How present are brands on our social networks?

While you answer that question, I can tell you that according to IAB Spain’s 2024 Annual Social Media Study, 48% of social media users follow brand profiles.

This percentage is slightly up on last year, when it stood at 43%. But what does following a brand really reflect?

• Following a lot (6%): These users use the networks intensively to follow their favorite brands. They are aware of all the news, promotions and contents published by them.
• Seguir bastante (38%): un grupo considerable que sigue activamente a las marcas, aunque no de manera tan intensa. They interact with content and participate in campaigns.
• Following little (43%): most users are in this group. They follow some brands, but hardly interact at all.
• Almost no following (13%): is barely following brands, but the fact that it has increased by 3% compared to last year is remarkable.

Why do we follow brands on social media?

The reasons that we, as users, have for following different brands on social networks can be very varied, ranging from finding out about those little offers that they put out from time to time (although this can usually occur through influencers rather than on the brand’s own profile) or to the fact that we like and enjoy their content, something that has become much more frequent in recent years, especially with the arrival of TikTok in our lives. Let’s break down these reasons in a little more detail.

Information and promotions

One of the main reasons we follow brands on social media is to stay informed about their products, services and promotions. Who doesn’t want to hear about a good discount or an exclusive offer from a brand they like? In addition, brands often use the networks to launch new products and keep us up to date with what’s new.

Engaging and relevant content

As we said at the beginning, visually appealing, funny or interesting content is another big magnet for followers. For example, brands such as Red Bull or Sephora, known for their particularly elaborate, dynamic and attractive content, have a large number of followers on platforms such as Instagram and TikTok..

Close and personalised relationship

We all like that sense of closeness (often false, by the way) that social networks provide. In the case of brands, they allow us a direct and personalised interaction with them. Especially with smaller brands, with which you can even have a ‘closer’ relationship: you can comment, ask questions and receive answers in real time. This ability to interact in real time makes us feel more connected to and valued by the brand, which obviously improves the brand’s performance. engagement and the final purchase decision.

Examples of success in social media

KFC and its dominance in TikTok

KFC is an incredible example of how a brand can stand out from the rest on social media. With more than 6 million followers across all its platforms, KFC has taken particular advantage of TikTok, where three out of ten interactionsacross all networks belong to this brand. The key? Fun, interactive content tailored to TikTok’s young (though increasingly younger) audience.

Red Bull: energy in every publication

Red Bull is another brand that has managed to ‘steal the show’ on social media. Its strategy focuses on extreme sports and sponsored events, and produces highly visual and exciting content. This strategy has allowed him to maintain a high level of interaction and loyalty among his followers.

Starbucks and the response to criticism

Starbucks has demonstrated how a transparent and rapid response to criticism can transform a potentially negative situation into an opportunity to strengthen customer relationships. When faced with criticism for a variety of reasons, the company has responded with clear communications and concrete actions to address the issues, earning the respect and trust of its consumers.

Lush and its commitment to ethics said goodbye to social networks

Note that we have a great example in this case that is more related to the importance of transparency. Lush, the fresh, handmade cosmetics brand, is known for its transparency in production and its commitment to ethical causes. Its social media campaigns often highlighted its efforts to reduce plastic use, promote fair trade and support animal rights. This honesty and dedication to their values created a very loyal community of followers. But… chao! In 2021 they decided to leave without looking back from all their networks. They even created an Anti-network policy which you can read in full here. Here are some of his points:

• We want to be able to trust that the external platforms we use offer their services in a clear and transparent manner, and that they do not hide their true commercial intentions or revenue streams.
• We would like to use platforms and services that strive to protect the people who use them from any form of harassment, harm or manipulation.
• We do not want to participate in platforms that use the data they collect for hidden purposes.
• We prefer platforms that do not use algorithms that bombard people with negative content, fake news or extreme views to keep them endlessly updating their networks.

The importance of authenticity and transparency

Looking at these last two examples of Lush and Starbucks, I thought it was interesting to dwell on the crucial issue of authenticity in social media. A study by MarketSplash reveals that 88% of consumers value authenticity when deciding which brands to support. This is because consumers are looking for genuine connections and brands that present themselves in an honest and real way. In a world saturated with advertising, often misleading and even more so now with the issue of AI, the fake news, etc., authenticity becomes a key differentiator.

Authentic brands are those that show their true identity, their values and their flaws. It is not only about showing the good, but also about being transparent about challenges and mistakes. When a brand publicly acknowledges a mistake and takes action to correct it, it gains the respect and trust of its followers.

Transparency is vital: in fact, according to the same study cited above, 94% of customers are likely to be loyal to a brand that offers full transparency. This includes being clear about production processes, product provenance and business practices. Today’s consumers are better informed and more demanding; they want to know what is behind the products they consume.

An example of transparency is Patagonia, an already world-renowned clothing brand, which regularly publishes reports on their environmental and social impact. This practice not only reinforces its commitment to sustainability, but also builds a loyal customer base that values honesty and business ethics.

In short, social media has redefined how brands engage with their consumers, offering new opportunities for direct interaction, personalisation and customer loyalty. In an increasingly digital world, brands that leverage these platforms not only increase their reach, but also build deeper and more meaningful relationships with their consumers. But, be careful, there are also brands that are fleeing… We will see what the next few years will bring.

La entrada The relationship between social media and brands se publicó primero en Agencia comma.

When Silvia Albert invited us to write in this blog, we rummaged through our arsenal of tools, those that, over the years, have turned mediocre companies into real success stories almost overnight thanks to branding and communication. Among all of them, thecreative territory shone with its own light.

The essence of creative territory

To begin poetically, we could define the creative territory as a space where imagination and strategy are intertwined.

The concept of creative territory is a technical and strategic gem, an indispensable tool for the construction and effective communication of a brand’s identity, regardless of sector or size. A creative territory is not simply an accumulation of scattered ideas, but a conceptual space where strategies and stories come to life, resonating deeply with the audience we want to look at us.

In technical terms, a creative territory is a theoretical framework that guides the communicative and sometimes visual development of a brand, ensuring that all its efforts align with a coherent and resonant vision. This framework not only facilitates consistency, but also allows the brand to differentiate itself in a saturated market.

In practical terms, brand territory offers economic and reputational benefits that provide considerable competitive advantage to those who understand, exploit and master it. Yes, it can take your business to the next level and make money if used correctly.

Red Bull: beyond energy drinks

To illustrate this concept, let’s start with a classic example: Red Bull. We all know Red Bull. What does Red Bull do? Although it sells energy drinks, it has exploited its brand territory in extreme sports, making this niche much more profitable than its core product. This approach has not only distanced Red Bull from its competition, but has ‘inspired’ others to emulate this strategy (MONST… ahem!).

Personal branding in the digital age

But there is no need to talk about corporate giants; this also applies to personal brands. Streamers, for instance, have discovered that generating content to entertain is not enough; they need to find a brand territory that allows them to distance themselves from their professional colleagues.

Take the example of the digital-media phenomenon Ibai Llanos. The Basque streamer has found a creative territory that has opened up new lines of business for him, generating million-dollar contracts. Its brand is white, familiar, fun and adaptable to any type of public. From presenting a boxing event to accompanying you at the New Year’s grapes, Ibai always maintains an approachable and transparent personality.

With this foundation, his brand needed a line that would make him recognisable, a territory that none of his competitors had explored. Video reactions, live video games and world travel are so saturated that they almost resemble conventional television, from which they want so much to distance themselves.

In this context, Ibai explores and finds a niche that allows him to continue doing his job, but away from the competition: organising events with traditional games; world marble or balloon competitions (whoever drops it first loses). These games that we enjoyed in the school playground or in our room in those moments of creativity without screens are the ones that are creating a sign in Ibai’s communication and future.

This dual strategy rescues the millennial generation, generates unique and different content, and creates a new communicative line that had not been explored in the streaming world. Ibai has managed to capitalise on the nostalgia of classic games by mixing it with the innovation of live events, creating a winning combination that sets it apart from the competition.

The need for a brand territory

In conclusion, the brand territory is not just another tool in the arsenal of the brand. branding, but a cornerstone that can define the long-term success of a brand. Mastering this concept enables brands to act consistently and distinctively in any context, seizing opportunities that others have not explored.

The case of Red Bull and Ibai Llanos demonstrate how brand territory can transform not only the public perception of a brand, but also its profitability and its ability to innovate in a saturated market. In short, knowing and mastering brand territory is essential to any effective branding strategy.

If you are looking to put your company or personal brand on another level, don’t underestimate the power of brand territory. Exploring it, exploring it and making it your own is essential. This is the only way to achieve the competitive advantage that ultimately translates into economic and reputational success.

*Article written by David I. Martín, CEO, and Adrián Martín, partner at Cumbre.

La entrada The art of creative territories se publicó primero en Agencia comma.

This genius or stroke of luck, however we want to see it, is present in the imagination of many Spaniards, especially the younger ones, as a role model. They are convinced that it is only a matter of time before Finman’s story repeats itself – with them, of course – and that only such investments, capable of multiplying a very small investment and obtaining stratospheric returns, are worthwhile.

In fact, most Spanish influencers only analyse equity products, especially those with very high risk, cryptocurrencies or technology stocks. This can be explained, in the first place, by the way they monetise their content. Financial content disseminators often benefit from paid promotions by investment platforms and financial products. Since high-risk products generally offer higher fees, there may be an economic incentive to promote such products. In addition, high-risk products and securities are often surrounded by an exciting and volatile narrative, which can potentially generate more interactions on social media and thus more revenue. Thirdly, the majority of the audience is young, not very knowledgeable, less experienced in investing and more susceptible to being attracted by aggressive strategies that promise quick and juicy returns.

Although this correlation between disclosure and high risk may be true, Celia Rubio, one of the most prominent investment influencers in the industry – he has more than one million followers on Instagram – he does not believe that this is a general behaviour of financial content disseminators and that many talk about other products and “the importance of creating an investment strategy and a diversified portfolio”. Héctor Chamizo, journalist and economic expert streamer, considers that although “the link between finfluencers and high-risk investment products is notable, it is important to consider that not all focus exclusively on high-risk products” and that some “take a more educational and diversified approach”.

Unfortunately, the culture of the buck, which has metamorphosed from bricks and mortar to cryptocurrencies and technology stocks, is still deeply rooted in Spain, one of the EU countries with the worst financial education along with Romania, Cyprus and Portugal, according to the European Commission. In 2021, the Bank of Spain conducted a survey with three basic questions on inflation, compound interest and risk diversification. The results were devastating: only 19% were able to answer three basic economic questions correctly.

The Internet and social media, the sieve of distorted information

Despite the bad data, Spaniards’ interest in the economy and wealth management increased markedly after the pandemic. The rise in inflation-CPI went from -0.3% in 2020 to 8.4% in 2022– , the historical increase in interest rates, which have so far remained at around 0%, and the loss of purchasing power-according to Addeco, the average Spanish wage has the same purchasing power as in 1996.– have aroused great interest in savings and investment among Spaniards.

This positive fact is diluted by this negative one: novice investors, especially young investors, seek information on these topics on the internet and social media rather than consult a financial advisor. In this context, finfluencers play an increasingly relevant role as sources of information. However, not all of them have the necessary training, knowledge and experience in economics and finance, and many of them suggest that through a few simple steps their followers can achieve what they supposedly already have: the desired financial freedom.

CFA Institute – one of the world’s foremost associations of investment professionals, known for its famous CFA (Chartered Financial Analyst) certification – published a study earlier this year on how financial communicators engage Generation Z investors in the investment decision-making process. According to Rhodri Preece, head of research at the CFA Institute, “our research shows that the content of the finfluencers often lacks the necessary risk disclosure, which may hinder consumers’ ability to assess the objectivity of the information, and some investors may not be aware of when and how the finfluencers to promote financial products.

Pablo Gil, an economist and one of Spain’s leading experts in stock market analysis, believes that “the problem we still have is that the Internet is completely flooded with bad advice, because there are many people who try to make a living by opening the eyes of the rest of the public, when in reality their knowledge leaves a lot to be desired. So there is more interest and more information, but unfortunately a lot of it is not accurate or not really good.

Are finfluencers the solution or part of the problem?

One of the questions being debated is whether finfluencers are helpful in improving financial education or whether, on the contrary, they are part of the problem. Chamizo believes that there is no clear answer: “Within the spectrum there are content creators who are not very well trained and who sell three-quarter-size motorbikes, but there are also profiles with a high added-value proposal”. Furthermore, he believes that there is no direct link between low financial literacy and the increase in finfluencers: “Not at all. The shortcomings come from behind. The creators are not part of the problem, even if some people put sticks in the wheel so that the problem is not solved”.

Celia Rubio is more optimistic and believes that financial communicators have managed to transform this knowledge that was not very accessible and that “used to be covered with a halo of complexity” to make it much simpler, so they play “an important role in this democratisation of financial education”. He also points out that as we move forward in financial education, the number of influencers, as people will be more aware of the need to keep learning and will consume even more of this type of content.

Gil, for his part, is highly critical of teachers and disseminators of financial content: “Unfortunately, there are few good teachers who really do a commendable job, and it would be as simple as looking at their curriculum vitae. If we were to make this filter, we would discover that probably nine out of ten teachers should not really be teaching this type of activity”.

Regulation follows in the footsteps of financial disclosures

On the other hand, one of the big problems is that some finfluencers, whether professional or not, are unaware that their activities are subject to regulation. Although a title is not required, the CNMV reminds that recommendations must be presented “in a clear, accurate and objective manner” and it is necessary to disclose “any conflicts of interest that the person issuing the recommendation has in the financial instruments to which it refers”. The firm conducted a review of these investment recommendations issued by influencers and “contacted those identified as ‘experts’ to request clarification on their activity and require them to comply with established obligations”.

“While the CNMV has issued warnings and some guidance to these content creators, clarity on how they should operate within the legal frameworks could be improved,” said Chamizo. He adds that “current regulation may seem insufficient in the face of the rapid growth in the number of finfluencers. Given that the impact of its recommendations can be substantial, it is essential that the CNMV establishes clear and precise rules. For example, finfluencers obtain a specific certification or adhere to clearly defined ethical standards to increase transparency and accountability,” he adds.

Celia Rubio believes that the CNMV is clear, but that “it is not adapting well to the times and the types of content” currently in existence. He adds the need to “penalise those who don’t do it right, who spread false information and talk about scams”. On the other hand, Gil believes that it is preferable for the CNMV’s stance to be more aggressive and recognises that it is better to “sanction or avoid misinformation in a generic way, even if it is to the detriment of those trainers who really have a curriculum that supports them”. The easiest job,” he says, “is to fine or ban everyone, but the reality is that you would have to do much more detailed work” to discern who really has the knowledge and experience.

Friend or foe of industry?

In the financial industry, some professionals view the role of influencers and publicly acknowledge that there is clear intrusiveness. However, not all industry agrees on this point. Chamizo believes that brokers and trading platforms see them “as a significant opportunity to increase their client base”. Their ability to reach a wide and diverse public, with a language that is close, simple and attractive, has been exploited – without being without risk – by these entities to increase their volume of transactions. Chamizo points out that the investment fund industry and other more traditional and regulated financial institutions tend to reject those who do not provide value-added content and welcome those who offer more analytical and educational work.

Celia Rubio is not so ambivalent and considers that the industry “sees it as an opportunity; an opportunity to convey messages in a simple way and to make financial products and services known in other ways”. In this sense,” he concludes, “there is a good alliance between the financial industry and financial content disseminators.

Social media are part of the debate

The aforementioned CFA Institute study outlines a series of recommendations for regulating the situation of influencers financial. One is for “social media to improve their controls and take additional responsibility to ensure that content creators are transparent and identify what is promotion or advertising”. But is this possible? Should they take responsibility?

The entry into force of the new General Law on Audiovisual Communication seeks to regulate the activity of content creators on social media by determining what they can advertise and how they must do so. However, it is not specified what social media should do with financial content that is sensational or misleading.

Chamizo considers that social media “have a crucial role to play in moderating the content that circulates in their spaces, especially when it comes to financial information. Currently, although these platforms have implemented certain measures to tackle content of dubious financial quality, there is a growing consensus that they should intensify their efforts.

Gil, for his part, doubts that social media “have the capacity to be able to analyse this in detail and know how to qualify which content is really good and which is misleading content”. Celia Rubio agrees on this point, but she does believe that there is something that all social media should do: “control scams, identity theft, pyramid schemes, aspects that are very obvious and that social media should tackle”.

Conclusion;

Finfluencers have emerged strongly in the financial industry. They have helped to democratise information and have identified a great need: the education of a generation increasingly interested in managing and investing their wealth. However, not all of them have the experience and expertise to perform this function and many of them promote products without adequately informing about the risks involved. The financial industry and the CNMV must continue to take steps to ensure that content disseminators comply with regulation and standards of transparency and objectivity, while social media take a more active role in identifying misleading content and protecting users.

La entrada Finfluencers: opportunity or threat for the financial industry? se publicó primero en Agencia comma.

Micro-influencers, with their smaller but highly engaged audience, are able to generate a more authentic and relevant impact compared to larger influencers; Their focus on specialised niches allows them to establish stronger connections with their audience, building trust and credibility in their recommendations;

In addition, collaborating with micro-influencers is often more affordable in terms of cost, allowing brands and communication agencies maximise their marketing budget and diversify their partnerships. By understanding and harnessing the power of micro-influencers, brands can achieve effective results and reach highly targeted audiences;

Key characteristics of microinfluencers

Microinfluencers have characteristics that differentiate them from traditional influencers and allow them to have a significant impact in the digital marketing arena; Let’s look at its main distinguishing features:

Size of your audience;

Although micro-influencers have a smaller audience compared to traditional influencers, this feature does not diminish their effectiveness. In fact, their followers are often more interested and engaged with the content they share; By having a more manageable number of followers, micro-influencers can establish closer and more authentic connections with your audience, building trust and engagement.

Specialised niche

Micro-influencers specialise in specific areas of interest, allowing them to build a highly focused community on a particular topic. By focusing on niches, they can develop in-depth knowledge and authenticity in their content; This specialisation attracts followers who share similar interests and are looking for information and recommendations related to that specific niche; The niche focus allows micro-influencers to establish themselves as experts and opinion leaders in their respective industries;

High level of commitment;

Because of their focus on a specific niche, microinfluencers tend to generate ahigher level of interaction and participation by its audience. Followers feel more connected and engaged with microinfluencers because they perceive that they share common interests and that the content is more relevant to them; This high level of engagement is reflected in comments, likes, shares and other interactions, which increases the visibility and impact of collaborations with micro-influencers;

Authenticity

One of the most valued aspects of microinfluencers is their authenticity; Followers see microinfluencers as real people, which generates trust and credibility in the recommendations they make. Micro-influencers tend to share more personalised and genuine content, which allows them to establish an emotional connection with their audience; This authenticity results in greater receptivity from followers, which can translate into greater impact for the brands that collaborate with them;

Are micro-influencers and nano-influencers the same thing?

No, although the terms microinfluencer and nanoinfluencerare often used to describe influencers with smaller audiences, there are subtle differences between them in terms of audience size and reach.

Although there is no unanimous opinion on the number of followers, we can say that a microinfluencer generally refers to someone with an audience of between 10,000 and 50,000 followers on social media; These influencers tend to have a niche focus and generate high levels of participation and engagement with their audience;

Due to their larger audience size, microinfluencers often have greater visibility and can have collaborations with more established brands; On the other hand, a nanoinfluencer refers to someone with an even smaller audience, usually between 1,000 and 10,000 followers; Unlike micro-influencers, nano-influencers are usually ordinary people who share their content on social networks;

As a consequence of their more limited reach, nanoinfluencers can generate a high degree of trust and authenticity among their audience, as they are perceived as more approachable and accessible;

Please note:

• The main difference between a microinfluencer and a nanoinfluencer lies in the size of their audience and the potential reach of their messages; Micro-influencers have a larger audience and can therefore reach more people, while nano-influencers have a smaller audience and often focus on a more intimate and localised community;
• Both types of influencers have their advantages and disadvantages; Micro-influencers tend to have greater visibility and a wider reach, which can be beneficial for brands seeking greater exposure; On the other hand, nanoinfluencers can have a more direct and personal impact on their audience due to their proximity and authenticity;
• Ultimately, the choice between working with micro-influencers or nano-influencers will depend on a brand’s marketing objectives and strategies, as well as the budget and resources available; Both types of influencers can play a valuable role in a marketing strategy, and the choice will depend on the specific needs and preferences of each brand;

Advantages of using microinfluencers

The use of microinfluencers in digital marketing strategies offers significant advantages, such as a more authentic and relevant reach, a greater emotional connection with the audience and the ability to leverage the authenticity and credibility of microinfluencers; Let’s take a closer look at these advantages:

Greater authenticity and credibility

Micro-influencers are perceived as more authentic and closer to their audience; Because of their focus on specific niches and their commitment to quality content, they generate greater trust and credibility; Your followers trust your recommendations and consider your content to be more genuine, which increases the likelihood that they will take action based on those recommendations; This authenticity and credibility translates into more effective marketing campaigns;

Precise segmentation

Thanks to their focus on specific niches, micro-influencers allow for precise audience segmentation; Brands can identify and collaborate with micro-influencers whose audience closely aligns with their target audience; This ensures that the message reaches the right people, increasing the relevance and effectiveness of the campaign;

Precise targeting also allows content to be customised according to the interests and needs of the specific audience;

Increased participation and engagement

Due to the emotional connection and closeness they establish with their audience, microinfluencers generate a higher level of participation and engagement; Their followers are often more willing to interact, comment, share and engage in conversations around the content they share;

This increased participation not only increases the visibility of the brand, but also encourages interaction and the spread of the message through the microinfluencer’s audience;

Flexibility and creativity;

Micro-influencers tend to have more flexibility and creative freedom compared to larger influencers; This allows them to develop more personalised content tailored to brands’ needs; They can create original and creative content, collaborate in the creation of marketing strategies and adapt to brand goals and values in a more agile way; This flexibility and creativity results in more authentic and effective campaigns;

In which sectors do micro-influencers have an impact?

Microinfluencers have had a significant impact on various industry sectors, leveraging their ability to generate an authentic and relevant connection with their audience; Through their specialised content and focus on specific niches, they have proven their ability to influence purchasing decisions, generate interaction and build trust in the brands and products they promote; Let us review some examples:

Fashion and lifestyle

Fashion and lifestyle micro-influencers can share fashion tips, product reviews, personalised style recommendations and showcase their own experiences in the fashion industry; By having a more segmented and targeted audience, they can influence their followers’ purchasing decisions and promote fashion-related brands and products effectively;

Fitness and wellness

Micro-influencers specialising in fitness and wellness offer guidance on exercise routines, nutritional advice and promotion of health and wellness related products; They can share their own progress, showcase their workouts, share healthy recipes and provide motivation to their audience;

Because of his focus on a healthy lifestyle, his audience trusts his recommendations and seeks his advice to achieve their wellness goals;

Gastronomy and cuisine

Food micro-influencers share their passion for food and cooking with their audience; They can share creative recipes, restaurant reviews, culinary tips and recommendations for products and kitchen utensils;

Their focus on gastronomy allows them to connect with followers who share their love of food and are looking for inspiration and tips to improve their culinary skills;

Travel and tourism

Travel micro-influencers have the ability to inspire their audience to explore new destinations and live unique experiences; They share photos and videos of their travels, offer recommendations for accommodation, restaurants and activities, and provide practical tips for planning trips;

Its content allows followers to discover new places, get ideas for their own adventures and obtain reliable information about tourist destinations;

Beauty

In the beauty industry, microinfluencers have a significant impact by sharing product reviews, make-up tutorials, skincare tips and personalised beauty recommendations;

Due to their focus on more specific niches, such as vegan make-up, sustainable beauty or products for sensitive skin, they can reach a more engaged and receptive audience;

Beauty micro-influencers are known for their ability to show real, authentic results, which increases their audience’s trust in the brands and products they promote;

Technology

Technology micro-influencers are experts in the field of innovation and the latest technology trends; They share reviews of electronic devices, tutorials and user guides, product comparisons and tips on how to get the most out of technology;

By having deep industry knowledge and an audience interested in technology, microinfluencers can influence the buying decisions of their followers and promote technology brands and products effectively;

Sports

Micro-influencers in sports cover a wide range of disciplines and physical activities, such as fitness, running, yoga, football, among others; They share training routines, nutrition tips, sports equipment reviews and share their own progress in their respective disciplines;

These micro-influencers can motivate and inspire their audience to adopt an active and healthy lifestyle and to discover new forms of exercise; In addition, they often collaborate with sports brands to promote sports-related products and events;

Music

Music micro-influencers focus on sharing their passion for music, discovering new artists, recommending albums and songs, and promoting music events and festivals; They can have a specific focus, such as particular musical genres or musical instruments, and share content related to those topics;

Music micro-influencers can create playlists, review concerts and albums, and share their own musical talent to entertain and influence their audience;

Steps to implement a campaign with microinfluencers

Implementing a microinfluencer campaign can be an effective strategy to reach a highly engaged audience; Let’s look at the key steps we should take:

Research and selection

Conduct thorough research to identify and select the most relevant micro-influencers for your industry and niche; Use influencer research and analysis tools, as well as social media monitoring, to identify influencers who have an engaged audience aligned with your target audience; Examine their content, communication style and past collaborations to ensure they are authentic and appropriate to represent your brand values;

Setting clear objectives;

Before engaging with microinfluencers, clearly define the objectives of your campaign; Do you want to increase brand awareness, drive sales, promote a new product or generate engagement on social media? Setting clear objectives will help you measure the success of the campaign and assess whether the micro-influencers selected are helping to achieve those objectives;

Authentic content creation

Work closely with micro-influencers to develop authentic and relevant content that resonates with your audience; Allow them to use their unique style and creativity to promote your products or services in a way that suits their community; Provide clear guidelines and directives, but also give them the freedom to express themselves and create original content; This will help to maintain the authenticity of the message and generate a greater emotional connection with the audience;

Measurement and analysis of results

It is essential to measure and analyse the results of your campaign with microinfluencers; Use metrics tracking and web analytics tools to assess the reach, engagement and impact of partnerships; Examine conversions, traffic generated to your website or social profiles, and interactions in the form of likes, comments and shares; This data will provide you with valuable information to evaluate the success of the campaign and make adjustments in future collaborations;

Maintaining long-term relationships

Consider establishing long-term relationships with micro-influencers who have proven to be effective and aligned with your brand; By maintaining an ongoing relationship, you can leverage their influence for future campaigns and strengthen the partnership between the microinfluencer and your brand; You will also be able to capitalise on the loyalty and trust they have built with their audience over time;

Legal compliance and transparency;

Make sure you comply with current regulations and policies regarding the disclosure of collaborations with microinfluencers; It is important to be transparent and disclose any financial or commercial relationship between your brand and the microinfluencer; This will ensure audience confidence and comply with legal and ethical regulations;

Microinfluencers: small but big benefits

Micro-influencers have revolutionised the world of digital marketing with a smaller but highly engaged follower base, making a significant impact on brands and establishing authentic connections with their audience;

• These content creators often have an emotional connection with their audience, increasing the acceptance of the recommendations they make;
• Their more selective and personalised approach to partnerships also contributes to their authenticity, as they partner only with brands they truly believe in;
• Their cost is more affordable compared to larger influencers; Brands can maximise their marketing budget by collaborating with several micro-influencers rather than investing all in one;
• This strategy also offers the opportunity to establish long-term relationships, with ongoing partnerships and mutual benefits over time;

La entrada Microinfluencers: small but big advantages se publicó primero en Agencia comma.

This market player also had an exceptional ally: social channels, which allowed individual investors to communicate, organise and launch joint investments, wresting billions of dollars from the bottom lines of Wall Street hedge fund giants;

The changes brought about by retail investors

Players in the sector are trying to decide whether this phenomenon will remain a passing fad or whether the hypothetical new paradigm will be consolidated, despite the fact that the current investment context is diametrically opposed to that of the Covid-19 pandemic years. Whatever the outcome, it has become clear that retailers have brought about irreversible change;

One of them is the intervention of market supervisors around the world in the contents of social networking sites (SSNs) and their willingness to discipline and tie down the so-called influencers. An unprecedented act in which they have crossed the red line of any interference in freedom of expression;

Retail investors lose money

Obviously, regulators must be presumed to be in good faith; It is equally obvious that in their warnings and requests for information to alleged financial gurus on social media – so far they have not taken action in Spain – they have acted out of a mission to protect small investors, given the speed with which they are burning their portfolios;

However, the figure of retail investors who are in losses has been public since 1 August 2018, when the European Securities and Markets Authority (ESMA) undertook a major regulatory overhaul which obliged regulated brokers in Europe to report quarterly the percentage of negative accounts; Statistics show figures of up to 90% of proprietary traders’ balances in the red on some of these platforms, while the minimum percentage of losses is around 65%;

That most retail investors lose money is an acquired wisdom of the financial markets; But it is nonetheless true:

• Some studies by market authorities ofUK and USA show figures that are similar to the European figures and confirm that this is the case for 85% of the traders.
• In the world of Forex (Foreign Exchange Markets), more than 95% of first-time investors blow up all their capital in the first year and a study by the Securities and Exchange Comission (SEC), from 2011, revealed that 70% of foreign exchange traders are making a loss every quarter;

Retail investors and gurus, an inherent binomial of thetrading

The vulnerability of the inividual traders is more than evident in the light of the figures; This has not gone unnoticed by the market, as it has traditionally been an opportunity to generate business in the form of education, training and mentoring especially for individual investors;

Most trainers, either on their own or through broker programmes and industry media, have embarked on this task with a genuine desire to support retailers; And many of them are backed up by success stories and more than 20 years of experience in working alongside the traders.

Specialised media and networks of forums and blogs have played – and continue to play – a fundamental role in theeducation of the retail investor community over the years; Retailers have traditionally clustered around these spaces, where they have also helped each other;

Retail investors victimised by scam traders

But there has also been a proliferation of so-called scam traders, that have used empty promises of returns of up to 100% per annum as a hook, asPaco Lodeiro of Academia de Inversión warned back in 2017.

There has been no shortage of scandals, some of them as notorious as the case of Josef Ajram, who went from trading star with ‘The Ajram Method’ to give up the management of its own SICAV in 2018, with losses in the millions. Others, far from the media spotlight, have also long used the aforementioned channels and, in recent years, have found inYouTube, Twitter, Instagram or TikTok an exceptional loudspeaker;

While they arouse distrust and suspicion in equal measure among more experienced investors, who can spot the trap and the cardboard in messages that are almost always full of promises of immediate wealth through shortcuts and little effort, this is not the case for less experienced investors; And not to mention among newcomers, who are oftencentenials, digital natives who are easily swayed by these siren songs;

In short, the trader and the guru -or the expert- interact on social channels, blog communities and forums for years, in a sort of ecosystem as old as retail itself, in which predators have always existed. So why has the Spanish Securities and Exchange Commission (CNMV) not taken action on the matter until 2022, when it conducted a review of investment recommendations issued by influencers”?

So far we have argued several points; Let’s recap:

• The relationship between experts who offer investment advice and retailers is as old as trading
• Individual operators and these experts have been linked in social communities that are some 20 years old – remember that Facebook, for example, is only available in Spanish in 2008;
• Misleading investment advice has previously coexisted with genuine training and support proposals;
• The vast majority of traders incurs losses and this data has been public for about five years;

The CNMV and social media

It goes without saying that the supervisor constantly executes its investor protection mission, which we have already discussed, by virtue of which it can issue warnings to the public. However, their actions are often targeted at entities that perform investment services, although there are not few cases of fines to individuals -recently to the journalist of ‘El Confidencial’, Agustín Marco– when, for example, they have made use of privileged information to make a profit. Legal sources confirm that there are no records of warnings or interventions in investment bloggers’ forums or communities;

In fact, even the case of the warning to the footballer Andrés Iniesta by the advertising of the crypto-asset platform Binance in its social media, at the end of November 2021, there is no similar performance in living memory, according to the same sources; This gesture resulted in the publication of a Circular on crypto-asset advertising submitted as an investment object, in January 2022, which entered into force in February; And with it, the CNMV was a pioneer among financial market authorities worldwide;

Months later, on 24 October, the CNMV issued the unprecedented communiqué on the review of the social media activity of the influencers in the financial sector, to avoid “conflict and unfair competition with regulated entities that issue recommendations”, according to legal experts consulted. In this sense, these sources indicate that the regulator is indifferent to the medium used to disseminate these messages, although they recognise that it blurs the boundary between the activity of professionals and freedom of expression.

Influencer: advertising or content?

Other experts consider this scrutiny to be a “good thing”, such as Alberto Muñoz, vice-dean of Academic Organisation at the UNED; “Many times the so-calledinfluencers can convey the wrong messages, even out of sheer ignorance of the markets”. At other times, they are “misleading or, worse, biased by their own interests”, as they often have arrangements with brokers and go so far as to “incite account opening and encourage trading, which can be negative for certain types of investor”;

Brokers are becoming increasingly bold in their social media practices in order to attract clients; There are more than a few cases of these influencers knowingly publishing scams or misleading information, such as…; the repentant Ben Armstrongone of the youtubers with a crypto-themed channel with the most followers ‘BitBoy Cripto’who acknowledged accepting payments from crypto companies to promote his new products to his audience of subscribers; Last autumn, news also emerged of the U.S. SEC fining Kim Kardashian $1.3 million, afterconcealed a charge for promoting a cryptocurrency.

Retail investors, social networks and lack of financial education

At the same time, the emergence of new social platforms has led many gurus and trainers “to adapt their messages to the language of the new channels, which means that these interactions with audiences tend towards simplification and superficiality“explains Pere Monguió, head of content at FXStreet.

In turn, “it has made them mainstream, as they have transcended their traditional communities to reach a mainstream audience,” he argues, who are financially uneducated, and easily succumb to speculative activities driven by YOLO (you only live once). “Social mediainfluencer perhaps has less knowledgeable or less experienced than the blogger, talk-show host or columnist before; But it beats them all in its ability to synthesise messages and connect with its audience,” he says;

All of the above gives the CNMV reason to “try to put things in order”, Muñoz says, although “it may have arrived late, but the law always seems to lag behind technological advances”, he regrets;

In fact, the CNMV communiqué was published one year after the ESMA statement on investment recommendations on social networks. It specified that “dissemination channels can be analyst reports, articles, traditional media or even social media”, providing scope for expanding the framework for action by European supervisors;

The awakening of the force… of retail investors

Internal market sources consulted, however, approach this complex issue from another point of view; Turning to the question of why the CNMV has not taken earlier or even more severe measures, they claim that the entity maintains a moderate concern on the public activity of the investment influencers , as the real focus of the regulator lies in another derivative of the whole phenomenon we have been analysing;

Let’s go back to the origin, to the Gamestop case; The ability of a group of retail investors to coordinate to beat the big Wall Street hedge funds to the punch, through a sub-forum onReddit, WallStreetBets, was a point of no return in financial markets. It triggered a phenomenon of orchestrated trades in other securities known as meme stocks that traders made viral through these forums, as well as other social platforms; And it showed the power of organised small investors to turn the tables in their favour, something that frightened institutional traders and the authorities;

The epicness of the whole story is a new twist on the eternal David versus Goliath; The investment giants received a real blow that put the spotlight on this ecosystem, which has already been explained in detail, and which had more or less passed under the radar; But those communities of bloggers had become more sophisticated and had almost doubled in size. Retailers’ market share in the Spanish market in 2020 was up to 7.7% and 6.7% in 2021, compared to just over 4% in 2019;

Retail investors and the democratisation of trading

In addition, they were able to organising and making joint decisions as activist investors. This new reality is keeping regulators and institutional traders on their toes, keeping a close eye on the entire digital information-sharing infrastructure that the retail investor movement uses to communicate through platforms such as Telegram – where there are investment channels with thousands of members -, social networks and geographies;

Thus, what really keeps market supervisors on their toes is whether orchestrated episodes of stock-pushing are occurring, to the benefit of the retail community as a whole, or of an isolated sector that engages in a practice ofpump and dump, and destabilise the market; Or maybe what really keeps them awake at night is the reversal of what they consider to be the natural order of the market?

All of the above leads us to conclude that intervention in the influencers and social media is just the tip of the iceberg in a kind of cold war between the institutional investment industry and the democratisation of trading. We are sure to see more hostilities between the two sides in the future, if the market conditions of 2022 and 2023 do not kill the appetite of the individual traders. And we are concerned that the boundaries of freedom of expression and even privacy continue to be stretched; We will stay tuned;

La entrada The control of social media influencers, trading tips for retail investors and freedom of expression se publicó primero en Agencia comma.