THE ERA OF ‘THE PRODUCER ECONOMY’ – THE EVOLUTION OF INFLUENCERS

 ‘The Producer Economy’ refers to the evolution of influencer marketing and companies opting to take control and become their own ‘influencers’.  They will have more control over messaging, and the same messaging can be taken through the entire brand journey and not necessarily only social media. 

 

This is a natural progression as there must be a lifecycle to an influencer campaign.  I am not saying bringing in influencers is not a great strategy, because it is.

 

The role of an influencer is to create brand credibility, but the secret is to do it in a way that is authentic to the influencer, using a tone that the person uses to communicate with their specific community. Hence the influencer should have some say in the way the message is portrayed.  Macro, micro and celebrity influencers are extremely important and make a great difference.  As a PR agency we have seen huge successes, but this cannot be seen as a ‘forever’ strategy.  Hence the introduction of The Producer Economy and this is where PR agencies can be extremely valuable.  It is the role of PR to use the goodwill generated from an influencer campaign and integrate into corporate and brand messaging.

 

The Brand being its own ‘influencer’ has numerous benefits.  Creating its own messaging, the distribution of such (what platform to use including email, OTT, TV and anything else) and the speed with which it can be changed or built upon.  Companies also believe this is the ‘safest option’ and can prevent any backlash from an influencer or the way the messaging is portrayed.

 

It is all about greater control.  However, here is a caution:  Influencers attract attention because of who they are and brands on their own can be passed by as ‘just another ad’. 

 

The best advice we can give – combinations!

·        The Producer Economy is a natural progression in the world of the influencer – a good strategy!

·        Using influencers, whether macro, micro or celebrity in campaigns is essential – they are invaluable and create instant awareness. 

·        Create partnerships!  Use an influencer image, quote, meme and build your own story around it between campaigns and for continuity!

·        If budget allows, use multiple influencers

 

The landscape out there is cluttered!  Extremely cluttered and very busy!! Being your own creator is hard work and needs extremely creative thinking!   No sooner has one brand managed to get heard above the clutter and the competitor takes it that one step further.  Influencers can be heard above the clutter!

 

And finally, ALWAYS bring in the creative PR team.  After all, a PR’s job is to tell stories.

 

·        An interesting stat:  Brands spent over $6.5 billion in 2019 and this doubled to $13.8 billion in 2021. (report compiled by Statista)

 

 

A look into the GenZ’s and their use of Influencers

 The next generation of consumers is growing up! 

 

There is an estimated 2 billion GenZ’s (born between 1996/7 and 2010/12 - depending on which research document you follow) that are starting to enter the work force and will dominate the consumer market over the next few years.  They have lived through a pandemic which has shaped their thinking, likes, dislikes and general characteristics.  They are unique and we better all get our thinking right as to how we are going to attract this powerful customer.

 

By now their predecessors, the Millenials, are well established and financially independent.  GenZ’s are living through this crazy, uncertain and changing world which is in lockdown one minute, open the next only to be locked down again.  As we are shaped by our reality, and things that happen in our world, this becomes ingrained into our philosophy and the GenZ’s are showing signs of great resilience, strength of mind, agility, ability to make quick decisions while not afraid of change.    

 

Having plenty of GenZ influence in my life currently, I cannot stress more their need for authenticity.  Those as young at 8 years old can smell ‘fake’ a mile off!  And those 8 years old also want to consume from a brand that gives back to communities. They are also completely dedicated to their influencers.  I have not come across a single GenZ that does not have their favourite list of influencers that they religiously follow.

 

The recent statistics indicated that this maturing generation’s spending power exceeds $600 billion, which includes direct and indirect buying (the influence they have on their parents)

 

What also makes them unique is the fact that they were born into the world of advancing internet, and their brains are completely wired for technology.  They understand how it works and if they come across a tech problem, their mind can solve this within minutes.  Whereas the Baby Boomers and Gen X’s are often weary of all the apps around, the GenZ will gaze at us in disbelief as on their phone they will have 30 to 40 apps that they make regular use of.

 

It is the influencers that I am most interested in.  One of the new buzz words is ‘filter fatigue’, a term used to explain how the GenZ’s flick through their social media platforms quickly and distrust and discard with disdain all the unrealistic once-off brand mentions from influencers.  They know their influencers well and know very well what the person likes and dislikes, and a sudden promotion of something out of character is seen as the person jumping on the billion-dollar bandwagon to earn a quick buck.   This is just out of order!

 

In the US alone the influencer industry is estimated to exceed 4 Billion dollars in 2022.  It is interesting to know that GenZ’s will trust friends and family more than influencers, and celebrities and social media stars they trust even less.   All this is due to their filter fatigue and distrust of advertising motives.

 

So what does this mean?

 

Enter the nano-influencer. The regular person without the massive following but having enough following to be seen as real.  Their posts are important and show their everyday life without the enhancing apps that change their appearance and everything else about them.    In a recent research by Student Beans, 82% of GenZ’s in the US and UK said they don’t trust traditional influencers to give an honest opinion on a brand or product. 

 

There are a myriad of nano-influencers varying in ages from a young pre-teen to a grandparent.  Many of them are young leaders, such as university or college graduates, sports fanatics, those in the sciences, gamers and so forth.  The Student beans survey found that 45% of GenZ’s followed nano-influencers with 5 000 to 20 000 followers and found them as the most trustworthy.  This went down to 30% who trusted those between 20 000 and 100 000, 15% only trusted those with 100 000 to 1 Million and only 10% trusted anyone with over 1 million followers.

 

I have a couple of young early 20 GenZ’s in the family, whose budgets are limited, yet health, wellness and beauty are important.  They follow nano-influencers that use make up and other products that are easily accessible and can be bought within their budget.  They also want to follow influencers that promote themselves flaws and all.  They also sniff out all the giveaways and discounts as this directly impacts their budget!  They might follow celebrities and will see the sudden promotion of products, but they will not rush out and buy the product.   

 

Then we get the younger GenZ’s.  They follow completely different influencers, but the general feeling is exactly the same.  This category of consumer are influenced by their peers so they will follow the high profile influencers, such as YouTuber, Mr Beast, but they are also disparaging about anything that is not authentic.  Many a time I have listened to the youngsters chatting about posts that they found ‘completely fake’.  Sometimes I wonder if they are looking for fake posts!

 

I asked an 11 year-old, Cole,  why he loved Mr Beast’s ‘50 hours buried alive’ video (I personally didn’t get it).

His response; “It was interesting!  I felt scared for him and I wondered what it would be like.  I also like it because he gives a lot of his money away to all sorts of different causes.”

I asked what the experience taught him; “I leant about ‘Trust’ as he had to trust his support team completely.  I would never have done that and I watched his team prepare him and look after him.”

I asked the 13 year old GenZ and he said “I really liked it, it was cool!” and that was the end.

 

In conclusion, influencers are mushrooming, from the celebs to the nano-influencers, and this is great news.  There are so many topics of interest in the world and there is an enormous choice and consumers, including every industry, even the public relations companies such as Intune Communication, can draw on influencers to get our message across to the GenZ’s.  However, keep them authentic, unfiltered, genuine and what is so fantastic is that we can all use raw content as that is what the world is all about.  No one is perfect!  GenZ’s know this and they want to see brands they can relate to. Nano-infuencers can make a huge difference in successful campaigns.

 

The stumbling block is that there are a millions of nano-influencers – choose wisely!  The good part is the ability to change tactics if something isn’t working!  After all, we are now completely used to change, the pandemic has given us this excellent ability.

 

Henno Kruger from Running Wolf Rant talks about how he sees the music scene changing after the Coronavirus

We interviewed photographer, influencer and blogger Henno Kruger owner of http://rwrant.co.za/ about the music scene. Henno is passionate about music and can often been seen at a music event taking photos for the musicians and for his blog. Henno is very much a behind the scenes guy that likes to highlight the brilliance of South African musicians.

Tell us about yourself and how did you get involved in the music industry and why you are so interested in music.

I've always been a fan of live music shows. I think the first show I went to was a Koos Kombuis show at a place called Navigator's Ladies Bar (that used to be across the road from the Reserve Bank in Pretoria). Since then I've always made an effort to watch bands / artists live at pubs / clubs. I watched James & Smashing Pumpkins live in 2000 (at Supersport Park in Centurion) - 43,000 people attended to show - After that I was hooked. I just had to get my fix on a regular basis. Sadly I missed all of the Cokefests (because I wasn't earning that much before 2010), but I did manage to catch live shows and make my way to Oppikoppi annually (I ended up going to 20 of them in total). 

From 2011 things changed significantly though (thanks to my blog and me re-disovering my love for photography). I started posting festival reviews and photos on a regular basis and starting mingling with artists and organizers at shows and festivals on a regular basis. Because people were reading my blog and checking out my photos and I became part of the SA Music family (which is actually smaller than people think it is, but it's a fun group of like-minded peeps).

Why did you start your blog?

Back in 2008 I was doing a lot of chatting online (as one used to do). I got very opinionated about a subject in a chat with a girl (who I haven't met till this day). She kept on telling me that I had a lot to tell the world and that I should explore options to do it. She suggested that I start a blog. I was not keen to do it, but I gave it a shot. 

I started using Blogger (*puke*) and tried Wordpress.com (which was not too bad, but still didn't give me the control that I wanted) and eventually settled on buying my domain and installing Wordpress to start Running Wolf's Rant. RunningWolf was my nickname on IRC and I liked to rant (I got that idea for the Rant & Rave section in Top 40 magazine). I degress, but I actually got one of my letters published in that section when I was still in high school (my psuedonym was "Kurt Grungehead").

In 2009 my site was featured on 5FM and I posted my first Oppikoppi review and it got a little traction, I realized that people liked to read my rants and reviews and I decided to post more regularly, that just increased from 2010 onwards (especially after I started tweeting - a lot). I've deleted some posts, but I currently have more than 2900 posts on the site :D

What were the trends that you saw before the lockdown?

The industry was pretty stable before lockdown (despite some ups and downs and a dwindling SA economy). Rock bounced back with RAMFest 2020 in Pretoria (which I luckily attended before the lockdown). Awesome shows were lined up for April & May. My girlfriend and I were actually planning to go to STRAB (in Mozambique). 2020 was going to be a great year for SA Music.

Just before lockdown I saw that a lot of live music venues were limiting capacity, live venues were closing (like Mercury in Cape Town), festivals and concerts were getting postponed and cancelled. I don't work in the music industry full time, but I'm actively involved with it at times. I know a lot of people that are part of it (bands, artists, photographers, organizers and venue owners, etc.). It was actually heart-breaking seeing all of this happening. I've seen many folks build up a band / brand / following / venue / festival from scratch and the prospect of them not being able to engage, work or build the industry is just unfair / sad / concerning / scary. Negativity doesn't belong in the SA Music Scene.

What are the trends that you see during the lockdown?

Performances in living rooms or lapas that are being streamed on different platforms (with musos asking for tips for themselves or venues), Zoom parties (with bands / artists / DJs asking for tips and people drinking home brews or the horrible whiskey they got for Christmas in 2014), Music Quiz Nights hosted by musicians, bloggers (like yours truly) promoting new music from artists & their online shows. There has definitely been a surge in people consuming video content online. Platforms like Netlfix and Showmax have broken streaming records. The same goes for music streaming platforms like Spotify.

How do you see the industry changing after the lockdown?

It's going to change big time. Some things will still be the same, but a little different. Pubs and venues will limit their capacity and enforce social distancing. Festivals will get a lot smaller. There will be sanitising stations all over. I don't think we're going to see festivals with more than 2000 people in the near future. Tickets will be more expensive (because of limited capacity - venues pay artists thanks to ticket sales - less tickets sold, less money in). Crowdfunding is going to become even more popular amongst artist - most of them were already struggling before lockdown and won't have money to pay for studio time and tours when the lockdown is over. People will also get very picky about the shows they want to go to.

But, I don't think that the changes will  all be negative. Concerts / performances / festivals will sell tickets to stream their shows. That's a revenue stream that hasn't really been tapped into properly yet in my opinion - even though some people are getting gatvol of it during lockdown. The shows you go to will be a more intimate affair that will allow you to connect with performers (thanks to crowd reductions). 

What have you got in the pipeline for your blog?

I''m currently working on a SA Music Directory (which will link to articles about the artists / festivals / venues that I've featured on there). I'm also working on trimming old content that's not relevant any more.

Interview about the entertainment industry during the Coronavirus Lockdown with Timothy Moloi

Born and raised in Orlando, Soweto, Timothy grew up in a home filled with song. It was this love for music and his natural flair for infusing familiar and beloved standards with a new freshness that has made him a favourite with audiences throughout South Africa. With his smooth-as-velvet voice and masterful range, Timothy is truly one of South Africa’s most extraordinary talents. The artist has performed with the KwaZulu-Natal Philharmonic Orchestra, the Johannesburg Philharmonic Orchestra, the Cape Philharmonic Orchestra, the Eastern Cape Philharmonic, the Electric Pops Orchestra, the Johannesburg Festival Orchestra and the Soweto Gospel Choir. And that’s not even the half of it. Timothy Moloi performed the song ‘Hope’ at the opening ceremony of the FIFA 2010 World Cup at Soccer City to an estimated global audience of 500 million viewers! His double SAM- nominated debut album LOVE THAT MUSIC received critical acclaim and is available on iTunes. Television performances have included the MTN South African Music Awards, Miss South Africa, SABC3 JOBURG POPS, The SABC2/Sowetan Community Builder Of The Year Awards, the SA Rugby Awards and the MNET ‘Heroes Against Crime’ Awards, as well as several guest appearances on popular programs such as Morning Live, Expresso, Top Billing, Afro Cafe, Spirit Sundae, World Today, TML, E.tv Sunrise, Afternoon Express, Musiek Roulette And Noot Vir Noot.

Is Influencer marketing the way to go?

Following our recent video, we have received inquiries asking for more information on influencer marketing and whether this is relevant during and after the Covid-19 times, and here is our experience and what we believe could well be the way forward.

At Intune we have used this strategy in many of our campaigns over the years, with quite a lot of success. When the strategy has not worked well, the learning has been that you need to be very careful when selecting who you use as your influencer. After all, that person will be advocating the brand that you have spent years building.

The clothing industry, particularly those organisations who use online sales channels, often use influencers. There are case studies showing multi-million dollar industries built on this strategy. The majority of companies dabble with the use of influencers when a situation arises – specials, an event, launching a brand etc.

Influencer marketing is relatively new and is evolving quickly. It is important to know that there are mandatory rules regarding the use of influencers and it is now required to include ’ “sponsored by” when posting and there is an organisation, the Advertising Code of Practice on Social Media’ - introducing rules and regulations that are constantly being updated.

When the strategy first emerged companies were using celebrities at enormous cost. They usually wrote the copy for them and it often came across as stilted and unauthentic. In the worst cases, the celebrities promoted the brand on its social platforms, but on their own platforms, in their own voices, they would be promoting a competitor.

We have come a long way since those days. In targeting the Millennial, or the snowflake generation we have learnt that they generally have a short attention span and get offended easily, so, ‘phoney’ advertising doesn’t go down well. Campaigns that worked at the time were quickly forgotten. There were a few posts and it was over. There was no longevity for the brand.

Enter the micro influencers. They may have fewer followers than the celebrities, but they tend to be seen as credible, authentic, experts in their particular fields with good reputations. While some celebrities can reach a far bigger audience, these marketers can directly reach a target market and align with regular people. They are able to build a strong bond with customers through impactful messaging and so they can create sales or build awareness of a brand, a campaign or a CSR programme.

There is very little to differentiate between the thousands of similar products in the marketplace and research has shown that consumers are too busy and don’t have time to research what is best for them or their family. So, their propensity is to purchase based on recommendations and this is where the influencer is valuable.

How to contract an influencer:

1.      Pick the influencer that is best for your brand. There are agencies that specifically place influencers, but they might not know your brand and they may suggest an unsuitable candidate. So, it’s best to meet the person first and to make sure that they tie in with your brand and your company ethos. 

2.      Be sure that the influencer knows your brand thoroughly and knows what is expected from them. The return on investment that you expect must be clear from the start. 

3.      The influencer must convey the brand message in his or her own style, using his or her unique tone. Let them write the copy themselves, with the brand team’s guidance.

4.      The online messaging coming from the influencer should be blended with the corporate posts that are shared by the organisation.

5.      A longer contract is best to entrench the brand message

6.      Have regular discussions with the influencers to keep them on board, keep them passionate about your brand and make them know that you value their support.

Over the years we have had some classic bloopers with influencers, so you need an excellent understanding of what does and doesn’t work.  We can laugh about it now, but it wasn’t funny at the time!

In comes Covid-19 – how will this affect influencers?

This is an interesting question and only time will tell. The Covid-19 pandemic has had a dramatic effect on global economies and many companies across the world will come out of this battle scarred and it is predicted that this could well mean the slashing of budgets – marketing and sponsorships could well be in the firing line. But this is where influencers could be valuable. 

Stats coming out in the last couple of weeks have seen an overwhelming increase in social media traffic and the length of time we spend on the different platform. We have seen into celebrity homes, heard how they are managing and noted their frustrations and fears are the same as ours. 

Brands that have used celebrities and other influencers in their Covid-19 messages have had incredible traction.  The World Health Organisation effectively used celebrities to promote sanitising, social distancing and the importance of lockdown.  Adidas is using David Beckham and family to promote exercising at home, Liverpool is using all their players and particularly their coach, Jurgen Klopp, to keep their fans updated and show empathy and support during this hard time.  This is merely a few. What we know is that the what the world needs now is empathy, compassion and unity.

We believe there is and will definitely be a place for influencers during and after lockdown.  Covid-19 is not going way!  Sanitising and social distancing will continue for a year or longer.  The world is not the same and brands will continue to use influencers to help drive the message of compassion and empathy.   

In conclusion, it is back to basics as marking teams wade through unchartered territory. There are no rules or worksheets on marketing in a pandemic. Consumers are online at the moment and they are spending more time there! There is a captive audience and brands need to contribute to the conversation. Using influencers/celebrities to be heard is a very good option.