Influencer Marketing in Southeast Asia - An R3 White Paper

INFLUENCER MARKETING IN

SouthEast Asia An R3 White Paper

DRIVING TRANSFORMATION FOR MARKETERS AND THEIR AGENCIES

introduction Economies in Southeast Asia have been greatly transformed over the past few years thanks to growing mobile and internet adoption. The region’s online economy is projected to reach $300 billion by 2025 as millions of people make e-commerce an integral part of their daily life, and marketers are responding by investing in social media, streaming video, e-commerce, and esports.

One of the most dynamic and fastest-growing areas related to digital marketing is influencer marketing. In 2019, Southeast Asia’s influencer marketing industry was worth $638 million, and is estimated to quadruple within five years to reach $2.59 billion by 2024.

The reasons for influencer marketing’s rapid growth are largely attributed to the expectations and behavior of Southeast Asia’s young and mobile consumer demographic who drive the economies of much of the region. Born digital-natives, they seek authenticity, individuality, and immediacy.

Though some of the social and media platforms which dominate the social influencer market in Southeast Asia might be familiar, like Instagram and YouTube, significant cultural differences between the region’s countries demand that marketers take a hyperlocal approach with their influencer marketing strategies.

This white paper aims to provide an overview of the characteristics of key markets in the region, and best practice on how marketers can better measure the effectiveness of their investments in this area.

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INFLUENCER MARKETING IN SOUTHEAST ASIA

regional growth, hyperlocal strategies With rising internet connectivity in Southeast Asia, social media has been readily incorporated into the lives of its population of 667 million people. The increasing number of people with access to the internet has led to a new kind of digital community, with 55% of the region’s population on social media.

Popularity of Platforms The eleven markets that form part of this region (Indonesia, Malaysia, Singapore, Philippines, East Timor, Brunei, Cambodia, Laos, Myanmar (Burma), Thailand and Vietnam) have the same access to social media platforms dominant in the West, but their popularity varies according to country.

Facebook is the most used social media channel in Thailand, Vietnam, Malaysia, and the Philippines, while Instagram has gained foremost importance in Indonesia, which coincidently, accounts for 55% of total Instagram users in the region.

Variations in Use Although Southeast Asians are active on the same social media channels as their Western counterparts, their overall usage is quite different. Southeast Asian influencers create content that resonates with highly local audiences; complete with their own cultural background, language, and social codes. In comparison to Western influencers, they produce more unedited, “raw” content, and are more inclined to share views on their passions and interact with followers in their own unique way.

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INFLUENCER MARKETING IN SOUTHEAST ASIA

Different Levels of influencer partnerships We identified the different levels (A, B, C, and D) on which brands are leveraging KOLs – from a superficial connection to a deep connection to those brands’ DNA.

Brand Value + Celebrity DNA Deep Collaboration

Product Endorsement with Unique Celebrity Angle

• Pinpointing an angle to tell you brand story which is aligned with a certain unique attribute of the influencer.

• Working towards long-term brand-building and a deep brandcelebrity-fan relationship, instead of merely short-term commercial value.

• Leveraging vertical channels and platforms (digital / social) and certain influence among a specific target group to achieve business goals.

• May come in the form of a “naturalproduct placement,” social content, or co-created product

General Brand Endorsement for Popularity Reinforcement

Simple Image Copyright Usage in Advertising

• Compared to simple image copyright usage, advertising somewhat creatively utilizes the image of the influencer and tries to integrate the influencer’s role to promote a brand or product.

• Simple and superficial type of business collaboration.

• Using a well-known person and his/her fame in a range of mass communication materials to boost thebrand awareness of the brand, but with little to no personal relationship with the brand or the product.

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INFLUENCER MARKETING IN SOUTHEAST ASIA

influencer profiles @mfmirafilzah mira filzah, malaysia

Instagram: 6.1m followers (May 2020) YouTube: 17.6k followers (May 2020) Actress, model and entrepreneur, Mira Filzah starred in the acclaimed Malaysian drama series Pujaan Hati Kanda. The show’s last episode aired in January 2019 and reportedly garnered over 5 million viewers, as well as 30 million views on YouTube and tonton, Malaysia’s largest video streaming service.

Brands & Partnerships • Beauty & Fashion: Filzah worked with Lancôme when it unveiled its first Ramadan-Raya campaign in Malaysia on April 30, 2019. In addition to using Lancôme products, the influencer has her own Argan oil-based collection called MORA Essential by Mira Filzah, as well as a shawl company.

• Telecommunications: Filzah joined smartphone company HONOR Malaysia as brand ambassador in May 2019.

• Tourism: The Taiwan Tourism Bureau engaged Filzah to promote the country as tourist destination beginning in 2018.

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INFLUENCER MARKETING IN SOUTHEAST ASIA

Top Instagram Influencers in Indonesia (JAN-MAR 2020) Followers

Authentic Engagement

38M

78K

Raffi Ahmad Nagita Slavina

37M

0.5M

Prilly Latuconsina

33M

INFLUENCER

Ayu Tingting

@ayutingting92

@raffinagita1717

@prillylatuconsina96

Joko Widodo @jokowi

Natasha Wilona @natashawilona12

RICIS

@riaricis1795

Verrell Bramasta Fadilla @bramastavrl Atta Halilintar @attahalilintar

Salshabilla adriani @salshabillaadr

Iqbaal Ramadhan @iqbaal.e

0.2M

28M

0.2M

24M

0.3M

18M

0.3M

17M

0.2M

12M

0.2M

11M

0.2M

10M

0.4M

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