As influencer marketing continues to grow rapidly and expand globally, Netccentric (ASX:NCL) has made exciting strides that build on its heritage as a pioneer of end-to-end social media influencer marketing solutions.
The Singapore-based company owns the largest revenue stream from the influencer market in Malaysia and aims to become the largest in all of Southeast Asia in the not too distant future.
Researchers have found that influencer marketing generates a better return on ad spend compared to other channels.
As for Netccentric, in fiscal 2021 the company grew its revenue by 45% year-on-year to S$11.5 million – 84% of which came from repeat customers.
The company saw sales increases in its four complementary segments: Nuffnang, Plata & Punta, Sashimi and Nuffnang Live Commerce.
Nuffnang is the company’s influencer platform, which started in 2007 as a blog promotion platform to monetize the significant number of bloggers.
Over time and with the aging of social media and online web presence, the platform has become Malaysia’s leading provider of social influencer and content marketing solutions, powering brands with more than 15,000 influencers and content creators across the region a total of more than 20 million engaged social media followers.
Digital media and marketing solutions
Netccentric’s Plata & Punta and Sashimi provide end-to-end digital media and marketing solutions.
Plata & Punta provides clients with consulting services to build and improve their marketing strategies and efforts through data analysis while using Sashimi to provide brands with a holistic marketing solution including content creation, design and campaign management for web and mobile to increase online sales.
Nuffnang Live Commerce brings opportunities
Nuffnang Live Commerce (NLC) was formed in late 2020 to capitalize on the shift towards online sales and virtual interactions due to the pandemic lockdowns.
NLC allows social influencers to promote goods via live video streaming across social media platforms, and consumers can easily shop using the comments feature.
It saw instant success in FY2021 with a total gross merchandise value (GMV) of more than S$4.3 million transacted through the medium. It also showed 294% year-over-year growth in GMV for the first quarter of fiscal 2022.
Future of Influencer Marketing
Because social influencers are able to reach specific audiences, companies are increasingly seeing them as an invaluable component of any marketing program.
The global influencer market is expected to grow from $6 billion in 2020 to $24 billion in 2025 at a CAGR of 32%.
This increase is believed to be due to the rapid shift to video-based OTT media and the advent of ad-blocking software.
In Malaysia, social media ad spend (AdEx) accounted for more than 38% of the country’s total AdEx in H1 2021.
When Netccentric founded Nuffnang, it had 300 bloggers within three days and within five years it rose to fame in several countries – becoming a leading blog promotion community with more than 13 million views per day.
This shows the rapid growth a global influencer can have for a brand, with the company now covering Malaysia, Taiwan and Singapore and connecting millions around the world.
Some of the larger brands that Netccentric works with are GroupM, Unilever, and McDonalds.
On a broader scale, brands are beginning to recognize the importance of prioritizing influencer marketing, as evidenced by the 42% and 280% year-over-year sales increases of Unilever and Fraser & Neave in the first quarter of fiscal 2022. Hasbro’s and 109% and 635% increases respectively Dutch Lady in Q3 FY2021.
In Q4 2021, Netccentric also launched The Mercist, which aims to foster entrepreneurship and encourage influencer growth.
There is undoubtedly a great opportunity for live trading in China, which is leading the market – growing its GMV by 1.24 billion RMB ($179 billion) in three years and contributing 10% of its total E- Commerce at.
This week, Netccentric announced that it will launch a Web 3.0 creator platform in a joint venture with Malaysia-based RedSquare Technologies with the goal of bringing non-fungible tokens (NFTs) to the masses.
The joint venture will create NFT Technologies (NFT Tech), which Netccentric says will drive the duo’s strategy to be at the forefront of the Web 3.0 revolution.
NFT Tech will enable brands to issue NFTs in partnership with influencers.
The NFTs on the new platform will have real-world utility, meaning they can be exchanged for physical goods, services, and rewards.
“We see a strong growth trajectory for well-regulated NFTs that offer security, credibility and a positive user experience,” said Ganesh Kumar Bangah, Executive Chairman of Netccentric.