Multicultural Young Adults and Influencers: Incl Impact of COVID-19 - US - November 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: Market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways
Market overview 
Impact of COVID-19 on influencer marketing
Figure 1: Short-, medium- and long-term impact of COVID-19 on influencer marketing, November 2020
Consumer insights and recommendations
Entertaining influencers are the gateway to connecting with young adults
Figure 2: Influencer categories – Adults 18-34, by race and Hispanic origin, July 2020
Influencers inspire young adults’ sense of creativity and cement their identity
Figure 3: Reasons for following influencers – Adults aged 18-34, by race and Hispanic origin, July 2020
Influencers’ missteps more likely to disengage followers than bad products and services
Figure 4: Reasons for unfollowing an influencer – Adults aged 18-34, by race and Hispanic origin, July 2020
Connect with influencers who show organic affinity for your brand or category
Figure 5: Influencer considerations – Adults aged 18-34, by race and Hispanic origin, July 2020
Use influencers who deliver on consumers’ expectations
Figure 6: Influencer follower behavior – Adults aged 18-34, by race and Hispanic origin, July 2020
THE MARKET AND TARGET AUDIENCE – KEY TAKEAWAYS 
Nearly half of young adults are people of color
Low income does not equal low-value consumer
COVID-19 deals a blow to influencer marketing
Multicultural young adults more likely to be unemployed due to COVID-19
Multicultural influencers demand inclusion and pay transparency from agencies
MULTICULTURAL YOUNG ADULTS BY THE NUMBERS
Multicultural young adults aged 18-34 represent nearly half the age group
Figure 7: US population distribution, by race and Hispanic origin, 2019
Hispanic and Black young adults’ lower income not a hindrance for influencer purchases
Figure 8: Household income distribution among adults aged 18-34, by race and Hispanic origin, 2018
Varied educational attainment impacts desire to follow professional influencers
Figure 9: Educational attainment – Adults 18-34, by race and Hispanic origin, 2019
MARKET PERSPECTIVE 
Impact of COVID-19 on influencer marketing
Figure 10: Short-, medium- and long-term impact of COVID-19 on Influencer Marketing, November 2020
Influencers wait in holding pattern while marketers determine next steps during the lockdown period
Influencers pivot to relevant content while marketers reinvest spending in social media 
The promise of a vaccine will drive people to celebrate and connect in person
Figure 11: Anticipated experiences post pandemic – Adults aged 18-34, by race and Hispanic origin, July 2020
Influencers balance authentic social activism with being “marketable” for brands
Figure 12: Attitudes toward Black Lives Matter – Adults aged 18-34, by race and Hispanic origin, July 2020
Figure 13: Instagram post by social media influencer Britney Turner, May 2020
TikTok social media platform fights FTC efforts to ban in the US
MARKET FACTORS 
Pandemic-induced unemployment skyrockets among all multicultural youth
Figure 14: Not seasonally adjusted, quarterly unemployment rates among adults 18-34, by race and Hispanic origin, Q3 2019 and Q3 2020
Influencers run afoul of new FTC guidelines
Black and Hispanic influencers call for greater inclusion and pay equity from marketers
Figure 15: Open letter to Fohr agency by Influencer and signatory Valerie Guavoen, June 2020
Figure 16: Pay disclosures on Influencer Pay Gap Instagram feed, July 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Technology turns everyday people into influencers
Instagram set to pay influencers in revenue share agreement
Virtual influencers make inroads in the industry
COMPETITIVE STRATEGIES
Tech innovation turns everyday people into influencers
Retailers use influencers to drive consumers back in store, but may be more beneficial to brands instead
Figure 17: Paid influencer posts for Nordstrom – Wendy Nguyen and Aissata Diallo, July 2020
Instagram will pay influencers, but some complain of loss exposure due to new algorithms
Marketers turn to virtual influencers to connect with young adults
Figure 18: Virtual influencer Lil Miquela Instagram post at “McDonald’s,” October 2020
Figure 19: Virtual model Shudu in Samsung UK Galaxy Z Flip mobile phone Instagram video ad, August 2020
THE CONSUMER – KEY TAKEAWAYS  
Instagram and YouTube are the leading sites where young adults follow entertainers and fashion and food and drink influencers
Young adults follow influencers who entertain and expose them to new ideas and products – so long as they’re authentic
Influencers who say or do something incongruent with their image are dismissed
Influencer’s transparency and authenticity matter during crisis
Most young adults prefer effortless interaction with influencers but will engage further based on why they follow
THE MULTICULTURAL YOUNG ADULT CONSUMER AND INFLUENCER MARKETING
Influencers create trends and drive multicultural young adults’ desire to go deeper in their interests
Figure 20: Mintel Global Trend Drivers and Pillars – Technology, Experiences and Identity
INFLUENCER PLATFORMS AND CATEGORIES  
Inspirational, entertaining social media platforms drive influencer engagement
Figure 21: Preferred social media influencer platforms – Adults aged 18-34, by race and Hispanic origin, July 2020
Influencer account following reflects multicultural young adults’ passions 
Figure 22: Influencer categories followed – Adults 18-34, by race and Hispanic origin, July 2020
Young Hispanics flock to platforms that offer easy, linked access to influencers
Figure 23: Preferred social media influencer platforms by influencer categories followed, by Hispanic adults 18-34, July 2020
Black young adults follow fewer influencers on more platforms for greater discovery
Figure 24: Preferred social media influencer platforms by influencer categories followed, by Black adults 18-34, July 2020
Young Asians’ desire for engagement with diverse groups drives more influencer account follows
Figure 25: Preferred social media influencer platforms by influencer categories followed, by Asian adults 18-34, July 2020
SOURCES FOR INFLUENCER DISCOVERY
Influencers on social media entertain and inspire young adults
Figure 26: Influencer discovery – Adults 18-34, by race and Hispanic origin, July 2020
Advanced lifestage drives new interests and influencers following among young Hispanics
Figure 27: Influencer discovery, by Hispanics aged 18-34 key demographics, July 2020
Social media as the primary source of entertainment and influence is seeded early in Black adults
Figure 28: Influencer discovery, by Black adults aged 18-34 key demographics, July 2020
Young Asians restrict influencer discovery to sources that offer the greatest access
Figure 29: Influencer discovery, by Asians aged 18-34 key demographics, July 2020
REASONS FOR FOLLOWING INFLUENCERS
Multicultural young adults follow influencers who stimulate what matters most to them in their connections
Figure 30: Reasons for following influencers – Adults aged 18-34, by race and Hispanic origin, July 2020
Hispanics aged 30-34 who are settling into adulthood seek inspiration from influencers
Figure 31: Reasons for following influencers – Hispanic adults aged 18-34 key demographics, July 2020
Black adults 25-34 look to influencers who reflect their desire to evolve into their identity
Figure 32: Reasons for following influencers – Black adults aged 18-34 key demographics, July 2020
Young Asians’ desire for exposure and access to new people and cultures drives their influencer engagement
Figure 33: Reasons for following influencers – Asians aged 18-34 key demographics, July 2020
REASONS FOR UNFOLLOWING AN INFLUENCER
Young adults disengage from influencers once they disappoint and seed distrust
Figure 34: Reasons for unfollowing an influencer – Adults aged 18-34, by race and Hispanic origin, July 2020
Young Hispanic women turn away from influencers if they feel misled
Figure 35: Reasons for unfollowing an influencer – Hispanics aged 18-34 key demographics, July 2020
Young Black adults who feel deceived by influencers are quick to unfollow them
Figure 36: Reasons for unfollowing an influencer – Black adults aged 18-34 key demographics, July 2020
Young Asians’ idealism, rather than brand wins or missteps, drives their decision to unfollow
Figure 37: Reasons for unfollowing an influencer – Asians aged 18-34 key demographics, July 2020
MARKETING AND LIFESTYLE PERCEPTIONS OF INFLUENCERS
Influencers are distant “friends in the head” that young adults like but not necessarily trust
Figure 38: Influencer considerations – Adults aged 18-34, by race and Hispanic origin, July 2020
Influencers are a source of information for young Hispanics with families
Figure 39: Influencer considerations – Hispanics aged 18-34 key demographics, July 2020
Young Black adults’ connection to influencers who represent them extends to brands
Figure 40: Influencer considerations – Black adults aged 18-34 key demographics, July 2020
Influencers reside between traditional advertising and word of mouth for young Asians
Figure 41: Influencer considerations – Asians aged 18-34 key demographics, July 2020
INFLUENCER FOLLOWER BEHAVIOR
Effortless engagement with influencers matches multicultural young adults’ sentiment toward them
Figure 42: Influencer follower behavior – Adults aged 18-34, by race and Hispanic origin, July 2020
Hispanics aged 25-34 become aware, compare then switch based on influencer engagement
Figure 43: Influencer follower behavior – Hispanics aged 18-34 key demographics, July 2020
Black young women engage with influencers who inform and confirm their choices
Figure 44: Influencer follower behavior – Black adults aged 18-34 key demographics, July 2020
Independent young Asians turn to influencers for guidance and turn inward as they age
Figure 45: Influencer follower behavior – Asians aged 18-34 key demographics, July 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MINTEL TREND DRIVERS 
Figure 46: Mintel Trend Drivers and Pillars