Many perspectives have been shared on influencer marketing, but very few from the brands themselves. What are its business imperatives and ROI?
In the heart of Sandton, Africa’s richest square mile, is Brittany Preece, a social media manager at Investec Bank.
As part of the Private Banking marketing team, Preece and her team have managed to successfully implement disruptive digital strategies to meet the growth objectives of the bank.
Traditionally, the role of marketing has been to support business objectives. Yet when companies experience financial difficulty, more often than not, marketing is seen to be the first in line on the chopping block. As a way of adapting to this reality, most marketing managers have had to look at cost-effective, yet creative, ways of achieving business impact.
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Social and digital media have given room for new ways businesses can engage and sell to their customers.
Increasingly gaining traction in South Africa is influencer marketing, an entirely new branch of the sales and marketing funnel which has seen brands leverage popular personalities on social media to promote their products and services online. Globally, the influencer marketing industry is forecast to be worth $5 billion to $10 billion by 2020, according to a study by Mediakix.
For Investec, attracting and diversifying into new markets has informed their decision to leverage influencers as part of their marketing strategy.
“Since 2015, we as Investec, have predominantly used influencer marketing to reach the young professional audience,” Preece says.
“We (Investec Private Bank) have recently evolved our qualifying criteria. We’re no longer just the preferred banking partner for accountants, engineers, lawyers, doctors and actuaries. We’re positioned to be the bank of choice for those who are under the age of 30, consistently earning more than R600,000 ($42,582)a year, with a university degree and working in their area of expertise.”
Seated in front of a glass wall which looks out to a view of a bustling and upbeat office environment, she elaborates that to effectively reach the young professionals’ target market, it is important to identify individuals that can speak to that audience.
“What influencer marketing gives you, that a lot of the other marketing channels can’t, is great reach and engagement with your target audience. Using [influencers] brings a lot of authenticity to the brand, where Investec Private Banking was seen as unattainable to a lot of young professionals,” Preece says.
In the digital universe, content is king. Authenticity is paramount. A study conducted by the Mobile Marketing Association reported that most consumers have banner blindness and suffer from advertising fatigue. They cannot recall the last digital banner ad that they saw.
Ad-blocking continues to be a growing phenomenon, further demonstrating the shift in consumer behavior. Consumers simply don’t want to be marketed to. To this effect, influencers assist brands to reach their customers through content that is more relevant to those consumers.
According to Business Insider’s 2018 Influencer Marketing Report: Research, Strategy & Platforms for Leveraging Social Media Influencers, the average social media engagement rate from influencer marketing averages 5.7% per post.
This is a feat compared to content generated by brands which fluctuates around 2% – 3% per post.
With this in mind, it’s even more essential for brands to involve influencers upfront to co-create an envisioned campaign.
“You want your influencer to buy into what you stand for as a brand. It shouldn’t be a hard sell – consumers see through that. If not done properly, it can look very fake and [we] never want to make it feel like an ad,” Preece says.
Brands and agencies measure awareness and engagement by analyzing a few parameters, including, inter alia, number of likes, comments, shares and followers. Proponents of this theory believe an increase in these parameters lead to brand success.
Detractors of the theory believe awareness and engagement alone are not sufficient indicators of brand success. “Likes and follows are unimpressive without an increase in the bottom line,” says Sinesipho Maninjwa, a financial analyst and commentator.
But technology has its limitations. Dianne Joseph, the Commercial Director of Digital at Nielsen, a leading global information, data and measurement company, elaborates that there are real challenges in measuring sales attribution as a result of influencer marketing.
“The influencer models are difficult to measure because most influencers use their own personal pages to post, and these organic posts don’t offer us the opportunity to implement a tag (for tracking purposes) and, therefore, we aren’t able to track the outcomes,” Joseph says.
The ability to measure what is happening on and off digital platforms, or across social media platforms, is a challenge that most digital marketers face. Different platforms such as Facebook and Twitter have their own unique methods of tracking and storing data. The link between these platforms is, therefore, a lot more tenuous.
But in support of influencer marketing, a number of global studies have come out and shown that influencer marketing does yield a positive return on investment (ROI).
Pierre Cassuto, of social media influencer platform Humanz, who recently set up shop in South Africa from Tel Aviv in Israel, believes that the use of influencers can lead to increased sales. “In the US market, there is about a four times ROI on money spent in the influencer marketing space for retailers, cosmetics and FMCG brands,” he adds.
Cassuto agrees that engagement on its own doesn’t yield conversion. For influencer marketing to yield conversion, the message being broadcast by influencers has to be well thought out and carefully constructed to achieve that objective.
There has to be a reason for someone to do something now as opposed to anytime. That can be around creating urgency around something specific, it can be around creating a limited time availability offer.
Essentially, brands can become creative and purposeful in how they design their entire campaign to track conversion from the ground up. “The way we suggest measuring conversion is by making sure that the influencers have a way that [brands] can track the relationship between the influencers post and the actual conversion,” Cassuto says.
The first looks at providing the influencer a coupon code that they can distribute and share. In doing so, the specific brands will know that the people who redeemed the coupon code came from the influencers. The second options measures sell over time related to increase in traffic due to influencer marketing towards a landing page that the brand is driving to. With this, Cassuto states that brands can do A/B testing to see the impact on days influencers are posting and days when they’re not.
With all the advantages of influencer marketing, should brands solely invest in this sales channel?
Preece firmly holds the view that influencer marketing on its own isn’t the be all and end all. “I do believe that it should be a mix. I believe that an integrated marketing plan that uses out-of-home, billboards, TV and digital is where you see the most results.”
“Things can go wrong with influencer marketing. You are putting faith and trust into a human being who is imperfect. We have a saying: A tweet can tank an economy,” Preece says.
With consumers becoming increasingly selective about what they consume, influencer marketing continues to grow as an attractive sales channel. It is imperative that brands place the necessary care and due diligence before partnering with any influencer.
The perfect fit between an influencer and the brand will determine the overall ROI. After all, effective influencer marketing is the online equivalent of the highly valuable word-of-mouth advertising that marketers have always coveted.
Walmart Sues Tesla Over Solar Panels That Allegedly Caught Fire
Topline: Walmart is alleging in a lawsuit that Tesla solar panels caused fires on the roofs of seven Walmart stores, and is accusing Tesla of breach of contract, gross negligence and failure to comply with industry standards.
- Walmart claims that Tesla installed faulty solar panels that eventually spontaneously combusted and caught fire at seven Walmart stores around the country.
- The lawsuit alleges that Tesla inspectors didn’t notice defects that were visible to the naked eye, used cable connectors that weren’t compatible with one another and failed to see that loose and hanging wires were present at multiple sites.
- Walmart says in the lawsuit it believes the failures were the result of rushed installation because Tesla’s solar division “adopted an ill-considered business model that required it to install solar panel systems haphazardly and as quickly as possible in order to turn a profit, and the contractors and subcontractors who performed the original installation work had not been properly hired, trained, and supervised.”
Tesla did not immediately respond to a request for comment from Forbes.
Key Background: Tesla got into the solar business after it acquired SolarCity in 2016 for $2.6 billion. But production of its residential solar panels under Tesla has been mired with delays and plunging sales.
Just this week, CEO Elon Musk announced a revamped pricing plan in an effort to boost the slowing business. The new pricing model allows residents in six states to rent solar power systems starting at $50 a month ($65 a month in California) instead of buying them up front.
Further Reading: Read the full lawsuit here.
-Rachel Sandler, Forbes
How To Cut The Cord: The Top Smart TVs For Streaming 2019
Freeing yourself from the shackles of cable or satellite television is easier to do than you might think, especially if you have a smart or connected television.
Smart TVs have integrated internet and interactive features that allow users to stream music and videos, browse the Web and view photos. Almost every new high-end television sold within the last two years or so has smart capabilities. So how do you choose?
If you want to take advantage of streaming services like Netflix, Hulu, Amazon Prime and more, then look at these television sets.
LG C9 OLED 65-inch TV
In addition to a beautiful, detailed picture and a big soundstage, this 4K OLED sports cutting-edge connectivity, including an HDMI 2.1, and a comprehensive feature set including both Google Home and Amazon Alexa built in. It also comes with Home Dashboard, a new tool that turns the set into the central control hub of all your connected home devices—from doorbell cameras to smart thermostats to appliances like a washing machine or a stove.
On the streaming front, it provides a single place to browse and search for TV shows and movies from sites such as Hulu, Amazon Prime Video, ESPN, PlayStation Vue, and more. It also lets users rent, purchase and watch TV shows and movies from Apple’s iTunes store.
Vizio 55-inch M-Series Quantum
At under $700, the 55-inch M-Series Quantum offers a serious value in the smart TV arena. Not only does it deliver an excellent picture and sound, but it is also equipped with updated SmartCast 3.0 software, which includes support for Apple AirPlay2 and HomeKit (making it just as suitable for iOS users).
The update also has a more vibrant selection of locally installed apps, including Netflix, Amazon Video, Hulu and Vudu. Thanks to a partnership with PlutoTV, the Vizio also offers a dedicated streaming channel called WatchFree, which gives you a TV-watching experience with more than 100 free channels, including sports, news, cartoons, and movies. You can also pair the set with an Amazon Echo device for voice control with Alexa.
Sony Master Series 65-inch A9F OLED TV
If money is no object and you want a TV with loads of features, an incredible picture and terrific sound, go with the Sony A9G. The A9F is one of the first Sony Android TVs to ship with the newest version of its smart OS. The most notable names in video are preloaded, including Amazon Prime Video, Google Play Movies & TV, Hulu, Netflix, Sling TV,and YouTube. For music, Google Play Music, Pandora, SiriusXM, Spotify, Tidal and a slew of internet radio stations.
This Sony 65-incher also comes with Google Assistant, which lets you search for content, find online information, use online services and even control smart-home devices.
TCL 43S517 Roku Smart 4K TV
Great things can come in packages costing less than $400. Not only will you get a terrific picture, robust sound and a slew of genuinely exciting features, this TCL 43-inch model sports Dolby Vision HDR, Dolby Atmos audio support and integrated Roku voice search.
The Roku TV interface is uncluttered and easy to navigate, with big square tiles for all of your apps and streaming services, including Netflix and Hulu. There are also apps for major broadcasters, major sports leagues, and premium channels such as HBO and Showtime. Of particular interest to cord-cutters will be support for Sling TV, which provides a cable-like experience without the expense of a cable subscription.
Insignia 43-Inch 4K Fire TV Edition
Amazon finally seems to have a Fire TV that can compete with the Roku-powered smart sets. This 4K television with HDR support is packed with features for the Amazon faithful, with Alexa voice interaction built-in, Amazon’s huge selection of Fire TV apps, and a smart TV experience that puts Prime Video centerstage.
This 43-incher costs less than $300 and offers most of the streaming apps you would expect, such as Netflix, Hulu, HBO Go and HBO Now, as well as Amazon Prime Video. Plus, Fire TV will soon get an official YouTube app packed with services such as YouTube Kids, YouTube Music and (most critical for cord-cutters) YouTube TV.
-Chuck Tannert, Forbes
Multi-Disciplinary Education In The 4IR Era
There is an adage that states “if you want to know the future of a nation, study the behavior of its teachers”.
The most potent force for political, economic and social progress in society is education. The measure of how great a nation will rise is determined by how many people in its population are educated. The African continent today has a total purchasing power parity gross domestic product (GDP) of $6.7 trillion, and a population of 1.2 billion people.
According to the United Nations Educational, Scientific and Cultural Organization (UNESCO), in 2016, sub-Saharan Africa had a literacy rate of 76% compared to 89% in South and West Asia, 87% in the Arab states and 98% in the developed nations.
This literacy rate in sub-Saharan Africa is far from adequate, and calls for urgent and practical action to improve it.
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We are living in an era characterized by the fourth industrial revolution (4IR) where technologies such as artificial intelligence (AI) and blockchain are changing all aspects of our lives. Factories are automating. Because of these changes, the nature of work is changing.
Many jobs are disappearing altogether, and new types of jobs are being created. For example, we now have jobs that did not exist 20 years ago, such as Data Scientists. AI is now able to diagnose severe diseases such as pulmonary embolism, epilepsy and leukemia complementing the work of medical professionals. Because of the rapid automation in the medical field, doctors today require an in-depth knowledge of technology.
These changes in society because of 4IR require new sets of skills. Are our education systems ready to capacitate our people with the requisite skills to tackle the problems of 4IR? Do we have enough teachers at all levels of our educational systems to be able to give our people skills that will make them useful in the 4IR era? Do we have enough educational institutions to be able to skill our people? Unfortunately, the answers to these two questions are in the negative.
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Given that we do not have enough teachers nor educational institutions to provide a critical mass of our people the requisite capabilities that will help them survive in the 4IR, what is to be done? One way of tackling this problem is to take a lesson from the first Indian Prime Minister, Jawaharlal Nehru, who realized that for India to thrive in the 20th century, it needed to invest in elite technical education. In this regard, he introduced the Indian Institutes of Technology (IIT).
Nehru had this to say in 1956 at the first convocation address of the first IIT in Kharagpur, a city in West Bengal: “…Here in the place of that Hijli Detention Camp stands the fine monument of India, representing India’s urges, India’s future in the making. This picture seems to me symbolical of the changes that are coming to India.”
It is vital that African countries create a few elite institutions that will drive the African continent into the 4IR. The Pan-African University supported by the African Union is a good start, but we can do more.
Additionally, these elite institutes should not be limited to higher education only but must also focus on primary and secondary education. One example in Johannesburg is the African Leadership Academy (ALA), which targets gifted 16-to-19-year-olds. Today, the ALA has alumni from 46 different countries making an impact on the political, economic, and social aspects of the African continent.
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For us to thrive in the 4IR era also requires our educational experience to be multi-disciplinary. In our limited institutions of higher learning, students enrolled for programs in the human and social sciences must also study technological subjects.
Those enrolled in technological programs must study human and social subjects. Technological subjects should focus on the issues that confront the African continent, such as affordable and appropriate technology, limited and incomplete data, and cost-effective manufacturing.
The human and social subjects should focus on the urgent issues facing Africa today, such as social cohesion, connectivity, stability, conflict and unity. Due to the limitations of physical infrastructure and good teachers, African countries should pull their resources together and invest in online platforms to facilitate education through modern techniques such as blended and augmented learning.
The outcome of the education system, whether at primary, secondary, or tertiary levels, should be logical, numeracy and verbal skills. These skills will give our people the capacity to tackle the challenges of the 4IR such as coding, problem-solving, critical thinking, creativity and decision-making.
– Tshilidzi Marwala is a professor, Vice-Chancellor and Principal of the University of Johannesburg. He deputizes President Cyril Ramaphosa on the South African Presidential Commission on the Fourth Industrial Revolution.
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