of over USD 15 million and is developing technology – a real-time traffic buying SMS platform.

“We introduced real-time bidding, Mobile in-app advertising, rich media, and many other innovations to overcome clients’ problems of quality traffic generation. We have now a separate mobile division by name of AJ Mobile, where we encourage clients to work exclusively on mobile campaigns.”

The company successfully launched a digital campaign for  Dr. Lalpathlabs, an established company in the healthcare sector. Here is a short case study:

Challenge: 

• Expand its online market reach and user base
• Identify digital channels to generate revenue.
• Being completely behind in digital marketing and competing with emerging players in the healthcare sector.

Solution:

• Provided brand awareness strategies for different online channels.
• Established a full-fledged and cost-effective affiliate marketing channel.
• Established a brand development strategy and marketing campaign to rise above the competition.
• Successful digital campaigns resulted in 3X monthly transaction growth.

Founded: 2015

Headquarters: Gurugram (With offices in Mumbai, Bangalore, and Dubai)

 

Company: Aristoma

Founder:  Kumar Nishanth

Category: Online Digital Services

What they do: Aristoma, a 360-degree marketing incubator, offers services to increase customer reach using online mediums with some brilliantly creative and engaging ideas. Its portfolio includes top clients such as Diesel, Sportmate, CII, CREDAI Chattisgarh, Goldbricks, to name a few. All its endeavors have resulted in 100 percent growth.

How it’s changing adtech: 

• Aristoma is all about helping brands grow with a mantra “Commits, Creates & Connects” with expert result-oriented ideas and making advertising a better experience for advertisers and consumers. 
• The company advises in Brand Management, Email Direct Marketing, SEO, and  Social Media Planning to help businesses to get the most out of their marketing campaigns.

Founded: 2015

Headquarters: Raipur 

 

 

Company: DigiVigyan Marketing

Founder:   Amit Verma

Category: Digital Services, Digital Display Advertising

What they do: A dynamic full-service digital marketing agency that provides clients with multiple solutions through different marketing verticals- Website Management, Search Engine Optimization, Search and Display Advertising (Pay Per Click – PPC), Native Advertising, Online Reputation Management, Amazon Marketing Services, and Social Media Marketing.

How it’s changing adtech: 

• DigiVigyan offers world-class digital advertising solutions to businesses to achieve their digital marketing goals.
•  The company offers services such as creating landing pages with attractive ad copies, banners, and other optimizations to meet the marketing needs of businesses on various social media platforms. It has worked with renowned ad agencies like Dentsu, M&C Saatchi, to name a few. 
• The bootstrapped adtech company is now working towards being the go-to digital marketing agency worldwide after capturing the market across the country.

Founded: 2018

Headquarters: Delhi

 

Company: Do Your Thng

Founder: Ankit Agarwal

Category: Social/ Influencer, Influencer marketing platform

What they do:  DYT is a leading Influencer Marketing Agency and a shared economy for digital assets. It acts as a platform to create space for brands to connect with the largest team of nano, micro, and mega influencers.

How it’s changing adtech: 

• DYT is an online community that offers content creators an entry in the market and connects brands to the influencers depending on the campaigns. The active users through the app can promote the brand and earn for each post made, whereas the brand can find a safe and secure marketplace to discover the right influencers for their product.
• DYT operates on a broker based model where a percentage of the total spending is charged to maintain the platform. In a short period.
• The phenomenal fundraising and affable work culture have made DYT one of the fastest-growing startups.

Funding: 

The tech platform raised $150K from angel investors and plans to use it for further expansion and growth. Previously, the company has also raised an undisclosed amount from angel investors and intends to raise more funds in the future.

“DYT within months of its operation has successfully worked wonders for brands such as Mastercard India, Havells, etc., thus bringing engagement for the brands. With increased investor interest, we plan to expand the team, improve the technology, and go further with the associations.”

-Ankit Agarwal

An exciting campaign with Havells:

For the new digital-only campaign #BeardKyunHoWeird with Havells, the company selected 60 creators from the male grooming niche by using the technology to find people uploading their selfies with the beard and spelling about male grooming.

Challenge:

• To increase user engagement for the launch of the new range of BT 9000 beard trimmers with digital platform-only campaign #BeardKyunHoWeird.

Solution:

• Selected 60 creators. Each Instagram creator had a follower range of 1,000 to 85,000.
• Creators created unique and compelling content on how the new Havells trimmer helps in male grooming.
• The 20 days campaign got more than 100,000 engagements, reaching 500,000 users.
• The campaign attracted traction and engagement rate of 10% with authentic creators.

Founded: 2019

Headquarters: Gurugram

Company: EMIAC Technologies

Founder: Divya Gandotra

Category: Digital Services, Social Media Marketing

Geo Markets: United States, United Kingdom, Australia, New Zealand, Israel, South Korea, Russia, Ukraine, Vietnam, Singapore, and UAE, among others.

What they do:  EMIAC is a perfect blend of innovation and technology determined to serve businesses in front of their target markets. Their principal services include Content Development, Paid Marketing,  and Web Design and Development. The leading digital firm has 1200+ clients, 2900 projects across 30+ countries.

How it’s changing adtech: 

• EMIAC offers an array of services from content development and full-service digital agency to paid social media marketing and blog outreach. It is a top-rated digital marketing and content development agency on the world’s popular freelancing site Upwork that adds to their credibility and goodwill.
• What differentiates them from the crowd is an excellent record of delivering projects on time, offering personalized products and services, premium quality services, and providing it at competent prices.

“We are the game-changers, trendsetters, pioneers, and revolutionaries with a passion for creating an ideal digital future where everyone is connected.”

Founded: 2017

Headquarters: Jaipur  (With offices in U.K and U.S)

 

 

Company: Globale Media

Founder: Bhavesh Talreja

Category: Mobile Advertising, brand safety/ verification, programmatic advertising

What they do: Globale media offers an integrated marketing platform that maximizes revenues by bringing in direct advertisers and showing relevant ads that best fit the user audience using banners, interstitial, videos, social, and native ads. The company specializes in digital marketing for all major kinds of app verticals including gaming, e-commerce, lifestyle, utilities, social, education, entertainment, and others on CPM, CPI, and CPA cost models. Publishers can access to the full feed of available campaigns as well as real real-time tracking and automation to multiple devices with programmatic GLOBALE API. It excels with a reach of over 500+ direct publishers, 1000+ live campaigns over 120 countries.

How it’s changing adtech: 

• Globale media has developed a marketing program primarily for the mobile age. 
• Globale media has been sincerely providing “ transparency on inflation level and not just on the click level.” The company is aggressively pitching for its recently launched product keyword search traffic where revenues have increased 3x from quarter-on-quarter and are expecting to multiply the revenues by 10x in 2020. 
• In the next five years, it aims to be among the top ad tech marketing companies in India, the Middle East, and Southeast Asia.

“We provide app marketers with 100 direct in-app traffic sources with transparency so they get device ids on each and every click and have a clear knowledge about where the app is running. In terms of impact, the advertisers can use these device ids to run their re-engagement campaigns and make sure the users are coming back to the app and ultimately spending more within the app.”

-Bhavesh Talreja

Founded: 2017

Headquarters: Singapore (With offices in India and UAE)

 

 

Company: mCanvas

Founder:  Vishal Rupani

Category: Mobile Advertising, Video Interactive ads, Programmatic Advertising

What they do: mCanvas is a subsidiary of Affinity and is the brainchild of Vishal Rupani, from vision and inception to revenue generation and scalability. mCanvas is a storytelling mobile ad platform that uses phone sensors to create compelling and interactive brand narratives.

How it’s changing adtech: mCanvas is the first and leading Indian company that has addressed critical issues of mobile marketing: Banner Blindness, Poor Viewability, Accidental Clicks, and Lack of Storytelling. The mobile advertising platform uses four kinds of advertisement formats: Scrollers, Stickers, Spotlight, and Streambox. 

• The company recently integrated with Adobe advertising cloud that will enable advertisers to buy experiential rich media content and interactive video ads. 

“In light of the steady increase in the demand to make ads programmatically available, we are happy to integrate with Adobe Advertising Cloud DSP. We have spearheaded programmatic advertising in the rich-media mobile ad industry, and we will continue leveraging its power to offer our innovative solutions.”

-Vishal Rupani

• The company has a reach to at least 60million Indian smartphone users and follows the cost per video (CPV) model for videos and cost per engagement(CPE) for rich media. Sensory Rich media content is produced for VR and AR as well.

“Augmented reality (AR) has become a buzzword in the online tech space. It has shown great promise even in the mobile ad space, and brands have been quick to incorporate AR into mobile-led ad campaigns that have proven to enhance user engagement.”

One of the best examples is  of Frooti – #TheFrootiLife

Challenge: To build a brand recall with its primary target audience -Millennials around the drink during summertime.

Solution: Using face detection technology, the rich media campaign encouraged users to start the front camera and catch the falling mangoes in the augmented environment. This campaign created a massive impact on the users with this ‘WoW’ ad experience.

• Another segment that has been strongly transformed by brand experiences in the mobile ad industry is voice-enabled interactive mobile ads that have created a lasting impression.

“Personalization of marketing & advertising messages is not a luxury but a necessity.,”

-Vishal Rupani

Here is another case study of Mercedes-Benz GLC that has used speech and sound recognition technology in mobile ads. To promote their latest feature, Mercedes -Benz User Experience (MBUX) used a smart multimedia system and in-car voice-activated assistant.

The mCanvas interactive mobile ad uses real-time speech recognition technology, and the voice bot in the ad would respond to the questions, recreating the actual experience a user would have in the car.

Founded: 2014

Headquarters: Mumbai

 

 

Company: Streamlyn

Founder:  Naveen Kumar & Raja Chakraborty

Category: Programmatic Advertising, Brand Safety/ Verification

Geo-markets: Asia, Europe, MiddleEast, North America, MENA, APAC, and other 25+ countries.

What they do: Streamlyn works for both publishers and ad buyers to sell and buy ad space respectively. It works as an agency as well as a supply-side platform.

How it’s changing adtech:  The one-stop advertising solution provider, a publisher focused media agency connects advertisers with the target audience via the right publisher.

“The aim was to help online publishers, particularly small and medium-sized ones, grow their revenue and the audience.”

-Naveen Kumar

• Streamlyn has an in-house ad server and algorithm to help analyze and optimize the monetization depending on the solution provided by the team to assist the client with high ROI and eCPM and uses cutting edge technology –POE (Programmatic Optimization Engine) and Anti-Fraud algorithms. 

• Streamlyn offers its proprietary product ‘ BidsXchange,’ a smart advertising portal deploying machine learning for small and medium-sized advertisers that allows them to upload ads and select their desired publishers based on the target audience interest.
• Another additional revenue source for publishers is In-image advertising, a novel concept that helps achieve an edge over competitors with Streamlyn’s Header bidding wrapper tags.
• It generates content in regional languages and is known as the best optimization partner for vernacular publishers.  It has partnered with Google to support vernacular publishers and increase their revenue.

Founded: 2015

Headquarters: Singapore (With offices in India and U.S)

 

Company: Tarsan

Founder:  Tarun Nayyar

Category: Mobile Advertising, Affiliate Marketing

What they do: Tarsan is a leading performance-based Mobile media agency that caters to top-level clientele globally like Airtel, Paytm, M&C Saatchi, CyberAgent, to name a few and delivers performance & branding campaigns and SMS/email/voice/solutions. It is known for the execution of marketing plans on mobile.

How it’s changing adtech: 

• Tarsan has an in-house platform, AdMenu, that gives clear and quantifiable value to each advertising avenue, enhancing the ROI on ad spends as well as boost transactional value. It provides transparent information regarding the placement of ads on various platforms via GAID or IDFA.
• Many transactional campaigns are carried out on E-commerce platforms, but the company charges only for lined traffic by experienced customers, whereas the payment depends on CPR, CPT, and CPI.
• Transparency and accountability are their top priority, and with the unique capability to gather information about mobile devices, it has been successful in creating a database of publishers and marketers.
• It maintains a five-layered security policy for data protection. The company aims to become a 360-degree performance-based mobile marketing agency and enhance the AdMenu platform and convert it into a revenue generation opportunity.

“We never store data; we just identify people according to their device id. The information given to us is all in concurrence from the publisher and advertisers.”

Founded: 2012

Headquarters: Delhi

 

Company: UrPopular

Founder:  Siddharth Sinha & Kumaresh Bhatt

Category: Micro-Influencer Marketing, Measurement and analytics

Geo-markets:  India, Southeast Asian countries, MENA countries, Australia, Indonesia, Malaysia, and Singapore.

What they do: UrPopular is India’s largest network of micro-influencers who are paid to post on Facebook, Instagram, Youtube, and Twitter with 240 million+ organic reach across these platforms. They have a pan India reach of 240 million+ and creators in 11 languages.

How it’s changing adtech: 

• The tech firm is democratizing organic marketing in India and helping brands to create ROI based campaigns.
• It adds new ways to drive ROI for brands with its cost per view and cost per reach micro-influencer campaigns. The tech company has developed algorithms to understand the outcome of the campaigns and brands can acquire efficiency and measurability in their campaigns. 
• Their mantra is  “Create, Amplify, and Measure.” This case study of McDonald’s ‘A ful-filling campaign’ is a perfect example to understand it.

Challenge: McDonald’s wanted to destress students from exam fever, and their McSaver Meal + Free French fries exactly intend to do.

Solution: UrPopular got their 11 young and enthusiastic influencers to cheer up and whip off the post-exam chronicles within the outlet by creating Insta stories, videos, fun boomerangs, and before/after stills. 

These custom creatives pushed organically delivered,

• 1 million + reach with a 17% engagement rate.
• Rs.1.9 cost per engagement.
• 1.4 million impressions.

“UrPopular brings measurability and scale to the campaigns by working with India’s largest pool of microinfluencers and nano influencers.”

Founded: 2017

Headquarters: Mumbai

Closing Words

“In this industry, tomorrow is never the same as today. To gain long-term success in AdTech, you have to play fair, don’t be afraid of experiments, and never stop trying”

-Anton Ruin, Epom

Ad Tech is no rocket science, but it is of significant advantage to brands as it allows integrating various tools in a single system. It is an amalgamation of advertising, creativity, technology, and innovation. The automated process and joint workflows enable more precise target marketing resulting in relevant and compelling ads. The new norms,  tried and tested solutions along with reliable platforms helps to keep information safe and avoid any ad fraud. With significant changes and improvements over what advertisers and publishers used to have earlier, adtech is growing as an industry. However, it still requires more work and expertise to handle the challenges and resolve for good.

Read more: Evolution of Digital Advertising: Happy 25th Digital Advertising And Many More To Come

Your Ultimate Guide to Understanding Gaming Advertising

Of the wide economic disruption caused by the pandemic, the global gaming industry is thriving. With people sheltering at home, gaming is surging. Nielsen survey reveals that 82% of global consumers played video games and watched video game content.

The global video game market is estimated to be worth $159 billion in 2020. However, marketers are facing a distinctive challenge of activating in an environment different from traditional media. Recently concluded weeklong NewsFronts presentation discussed marketers’ approach towards the growing gaming and esports industry.

Esports has gained momentum due to the tech-savvy and digitally-advanced millennials. Currently, it is very popular and is the new epicenter.

How To Activate And Maximize Brand Visibility?

Gaming is a fragmented market. Marketers can approach in different ways to tap into the competitive industry by partnering with influencers, buying on platforms, or directly going to gaming publishers.

As per Adweek reports, Douglas Veney, influencer and esports marketing manager at Nestlé, said they have partnered with influencers to drive engagement with fans. 

“We can really take it from the influencer level and then build upon that approach to move into … more platform level things that are a little bit deeper down the funnel for that.”

Contradictory, the Hershey company finds influencer marketing space is highly crowded and is hard to attract attention. Another challenge for the company is to find a cost-effective strategy to run an always-on campaign in the gaming space since a similar gaming audience can be found on YouTube at a lower cost.

Another interesting case to study is on Horizon Media’s Scout Sports and Entertainment group partnered with esports team FaZe Clan who helped Burger King introduce its new plant-based burger to a young audience with its three-step approach.

The holistic three-step approach – a YouTube taste-test video, followed by a Fortnite live stream where Burger King discounts were offered, and a meet-and-greet at a local Burger King restaurant. 

Nico Amantia, senior account executive at Scout Sports and Entertainment told Adweek,

“That holistic, three-pronged activation allowed us to spread awareness digitally, but also have that face-to-face interaction with fans and really give them something back, which really allowed us to have a very successful campaign.”

Understand Its Implication:

One thing is clear that gaming and esports are an upward trend with a massive audience reach. According to eMarketer, 2020 U.S. gaming ad revenues are expected to reach $3.67 billion, and esports ad revenues are estimated to reach $214 million.

Although it is watched in a TV-like environment, it cannot expect the same response from a 15 min pre-rolled ads in the gaming world. David Messinger, CMO of Activision Blizzard quoted in Adweek,

“The major mistake that people make is to take the assumptions about other forms of media and try to take it into the world of gaming,”

Marketers should look to a long-term transformation -take time, approach things properly, and build on the bets to reap the benefits as gaming and esports ads are still in the nascent stage.

Messinger further added,

“Someone who comes in and starts today may feel like they’re behind, but they’re really at the beginning of what the future is going to be.”

 

Read More: Mobile Gaming Industry Bank On People Locked Inside Homes Due To COVID-19.

Influencers Share Their Secret to Earning Big Bucks on Social Media

Key Insights

• Affiliate marketing and paid advertising are one of the top revenue sources but the real bread and butter of influencer income is brand sponsorships reveals a survey of 69 digital stars by Influencer.co
• The survey results were gathered at the beginning of 2020, before the pandemic that has changed the consumer and digital landscape.
• The result highlighted that influencers have diversified income sources and can help them earn even in an economic downturn.

 

A goal is a dream with a deadline.

– Napoleon Hill

 

Making a living out of online business is a dream that is now achievable. For many, it is a dream turned reality but with a fair share of struggles. A survey of 69 influencers conducted earlier this year by influencer platform Influence.co highlighted myriad ways available for creators to make big money in 2020.

The results gathered before the pandemic outbreak reveals Brand sponsorship as the top moneymaker with 78% of creators calling it the main source of income. 58% of creators highlight paid advertising like YouTube AdSense also amongst the top three sources of income. However, this category has been dropped off recently as advertiser demand has run down due to the pandemic.

However, influencers have leaned on alternate revenue streams and moved away from sponsored posts as brands have paused/postponed influencer campaigns in 2020. 41% of survey respondents have named commission-based revenue as a key income driver followed by affiliate marketing (39%). Respondents also pointed to physical merchandise (26%)  as one of the top income sources.

These are income sources where influencers are paid a fee for e-commerce sales that they drive from their social accounts. 

Below is the breakdown of income sources that is listed by influencers as primary revenue sources in the survey.

1. Brand Sponsorships (78%)

78% of influencers surveyed listed brand sponsorships as a primary source of income.

https://www.instagram.com/p/BYwIRyWgHqY/?utm_source=ig_embed

H&M has the largest followings as women reflect H&M style all by themselves as a part of the influencer campaign. H&M partnered for its fall 2017 collection with two influencers -fashion blogger Julie Sariñana and model Ela Velden. Sariñana promoted the clothes on her own Instagram account as she loved them.

Brand sponsorships are mostly sponsored posts on social platforms like Instagram, YouTube, and TikTok. The most reliable way of making money and the main source of income has taken a hit in the last few months mainly because:

• Advertisers have trimmed their budget to save costs.
• Brands are facing economic headwinds caused by the pandemic.

As reported by Business Insider, the frequency of sponsored posts has dropped down on Instagram and 22% of creators have lowered their rates due to slow demand. 

As this category is affected by the economic downturn, brands are partnering with influencers to conduct live streaming as consumers at-home interest in real-time videos have spiked.

2. Paid Ads (58%)

The second-highest source of income listed by influencers in the survey with 58%.

 

Influencers can directly earn through ads that play in their videos across platforms like YouTube, Facebook, and Instagram.

Instagram says that Live creators have seen a 70% increase in video views during the pandemic. It now prepares to launch new tools that enable video creators to earn money that includes badges that viewers can purchase during Live Instagram videos and the introduction of IGTV ads. 

YouTube’s Partner Program allows influencers to earn money by placing ad breaks within the content on their channel. Ad revenue earned directly through Google placed ads is the main source of revenue and the rate YouTube pays creators depends on factors like video watch time. And viewer demographics. And if a video climbs millions of views then creators receive a big check from YouTube.

For instance, YouTube creator Groth told Business Insider that normally his channel earns $9 and $12 for every 1,000 views. BI also reported that YouTube creators earned from $3600 to $40,000 off a video with 1 million views.

3. Commissions (41%) and affiliate marketing (39%)

Affiliate marketing has been a popular source of income for influencers and 41% of influencers surveyed pointed out commission on sales as a top source of income.

Another popular revenue source for influencers.- fashion and lifestyle influencers on Instagram, Tech reviewers on YouTube, and media publishers like The New York Times that generates affiliate income on its review site, The Wirecutter.com

In this type of arrangement, creators can earn a commission on sales made through a promotional code and affiliate marketing where they promote products with a trackable link. 

 

https://www.instagram.com/p/BZQolWBB5Eu/?utm_source=ig_embed

 

In March 2020, the category saw a rise in revenue as many companies shifted their focus to e-commerce sales due to lockdown policies whereas April was a mixed bag as some brands like Walmart, Victoria Secret suspended their services.

4. Event Appearances (29%)

Event Appearances and Speaking engagements are big revenue streams for some YouTube creators who have diversified their businesses.

A recent college grad and YouTube creator Ruby Asabor (170,000 subscribers) have presented for events of universities like NYU and Rutgers in the US. She is a motivational speaker and recently many events and tours have been canceled owing to the pandemic. She explains in her video how the business has changed due to coronavirus and events are postponed.

https://www.youtube.com/watch?v=rlG26M1a2gk

5. Physical- Merchandise sales (26%)

26% of the influencers points out physical merchandise sales as a source of revenue. The ‘merch’ trend has picked up in recent years. While some have built online direct sales to consumers and others have partnered with retailers like Walmart and others.

Blippi is a popular YouTube star who makes educational videos and has more than 21 million subscribers. The man behind the creation is Stevin John. Recently, Jazwares LLC which makes toys has created a line of items “My Buddy Blippi” which includes figures, plush toys, and toy vehicles. It aims at helping children count or learn colors by putting accessories inside numbered or colored boxes. The products will be released through Walmart and Amazon.

The North Start for the toy industry is Ryan Kaji, an 8-year-old who is the face of YouTube channel ‘Ryan’s World.’ According to Pocket. Watch, retail sales for Ryan-branded products had hit $200 million in 2019.  

6. Digital Product Sales (16%):

Fitness influencers on Instagram and YouTube witnessed a spike in engagement and direct-to-consumer sales due to the coronavirus pandemic.

Many fitness influencers sell fitness digital membership programs in the form of app or classes or websites. For instance, Rachel Brathen, aka Yoga Girl, is a Swedish yoga teacher and a New York Times’ best-selling author. She leverages her Instagram account to preach and encourages yoga lifestyle and sell classes from anywhere in the world.

As reported by Business Insider, a fashion stylist, and influencer, Audree Kate Lopez has nearly 30,000 followers and conducts an online course Fashion Fundamentals for college students.

7. Followers donations(6%)

Many influencers receive donations or gifts via live streaming through membership platforms and social media platforms respectively. Take a look:

• Influencers receive donations from followers through Patreon or Buy me Coffee.
• TikTok, Twitch also has features to donate to influencers in real-time.
• In April, Facebook announced the rollout of its star monetization program, where fans can send virtual stars to a live-streaming creator worth $0.01 each.
• YouTube content company launched the “FBE Super” Membership program using Patreon’s Memberful platform. It offers three paid tiers for fans to contribute either $5,$10, or $15 a month to receive exclusive live streams, discounts, or an opportunity to be cast in episodes.

 

Read more: 26 Stellar Video (YouTube) Advertising Examples To Take Creative Inspiration From!