Market Research Wrap: Products of fluid integration
by MarkLives (@marklives) Our weekly wrap of the latest market and consumer research:
- Fluid brand connections
- Making sense of SA influencer marketing
Growing up in a high-tech generation, focused on the mega-trends of convergence and co-creation, today’s youth are fluid in the way they form connections and relate to the world, brands and one another. This is according to the new white paper produced by Joe Public Shift, “Generation Fluid: Understanding the dynamics of today’s youth market”. Market Research Wrap presents the fourth and final excerpt. [Cheryl Hunter]
In contrast to preceding generations, less-structured ways of working and connecting have become hallmarks of this generation of young people, changing the dynamics of peer-to-peer and brand-to-consumer relationships alike as traditional relationship lines, roles and rules become less rigid and clear-cut. In effect, these new approaches are redefining how today’s youth relate to each other and to the brands that form part of their world, and the old rules of engagement are rapidly becoming outdated and irrelevant.
Even retail spaces, such as Apple with its “Today at Apple” seminars, are beginning to extend their customer-experience methods to incorporate the unconventional and relevant in order to connect with Generation Fluid.
Levi’s and Google, for instance, recently partnered to create a smart jacket designed for bike riders and commuters who are unable to make use of their mobile phones. Dubbed the “Jacquard”, the garment allows wearers to control music, screen calls or get directions, all with a tap or brush of the cuff. One is even able to call an Uber, drop a location pin and stream sound through headphones in order to hear approaching traffic. A product of fluid integration between two previously disconnected brands, this unique clothing item has also changed how users are able to relate to and connect with the world around them.
- Download the full white paper by registering at Joe Public United.
Influencers make rands and sense
As part of its 1 March 2019 launch, Humanz — a new technology startup geared specifically towards enabling reliable influencer-marketing campaigns for agencies and marketers — is releasing “The state of influencer marketing in South Africa 2019”. This report on the state of influencer marketing in South Africa includes figures such as the total number of potential influencers by audience size and interest topic, plus benchmarks on engagement rates, impressions per post and fraud. [Cheryl Hunter]
Pierre Cassuto, Humanz global CMO and African CEO, says the buzz around influencer marketing has taken a knock recently, with numerous reports of fake followers, bots and fraud within the space. Influencer marketing, however, is still the fastest-growing digital marketing practice and media channel globally, expected to become a US$10bn market by 2020 (source: eMarketer).
According to the report, which explores this growing industry, the average influencer account, for example, has between 20% and 27% suspicious followers, considered of little to no value to marketers; and only one in two followers in SA is likely to turn into an actual impression, creating a significant gap between number of followers and actual reach.
“Most SA influencer campaigns have used celebrities or social stars, due to the difficulties and time-consuming nature of manually identifying, verifying and working with smaller influencers. However, engagement rates are, on average, inversely proportional to audience size on both Instagram and Twitter. Smaller influencers are also considered more trustworthy and hence more likely to ‘influence’,” says Cassuto.
In the US, businesses have been making on average US$6.50 for each US$1 spent on influencer marketing, with the top 13% earning US$20 or more (source: Tomoson). Furthermore, 60% of 18–34 years old in Africa say that their purchase decisions have been swayed by influencers on social media (source: eConsultancy).
- Download the full white paper by registering at Humanz.
This weekly “Market Research Wrap” column offers an overview and critique of the latest market and industry research.
Cheryl Hunter (@cherylhunter) has written for the South African media, marketing and advertising industries for more than 15 years. A former editor of M&M in Independent Newspapers and contributor to Bizcommunity, AdFocus, AdReview and the Ad Annual, she has also produced for various television networks and currently consults on communication strategy and media liaison.
— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!