Google + Ad Industry Study Shows Influencers on YouTube Sell Snacks, Toys, Alcohol

Sanjay Nazerali, Chief Strategist of Carat, a global media market leader in digital media, writes about how YouTube influencers are rewriting the marketing rulebook.

Working in strategy at one of the world’s largest media agencies, I’ve witnessed countless pitches about influencer marketing and the growing power of creators.

With engaged audiences in the millions and passionate fans hungry for content, YouTube creators are already an established channel for brands looking to run ads.

In fact, Carat’s latest analysis suggests online video investment (including YouTube) can be increased by 3X compared to planned level.

But increasingly, these influencers are also becoming attractive partners for deeper collaborations.

Clients are initially enthusiastic, assuming this is the digital age’s answer to celebrity marketing and endorsement. Then the thorny business questions arise, such as:

• So what’s it actually doing for my brand?
• Do I do an endorsement or product placement—or what?
• Isn’t it just for millennials, beauty brands, and makeup tutorials?

These have always been tough questions to answer. Even though almost everyone has been jumping on the influencer bandwagon, few understand what “influence” really is or how it works. Until now.

Celebrity marketing and influencer marketing offer fundamentally different benefits for brands.

Together with YouTube and Nielsen, my team analyzed the results of hundreds of brand and creator videos in the U.S. and the U.K to understand the impact of influencers for brands.

It’s a critical first step in establishing a business-led rulebook for this new world—and it’s already changing how I approach my own plans.

1. Influencers are not the same as celebrities

Influencers, however vast their reach, are absolutely not “today’s celebrities,” and celebrity marketing and influencer marketing offer fundamentally different benefits for brands.

For instance, we found that celebrities are more effective at driving recall than creators (84% versus 73%). Given that a celebrity’s job is to be famous and memorable, that makes sense.

Where YouTube creators really start to gain the upper hand is in deeper brand involvement. Brand familiarity is a good example. If we want to get an audience to really understand us, our work, our values, or our products, then collaborations with YouTube creators are 4X more effective at driving lift in brand familiarity than those with celebrities.

When it comes to purchase intent, it’s an even match: our research found that influencers were just as likely as celebrities to drive buying decisions.

Influencer marketing appears to play a fundamentally more pragmatic role. Why? My hunch is that it’s because fans feel very connected to the YouTubers they love. The best creators have formed authentic bonds with their fans, which means fans trust what they have to say, and turn to them for brand and product recommendations.

2. It’s not just a ‘beauty’ thing

Beauty brands were one of the first to team up with influencers, and creators have established a huge presence among the YouTube beauty community. About 86% of the top 200 beauty videos on YouTube were made by creators rather than professionals or brands.

But what’s interesting about our findings is just how far influencers stretch beyond the beauty category.

We tested nine additional categories, including auto, alcohol, snacks, and toys. Across all nine categories, working with influencers leads to lifts in brand metrics, from familiarity to affinity to recommendation.

In some categories, such as snacks and alcohol, they can have even more impact, driving significantly higher than average purchase intent. So the idea that influencer marketing is purely for young people who are looking at fashion and beauty brands simply isn’t true.

3. The ‘how’ matters as much as the ‘who’

Celebrity marketing has historically focused on endorsement, sponsorship, and product placement. Influencer marketing has developed far more options, and it’s important to understand which of these work best—and for which marketing goals.

Deep thematic integrations with creators stand out as driving the highest results for brands. These are more involved integrations where the influencer plays a role in creating a piece of content – such as a demo – with the brand. It’s far deeper than product placement and it works more effectively.

While there were many consistencies across categories, we also saw some nuances, which are important for clients to understand. We found that simpler brand integrations, like a product endorsement or just featuring a creator in an ad, also showed positive results for brand affinity in all categories tested.

Of course, deep collaborations can be more than some brands are ready for.

For some objectives and categories, simply running their own ads on YouTube creator content will still be the easiest and most effective way to tap into the power of these influencers.

4. Don’t lose sight of why people love YouTubers

We often assume that the right influencer is either an aspirational version of our target audience or that they’re just like celebrities. Neither of these assumptions is correct, and it’s perhaps here that celebrity and influencer marketing differ the most.

Whereas celebrities need to be trendy and stylish, consumers expect creators to be friendly, funny, and, yes, sometimes irreverent.

Irreverence is interesting, because it drives credibility. Irreverence strongly suggests independence, and it’s this that builds trust. It can also be incredibly valuable for brands. If a creator usually ridicules things they don’t like, you can be sure that when they praise something, they mean it.

Humour is also interesting, because it reflects a sense of community. YouTube helps forge a special relationship between followers and influencers, one that reflects a sense of co-ownership.

This familiarity creates a degree of intimacy that makes the use of humour seem much more natural than it would do with celebrities. This is probably also why we see celebrities, such as Dwayne Johnson, increase their influencer scores when they get really active on YouTube.

Prioritization and strength of attributes by gen X and gen Y associated with celebrities are different to creators.

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Is it Hype? Or is it Real? Decoding the Influence of YouTube Influencers Read more at http://newyork.advertisingweek.com/CALENDAR/-google-seminar-2017-09-26-1… (link is external)