SMM Marketing-Research Eng
SMM Marketing-Research Eng
DIGITAL MARKETING
STATE 2017
September 2017
CONTENTS
1.INTRODUCTION
1.1. ABSTRACT
1.2. THE PROBLEM
1.3. THE SOLUTION
2. INDUSTRY INSIGHTS
3. INFLUENCER MARKETING
4. CONCLUSION
5. SOURCES
1.1. ABSTRACT
The challenge in today’s age for business owners and marketers is keeping up with the ever revolving and
growing influence of advertising and how to reach their target audience. By understanding the recent
changes in the world of media marketing, from the shift of traditional to digital and how certain tactics such
as digital influencer marketing heavily impacting today’s business owners will position regardless if it is a new
product concept or existing one, to consider new avenues to secure more achievable and prosperous product
outreach.
On a typical day, internet users estimate that they spend almost 6 and a half hours online. This means
that they’re spending longer online than they are on linear TV, broadcast radio, games consoles and
print press, combined.
hr:min %
Online 06:26 59%
Since 2012, PC’s, tablets and laptops have decreased in usage, and mobile phones have become the
most frequently used device to connect digitally.
Smartphones are becoming ever more prominent: since 2012, estimated daily time spent online
on mobiles has jumped from 1 hour 17 minutes to 2 hours 30 minutes. Over the same period, PCs/
laptops/tablets have seen small declines, but they continue to retain an important role even as
mobiles continue to climb. It’s clear that smartphones are encouraging consumers to go online for
longer periods of time each day, rather than do so at the direct expense of traditional devices.
Although ad-blocking is becoming more heavily used amongst consumers (almost 1 of 2 ads blocked),
the blocking is found to be selective and filtered based on the consumer’s preferences.
By August 2017 global population counts 7.524 billion people and almost 3,03 billion use social
networks on a daily basis, which is 40% of total population.
Daily time spent on social networks/services continues to increase. Digital consumers are spending
34 minutes longer on social networks in 2016 than they were in 2012. Users aged 16-24 and those
in fast-growth markets are the most enthusiastic social networkers, but social networks are capturing
more time across all the age groups and markets.
Globally, the frequency of posting online is 50% and increasing, leading to the strength of online
brand advocacy.
Since 2012, digital media has become a pivotal movement for the growth and success of online
businesses. Various platforms and adopted trends have shifted the traditional sense of media to more
affluent strategies that are coming of age, such as Influencer Marketing.
Digital media will continue to be the driving force for brand and products to successfully scale, with
ecommerce global sales at $1.9 billion in 2016, and projecting to double in growth in 2020.
Meanwhile total digital ad spending in 2017 will equal $77.37 billion, or 38.4% of total ad spending.
KEY INSIGHTS:
While overall time spent by internet users online exceeded time spent on all traditional media combined,
PCs/laptops/tablets used for this purpose are being used less in favor of smartphones. Second-screening –
multi-media consumption on any chosen device and mobile simultaneously is becoming the norm. This is
one of the factors which increased average time spent on social media by 34 minutes and posting frequency
by 50%. Ad-blockers are being used more on both PCs/laptops and mobile devices. Resultantly, 47% of
traditional ads is not being seen by internet users.
Despite some gradual changes in how people watch TV, broadcast TV has stood its ground and remains the
most effective advertising channel of all media. Despite 30% of consumers saying they discover new brands
via online ads, digital marketing still can’t compete with the reach of TV. Age is hugely important here: the
effectiveness of TV ads increases with age, while the opposite is seen for online ads.
The average digital consumer spends 2 hours 13 minutes a day on social networks/services – that’s a lot of
time for brands to grab a consumer’s attention. Updates to a brand’s social network page can be important for
raising awareness of new products and recommendations seen on social networks, claiming to be amongst the
top 10 brand discovery channels. Unsurprisingly, consumers under 34 years old are the most influenced by
branded content on social media.
Influencer Marketing and celebrity endorsements are becoming bigger tools than ever before. For example,
take a look at the average Instagram feed; there’s sure to be a few celebrities or influencers endorsing certain
products.
The potential of this kind of advertising to reach Generation Z (aged 16-24) and Millennials (aged 18-34)
is plain to see; over 74% say they discover new products through recommendations seen on social media,
furthermore they over-index strongly for brand discovery via vlogs and celebrity endorsements, too. The likes
of Snapchat and Instagram Stories have been effective channels for many influencers wanting to send out a
brief message to their following on a very personal level.
Ad seen on TV 40%
Search engines 39%
Ad seen online 34%
World-of-mouth recommendation from a friend or family member 34%
TV shows/films 30%
Brand/product websites 28%
Recommendation / comment on social networks 26%
Consumer review sites 24%
In-store product displays or promotions 24%
Product comparison websites 22%
Search engines Social networks Consumer review sites Brand/product websites Price comparison sites
Mobile apps Video sites Question & Answer sites Discount voucher/ Blogs on
coupon sites products/brands
KEY INSIGHTS:
While search engines and TV ads still have the upper hand in brand discovery, a clear trend in using social
networks for this purpose developed among Millennials and Generation Z in the past 2 years. These two
groups that make up the majority of active internet buyers tend to rely on word-of-mouth, reviews and
opinions of leaders or celebrities who they trust. Sponsored editorial content becomes more usual as a means
to bypass consumer frustration with ads and ad-blocking
In terms of devices, mobiles are the clear favorite for second-screening. Having overtaken once-dominant
laptops during 2013, they now have a 24-point lead. Meanwhile, laptops and desktops have been posting
year-on-year declines since 2012.
65
60%
55 55
51
40%
47
20%
SECOND-SCREEN ACTIVITIES
% of Millenal internet users who were doing the following activities while watching TV
index
Given that chatting to friends also scores very highly, we have some context for why people are spending so
much of their daily time on social networks and messaging services. What’s more, over 4 in 10 are reading
news – again highlighting that many media activities are happening simultaneously rather than sequentially.
Particularly striking, all the most popular second-screen activities are rather “informal” in nature (in that they
do not involve activities which automatically engage viewers with the content being aired on the main screen).
Significantly, only around 1 in 10 adults online are sharing TV-related views or interacting with related online
content as they dual-screen. These trends also suggest that integrating second-screen content with social
networks is one of the best ways to increase viewer awareness.
KEY INSIGHTS:
Second-screening is a significant factor of the overall internet usage growth since 2012. Expansion of the
mobile internet led to a longer online presence. Some of this additional online time happens simultaneously,
so it didn’t impact traditional media significantly, but time spent on PCs, laptops and tablets has decreased.
This mobile shift has two important effects – higher social media consumption and an increase in mobile ad-
blocking, which will be covered in the next section.
Ad-blockers gain popularity worldwide, rapidly. Two main drivers of this growth are:
1) Internet users are becoming increasingly aware of how their online personas are being monitored and
how their personal information is being used and shared. Globally, 63% of internet users say they worry
about how their personal data is being used by companies – a figure that is consistently high across
all age groups and world regions. Consequently, it’s little wonder that over half of consumers say they
prefer to be anonymous when using the internet. Again, this is a sentiment that resonates strongly with
all the age groups.
2) General frustration with online advertising. Users of ad-blockers are most likely to block ads because
too many ads are annoying or irrelevant, they take up too much screen space, or that there are simply
too many of them. Privacy concerns are significant (it’s still 3 in 10 blockers who are concerned about
ads compromising privacy), but it’s the poor user experience created by online ads which needs to be
addressed most urgently.
These factors lead to more frequent usage of Ad-blockers. Moreover some browsers are now pro-actively
securing their users’ data with built-in ad-blockers (Opera browser introduced this technology in March
2016).
GlobalWebIndex’s research shows currently 47% of internet users utilize an ad-blocker on their main
computer each month. With an additional 13% saying they have used one at some point in the past,
translateing into 60% who are coming into contact with desktop ad-blocking software.
Furthermore, 45% of desktop ad-blockers say they share their PC/laptop with at least one other person,
while 1 in 3 mobile ad-blockers are sharing their mobiles. This serves as an important reminder that – when it
comes to ad-blocking – one install does not necessarily equal just one person blocking ads.
An important fact is that the youngest consumers are at the absolute forefront for blocking ads on both
devices, with figures decreasing directly in line with age. This is especially the case for mobile ad-blocking,
with users of 16-24 years old being 3.5x as likely to be doing so as compared to their 55-64 year old
counterparts.
Ad-blockers is an established behavior across all parts of the world. With the highest number of desktop usage
in North America. Mobile ad-blocking is first and foremost an Asian phenomenon; China really stands out,
with internet users here more likely to be blocking ads on mobile than they are on desktop. Although 3 in 10
KEY INSIGHTS:
Internet users’ behaviors shift to mobile and consumer awareness of ad-blocking capabilities grow. With
desktop ad-blocking rising and mobile ad-blocking set to gain precedence in the West, other forms of brand
promotion are set to gain traction. In particular, those that revolve around social and mobile that are (as
yet) immune to ad-blockers, including Influencer Marketing and in-app advertising. This will be additionally
boosted with the increase of social media consumption driven by second-screening.
7
6:19 6:26 Digital Media
6:04 6:17
6
5:37 Traditional Media
5
4:36 4:30 4:29 4:25 4:29
4
Of the time devoted to specific online media activities, social networks and messaging services are by far the
most popular. They capture over 2 hours each day, representing almost a third of the time spent online.
Online TV/streaming is now close to reaching the 1 hour per day mark. But it still has some distance to cover
before it can become a real challenger to traditional broadcast TV. That said, it’s worth noting that now a
fifth of global internet users say they are using Netflix, which is one among many reasons why the figures
for online TV are likely to continue increasing (and, in the context of streaming devices, mirroring and other
similar behaviors, why maintaining a pure distinction between linear vs online TV/streaming is going to get
slightly anachronistic)
PC/Laptops/Tablets Mobiles
HRS:MIN
77% 2012 23%
6
Across the 31 markets where trended data from 2012 onwards is available, daily time spent on linear TV has
declined in 29 of them, broadcast radio is down in 24 of them, and print press has dipped in 15. Over the
same period, online TV is up in 28 markets, online radio/streaming has recorded increases in 21 and online
press has risen in 26 markets.
2012 2016
Since 2012, all of the specific online activities have seen increases in terms of the daily time devoted to them.
It’s important to recognize the relatively slow nature of the rises; while their upward trajectories are clear to
see, changes to digital consumption tend to take place more slowly than is sometimes supposed. Online radio
has seen just a 4-minute increase, for example, while online press has similarly risen by only 9 minutes. Social
networks/services on the contrary set themselves apart here, capturing an additional 34 minutes per day than
they were back in 2012.
It’s sometimes asserted that the social “bubble” has burst, conversely user data makes it clear that social
networks are continuing to become even more deeply integrated in daily behaviors. The shift to mobile is
playing a vital role here (whereby users are visiting networks whenever and wherever they please), as is the
incorporation of ever more activities within social platforms. Although linear TV and broadcast radio are
taking slightly less time than they were 4 years ago, figures can be subject to small year on year fluctuations
and neither of the decreases have been sizable. TV is a good example, here: internet users might now be
devoting almost an hour to online TV or streaming, but they’re still spending twice as long in front of their TV
sets.
So what does this mean for the traditional media space, will it be eventually overshadowed by the digital
media world or will it conform with a new spin to appeal to the future audience? There are just 5 of our 34
markets where consumers continue to spend longer on traditional rather than digital forms of media. In the
USA, the enduring popularity of linear TV is the main contributor, while in a clutch of Western European
markets (Belgium, France, Germany and the Netherlands), the relative lack of enthusiasm for social
networking is key. Fast-growth markets are spending the longest time online of all – the result of online
populations having younger age profiles.
We are already seeing different strategies applied by marketers where both traditional and digital media
are syncing together to drive new ways to engage their target audiences. “We’re already starting to see this
happen with brands using TV or radio ads to drive traffic to their Facebook page”. It’s often said that a brand
is only as good as their customers perceive them to be. And, to some extent, this is true – having a positive
brand perception is vital to encouraging people to buy. Over a third of internet users, globally, say that
reviews affect their purchasing decisions – and it’s notable that 57% say they always like to seek an expert
The fact is – industry leaders using their image to represent brands and businesses is by no means a new
concept. Word of mouth was always recognized as the most impactful source of advertising, and Influencer
Marketing is a modern type of it. Leaders (influencers) in their industry are the conductors of the ‘word of
mouth’ concept, engaging audience on a larger scale.
86% of marketers used influencer campaigns in 2016, and according to a study conducted by Tomoson -
“59% of marketing professionals plan to increase influencer budgets in the next 12 months”.
KEY INSIGHTS:
Digital media consumption grows each year, mainly through extensive usage of mobile devices. Traditional
media is in slight decline, with TV still holding positions strongly as a medium of content consumption and
brand discovery. This state is conditioned by an older (over 32 years old) audience who bear to formats they
are familiar with. A younger audience tends to consume more online content. These trends trigger changes in
internet users’ behavior like second-screening, ad-blocking, increased social media consumption, preferable
content types etc. The shift in audience preferences and behavior, in turn, makes marketers adopt and search
for alternative channels to get through to consumer effectively. One of these channels is a form of modern
word-of-mouth - Influencer Marketing. This channel is being used by most marketers, and despite its
complexities, more than half of them plan to increase budgets on Influencer Marketing in next 12 months.
With digital media and social media gaining popularity with today’s consumers, new engagement strategies
have also developed to help increase brand advocacy such as Influencer Marketing. Influencer Marketing,
defined, is “a form of marketing in which focus is placed on influential people rather than the target market as
a whole”. An influential person/influencer can be described as someone that has the power to motivate their
followers in the industry where their buying decisions are concerned.
In comparison to a decade ago when people primarily used social media to keep in touch with their friends and
family and to share personal updates, social media has become an increasingly essential channel concerning
celebrity fandom and keeping up with celebrity news. The numbers of people choosing to follow celebrities
and well-known individuals demonstrates this point. 30% of global internet users attest to following actors
and a similar proportion following singers or musicians. Vloggers have also gained traction lately, especially
among Generation Z. More than half of these users say they have watched a vlog in the last month, moreover,
about a fifth are actively following vloggers on social platforms. Hence, this creates new, important opportu-
nities for brands – in particular, the opportunity for Influencer Marketing. Influencer Marketing allows brands
to get targeted exposure to the right kind of consumer who is interested and will pay attention.
Unbelievably, just three years ago, “Influencer Marketing” barely registered on Google Trends, receiving only
six percent of the interest it does today. Expensive social media agencies were the only channels available for
brands and influential bloggers to connect to their consumers, offering little in the way of reporting.
YouTube is another great example of up and coming influencers (non-actors or celebrities) such as everyday
cooks, fashionistas, travelers etc. that are exploding with huge numbers of fans and followers, providing even
more opportunities for businesses to utilize Influencer Marketing strategies. Influencer Marketing should be
given consideration over other strategies, in today’s current market.
Tracckr.com states “Influencer Marketing offers brands the potential to unify their marketing, PR, sales,
product, digital marketing, and social media through powerful and relevant relationship-based communica-
tion. Both the ROI and marketing potential of Influencer Marketing are immense.” With marketing strategies
being less concentrated and more disconnected, implementing Influencer Marketing can help drive a more
KEY INSIGHTS:
With both well-known brands and smaller businesses truly realizing the potential reach and engagement
opportunity provided by social media channels, the use of social media marketing has exploded over the last
few years. When you take a moment to analyze all the different stats: how people make purchasing decisions,
the rise of video and mobile advertising, the rise of social media, the increase in the use of ad-blockers, etc.,
a very clear picture is painted that today’s influencers are some of the most valuable, and also viable media
channels out there. By implementing Influencer Marketing a business can help drive a more optimized, omni-
channel marketing plan, and will be more likely to deliver a larger ROI and targeted audience reach.
With 86% of marketers having used this marketing strategy, Influencer Marketing saw dynamic growth in
2016. Of these marketers, 94% found Influencer Marketing effective.
These analytics were compiled to understand how business to consumers (B2C) marketers are utilizing Influ-
encer Marketing today, and how they plan to incorporate it into plans for 2017. The findings include respons-
es from 170 marketers across a variety of industries including Consumer Packaged Goods (CPG), Food &
Beverage, Media, and Retail, as well as their agencies.
According to the survey conducted by Linqia, 86% of marketers used the specified channel in 2016, with
content being the top reason for choosing this channel. 89% of marketers who used Influencer Marketing in
2016 did so to create authentic content about their brand, 77% used Influencer Marketing to drive engage-
ment around their brand and 56% used the channel to drive traffic to their websites or landing pages.
Other 8%
As marketing budgets are increasing, a call for accountability can be seen. Data from 2016 demonstrates
most marketers spent between $25,000 - $50,000 per Influencer Marketing program, which survey
respondents report will double to $50,000 - $100,000 per program in 2017. Overall budgets are set to
increase as well, with 67% of marketers planning to increase their Influencer Marketing budgets in 2017 and
only 4% planning to decrease their investment in this channel. Influencer Marketing proves to be one of the
most effective digital marketing tools. According to RythmOne, advertisers who launched Influencer Market-
ing program in 2016 and received on average $11.69 in Earned Media Value (EMV) for every $1.00 of spend.
Unsure
16% Increase budget
67%
Maintain budget
13%
Decrease budget
4%
Decrease 4%
Under $10K 7%
Over $500K 4%
Specifically, 78% percent of marketers cite measuring the ROI of Influencer Marketing as their top challenge
for 2017. However, 61% of marketers still measure the success of their programs through audience reach,
which, as mentioned earlier, is a metric that can be easily falsified through the purchase of “fake followers”.
This also leads to 67.6% of marketers consider finding relevant influencers their largest influencer marketing
Hence, marketers have started to track the entire consumer journey and examine how consumers are moving
through the complete path to purchase to address this challenge, instead of just looking at audience reach.
Eighty-one percent of marketers cite engagement as their top metric for measuring Influencer Marketing
success, followed by 62% who analyze the amount and quality of traffic driven to their website as their top
metric.
Other 5%
Reach 61%
Engagement 81%
Traffic 62%
Conversions 53%
Other 3%
As Influencer Marketing continues its evolution, marketers must evaluate where the channel fits as a line item
in their budgets. A survey found that 42% of marketers now account for Influencer Marketing as a portion of
their advertising/marketing budgets, whereas only 31% account for Influencer Marketing as a PR/communi-
cations line item, signaling the industry’s evolution from an organic channel owned by communications to a
paid channel owned by marketing.
Advertising/Media 42%
PR/Communications 31%
Product Development 2%
Other 2%
In April 2016, the Pew Research Center announced that “Millennials have surpassed Baby Boomers as the
largest living generation in the U.S. There are now 75.4 million people who were between 18 and 34 last year,
compared to the previously largest generation, Baby Boomers, who numbered 74.9 million.” Accordingly,
marketers cite Facebook and Instagram, overwhelmingly, as the most important social platforms for their
Influencer Marketing programs. As the graph below illustrates, influencer blogs are the next most important
channel, with nearly half of respondents leveraging them as an instrument for improving discovery and search
engine optimization (SEO).
Facebook 87%
Twitter 44%
Instagram 87%
Snapchat 28%
Pinterest 40%
Blogs 48%
Google+ 4%
Other 6%
KEY INSIGHTS:
Based on the above analytics, we can conclude Influencer Marketing saw an explosive growth in 2016 as 94%
of marketers found it to be a very effective tactic for advertising. In 2017, 67% of marketers are planning
to increase their budgets regarding Influencer Marketing and only 4% are planning to decrease it. The top
challenge of marketers for 2017 will be measuring the ROI of Influencer Marketing campaigns. Some of the
most preferred social channels are Instagram, Facebook and YouTube. Influencer blogs have also proven to be
an important channel, with nearly 87% of respondents leveraging them as tool for improving brand discovery.
In line with the trend of increased accountability for budgets, performance-based pricing models are gaining
traction, with 50% of marketers reporting that cost-per-click (CPC) and cost-per-engagement (CPE) pric-
ing models are the most effective for driving results. In contrast, 17% of marketers think that pay-per-post
or “flat rate” pricing, which is the most widespread form of influencer compensation, is effective. Influencer
Marketing pricing models can be defined as:
> Pay per post or video - individual influencers are paid a flat rate for creating and publishing a piece of con-
tent, whether that be a tweet, a photo, a video or a blog post.
> Free product or experiences - brands offer product or travel compensation in lieu of monetary payment,
ranging from an all-expenses paid trip to being among the first consumers to use a new product.
> Cost per engagement (CPE) - influencers are compensated based on the number of engagements their
content draws (likes, shares, retweets).
> Cost per click (CPC) - brands pay for consumers who have taken an action, being inspired by influencer
content (typically clicking through to visit a brand’s landing page).
> Cost per acquisition (CPA) - influencers are compensated based on the number of sales or subscription sign-
ups they drive.
Free product or
experiences 16%
Other 10%
Based on the above analytics, we can conclude Influencer Marketing saw an explosive growth in 2016 as 94%
of marketers found it to be a very effective tactic for advertising. In 2017, 67% of marketers are planning
to increase their budgets regarding Influencer Marketing and only 4% are planning to decrease it. The top
challenge of marketers for 2017 will be measuring the ROI of Influencer Marketing campaigns. Some of the
most preferred social channels are Instagram, Facebook and YouTube. Influencer blogs have also proven to be
an important channel, with nearly 87% of respondents leveraging them as tool for improving brand discovery.
The development of Influencer Marketing has allowed for the creation of a variety of platforms and providers
that aim to help brands navigate this emerging sector. Resultingly, identifying which Influencer Market-
ing partner to work with is assessed as the second biggest challenge of 2017. Today, 64% of marketers use
managed or “turn-key” services when executing their Influencer Marketing programs, while 25% still use a
manual process (involving email and spreadsheets) for influencer outreach and management. Further, only
11% of respondents use a self-service, software as a service (SaaS) platform to automate influencer outreach,
management, and reporting.
In-house 25%
Managed or “turn-key”
43%
service provider
0% 25% 50% 75% 100%
Less than 10 8%
10 - 25 42%
25 - 50 25%
50 - 75 43%
75 - 100 8%
1 - 10 29%
10 - 25 52%
25 - 50 11%
50 - 75 0%
75 - 100 4%
Because the process of managing Influencer Marketing programs can be so time-consuming when handled
in-house, 52% of marketers who do so only work with an average of 10-25 influencers per program. More-
over, 50% of in-house program managers estimate spending more than 25 hours managing each program,
while 25% spend more than 50 hours managing each program.
KEY INSIGHTS:
Because the process of managing Influencer Marketing programs can be so time-consuming when handled
in-house, most marketers who do so only work with a small number of influencers per program, dedicating
a good deal of time per week to each influencer. As Influencer Marketing has evolved, a variety of services
aiding brands in the navigation of this emerging sector have developed. The bulk of marketers use managed
or “turn-key” services when executing their Influencer Marketing programs, while others use self-service,
SaaS platforms to automate influencer outreach, management, and reporting. Still, some rely on the time-
consuming in-house services. Accordingly, identifying which Influencer Marketing partner to work with is the
second biggest challenge of 2017.
With the emerging technological innovations and the power of the Generation Z connected consumers, it’s
difficult to predict what the future holds. Today, it is certain that the acceleration of changes will continue
over the next few years. By referring to different studies carried out among professionals, it is possible to
determine the pulse of the market and predict future trends.
Presented below are some related trends observed over the past few years. These could further mark the
evolution of influence and content marketing over the next 3 years.
If observed trends continue, marketers will have their own unique tools, adopting an approach based on the
social aspect of consumer behavior, moving away from direct sales targets. Confluence marketing, which
merges relationships – influencers and content, will be a priority for companies and Small and Medium-sized
Enterprises (SMEs) in digital marketing strategies, as demonstrated by the Traackr/TopRank Marketing
Study: Influence 2.0 – The Future of Influence marketing.
Strategic
46% Highly strategic
25%
Not strategic
5%
Somewhat strategic
24%
Because of rapid consumption (content snacking) and second-screening, video content will promote story-
telling, proving to be the focus of younger generations. Taking advantage of live video (Facebook, Twitter) and
the ubiquity of mobile technologies, a rebirth of journalism will occur. Podcasts will become the new blogs of
niche influencers.
Everyone is still trying to figure out live video, and it is obvious. Seemingly, most of the production and con-
tent is poor. This will certainly change as platforms discover how to monetize live video. Currently, Facebook
is testing 15-second, mid-roll video ads inside live broadcasts, which will drive even more content. Expect to
see more of this from other platforms in the future, as well.
In response to the many repetitions of the consumer-connected customer journey, and the multiple channels
used, content marketing strategies and relationships – influencers will be focused on all the different stages of
the purchasing process. To easily manage this, brands must utilize automated management solutions.
Stricter regulations will gradually eliminate “influenceratis”, and will limit niche influencers. Marketers will
no longer be interested in recommendation campaigns and temporary content sites. Further, the cost of
engaging influencers will become standardized, causing placement agencies to disappear, and relationships
with influencers will improve considerably with information rights management solutions. Consequently, only
those marketplaces that offer complete services will survive.
Encouraging the growth of gig economy, the rise of independent entrepreneurship will combine with uber-
isation and outsourcing services. Web marketing freelancers will offer B2B influencer services. The role of
influencers will be redefined and integrated into a multi–functional relationship approach with brands.
Gig freelancers will advocate the adoption of new social and alternative systems, like Bitcoin (blockchain and
cryptomony). This economic transactional system requires the validation of ¨Proof of Work¨ and ¨Proof of
Stake¨, and will modify the relationship with and help redefine the role of influencers.
RE-EVALUATION OF METRIX
Views and subscribers are no longer the most important aspect in measuring the effectiveness of digital
marketing campaigns these days. According to Darby Barton and Nichole Brandt from XOMAD, “We’ve
KEY INSIGHTS:
Many of the recent trends of digital marketing can help provide insight into what the future of this field
may hold. Confluence marketing, which merges relationships – influencers and content, will be a priority
for companies regarding digital marketing strategies. To easily manage and develop this relationship, brands
must utilize automated management solutions to track the consumers entire path to customer. By taking
advantage of live video (Facebook, Twitter), podcasts and the ubiquity of mobile technologies, a rebirth
of journalism will occur. Accordingly, the role of influencers will be redefined and integrated into a multi–
functional relationship approach with brands. Furthermore, cost per engagement models will be the most
helpful tool in analyzing the success of Influencer Marketing campaigns.
Digital media is a huge umbrella network that grows and changes annually. The challenge for many business
owners and marketers is keeping up with what new advertising tactics to employ and invest in to stay ahead of
the competition, ensuring they effectively reach their consumers. With constant ads distracting your target
audience and the popularity of ad-blockers being utilized to filter one’s ads, the question is how can businesses
successfully reach their audience?
OVER THE LAST 5 YEARS THE OVERALL TIME SPENT BY INTERNET USERS ONLINE EX-
CEEDED THE TIME SPENT ON ALL TRADITIONAL MEDIA COMBINED. Traditional media has
only slightly declined, with TV still holding a strong position as a medium of content consumption and brand
discovery.
Expansion of the mobile internet also led to a longer online presence. Some of this additional online time
happens simultaneously, consequently having little significant impact on traditional media, but time spent
on PCs, laptops and tablets has decreased. Internet users tend to second-screen, or consume multimedia on
any chosen device and mobile at the same time. It has already become the norm. Altogether, these factors
increased average time spent on social media (by 34 minutes), and posting frequency (by 50%).
THIS MOBILE SHIFT HAS TWO IMPORTANT EFFECTS AS MENTIONED ABOVE, HIGHER
SOCIAL MEDIA CONSUMPTION AND AN INCREASE IN MOBILE AD-BLOCKING. As inter-
net users’ behaviors shift to mobile, consumer awareness of ad-blocking capabilities increase. With desktop
ad-blocking rising and mobile ad-blocking advancing in the West, other forms of brand promotion are set to
gain traction. In particular, those that revolve around social and mobile that are (as yet) immune to ad-block-
ers, including Influencer Marketing, sponsored editorial and in-app advertising. This will be additionally fueled
with an increase of social media consumption driven by second-screening.
Search engines and TV ads still have the majority of the market in brand discovery, although in the last 2
years a clear trend of using social networks for this purpose developed among Millennials and Generation Z.
These two groups comprise the most active internet buyers currently and are expected to continue that trend
in the next 5 years. They tend to rely on word-of-mouth and reviews or opinions of trusted leaders or celebri-
ties. This channel is being utilized by most marketers. And despite its complexities, more than half of compa-
nies plan to increase budgets on Influencer Marketing in next 12 months.
The buyer journey has changed, and will only continue to evolve. Clean funnels that marketers used in the
past to determine their digital marketing strategy are no longer effective. Today’s consumers can take many
different paths (at their own pace) to discover the products and solutions that work best for them, they sec-
ond-screen and use multiple channels simultaneously.
Based on the analytics in this report, we can conclude Influencer Marketing saw an explosive growth in 2016
as 86% of marketers applied it, and 94% of them found it to be a very effective tactic for advertising. In
2017, 67% of marketers are planning to increase their budgets regarding Influencer Marketing and only 4%
are planning to decrease it. Most marketers will set their average budget per program around $50,000 -
$100,000, while 18% will go over $100,000 and up to $500,000. The top challenge of marketers for 2017
will be measuring the ROI of Influencer Marketing campaigns. Some of the most preferred social channels
are Instagram, Facebook and YouTube. Influencer blogs have also proven to be an important channel, with
nearly 87% of respondents leveraging them as tool for improving brand discovery.
As the trend for budget accountability increases, performance-based pricing models gain traction, with 50%
of marketers reporting that cost-per-click (CPC) and cost-per-engagement (CPE) pricing models are the
most effective for driving results. However, pay-per-post or “flat rate” pricing is still the most widespread
form of influencer compensation, and is effective.
Because the process of managing Influencer Marketing programs can be so time-consuming when handled
in-house, most marketers who do so only work with a small number of influencers per program, dedicating
a good deal of time per week to each influencer. As Influencer Marketing has evolved, a variety of services
aiding brands in the navigation of this emerging sector have developed. The bulk of marketers use managed or
“turn-key” services when executing their Influencer Marketing programs, while others use self-service, SaaS
platforms to automate influencer outreach, management, and reporting. Still, some rely on the time-con-
suming in-house services. Accordingly, identifying which Influencer Marketing partner to work with is the
second biggest challenge of 2017.
This report postulates Influencer Marketing as one of the fastest-growing markets. It grows exponentially and
by estimates will turn into a $5–10 billion industry within the next 5 years.
Many of the recent trends of digital marketing can help provide insight into what the future of this field
may hold. Confluence marketing, which merges relationships – influencers and content, will be a priority for
companies regarding digital marketing strategies. To easily manage and develop this relationship, brands must
utilize automated management solutions to track the consumers’ entire path to customer. By taking advan-
tage of live video (Facebook, Twitter), podcasts and the ubiquity of mobile technologies, a rebirth of journal-
ism will occur. Accordingly, the role of influencers will be redefined and integrated into a multi–functional
relationship approach with brands. Furthermore, cost per engagement models will be the most helpful tool in
analyzing the success of Influencer Marketing campaigns.
The State of Mobile Ad-Blocking in 2017. Custom Report. Q2 2017. Global Web Index.
Emarketer.com Worldwide Retail Ecommerce Sales will Reach $1.915 Trillion This Year.
The-State-of-Influencer-Marketing-2017_Final-Report.pdf
https://www.emarketer.com/Article/Digital-Ad-Spending-Surpass-TV-Next-Year/1013671
https://sproutsocial.com/insights/social-networks-influence-buying-decisions/
https://www.marketingprofs.com/chirp/2017/32472/the-lowdown-on-the-rise-of-influencer-marketing-info-graphic
https://maximizesocialbusiness.com/20-influencer-marketing-trends-realized-2020-26805/
https://www.rhythmone.com/blog/2017/02/16/influencer-marketing-benchmarks#download
http://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/
http://mashable.com/2017/08/07/3-billion-global-social-media-users/#d2TBoghVSaq1
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| The state of Digital Marketing 2017 34