Future of advertising series: influencer marketing

Marketing in a smartphone world has become a complex game. To stay in touch with an audience flitting between different platforms it is necessary to explore new techniques and be savvy about how you look to engage. 

Bertelsmann Digital Media Investments [BDMI], the corporate venturing unit of Germany-based media company Bertelsmann, has shared a deck on the latest trend they have become interested in: influencer marketing.

Large audiences have been captured on new media platforms like Twitter, YouTube and Instagram by influencers, who have shot to internet fame through their curation.

BDMI singles out prototypical influencers like Zoe Sugg, a fashion blogger known as Zoella, who has amassed more than 5 million followers on YouTube – she is backed by advertisers Maybelline and Top Shop – and graphic designer Joy Cho, who has more than 13 million followers on Pinterest – she is backed by Target and Sephora.

Urs Cete, head of BDMI, said: “We are currently spending time in this space but are not yet sure whether we will find something we like enough to write a cheque.”

For a break-down of portfolio companies, which are benefitting from the influencer marketing landscape go to pages 11 and 12 of BDMI’s slide deck. Influencer marketplaces and agencies singled out in the ecosystem include Niche, Tapinfluence and Famebit, aggregators picked include Stylehaul [BDMI-backed] and Fullscreen [WPP Digital and Comcast Ventures-backed], analytics and monitoring companies include Simply Measured and DataSift, while marketing, CRM and page managers include Percolate [WPP Digital-backed] and Spredfast.

Reasons given by BDMI for there being a shift to influencer marketing include the reach of the influencers especially among young people, the declining reach of Facebook brand pages, the diminished effectiveness of traditional online adverts and the increasing demand for advertising on social media.

This is the first article in our future of advertising series,.Global Corporate Venturing will be looking regularly at what trends in marketing are emerging ahead of our Future of advertising round-table alongside US-based media company American Media in New York on October 1, starting at 1600. Contact me on tlewis@globalcorporateventuring.com to attend.

An extended interview with BDMI’s Cete and his colleague Sim Blaustein will be featured in our September issue, as part of our media sector focus.