INDONESIA NATIVE ADVERTISING AND INFLUENCER MARKETING...
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INDONESIA NATIVE ADVERTISING AND INFLUENCER MARKETING REPORT 2018
Transcript of INDONESIA NATIVE ADVERTISING AND INFLUENCER MARKETING...
INDONESIA NATIVE
ADVERTISING AND
INFLUENCER MARKETING
REPORT 2018
TABLE OF CONTENTS
Executive Summary
Key Findings
Industry Overview
The State of Native Advertising in Indonesia
Finding 1:
Finding 2:
Finding 3:
Finding 4:
Influencer Marketing Deep Dive
Finding 1:
Finding 2:
Finding 3:
References
About GetCRAFT
I
II
III
IV
V
VI
VII
1GetCRAFT.com
Native ads have overtaken display ads in
Indonesia
Social media prevails even among native
ads
Quality of content is the top challenge
among Indonesian brands
Brands still use native ads primarily for
awareness
Influencers expect their revenue to at
least double in 2018
Social media is the influencer platform of
choice, but blogs persist
Influencers struggle with payments and
revisions
EXECUTIVE SUMMARY
In our Digital & Content Marketing Report in May, we found that brands seem to have lost their gusto for display ads. Marketers we polled placed display at the bottom of their digital priority lists. This new report—based on three separate surveys sent out to 43 brands, 30 publishers, and 30 influencers, as well as email interviews with experts—confirms those findings.
The results of our survey suggest that native ads have overtaken display ads in Indonesia, taking 20-30% of brands’ total media budgets this year. Considering our earlier findings that digital takes about a third of media budgets, these new results reveal that bulk of the digital budget now goes to native ads.
The median native ads spend will not move outside of the 20-30% range in 2018, but a bigger portion of brands will be spending majority of their media budgets on native. The increasing in native ads spend will be driven by the global digital rush coupled with the fact that consumers are getting more cautious in their online activities.
Although tens of millions of Indonesians are online and on social media, the country is one of the hotbeds for ad blocking. Its ad blocker penetration rate is more than five times that of the global average. Further, whereas adblock use is limited to desktop in other countries, in Indonesia, mobile ad blocking is extremely high.
This GetCRAFT report asserts that native ads are effective means by which brands can reach out to an audience that is both weary and wary of online ads. Native ads cut through the advertising clutter by mimicking the form and function of content in its environment and, more effectively, by providing content that is valuable to clients.
2GetCRAFT.com
Social media remains the platform of choice for brands doing native ads, but more of them are planning to ramp up their investments on sponsored content—particularly branded content on publisher platforms and influencer marketing. Paid social media posts, branded content, and influencer marketing are the most popular and most effective native ad types.
Brands seem reluctant in letting go of control over messaging, however, prompting complaints about quality of content on their end and remarks among publishers that advertisers don’t really know how native ads work. Measuring success is a key issue, impacted heavily by the fact that most brands still use native ads primarily for awareness.
This report also dives deep into influencer marketing, an exciting subcategory of sponsored content. Influencers expect their income to at least double next year, with some projecting growth of up to five times. An interesting insight is that although influencers thrive on social media, they still keep their blogs, making them more like publishers.
Late payments and last-minute revisions are the top complaint among influencers, issues that can both be solved by more organized processes or intermediaries. These challenges nonetheless highlight a need for the industry to promote a greater appreciation of the value of content.
GetCRAFT believes that when doing native ads—or any marketing campaign, for that matter—brands must always be guided by their business objectives. Only when they keep to their goals can brands truly target, measure, and achieve success.
KEY FINDINGS
3GetCRAFT.com
The State of Native Advertisingin Indonesia
Influencer Marketing Deep Dive
1.Native ads have
overtaken display ads in Indonesia
1.Influencers expect their
revenue to at least double in 2018
2.Social media prevails
even among native ads
2.Social media is the
influencer platform of choice, but blogs persist
4.Brands still use native ads
primarily for awareness
3.Quality of content is the
top challenge among Indonesian brands
3.Influencers struggle with payments and revisions
4GetCRAFT.com
123 MILLION
133 MILLION
Active mobile internet users
Internet users
262 MILLIONTotal PopulationUrbanisation : 55%
92 MILLION
Active mobile & social usersPenetration : 35%Penetration : 51%
INTERNET(Desktop & Tablet)
SOCIAL MEDIA(Any device)
INTERNET(Mobile phone)
TELEVISIONVIEWING TIME
8H 44M 3H 16M3H 55M 2H 23M
AVERAGE DAILY USE
INDUSTRY OVERVIEW
MOST ACTIVE SOCIAL MEDIA PLATFORMS
YouTube
FB Messenger
Line
BBM
Penetration : 47%
49%
48%
39%
38%
38%
30%
31%
28%
26%
22%
21%
Source: GetCRAFT; United Nations, U.S. Census Bureau, Internetworldstats, ITU, Internetlivestats, CIA World Facebook, National Regulatory Authorities, Tencent, Ckontakte, Kakao, Naver, Niki Aghaei, Similarweb, Ding, Extrapolation of TNS data, GSMA Intelligence, Extrapolation of Emarketer and Ericsson data
THE STATE OF NATIVE ADS IN INDONESIA
5GetCRAFT.com
6GetCRAFT.com
Native Ads
Sponsored Content
Branded Content
Influencer Marketing
Programmatic Native Ads
Native Ad Unit
Less
Native
More
Native
e.g. BrandedArticle
e.g. InfluencerVideo
e.g. Taboola,Outbrain
e.g. Facebook,Google Ads
0.2 - 0.3% 0.4 - 0.8% 1 - 2% 2 - 4%
Click-through rate
Indonesia is unquestionably at a digital turning point. About half of its massive population is already online, most of them also active users of social media. The remaining half is a promising frontier not only for the digital revolution but also for brands, who are increasingly relying on the internet for audiences.
The Digital & Content Marketing Report that GetCRAFT released May 2017 showed that brands had allocated about a third of their overall marketing budget this year on digital.[1] They are likely to spend more on the channel moving forward, spurred by excitement in paid social media posts, influencer marketing, paid search, and sponsored content—all deemed native ads.
For the purpose of this report, we adopt the definition of native ads put forth by the Native Advertising Institute and the International News Media Association:
Native advertising is paid advertising where the ad matches the form, feel, function, and quality of the content of the media on which it appears. Frequently this advertising content topic is not directly about the advertiser’s brand, but rather is about a tangential or supporting topic or topics that may create a “halo effect” on the brand.[2]
We divide native ads into three categories: programmatic native ads, native ad units, and sponsored content. Programmatic native ads target consumers based on metadata collected by websites. They are commonly placed on platforms through widgets like Outbrain or Taboola, linking to paid content outside of where they are found.
Native ad units are capabilities embedded on platforms that allow advertisers to promote content. Examples are options to boost Facebook posts, paid search ads found on Google search results pages, and promoted listings on eBay.
Sponsored content is split further into subcategories: branded content and influencer marketing. Branded content is when an advertiser pays a publisher to have its name, message, or both associated with a particular story. Branded content appears on publisher platforms—news websites, online magazines, among others—mimicking editorial content.
Influencer marketing involves identifying, researching, engaging, and supporting individuals or groups who create high-impact conversations with customers about your brand, products or services. Influencer posts may include those on social media, blogs, or video channels.
FINDING 1NATIVE ADS HAVE OVERTAKEN DISPLAY ADS IN INDONESIA
7GetCRAFT.com
Indonesian brands in our survey allocated a median of 20-30% of their total media budgets this year to native ads.
Although the median share of native ads will remain the same in 2018, 16% of brands will allocate more than 50% of their media budgets to native ads. Only 9% of brands had the same allocation this year.
Considering our findings in May that 31% of total media budgets are going to digital, this new data suggests that bulk of digital’s share now goes to native ads, a trend matched by optimism among publishers and influencers.
Some 90% of the influencers expect their income to at least double in 2018, following the growth they reported this year.
Meanwhile, an overwhelming majority of the publishers we polled expect native ads to contribute more than half of their revenues next year.
Another 7% say a quarter to half of their revenues will come from native. The remaining 17% of publishers said native ads will form less than 25% of their revenue.
% of Native Ads Spending (2017 vs 2018)
0 - 10% 41 - 50%21 - 30% 61 - 70%11 - 20% 51 - 60%31 - 40% 71 - 80%
2017 2018
26%
19%21%
23%
19% 19%
14%
12% 12%
0%
12%
7%
2%
9%
2%
5%
[Native ads] will continue to grow and flourish in line with further integration of digital as an information and entertainment source, utility, and brand experience into the lives of the target audience.
Eka SugiartoHead of Media – Indonesia and SEAAUnilever
8GetCRAFT.com
Native ads have overtaken display as the most effective revenue stream for publishers. Our publisher respondents gave native ads an effectiveness score of 3.1 out of 4 points.
Display ads were ranked a far second with an effectiveness score of 2, followed by affiliate links, 1.37, and recommendation widgets, 1.28.
Some Indonesian publishing firms, in fact, report that the demand for native ads has gone beyond capacity of their teams. Dian Gemiano, GM Marketing Group of Digital Kompas Gramedia, notes that their native ads revenue has grown by 10% year-on-year over the past three years.
“If we can expand our capacity, I believe the growth can be even much higher,” Dian says, estimating that Kompas’ native ads revenue can grow by 70-80% in 2018.
Most of the publishers we’ve approached seem to have the same sentiment.
To accommodate more business in terms of native ads, some 63% of our respondents have put together dedicated teams. Another 30% of the publishers in our poll said they will have native ads teams in the near future.
More than 50% Yes
Less than 25%
No - but we plan to, in the near future
No - and we don’t plan to anytime soon
26% to 50%
6.6% 7%
16.6% 30%
76.7% 63%
Projected Native Ads Share in Publisher Revenues
Publishers with Dedicated Native Ads Teams
These data points cement native’s supremacy over display, earlier signaled by our May findings that put display ads at the bottom of digital priority lists. Brands in May gave display a priority score of some 2 out of 5, way below paid social media, influencer marketing, paid search, and sponsored content, with scores between 3 and 4 points.
Native ads provide more context to readers and are very useful for campaigns in the educating phase. They require a more personal and unique approach, as a lot of creative and brand message are involved.
William UtomoChief Operating OfficerIDN Media
9GetCRAFT.com
Lack of enthusiasm for display comes as no surprise, given that brands appear to consider display ads a less effective digital marketing channel. Display got an effectiveness score of some 2.5 points, making it the channel with the lowest score in our May survey besides webinars and podcasts, which score around 1 point.
By contrast, paid and owned social media both had effectiveness scores above 4 points, while paid search, content marketing, influencer marketing, SEO, sponsored content, and email marketing, had scores between 3 and 4 points.
Publishers, however, recognize that both native and display have roles to play in the customer journey. “Native ads came to the surface to provide an alternative way for brands to engage with the readers in digital. However, it is still important to [combine] it with banners for awareness and call-to-action sake,” Andrias Ekoyuono, Chief Marketing Officer at Kumparan.com, says.
We expect native ad spend to grow further, riding on the back of a global shift toward digital from traditional media. In its latest Global Media Report released in 2016, consulting firm McKinsey projected a global digital spend of some USD198 billion this year, surpassing that for television (USD196 billion).[3]
The digital uptrend is set to continue at a compound annual growth rate (CAGR) of 7% to some USD273 billion by 2020, further outpacing TV spending, which will grow at a CAGR of 4.9% to USD229 billion. “[Growth of native ads] is also accelerated by the fast adoption by younger consumers with entry-level smartphone,” Eka Sugiarto, head of media – Indonesia and SEAA at Unilever says.
Cisco last year forecast that mobile data traffic in Indonesia will grow by some 8 times from 2016 to 2021 at a CAGR of 53%. This, after it reported a 142% growth in mobile traffic in 2016.
Indonesians also spend an average of 3.5 hours online using mobile devices, 2.9 hours of which are spent on social media, McKinsey reported in October 2016.
“Furthermore, Indonesia is a mobile-first nation; approximately 75% of the online purchases are made via mobile devices,” the consulting firm said.
Native ads will continue to carve out a bigger share of the digital budget compared to display ads, as consumers grow more and more conscious of the value of their clicks and eyeballs.
“The rise of ad blockers and ad fraud make native ads an obvious option for advertisers to avoid inefficiency and create a more delightful ads experience,” Dian Gemiano says.
Ad blocking consultancy PageFair reported 615 million ad blockers globally as of December 2016, a 142 million increase from the previous year. [4] Some 58% of Indonesians use ad blockers, more than five times the global ad block penetration rate of 11%.
Even when they are not using ad blockers, audiences may not be receptive to brand messages. In a recent Kantar Millward Brown study, 72% of respondents said they skip ads. Some 56% use blocking technology, while 49% do something else or look away from the screen. [5]
(Effectiveness Score, 0-4)
3.1
1.5
1.37
1.28
2
Recommedation widgets
Display ads
Others
Affiliate links
Native ads
Effectiveness of Publisher Revenue Streams
10GetCRAFT.com
FINDING 2SOCIAL MEDIA PREVAILS EVEN AMONG NATIVE ADS
The Kantar study however suggests that Indonesians have slightly more positive attitudes toward native ads than display ads. Across Gen X, Y, and Z, positive reception averaged at 41% for desktop display and 37% for mobile display. By contrast, there was an average positive reception of 53% for both branded content and paid social media ads.
This could explain why 70% of the brands we surveyed use paid social media posts. Paid social ads are followed in popularity by influencer marketing, used by 51% of our respondents, branded content (49%), paid search ads (44%), promoted listings (16%), and recommendation widgets (9%).
The high user base also supports advertising on social media. The number of active social media users in Indonesia ballooned by 34% to 106 million in January 2017. Indonesians have also been spending more time on social media daily—3 hours 16 minutes—than on TV—2 hours 23 minutes.
Types of Native Ads Used
Not using any kind of native ads
Recommendation widgets
Paid search ads
Influencer marketing
Promoted listings
Branded content
Paid social media posts 70%
49%
16%
51%
44%
12%
9%
Effectiveness of Native Ads for Brands
2.5
2.4
2.4
2.0
1.3
2.5
Recommendation widgets
Paid search ads
Influencer marketing
Promoted listings
Branded content
Paid social media posts
(Effectiveness Score, 0-4)
11GetCRAFT.com
Social media’s continued dominance might also explain why influencer marketing, which also heavily uses social media, emerged as the second most popular native ad option, used by 51% of respondents. Branded content is ranked third, used by 49% of brands.
Paid social media posts, influencer marketing, and branded content are also deemed the most effective types of native ads, with effectiveness scores of 2.51, 2.49, and 2.4, respectively.
In 2018, brands will continue to prioritize paid social media posts. Some 65% of our respondents plan to do more paid social media posts next year.
Interestingly, 53% of brands we surveyed intend to do more paid search ads next year, making this native ad type the second top priority among brands. Preference for paid search ads could be explained by the fact that they reach audiences who are already at the interest or desire phase of the marketing funnel.
“The digital consumer journey becomes more diverse with increasing nodes where conversion can be executed,” Unilever’s Eka says. Not only are search ads nodes close to conversion, they also allow for attribution.
Influencer marketing is the biggest priority next to paid search ads. Some 51% of brands in GetCRAFT’s survey said they plan to engage influencers more in 2018.
Branded content is surprisingly relatively low in the brands’ priority lists, with only 40% of our respondents planning to do more of it.
This places branded content lower than paid search ads, even when it is deemed a more effective native ad type.
A little more than a quarter (25%) of brands in our survey plan to do more promoted listings in 2018. An even smaller portion (14%) will do more recommendation widgets.
How Brands Will Do Native Ads in 2018
0% 100%50%25% 75%
Recommendation widgets
Promoted listings
Influencer marketing
Paid search ads
Branded content
Plan to do more
Plan to do less
Plan to do about the same
Don’t plan to do any
Paid social media posts
[Measures of success] will highly depend on the role of the communication which at PHD we identify into three dimensions: the message focus (explicit or implicit); the warmth toward the brand and the level of interest on the message and brand itself; and on the medium where we choose to distribute the content (e.g. social media, publisher) with the form of the content itself (e.g. video, image, text or mixed).
Roy SimangunsongManaging DirectorPHD Media
12GetCRAFT.com
FINDING 3QUALITY OF CONTENT IS THE TOP CHALLENGE AMONG INDONESIAN BRANDS
The apparent reluctance for branded content might stem from the fact that Indonesian marketers are most concerned about quality of content when doing native ads.
A majority of brands in our survey said they struggle with ensuring content is good (61%) and with measuring ROI (59%). Lack of proper measurement is another challenge brands identified (41%).
There appears to be a lingering desire for control over brand messaging. Branded content allows advertisers to work with publishers in crafting content, yet unlike traditional advertising, the control it offers is not full. As brand managers endeavor to maintain their brand essence as much as possible, publishers check that the content still offers value to their readers.
On the other hand, paid social media posts offer advertisers full control in terms of messaging.
Top Native Ads Challenges for Brands
61 %
41 %
32 %
32 %
30 %
27 %
11 %
59 %
Lack of specific audience targeting
Collaborating with the publishers’ editorial team
Hard to do more;not scaleable
High cost; budget restraint
Ensure ROI
Not enough reach/impression
Lack of proper measurement
Ensuring content is good
As the attention of audiences becomes more difficult to capture, brands must increasingly lend themselves to conversation rather than impose their brand messaging. They must learn to let go of brand essence and trust content partners in creating around their brands stories that resonate with their target markets.
Patrick SearleCo-Founder and Group CEOGetCRAFT
13GetCRAFT.com
Although brands would have to keep in mind that social media audiences might get turned off by hard sell, pushing ads on social media nonetheless eliminates editorial limitations that brands would otherwise encounter with publishers, identified as a challenge by 27% of respondents.
The debate on brand essence leads back to the definition of native ads as the use of content that is “not directly about the advertiser’s brand, but rather is about a tangential or supporting topic or topics that may create a ‘halo effect’ on the brand.”
“Brands must also realize the value offered by a publisher’s voice, credibility and even authority that resonate among audiences,” GetCRAFT Co-founder and Group CEO Patrick Searle says.
In Nielsen’s latest Global Trust in Advertising Report released in 2015, 66% of respondents said they trust editorial content. Trust drops to 46% when it comes to paid social media posts.
Top Native Ads Challenges for Publishers
43%
27%
27%
27%
17%
17%
13%
13%
7%
33%
Others
Finding the right talent to produce content
Not achieving views KPIs
Difficult to do more of it
Don’t know how to measure performance
Limited editorial independence
Not getting paid on time
Not achieving click-through KPIs
Unclear brief from clients
Clients don’t know how native ads should work
The tug of war between brands and publishers takes its toll not only on clients. Some 27% of publishers we surveyed also identified limited editorial independence as a challenge. “Credibility is our priority,” Kumparan’s Andrias Ekoyuono says. “Although some of [the content] are possibly collaborated, we still refer to journalistic standards.”
This issue of collaboration is related to the primary complaint among publishers that clients who reach out to them for native ads lack a clear understanding of how native ads work. Some 43% of our respondent publishers identified this as an issue, highlighting a mismatch between what advertisers expect of native ads and what native ads can strongly deliver.
“Shifting this behavior cannot be done overnight... It is important for publishers to actively educate their clients,” Andrias explains. KPIs must be clear at the onset, for example, before they can formulate a strategy that will define their content.
14GetCRAFT.com
FINDING 4BRANDS STILL USE NATIVE ADS PRIMARILY FOR AWARENESS
When we asked brands about their objectives for doing native ads, 88% answered brand awareness. Sales or leads generation was a far second, identified as an objective only by 58% of our respondents.
The next most common objective by brand building (51%), followed by drive traffic to website (47%), SEO boost (35%).
Brand focus on awareness limits native ad campaigns to the use of awareness metrics to measure campaign success. True enough, some 77% of the publishers we surveyed report on reach or views.
Brand Objectives in Doing Native Ads
88%
51%
47%
35%
58%
Traffic generation for my own website
Sales or leads generation
SEO boost
Brand building
Brand awareness
Publisher Metrics for Native Ads
77%
40%
27%
23%
3%
50%
Cost per Action
Social Metrics
Cost per View
Your own metric
Cost per Articles
Reach/Views
A significantly smaller portion use cost per view (50%), cost per article (40%), social metrics (27%), internally developed metrics (23%), or cost per action (3%).
An awareness-centric mindset also means that brands are likely to compare the reach publishers can offer with the reach they can achieve by using other platforms. On Facebook, for example, brands get guaranteed millions if calibrated correctly.
Before a native ad is produced, key performance indicators must be set—whether they are views, clicks, virality, etc. Only after that [can we] detail a campaign strategy.
Andrias EkoyuonoChief Marketing OfficerKumparan.com
Can publishers guarantee the same audience? Brands might even argue that publisher markets are also contingent on social media.
But William Utomo, Chief Operating Officer at IDN Media, finds it unfair for brands to judge the performance of branded content by the same yardstick as other platforms. A view on publisher platforms should not be considered in the same light as a view on a social media platform, he says, “in the same manner that a Facebook video view is not equal to a YouTube video view.”
It falls upon publishers to educate their clients about how native ads work. They can do this by providing simple case studies, advocating for native ads, and continuing to push for excellence in doing native ads, Utomo says.
They must also explain to clients that native advertising “is not equal performance marketing; it offers intangible benefits that are valued subjectively,” he adds.
I think the problem is happening on both sides… Publishers’ arguments are too focused on their point of view; advertisers don’t really elaborate their real challenges and goals well. We have to remind ourselves continuously that we should see all issues from customer point of view.
Dian GemianoGM Marketing GroupDigital Kompas Gramedia
15GetCRAFT.com
16GetCRAFT.com
INFLUENCER MARKETING DEEP DIVE
Word of mouth remains the most credible form of advertising, the Global Trust in Advertising Report published by Nielsen in 2015 revealed. [6]
Some 83% of Nielsen’s respondents completely or somewhat trust the recommendations of friends and family. Trust is still high at 66% when online reviews come from strangers but who are nonetheless actual users of products or services.
This trust is what advertisers tap into when they ask influencers to post on their digital channels content related to their brands. Influencer platforms then become host to native ads—a Facebook status, a product photo on Instagram, a live video, a blog post, or even a tweet.
“Influencer marketing may be viewed as an evolution of word of mouth, amplified by the lightning speed by which information travels and the diversity of ways by which stories may be told,” says Anthony Reza, GetCRAFT Co-Founder and CEO for Indonesia.
Influencer marketing emerged as the second top priority among native ad types, with 51% of brands in our survey saying that they plan to invest more in it next year.
It is rivaled only by paid social media posts, which 65% of brands said they would do more of in 2018.
Besides the fact that consumers are likely to be more confident in brand messaging from influencers than from other channels, cost efficiency could be another reason that brands are setting their eyes on influencer marketing.
At GetCRAFT, we found that an average of 10% of an influencer’s total followers on Instagram get to view a post.
Using that formula, we can estimate an average of 37,270 Instagram views for influencers in our network. This results in an average cost per view of IDR 590.
17GetCRAFT.com
0
CPV
CPV trendline
10,000 20,000 50,000 100K 500K 1mio 10mio
CPV (Cost per View)(in IDR)
Number of Influencers’ followers
1,500
500
2,000
3,000
1,000
2,500
3,500
4,000
FINDING 1INFLUENCERS EXPECT THEIR REVENUE TO AT LEAST DOUBLE IN 2018
Influencers are upbeat about their income in 2018, validating our findings that advertisers will do more influencer marketing. Almost half (47%) of the influencers we surveyed expect their income to at least double next year. Other influencers have higher expectations. Some 13% of our respondents, in fact, see their revenues growing by as much as five times.
This projected growth builds on the traction influencers have gained this year. Some 60% of influencers reported they had more projects in 2017 than in 2016.
The fast-paced influencer marketing boom has given birth to a sub-economy that straddles showbiz, public relations, and events management. While many influencers continue to deal with clients directly, some have enlisted the services of talent managers or even agencies. These individuals or firms operate revenue sharing or commission-based business models to capitalize on the income of influencers. Smaller influencers, in return, get bargaining power
2x 3x 4x
5x No increase/decrease
10%
13%
13%
17%
47%
Projected Increase of Influencer Revenues in 2018
18GetCRAFT.com
More than last year
Less than last year
Pretty much the same as last year
10%
30%
60%
Volume of Influencer Projects in 2017(vs 2016)
FINDING 2INSTAGRAM IS THE INFLUENCER PLATFORM OF CHOICE, BUT BLOGS PERSIST
through a middleman.Social media is arguably where influencers derive their power, so it comes as no surprise that sponsored posts on social media are the most sought-after influencer service. Almost all influencers (97%) in our survey said they get enlisted to do social media posts.
Some 67% of our respondents said they get asked to do sponsored videos on social media, while 60% do sponsored articles on their blogs. Influencers are however not limited to the digital sphere, with 80% asked to attend events.
Online, almost all our respondents (97%) use Instagram as a platform. Some 67% of influencers in our survey use Twitter, while 33% have YouTube channels, and 30% engage followers on Facebook.
Preference for Instagram highlights the dominance of visual content. This could also explain why Twitter, which also supports visual
Most Popular Influencer Marketing Services
97%
67%
60%
10%
80%
Sponsored article on blog
Event attendance
Other
Sponsored video on social media
Sponsored post on social media
Main Influencer Platforms
97%
67%
33%
30%
10%
67%
Others
YouTube
Blog
content, is the second choice.Visual content goes beyond static photos. “The extensive development in Instagram allows us to explore so many possibilities. It used to be rather monotonous, but now, it’s all so fun and dynamic,” comedian, writer, and actor Ernest Prakasa says.
Mobile apps revolutionized the process by which content is published and consumed. Influencers tend to rely on social media because they know that for most of their followers who use smartphones, checking social media apps is almost second nature.
Anthony RezaCo-Founder and CEO-IndonesiaGetCRAFT
19GetCRAFT.com
FINDING 3INFLUENCERS STRUGGLE WITH PAYMENTS AND REVISIONS
An interesting finding is that the rise of social media has not driven influencers out of blogs. Some 67% of the influencers we polled publish content on blogs. The persistence of blogs highlights a similarity between influencers and publishers: They use social media as distribution channels but still drive audiences to channels that they own.
Another similarity among publishers and influencers is that they both tend to have issues when it comes to coordinating with clients about content and getting paid on time. Half of the influencers we surveyed said they don’t get paid on time, while 47% complain about last-minute changes from clients.
Other problems include unclear briefs (37%),
pricing (37%), and creative limitations (33%).The payment issue is something that a middleman can solve. Asked to comment on our finding that influencers struggle with pricing, Prakasa quips: “[I’m not going to] spend my time and energy worrying about that. Let my management take care of it.”
For influencers who don’t have managers, platforms like GetCRAFT are an option. Advertisers are more likely to follow payment schedules when they deal with an agency or a platform than when they deal with individual suppliers, GetCRAFT’s Reza says.
He adds that even when clients intend to pay on time, the paperwork involved in paying individual content creators, for example, can be tedious and tend to fall through the cracks.
Top Influencer Challenges
50 %
37 %
37 %
33 %
20 %
17 %
13 %
10%
47 %
I don’t have an updated work porfolio
I don’t have an updated rate card
I don’t know how to measure the performance of my projects
I miss deadlines
I don’t know how to properly price my services
Clients change requirements at the last minute
Clients are stifling my creativity
Clients don’t have a clear brief
I don’t get paid on time
20GetCRAFT.com
Some 67% of influencers in our survey said they measure campaign success based on number of comments. Client feedback (63%), number of likes (63%), and number of shares (47%) are other popularly used metrics.
The consideration of engagement metrics signals maturity among influencers. They now seem to understand that they offer more than just brand awareness and the value they offer should therefore be measured beyond views or reach.
“Brands need to be concerned with the number of likes and engagement, more than just views,” YouTuber Edho Zell says. He adds that, like publishers, influencers should be allowed freedom when it comes to content for them to create engaging content.
This is unfortunately not always the case. Edho cites as an example instances when brands ask him to host “complicated competitions or contests” for his largely millennial audience, whom he describes as “a generation that is very ‘instant’ and self-centered.” Keeping his demographic in mind, Edho often simplifies such campaigns to selfie contests featuring brands.
Metrics Influencers Use
Main Determining Factors for Pricing
67%
83%
63%
53%
47%
43%
33%
17%
3%
7%
63%
77%
I don’t measure
Other
Number of shares
Client’s budget
Client feedback
My personal brand
Tone of comments (positive/negative)
Deadline
Number of likes
Number of my followers
Number of comments
Content quality
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Influencers are often asked to achieve engagement the “old corporate way,” when in fact letting influencers do it their way would generate better engagement because they know their audience better.
Edho ZellInfluencer
Most influencers also tend to use content quality (83%), personal brand (77%), and number of followers (53%) as main determining factors for pricing. These data highlight how there could easily be a debate around price because of the
An influencer is a brand… This is why number of followers or even engagement statistics cannot determine price… The key factor is brand. I know the value of my brand. If your brand wants to be associated with mine, here’s my price. That’s the way I look at it.
Ernest PrakasaComedian, writer, actor
83%
22GetCRAFT.com
subjectivity of these measures.Ernest admits that it is difficult to pinpoint the value of an influencer. What he’s sure about is that it should account for more than the number of followers.
Brand fit is a measure that Ernest seems to highlight, noting that both advertisers and influencers have perceptions that they need to develop and maintain among their shared audiences.
When in doubt, brands must refer to their objectives in doing not only influencer marketing or native ads but any marketing campaign in general.
When brands are clear about what they want to achieve, it will be easy for them to identify the channels they need to use, the execution they want to see, and the performance indicators they need to measure.
24GetCRAFT.com
REFERENCES
[1] GetCRAFT (July 2017). Philippines’ Digital and Content
Marketing Report 2017.
[2] Laursen, J. and Stone, M. (2016). Native Advertising
Trends 2016: The News Media Industry. The Native
Advertising Institute and the International News Media
Association.
[3] McKinsey & Company (December 2017). Global Media
Report 2016.
[4] PageFair (2017). The State of the Blocked Web: 2017
Global Adblock Report.
[5] Kantar Millward Brown (January 2017). AdReaction:
Gen X, Y, Z.
[6] Nielsen (September 2015). Global Trust in Advertising.
About GetCRAFT is Southeast Asia’s premier content marketing network. The company helps connects brands with more than 4,000 vetted creators and publishers for their content marketing, influencer marketing & bespoke native advertising needs. The company has worked with more than 150 brands for more than 2,000 projects, with clientele including Facebook, Samsung, Microsoft, Unilever, Schneider Electric, Pond’s, Uniqlo, Nestlé, Ayala Land, and many more. GetCRAFT is now present in Indonesia (HQ), Philippines, and Singapore.
This report is based on three separate surveys sent out to the following respondents:
43 brands and agencies, ranging from brand managers to vice presidents30 publishers including online news outfits, media networks, and multi-channel networks30 influencers, with experience ranging from six months to more than five years
Interviews have also been conducted with key respondents within the same population as those of the surveys, to gather insights on the results. We are grateful to the following for their invaluable input to this report:
Eka Sugiarto, Head of Media – Indonesia and SEAA, UnileverWilliam Utomo, Chief Operating Officer at IDN MediaRoy Simangunsong, Managing Director, PHD MediaAndrias Ekoyuono, Chief Marketing Officer, Kumparan.com Dian Gemiano, GM Marketing Group, Digital Kompas Gramedia Edho Zell, YouTube and social media influencerErnest Prakasa, comedian, writer, actor
For more information, visit our website : http://getcraft.comOr contact us at [email protected].
Patrick SearleCo-founder and Group CEO, GetCRAFT
Anthony RezaCo-Founder and CEO-Indonesia, GetCRAFT
Patrick has spent the last 10 years in three different countries helping some of the world’s largest brands with digital. He is now on a mission to help Southeast Asian brands and agencies tell amazing stories that both educate and inspire people to take action.
Passionate in helping brands and companies tell meaningful stories and give real impact to people’s lives, Reza has had 7 years marketing and advertising experience where he set up and led teams in McCann Erickson, McCann Digital, Sampoerna Foundation, and Social@Ogilvy.
24GetCRAFT.com
