In the past few years, newspapers got thinner, TV ads got cheaper, and radio got quieter. This is disruption. The internet has given us so much access to information and options that we no longer consume content the way we used to — today we "google" for information or watch YouTube to learn how to do something.
Communication has become easier too. We no longer wait days for a postman to arrive — we email. We no longer call and talk to one person at a time — we broadcast on WhatsApp or WeChat, and take advice from online coaches and influencers. The abundance of information is key: word-of-mouth content, reviews from people we trust. In essence, influencer management.
Why We Know Influencer Management Is In Demand
Demand as seen on our platform
When we started this platform in 2015, we were the only player in the industry in Malaysia. Three years in, there are now at least half a dozen influencer marketplaces.
Demand as seen on Google Search
The Influencer Marketing Hub 2017 Study reported a +325% increase in searches for "influencer marketing" over 2017 alone — making it the fastest-growing online customer acquisition method of the year.
Demand as seen at major tech events
At RISE HK, Southeast Asia's largest tech event, alongside talks on AI, blockchain and fintech, there was an entire track on influencer management — with influencers like Ms Yeah (The Onion Group) and Jenna Marbles sharing the stage.
Demand as seen in awards
This year's Rice Bowl Awards — Best Digital Marketing Solution 2018 in Malaysia — went to SushiVid, an influencer management platform. Indonesia's and the Philippines' winners were also influencer management platforms.
Demand as seen on rising platforms
On top of existing platforms, TikTok (owned by Bytedance) has raised US$2–3 billion from the market. Other platforms fighting for attention include Kwai, Zhihu, Bigo Live, and Miaupai. Is influencer management here to stay? We say yes.
Which Platforms Should We Focus On?
YouTube
Malaysia is seeing flat growth in the number of YouTubers, as creators opt for more convenient, mobile-based platforms like TikTok and Instagram. We're seeing fewer than 1,000 YouTubers with 10,000–50,000 subscribers in Malaysia. Despite the decline, demand remains huge thanks to the longevity of YouTube content — it lasts, relatively speaking, forever.
Due to a lack of supply, existing YouTubers have become increasingly demanding, and brands have started dropping YouTubers from their marketing mix or working with them more reluctantly. We predict YouTuber demand — and possibly the YouTuber market itself — will continue shrinking if this continues.
Demand for Instagram is huge, especially for highly visual products — cafes, travel, lifestyle, fashion, festivals, apps. This year, a staggering 70% of our payouts went to Instagram influencers.
As brands become more educated about influencer management on Instagram, influencer work quality will need to keep improving to stay competitive, given the low barrier to entry. Brands are also choosing more Instagram video over picture posts, as video can convey a brand's message in greater detail.
We expected Instagram Stories to fall off like Snapchat did — since brands in Asia tend to prefer content that lives more than 24 hours — but we were wrong; Stories has worked well for us. As for IGTV, we haven't yet seen meaningful impact or adoption.
Influencer management on Facebook is unfortunately sunsetting. Recent demand has been low, and when it does come up, it's usually just a share from Instagram. Many of the Instagram influencers we work with don't even have a Facebook account — especially younger creators aged 15–21. We don't expect this to change in 2019, with or without Facebook Live or Stories.
TikTok
SushiVid has been fortunate to work with TikTok on their influencer campaigns, and we were fascinated enough to visit China to check out Douyin, the app's full China version.
TikTok is an entertainment platform that captures the attention of younger audiences, who are also working to bring in a slightly more mature crowd — successfully so far. Monetisation works like Google AdSense (a short ad before browsing), plus in-app e-commerce and direct influencer campaigns.
Will TikTok stay? Absolutely — it's like Instagram on steroids, and was seeking another US$3 billion in funding to expand into Southeast Asia and beyond. Brand campaigns on the platform remain sparse today — which means opportunity, both for brands looking for an arbitrage and for influencers looking to stand out on an undersaturated, user-friendly platform.
Twitch, Bigo Live, Kwai, etc.
Influencers on Twitch remain few in Malaysia, though we're sourcing as many as we can — eSports is here to stay, and we're hopeful Twitch enters Malaysia more aggressively.
Bigo Live, a Singapore-based platform, has a solid following — we've found the user base leans less urban, which could suit FMCG and consumer goods more than lifestyle brands.
Similar to Bigo Live, Kwai hasn't seen mass adoption yet, despite deep pockets to compete with TikTok. We believe both platforms remain usable for brands as long as they stay active — we just haven't yet found the niches that work best.
5 Trends for 2019
Insta Stories on the rise, TikTok as the new underpriced platform for Southeast Asia
When Snapchat was popular in the US, it was harder to sell to Malaysian clients, who weren't used to content disappearing after 24 hours. Instagram Stories filled that gap, adding a "highlights" feature to pin Stories to a profile permanently, plus a swipe-up link function that supports measurable campaign ROI even on 24-hour content.
TikTok, aggressively growing with over 500 million users (June 2018) and 150 million daily active users, hasn't yet been fully understood by most brands — despite facing a temporary ban in Indonesia that was later overturned.
More China platforms to come
China platforms like Kuaipai, Miaopai, Sina and Meipai are rising and penetrating Southeast Asia the way TikTok did, mostly used by younger millennials for short (under 15-second) videos in the SnapChat/Insta Story style. If they land here, we expect them to be popular with the country's younger demographic.
More micro influencers, hundreds in one go
In 2018, we noticed brands engaging influencers en masse — up to 100 or more micro influencers in a single campaign (U Mobile being one example). While the reach of any one micro-influencer is lower than a macro/alpha influencer or celebrity, 100 of them collectively means 100 unique pieces of content, and often better trust-building given the higher engagement rates typical of micro influencers compared to alpha influencers who post too many sponsored posts.
Prices of Macro/Alpha influencers
In the past, with high demand and low supply, influencers quoted inconsistent, sometimes inflated prices, with no real industry standard to anchor to. As supply and demand come closer to equilibrium, prices are correcting — influencers are more aware of market competition, which is one less problem for brands.
New jobs created in large MNCs and SMEs related to influencer management
Corporate companies are adapting by hiring dedicated Social Media teams and Heads of Influencers, rather than folding influencer work into PR or Communications. This signals that corporates now see influencer management as a long-term advertising channel, not a one-off tactic.