Background
This white paper looks at the potential of influencer management in Malaysia, and estimates how much social media influencers could make in this profession as this marketing strategy continues to rise in the country.
We've split it into three sections:
- Section 1: How much does an influencer make per campaign?
- Section 2: Brands' investments in influencer management in Malaysia
- Section 3: SushiVid's assumption on market growth rate with Covid-19
The Strategy
| Section | Strategy | Format |
|---|---|---|
| Section 1 | Bottom-Up | [Monthly Campaigns × Cost Per Campaign] × Total Influencers in Malaysia = Total Earnings of the Influencers |
| Section 2 | Top-Down | [No. of Brands × Investments or Budgets Per Brand] × No. of Influencer Management Platforms in Malaysia = Total Investments in Influencer Management |
| Section 3 | Center | Growth Rate (%) × Total Investments in Influencer Management = Estimated Growth of Investments in Influencer Management |
Introduction
Many have been asking, and may still be wondering, what influencer management is and how being a social media influencer — especially full time — really makes a living, particularly in Malaysia. Let's dissect the influencer management landscape in Malaysia.
The Rise of Influencer Management in Malaysia
In Malaysia, be it a primary school student or a grandmother looking after her grandchildren, almost everyone owns at least one social media account. The number of people reading newspapers, watching television or listening to the radio has decreased tremendously, thanks to the rise of social media.
The stark difference here, regardless of medium, is really about a user's contribution. Traditionally, content is one-sided — fed to us as consumers whether we like it or not. Today we have the option to scroll, skip, comment and share content we prefer. That interaction and sense of control is what makes social media so appealing.
With this rise comes opportunities for marketers to tap into — this is how influencer management, a new form of marketing strategy, was introduced to the market. Marketers no longer have to scratch their heads wondering where to advertise; as a company that's been running around chasing the next big wave, we can tell you exactly where your audience is spending their time — Instagram, TikTok, and the rest is history, at least for Malaysia. According to Marketing Dive, 82% of consumers are highly likely to follow influencer recommendations before making a final buying decision.
How does an influencer get paid?
There are several ways influencers get paid, based on the type of content they create. Taking SushiVid as an example, here are a few pricing models brands and influencers can choose from:
| Pricing Model | Description |
|---|---|
| Cost Per Post | Content creation + brand, product or service promotion |
| Cost Per Share | Influencers share ready-made content on their own social media platforms |
| Cost Per Sale | Currently only for cosmetics and skincare — influencers are paid by sales commission, brands pay only based on quantity sold |
| Live Stream | Currently paid by duration (influencers) and duration/audience (brands); future model moves toward commission (% of sale) for both |
Section 1: How much does an influencer make per campaign?
According to Marketing-Interactive, with 80% of marketers investing heavily in influencer management, influencers have become the go-to solution to overcome a growing list of advertising hurdles in Malaysia's social media landscape. Based on data from the 1,400 campaigns SushiVid managed in 2019, here's a simple breakdown.
The number of influencers in Malaysia (by tier)
SushiVid has about 12,000 influencers on our database, of which around 8,400 are Malaysian. Assuming we only have 50% of Malaysia's influencers signed up on our platform, we'd estimate about 16,800 Malaysian influencers exist in total. We categorise influencers using the following tiers:
| Category | No. of Followers |
|---|---|
| Nano Influencers | 1,000 – 10,000 |
| Micro Influencers | 10,000 – 50,000 |
| Mid-Tier Influencers | 50,000 – 100,000 |
| Macro-Influencers | 100,000 – 500,000 |
| Mega-Influencers | 500,000 – 1,000,000 |
Based on this tiering, here's our estimate of the number of influencers in each category in Malaysia:
| Category | No. of Influencers in Malaysia |
|---|---|
| Nano Influencers | 9,000 |
| Micro Influencers | 5,200 |
| Mid-Tier Influencers | 1,800 |
| Macro-Influencers | 700 |
| Mega-Influencers | 100 |
Anyone can be an influencer as long as they own a social media account and can engage their followers. Nano influencers make up the largest share — usually everyday people, often students, earning a bit of extra pocket money. Combining this with data collected via our platform and social analysis, here's our estimated monthly income by tier:
| Category | Level of Enthusiasm | Campaigns / Month | Est. Income / Month (RM) |
|---|---|---|---|
| Nano Influencers | Highly Enthusiastic | 3 – 5 | 300 – 500 |
| Less Enthusiastic | 1 – 2 | 100 – 200 | |
| Micro Influencers | Highly Enthusiastic | 5 – 10 | 1,000 – 2,000 |
| Less Enthusiastic | 2 – 3 | 400 – 600 | |
| Mid-Tier Influencers | Highly Enthusiastic | 5 – 10 | 4,000 – 8,000 |
| Less Enthusiastic | 1 – 3 | 800 – 2,400 | |
| Macro-Influencers | Highly Enthusiastic | 5 – 10 | 5,000 – 10,000 |
| Less Enthusiastic | 2 – 3 | 2,000 – 3,000 | |
| Mega-Influencers | Highly Enthusiastic | 5 – 8 | 12,500 – 20,000 |
| Less Enthusiastic | 3 | 7,500 |
Extrapolating to a yearly figure by tier:
| Category | No. Influencers in Malaysia | Total Earnings Per Year (RM) |
|---|---|---|
| Nano Influencers | 9,000 | 10.8 million – 54 million |
| Micro Influencers | 5,200 | 24.96 million – 124.8 million |
| Mid-Tier Influencers | 1,800 | 17.28 million – 172.8 million |
| Macro Influencers | 700 | 16.8 million – 84 million |
| Mega Influencers | 100 | 9 million – 24 million |
| Grand Total | 78.84 million – 459.6 million |
This is only an estimate based on cost-per-post pricing. If every tier makes the minimum number of campaigns, the industry spends RM78.84 million a year; at full activity, influencers could collectively make up to RM459.6 million a year — and that's just Instagram picture posts, excluding videos and stories.
Moving to YouTube, a single video from one of our renowned YouTubers can cost up to RM100,000. With ambassadorships and freelance work on top, some can make up to RM150,000 a month. Here's a breakdown by video category (excluding professional publishers like Cilisos and Says):
| Category | No. of YouTubers in Malaysia | Cost per Video (RM) | Total Earnings / Year (RM) |
|---|---|---|---|
| Beauty | 20 | 5,000 | 1.2 million |
| Prank/Funny/Entertainment | 20 | 80,000 | 19.2 million |
| Gaming & Tech | 5 | 3,000 | 180,000 |
| Cooking/Recipe | 15 | 2,000 | 360,000 |
| Total | 20.94 million |
Combining Instagram and YouTube earnings across the full spectrum, we estimate at least RM99.78 million in influencer management expenditure via the Cost Per Sale model this year.
Section 2: Brands' Investments in Influencer Management in Malaysia
According to Business Insider, influencer management spending will reach USD15 billion in 2022, up from USD8 billion in 2019.
In Malaysia, brands across FMCG, tourism & hospitality, fashion, beauty, e-commerce/marketplace, consumer electronics and more consistently allocate large budgets to influencer management. Based on proposals SushiVid made in 2019, we estimate at least 3,735 brands are spending on influencer management in Malaysia alone:
| # | Brand Category | Notable Brands | Potential Brands | Est. Total Spend (RM) |
|---|---|---|---|---|
| 1 | Beauty & Skin Care | 50 | 250 | 30,000,000 |
| 2 | FMCG | 30 | 150 | 20,000,000 |
| 3 | E-Commerce & Digital | 30 | 150 | 40,000,000 |
| 4 | Automotive | 5 | 25 | 6,000,000 |
| 5 | Electronics & Gadgets | 10 | 50 | 15,000,000 |
| 6 | External non-Malaysia | 10 | 50 | 6,000,000 |
| 7 | Do it themselves without SushiVid | 2,000 | 10,000 | 250,000,000 |
| 8 | Small SME | 1,600 | 8,000 | 200,000,000 |
| Total | 567 million | |||
If we assume only 1/5 of proposals come to SushiVid, that implies at least 18,675 proposals made by other players in the market — putting brand spending in Malaysian influencer management at roughly RM567 million.
Section 3: SushiVid's Estimation on Market Growth Rate with Covid-19
Combining Sections 1 and 2, and using SushiVid's own revenue pattern as a proxy for industry growth, we arrive at an estimated 2020 investment figure. SushiVid was established in 2016; revenue quadrupled the following year, quadrupled again in 2018, and doubled in 2019.
Following that pattern, 2020 figures should have doubled again — but with Covid-19 in play, we expect the industry to slow by at least 50%. So instead of an estimated RM1.14 billion, we assume investment held at RM567 million in 2020.
Despite the pandemic's impact on the global economy, we still see positive growth in influencer management — it's a profession that's solely digital and can be done in a closed-door environment. We see more opportunities ahead despite the current crisis, and will share more in future white papers.