What you need to know
With the rapid growth of social media influencers and development of multi-channel network (MCN) agencies, the key opinion leaders (KOL) industry is going through a professionalization process. In the near future, MCN will dominate the KOL market and function like a conglomerate of media agencies, advertising agencies, and talent agencies.
Advertisements and sponsored posts are now common practices on social media, with KOLs of all levels, thus the fine line between sponsored content and sincere recommendation will become an issue. Though Chinese consumers are tolerant towards adverts and paid content, the proliferation of sponsored posts will hurt the credibility of KOLs in the long run. Consumers will spend more time on social media to verify and cross-examine the recommendations of KOLs.
KOLs in specific professional fields and with strong personal charisma will appeal to specific audiences. The diversification of KOLs and social media followers will push the fragmentation of the KOL market but it will benefit brands by working with suitable KOLs to speak to the heart of the right audience.
Covered in this Report
KOL – key opinion leaders, refers to those who have a powerful influence on other people, especially through social media. For the purpose of this Report, Mintel focuses on the KOL influence on consumers’ purchasing decisions.
In other markets (US, UK), the term ‘influencers’ is being used instead of KOLs.
KOLs are defined as celebrities who have certain authority or fame in one or multiple areas. KOLs include but are not limited to professionals, internet celebrities, grassroots stars, traditional celebrities, live streaming anchors, famous Taobao store owners/daigou, and famous people on social media. In this Report, when talking about KOLs not as individuals or certain types, they are referred to as a cultural phenomenon.
