2019 China KOL Marketing Strategy White Paper!

Recently, iResearch Consulting and IMS New Media Business Group jointly released the "2019 China KOL Marketing Strategy White Paper" (hereinafter referred to as the "White Paper"). The White Paper deeply interprets the development history of China's KOL marketing and its trends in 2019 from three aspects: KOL marketing value discussion, gameplay strategies, and strategy trends. It also provides three core gameplay methods for readers' reference in terms of practicality.

The following is the content of the "China KOL Marketing Strategy White Paper":

Core Summary

Development Background

The "2018 Government Work Report of the State Council" proposed that in the five years since the first session of the 12th National People's Congress, the development of cultural undertakings has been accelerated, with the average annual growth rate of cultural industries exceeding 13%. Against this background, the KOL market, as a new force in the cultural industry in the Internet era, has also developed significantly, and its influence in people's lives has gradually increased.

Value Discussion

KOL marketing refers to social media marketing and communication activities involving KOLs. It has the advantages of both group communication and mass communication, and its marketing value is also recognized by the market. Based on the enrichment of the media environment and the changes in the characteristics of KOLs themselves, KOL marketing has also gone through three stages: celebrity endorsement, content distribution, and integrated linkage, and is constantly moving towards maturity.

Gameplay Guide

Focused approach: Build a vertical KOL matrix, focus on key groups, and concentrate firepower to promote sales conversion

Diffusion-type gameplay: Build a pyramid-shaped KOL matrix to continuously promote the diffusion of marketing information in stages

Functional gameplay: Explore the different functional utilities of KOLs and support all aspects of integrated marketing communication

Strategic Trends

Choose verticalization: the mindset shifts from the number of fans to the quality of fans, and the marketing value of vertical KOLs rises

Matrix distribution: The value of KOL matrix is ​​becoming more prominent, and the distribution model tends to be aggregated and intelligent.

Decision-making becomes more complex: the media environment becomes more diverse and complex, and media selection becomes more critical in KOL marketing

Definition of KOL Marketing

KOLs’ participation in social media marketing and communication behaviors

KOL : Key Opinion Leader, refers to a person who has great influence and voice in a specific group. The scope of this group is not absolutely limited. It can be as large as an industry, a subculture circle, or as small as an interest group.

KOL marketing : refers to social media marketing and communication activities involving KOLs. The core of this marketing concept is the KOL itself. In principle, there is no restriction on specific marketing forms. Regardless of whether it is a marketing activity dominated by KOLs or a marketing activity in which KOLs only partially participate, it is within the research scope of this report.

Explanation of similar concepts : There are some overlaps between concepts such as KOL, internet celebrity, anchor, and self-media, but they are essentially concepts generated in different contexts. Therefore, this report does not strictly distinguish between such similar concepts. As long as they meet the identity definition of KOL, the marketing activities they participate in are counted as within the scope of KOL marketing.

KOL characteristics in different media eras

As the media environment continues to enrich, KOLs are becoming more diverse.

Group opinion leaders have always existed in human society, and the method of reaching specific groups through KOL marketing activities is not a product of the Internet era. However, with the development of media technology and media environment, the concept of KOL has gradually transitioned from offline groups to online groups, and has continuously derived richer connotations, forms and characteristics . In the era of traditional media, KOLs exist more in the form of social celebrities, with a wide range of influence based on mass media; in the era of PC media, KOLs exist more in the form of experts, and exert a more professional influence on niche cultural circles based on communities/social networks; in the era of mobile media, various new media forms emerge in an endless stream, and the existence of KOLs has become more diverse, with professionalism and entertainment becoming important characteristics of current KOLs.

The development of KOL marketing

The development of the media environment has led to the continuous maturity of the KOL marketing market

The development process of KOL marketing is essentially still the development process of media. It is precisely because of the emergence and popularization of the Internet and mobile Internet that various new social media have been spawned, providing KOLs with more and more media environments for producing and disseminating content, and thus continuously developing and deriving new KOL marketing methods and marketing values. Since the era of traditional offline advertising, KOL marketing has been active in mass media such as television and newspapers in the form of celebrity endorsements. The emergence of community/social networking sites in the Internet era has brought KOLs more marketing value in content distribution. With the rise of mobile Internet, KOL content formats and interactive methods have become richer, marketing methods have been continuously explored and innovated, and matrix self-media trading platforms have also come into being.

Discussion on the Marketing Value of KOL

The integration of group communication and mass communication in the Internet era

The reason why KOLs have become an important role in marketing communication activities and are favored by advertisers is that they have both the influence of group communication and the coverage of mass communication. On the one hand, there is a specific group behind every KOL, so KOL can deeply reach members within the group. Based on the group consciousness and group pressure in group communication, members have a higher degree of trust in marketing information. Generally speaking , the more concentrated the group relationship, the clearer the group boundaries, and the higher the group consciousness and pressure . On the other hand, in the Internet era, KOLs can break the group boundaries of communication channels through social media. At the same time, the secondary dissemination of marketing information by all group members will further expand the coverage of marketing activities. Therefore, it can be said that it is the integration of group communication and mass communication in the Internet era that has led to the birth and rise of KOL marketing.

At present, KOLs are present in all categories of mobile Internet top traffic platforms

According to the Usertracker multi-platform Internet user behavior monitoring database (smart terminal), among the top ten APP sub-category platforms in terms of monthly independent device numbers on China's mobile terminals in February 2019, five categories are common habitats for KOLs, including instant messaging, online music, short videos, news information, and online shopping. This shows that KOLs have numerous contact scenarios and opportunities in users' daily catalyst environment, and influence users in different ways.

KOLs have long and frequent contact with users every day

Judging from the daily activation frequency and activation time of mobile Internet users, KOLs also occupy most of the users' daily online time. According to the Usertracker multi-platform Internet user behavior monitoring database (smart terminal), on the one hand, communication chat and social networks are the APP categories with the most daily user usage, with frequencies as high as 11.2 and 8.4 respectively. Fragmented and repeated login behaviors allow users to access more KOLs ; on the other hand, in addition to deeply immersive long-content consumption platforms such as videos, games, and reading, the daily usage time of KOL-resident platforms such as communication chat, comprehensive information, and social networks is the longest, which shows that users spend more time contacting and even interacting with KOLs every day.

KOLs’ platforms are constantly expanding, and their marketing value is recognized by advertisers

After years of development, the scope of KOL's activities has continued to expand. In addition to traditional social platforms, mobile videos, vertical platforms, and e-commerce platforms have become the bases for their content production and dissemination. Combined with AdMaster's research data, platforms with KOLs are obviously more favored by advertisers . Among them, the advertising intention on social platforms where KOLs are native accounts for as high as 69%. In the survey on the intention to choose social marketing methods, KOL marketing ranks first with a share of 60%. It can be seen that KOL marketing has become one of the most recognized methods among all social media marketing, and KOL marketing strategies and methods have also become the focus of widespread attention in the industry .

KOL selection strategy

Choose the right size and type to build an organic KOL marketing matrix

Choosing the right KOL is the most critical link in KOL marketing. In addition to accurately grasping the target fan group behind the KOL, how to integrate KOLs of different sizes and types, build an organic linkage matrix, and maximize the communication effect is also a very important marketing strategy. From a volume perspective, top KOLs have greater value in attracting traffic, mid-level KOLs have higher cost-effectiveness, and long-tail KOLs have value that cannot be ignored in content distribution and diffusion . From a genre perspective, celebrity KOLs are more suitable for igniting topics, vertical KOLs are more suitable for in-depth content interpretation, and pan-entertainment KOLs are more suitable for the distribution and dissemination of marketing information.

KOL selection strategy - celebrity type

Combine personality, fans, and hot spots to select the best celebrity KOLs for cooperation

Among all KOL categories, celebrity KOLs who are responsible for igniting topics have the most significant influence and marketing value . At the same time, their marketing costs and risks are also higher. Therefore, it is particularly important to choose the right celebrity KOL. Generally speaking, in the process of selecting celebrity KOLs, it is mainly necessary to match the marketing goals with the celebrity personality, fan portrait and hot topics, and then screen out more suitable celebrity KOLs for marketing cooperation. It is worth noting that since celebrity KOLs play a key role in the entire marketing and communication activities, after selecting the right celebrity, the subsequent media and strategy selections also need to fully consider the celebrity’s own characteristics and wishes, so as to achieve better marketing results.

Media selection strategy

Clarify marketing goals and demands, and choose the appropriate media platform

After choosing the right KOL, it is equally important to determine one or more suitable media platforms. The KOL selection strategy is more based on fan attributes and personal personality, while the media selection criteria focus more on the brand’s own marketing goals. On the one hand, different media platforms have different characteristics such as content format and interactive form, and their marketing strategies are also different. On the other hand, different functional modules and scenarios of the same media platform are suitable for different marketing goals. Therefore, it is crucial to find a suitable media platform and clarify one's own marketing goals and demands . KOL marketing goals can usually be divided into three categories: information dissemination, fan communication and sales conversion. Regardless of whether it is an overall goal or a phased goal, corresponding media platforms and scenarios can be found.

Analysis of Typical KOL Marketing Media Platforms

Analyze the characteristics of different media platforms and formulate appropriate KOL marketing strategies

Gameplay 1: Focus

Build a vertical KOL matrix, focus on key groups, and concentrate firepower to promote sales conversion

Introduction to gameplay: Build a vertical KOL matrix, start building momentum on multiple platforms at the same time, focus on single-point breakthroughs, and create a loud and loud spread of heat within a specific field.

Gameplay guide:

1) Select multiple platforms to cover multiple catalyst scenarios for the same consumer, thus achieving deep reach and stimulation;

2) KOLs are mainly selected from the middle level of vertical fields, and they are scaled up as much as possible to cover more different fan groups in vertical fields;

3) Content differentiation: The content of different KOLs on different platforms needs to be customized to avoid overexposure of homogeneous content and arouse user disgust.

Scope of application: The marketing objectives are clear and sales conversion is the main focus; the marketing subjects are usually specific products with specific consumer groups.

[Case study] Armani × IMS (Tianxiaxiu): Building a beauty KOL matrix to spread new product information

Marketing background: Armani launched a limited edition series of lipstick products in neon colors and cooperated with IMS (Tianxiaxiu) to promote the products through KOL marketing activities.

Marketing strategy:

1) Select 11 beauty experts to form a vertical KOL matrix to fully cover the young female audience group;

2) Using the theme of “lipstick color testing”, we customized marketing content based on the characteristics of each KOL;

3) Tik Tok, Weibo, and Meipai platforms work together to release content on the same day, focusing on promoting new product information.

Marketing effect: The KOL matrix has a total of more than 240,000 likes and more than 20,000 comments, showing the product's brand information and usage effects in multiple dimensions.

Gameplay 2: Diffusion

Build a pyramid-shaped KOL matrix to continuously promote the spread of marketing information in stages

How to play: Create a phased KOL marketing and communication strategy, and achieve full network diffusion or even viral spread through interactive topics and deployment of different types of KOLs.

Gameplay guide:

1) Formulate a phased strategy and continuously expand the volume of marketing activities through the execution rhythm of warm-up-detonation-continuous diffusion;

2) Create hot topics, focus on exploring the interactivity and creativity of topics, and thus increase their secondary communication value;

3) Pyramid KOL strategy: select 1-3 celebrity KOLs to take the lead, and then use mid- and long-tail KOLs in various fields to cover more fan groups in different vertical fields. The selection of celebrity KOLs in the entire pyramid KOL matrix is ​​particularly critical, and has important value and influence at every stage.

Scope of application: The marketing goal is mainly to reach a wide range of information, such as the dissemination of important information such as brand image and new product launches; the marketing subjects are mainly mass consumer goods.

[Case Study] JD.com × IMS (Tianxiaxiu): Celebrities lead the KOL matrix to continuously spread information

Marketing background: JD.com and IMS (Tianxiaxiu) jointly launched a product promotion activity for all Weibo celebrities - 9.9 JD.com flash sale "Who is the product promotion king", aiming to increase the exposure and attention of the 9.9 JD.com flash sale day e-commerce festival through the influence of KOL marketing, and at the same time enhance the sales conversion rate during the event.

Marketing strategy:

1) Cleverly set up the interactive topic of "Who is the best seller?" to attract the active participation of long-tail KOLs and the enthusiastic support of fan groups;

2) Build a celebrity KOL matrix to play its value at each stage, especially in the detonation period to continuously promote the spread of topics and activities and attract a lot of attention;

3) Publish in-depth content through vertical KOLs to further explore the hot spots of activities and products and achieve secondary dissemination.

Marketing effect: The number of KOL participants exceeded 200,000, the total network exposure exceeded 1.1 billion, and the number of event topics exceeded 300 million.

Gameplay 3: Functional

Explore the different functions and benefits of KOLs and support all aspects of integrated marketing communication

How to play: Use KOL marketing as a supporting communication channel for integrated marketing communication activities. With the help of KOL's own influence and flexibility, customize different communication strategies according to the communication needs of different links, and jointly promote the realization of the entire marketing goal.

Gameplay guide:

1) Flexible strategy: first sort out the key objectives of each link according to the overall marketing demands, and then formulate KOL selection and content strategies accordingly;

2) Rich in content, based on online topic dissemination, try more innovative content forms, such as online and offline linkage;

3) Connect with each other. KOL marketing in different links needs to maintain a certain degree of correlation to prevent users from receiving marketing information that is too scattered or even biased.

[Case Study] Taobao × IMS (Tianxiaxiu): KOL fully supports multi-stage marketing communication

Scope of application: It usually plays a functional auxiliary role in large-scale integrated marketing communication activities and can be flexibly adjusted according to the needs of each communication stage.

Marketing background: Taobao launched the "2018 Taobao Maker Festival", a large-scale offline event, aiming to build momentum and divert traffic through integrated marketing communications and increase the influence of the event.

Marketing strategy:

1) Cooperate with KOLs in various fields to warm up the event through creative videos and interactive topic debates;

2) Through the spokesperson selection activities, the traffic of top stars can be used to attract attention, and a large number of KOLs can be used to distribute and spread the activities;

3) During the event, invite KOLs to direct traffic and achieve conversions through offline live broadcasts, store visits, etc.

Marketing effect: The total reading volume of KOL matrix communication reached more than 70 million, and the total interaction volume exceeded 30,000.

KOL Marketing Strategy Trend: Choose Verticalization

The mindset of fans quantity shifts to that of quality, and the value of vertical KOL marketing rises

According to data from the (IMS) WEIQ new media marketing cloud platform, the number of KOLs in various vertical fields has grown rapidly, with the growth rates of KOLs in the food, beauty and fashion, and games and animation verticals reaching 132%, 129% and 128% in 2018 compared with 2016, respectively. As the Internet user dividend gradually fades, traffic value is no longer the main goal of brands in conducting marketing activities. How to reach and influence users more deeply and thereby expand monetization value has become the focus of common attention and thinking in the industry . Therefore, marketing goals for wide-scale exposure are gradually decreasing, while marketing goals for deeply reaching users in vertical scenarios are increasing. In this context, the limitations of the marketing role of pan-entertainment KOLs with larger fan bases are exposed, and they are merely used as a communication channel for information dissemination. Vertical KOLs are increasingly favored by brands due to their deeper professionalism and more refined fan quality. In the future, popular KOLs represented by pan-entertainment will continue to exist, but the marketing value of KOLs will continue to shift to vertical fields.

KOL marketing strategy trend: matrix marketing

The value of KOL matrix is ​​becoming more prominent, and the delivery model is becoming more aggregated and intelligent.

According to data from the (IMS) WEIQ new media marketing cloud platform, the average number of KOLs participating in a single marketing campaign in 2016 was 42, while in 2018 the number was as high as 138. The trend of KOL marketing matrix is ​​becoming more and more obvious. Against the backdrop of the vertical development of KOLs and the continuous maturity of KOL marketing models, the mainstream strategy of KOL marketing has gradually transitioned from single-point operations to matrix linkage, from the early deep cooperation model of spokespersons, to the mid-term multi-point distribution of top KOLs, to the current construction of an organically linked KOL matrix, the matrix effect of "1+1＞2" has become increasingly prominent . Therefore, the traditional cooperation model of communicating directly with KOLs is obviously no longer applicable. In the future, KOL marketing will gradually usher in an aggregated delivery model. Leading KOL marketing service providers will continue to accumulate KOL resources and continue to build one-stop delivery platforms and technologies to provide brand owners with more intelligent and efficient KOL selection and delivery services.

KOL Marketing Strategy Trends: Decision-making becomes more complex

The media environment is becoming more diverse and complex, and media selection is becoming more critical in KOL marketing

The key to traditional KOL marketing lies in the KOL itself. Choosing the right KOL is equivalent to finding the audience behind it. However, with the continuous emergence of new media, KOL marketing strategies have become more and more complicated. Even the same KOL has different characteristics and audiences in different media. According to data from the (IMS) WEIQ new media marketing cloud platform, in 2017, the order volume of IMS (Tianxiaxiu)'s partner media in emerging media categories such as live broadcasting, short videos, and content e-commerce accounted for only 3%, while in 2018 this proportion rose to 11%. Therefore, in the future, when brands launch KOL marketing, choosing the right KOL is only half the battle. Media selection will become the other key factor for success and play a more important role in the entire marketing decision. Brands will face a complex environment in KOL marketing. In addition to customizing marketing forms and content based on the KOL's personality and characteristics, they must also fully consider the characteristics of the media, as well as the differentiated characteristics of KOLs in different media and other factors.

Source: iResearch