Close
 

Under the influence: The Social Club talks the rise of influencer marketing in New Zealand

  • News
  • December 15, 2016
  • Elly Strang
Under the influence: The Social Club talks the rise of influencer marketing in New Zealand

​Watch our interview with co-founders Justin Clark and Georgia McGillivray above or read on below.

The Social Club was founded at the end of 2015 by two Kiwi advertising expats that had come home: Georgia McGillivray (25) and Justin Clark (26).

The website works as a two-way online marketplace where brands can connect with social media influencers to collaborate on advertising campaigns.

The club boasts over 1,000 influencers within its community working with over 120 New Zealand brands, including Les Mills, Ecoya and I Love Ugly.

The process is as follows: both brands and influencers who use The Social Club create an online profile describing themselves. They can then search for the ideal candidate or company they want to represent and be matched up according to their values.

Think Tinder, but for influencers and brands looking to advertise.

“Our marketplace is two-way, so the influencers can see all of the brands on there and register their interest with brands they want to work with,” McGillivray explains.

“That’s been really cool, as when we go to do a campaign for those brands, we usually have a little army of fans that are on there already.”
 


New Zealand 'Mummy' blogger Melissa Jack's post for The Social Club's Exotic Foods campaign. 


Travel and lifestyle blogger Yemira's post for The Social Club's UE Boom campaign.

Worldwide, influencer marketing’s popularity has skyrocketed.

According to Mediakix, 60 percent of marketers will increase their influencer marketing budgets in 2017, while 80 percent of marketers find influencer marketing to be more effective than other types of marketing.

Both McGillivray and Clark worked on overseas influencer campaigns in the US and Australia before founding The Social Club and say those markets are years ahead of New Zealand.

“The digital budgets over there [in Australia] are increasing, and influencer marketing spend within that digital budget has gone up to about 30 percent,” McGillivray says.

“In New Zealand it’s on a campaign-by-campaign basis. The innovative early adopters are getting involved, but there are no standards about how much budget should be put into influencer marketing.”

She says the biggest users of influencer marketing in New Zealand tend to be FMCG, tourism and fashion companies and charities.

So, how big is influencer marketing in New Zealand, really?

According to Clark and McGillivray, in-demand influencers are doing incredibly well for themselves, considering how small the market is.

They are paid anywhere between $50 and $50,000 depending on the size of their audience, their engagement rate and what’s required from the campaign.

Clark says the pay is usually locked in beforehand and based off the average engagement rate of the influencer’s social media posts. 

Kiwi sports players have been incredibly popular picks with companies, while reality TV celebrities are also doing well for themselves, Clark says.

The star of The Bachelor season one, Art Green, and his girlfriend Matilda Rice are particularly popular.
 


But it’s not just household-name celebrities being used.

Seeing as New Zealand is such a small nation, an ‘influencer’ is defined by The Social Club as anyone with a following of 1,000 or more people.

Clark says this is because micro-influencers have very localised followings, while macro-influencers (think Kiwi makeup artist Shaaanxo, who has over one million followers on Instagram) might only have 10 percent of their following based in New Zealand.

McGillivray says this has meant people with smaller, more niche followings are getting a lot of play, too.

“The country’s so small we only have a handful of macro-influencers, and they’re being used by brands on repeat, so micro-influencers are a lot more organic.”

Pain points

With influencer marketing being such a fast-moving space, there have, unsurprisingly, been a few snags pop up along the way.

One of the key issues up for debate is how sponsored posts need to be marked, such as the use of the hashtag #ad or #sponsored.

There aren’t clear-cut rules around this in New Zealand yet, so McGillivray and Clark say they’re waiting to see what rules and regulations the ASA (Advertising Standards Authority) will bring into effect.

“Whichever way the dust settles, we will follow the rules and make sure our platform follows them. When they do set these guidelines, it needs to be set across the board,” Clark says.

“We’ve had some chats with the ASA and if the messaging is really controlled that’s possibly advertising and needs to be disclosed. Brands in anti-aging, alcohol and diet pills are risky areas where companies need to be really careful with their messages.”

Another issue is inconsistencies in expectations from both brands and influencers, who are figuring out how it works as they go along.

McGillivray says from the influencer side, there have been a few problems around professionalism and managing time and content well, while from the brand side, companies are needing to learn new ways of approving content and having less control over the final product.

But she says due to the murkiness of the rules and processes surrounding influencer marketing, it’s understandable.

“We can’t blame anyone for being like that on either side – influencer or brand,” Clark says.

“Standards have to be set before we have any expectations of people.”

Looking ahead

As for where influencer marketing is heading, McGillivray says it’s not going away anytime soon.

“The channels will change - Snapchat’s rising and some of the other platforms will become less relevant, and then with new generations there will be other new platforms coming into play,” she says.

Instagram and Facebook are the biggest channels for influencer marketing, but time will tell whether they will continue to be the most popular.

As for The Social Club’s future, McGillivray says in 2017, the company will look to scale global and take on some of the bigger markets overseas.

“We’ve tested the market here in New Zealand and we’ve built the platform in a very New Zealand way by working out where the pain points are and where to overcome them, now we’re ready to take it overseas and disrupt the market.”

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Military-style semi-automatics ban announced

  • News
  • March 21, 2019
  • The Register team
Military-style semi-automatics ban announced

As of 3pm on March 21, a wide range of semi-automatic weapons have been reclassified under section 74A(c) of the Arms Act as requiring an E endorsement on a firearms license. This means they can no longer be sold to those with A-category gun licenses, and their purchase now requires police approval.

Read more
 
 

Retailers gather for insights at NZ Retail and The Register's breakfast

  • News
  • March 21, 2019
  • The Register
Retailers gather for insights at NZ Retail and The Register's breakfast

NZ Retail and The Register’s sales and marketing breakfast saw dozens of Kiwi retailers come together to network, sharing tips and tricks and absorbing expert advice.

Read more
 
 

Who stole Christmas?

  • News
  • March 21, 2019
  • Kelly Withers
Who stole Christmas?

Results are starting to trickle in from Christmas 2018/2019, and for many retailers, they're a little disappointing. Paydar chief executive and co-founder Kelly Withers explores the data.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Chinese businesspeople raise millions for Christchurch victims

  • News
  • March 21, 2019
  • Radio New Zealand
Chinese businesspeople raise millions for Christchurch victims

A group of visiting Chinese businesspeople have raised $2.35 million for victims of the Christchurch mass shooting.

Read more
 
 
News

The Retail NZ Awards: What does it take to be a winning retailer?

Take this time to shine with the upcoming Retail NZ awards, a chance to show the retail industry what makes your business stand out. No ...

 

Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

  • News
  • March 20, 2019
  • Sarah Dunn
Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

In the wake of the attack on Christchurch’s Muslim community on March 15, strong calls for changes to New Zealand’s gun last have been made. Trade Me was the first retailer to act, halting the sale of all semi-automatic weapons on its platform, and it has now been joined by Hunting & Fishing New Zealand.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}