Research: Online Influencers in the UAE widespread, but measurement & transparency still lagging

InfluencerMarketingResearchBPG

The latest research by BPG, Cohn & Wolfe and YouGov underlines how mainstream online influencer marketing has become. It also highlights areas for improvement in areas such as measurement and transparency

If you needed any more evidence that online influencer marketing is here to stay, then continue reading. The latest research by BPG Cohn & Wolfe and YouGov answers a host of questions as to what is happening on social media channels, and raises even more on areas such as measurement and transparency.

SamplingĀ over 100 in-house marketing and communication experts and brand managers across a diverse range of industries in the UAE, the results show that influencer marketing is very much mainstream:

  • 94% of polled marketeers say engaging with social media influencers benefits their brand
  • 49% currently work with social media influencers in the region
  • 43% spend up to US$10,000 per social media influencer campaign

That’s the good news (especially if you’re an ‘influencer’). The reasons behind using influencer marketing and engagement are a little more varied, as you can see below. The top three reasons for using influencers are 1) to reach various groups and demographics, 2) boost a brand’s presence online, and 3) a complement to traditional advertising. As for what influencers will be doing, they’re most likely to be 1) mentioning brands, 2) providing event coverage, and 3) reviewing products.

The Value of Influencer Marketing

There are of course challenges. Firstly, there’s not a big pool of influencers, and those who are in the market focus on specific areas (fashion, food, cars… repeat). Over half (55%) of those polled said the biggest challenge they face is finding relevant influencers. Putting two and two together, this challenge may partly be of our own doing; it seems that rather than working with those who could be defined as micro-influencers, marketers and communicators want influencers who have a large audience. The second most common challenge (41%) is negotiating terms and conditions, which would suggest that most influencers are working freelance. This has to change next year – the introduction of VAT should mean that those influencers who are paid financially will have to register their own company or work through an agency.

most successful influencers

And then there’s the issues of money and measurement. While budgets would seem to be growing in this area – most budgets are now between 1,000 to 10,000 US dollars – social media influencers are most likely to charge per post or video (47%) or by an exchange of free products and experiences (47%), closely followed by cost per engagement (41%). There’s less of a focus on cost per click or cost per acquisition engagement, suggesting that whoever is negotiating isn’t familiar with digital advertising (both these models are the most commonly used sales models in digital advertising).

social media charging

And then there’s outcome measurement and transparency, two areas that show some concerning results. Just over a third of respondents (37%) said they’re measuring the ROI of their spend on sales and business results (I’d have hoped for a higher number, especially on the consumer side), followed by engagement (29%), and traffic to websites (18%). When it comes to disclosure, of influencers having to write that content is sponsored (which is a legal requirement in some markets such as the US and the UK, and is legally required of firms who are publicly listed in those countries), we must do better. Just under two-thirds (63%) sometimes request influencers to publish a disclaimer. Almost a quarter (24%) neverĀ influencers to publish a disclaimer. This isn’t my idea of transparency, and this will have to change if we’re to gain the trust of the people we want to engage with (it may also change next year when new legislation comes in).

measurement & transparency

So there you have it. If you’d like to see the survey summary then please do visit the MEPRA website. I’m also including a link to the Influencer Marketing Survey raw data here.

If you work with influencers, or are defined as one, then what do you think about these results. Do they bear out to what you see, especially in terms of platforms being used (Snapchat at 2%, and Twitter at 10%) and how influencers are engaging online? And how would you like the industry to evolve? As always, do drop me a line. I’d love to hear from you.