The influencer marketing landscape in China is rapidly evolving, with Multi-Channel Networks (MCNs) at the core of this transformation. As the influencer economy grows, brands and marketers must navigate this complex ecosystem to reach Chinese consumers. With thousands of MCNs competing in the market, these networks are proving to be essential players in the influencer marketing space. But how do MCNs actually work, and why should brands care? More importantly, what are the opportunities and risks involved in collaborating with them?
The Growth of MCNs in China: A Game-Changer for Influencer Marketing
Multi-Channel Networks (MCNs) are organisations that manage influencers, across various social media platforms. These networks offer influencers a range of services, from content creation support and audience growth strategies to monetisation opportunities. For brands, MCNs provide a one-stop shop for accessing a pool of influencers, streamlining the process of influencer marketing campaigns.
The MCN model, which initially started in the West with platforms like YouTube, has found a more robust and complex form in China. Today, nearly all major influencers in China are tied to MCNs, making these networks the gatekeepers of the country’s booming KOL economy.
Over the past decade, the number of MCNs in China has exploded. In 2017, there were around 5,000 MCNs; by 2024, this figure is expected to exceed 30,000. This rapid growth signals a shift in how influencer marketing is structured, with MCNs providing essential infrastructure for brands looking to tap into the power of social media influencers.
Brands that aim to succeed in China's competitive market often rely on MCNs to navigate the diverse landscape of influencers. This reliance is driven by several factors:
Access to Top Talent: MCNs consolidate top KOLs, giving brands direct access to influencers with large, engaged audiences.
Content Optimisation: MCNs offer professional content creation services, ensuring that influencers deliver high-quality, platform-optimised content.
Speed and Scale: For brands, partnering with an MCN allows for quick campaign execution and the ability to scale efforts across multiple platforms.
How MCNs Work: The Symbiotic Relationship Between Influencers, Platforms, and Brands
The relationship between MCNs, influencers, and social media platforms in China is symbiotic. MCNs play the role of intermediaries, managing the needs of both KOLs and the platforms on which they operate. Here’s how this intricate relationship functions:
Recruitment and Development of KOLs: MCNs sign contracts with influencers, offering them professional content creation teams, marketing strategies, and access to a wider audience. Influencers, in turn, gain the opportunity to grow their fanbase rapidly, with the network’s support accelerating their career trajectory.
Platform Integration: MCNs maintain close relationships with major Chinese social media platforms such as Douyin, Weibo, and Xiaohongshu. Platforms benefit by gaining access to a steady stream of curated content from top influencers, which drives traffic and increases user engagement.
Monetisation: The ultimate goal of MCNs is to help influencers and platforms monetise their content. MCNs negotiate sponsorship deals and advertising opportunities on behalf of influencers, taking a cut of the revenue generated. This business model benefits all parties involved: the influencer gains financial backing, the platform grows its traffic, and the brand reaches a targeted audience.
MCNs as Innovators in Influencer Marketing
Source: Freepik
As MCNs continue to evolve, they are not only shaping how influencer marketing operates today but are also innovating how brands and influencers collaborate. Below are some key innovations that MCNs are driving in 2024:
1. Data-Driven Influencer Matching
One of the most significant advancements within MCNs is the use of data analytics to match brands with the most suitable influencers. Previously, influencer campaigns relied heavily on follower counts and superficial metrics. However, in 2024, MCNs are leveraging sophisticated algorithms and AI-driven analytics to assess deeper engagement metrics, audience demographics, and even sentiment analysis.
80% of brands that utilise data-driven influencer campaigns see a higher ROI compared to traditional methods.
Over 65% of MCNs now employ AI and data analytics to improve influencer matching, increasing campaign effectiveness by 30%.
This data-driven approach ensures that brands are paired with influencers whose followers align closely with their target audience, improving campaign effectiveness and ROI. By analysing past campaign data, MCNs can predict future outcomes, allowing brands to make more informed decisions.
2. Personalised Content Creation
In the competitive influencer space, producing high-quality, relevant content is critical. MCNs are becoming leaders in crafting highly tailored content strategies that resonate with both the brand’s messaging and the influencer’s authentic voice. Rather than producing generic content, MCNs now focus on hyper-personalised content that speaks directly to specific audience segments.
Personalised influencer content is estimated to increase consumer engagement by 50%.
72% of consumers are more likely to buy products endorsed by influencers who create content tailored to their preferences.
This shift is a result of MCNs working closely with brands to understand their unique needs while also empowering influencers to create content that feels organic to their followers. As a result, the influencer’s engagement rates soar, and brands benefit from more authentic and effective campaigns.
3. Live Commerce Integration
Another exciting development within the MCN space is the integration of live commerce—a phenomenon that has taken China by storm. Live-streamed shopping events, hosted by influencers, allow viewers to make purchases in real-time, blending entertainment with commerce. MCNs are at the forefront of this trend, orchestrating large-scale live shopping campaigns that can generate significant sales in a short period.
In 2023, live commerce sales in China surpassed $500 billion, and this is forecasted to grow by 30% in 2024.
60% of online consumers in China have made a purchase through live-streaming platforms, driven largely by MCN-organised events.
MCNs work closely with brands and platforms to provide the technical and logistical support needed to execute these live commerce events. Influencers, equipped with the backing of their MCN, can showcase products live, interact with viewers, and promote real-time purchases, making it one of the most engaging and profitable strategies in 2024.
4. Global Expansion Opportunities
As the global appeal of Chinese influencers continues to rise, many MCNs are expanding their reach beyond China. With platforms like TikTok, YouTube, and Instagram becoming more interconnected with Chinese social platforms, MCNs are helping influencers break into international markets. This creates new opportunities for both Chinese influencers and global brands looking to connect with international audiences.
By 2024, 45% of Chinese influencers are expected to collaborate with international brands, facilitated by MCNs.
40% of global brands are planning to invest in cross-border influencer marketing in China, recognising the global reach of Chinese influencers.
For brands aiming to expand globally, partnering with an MCN can open doors to international collaborations. Influencers with a strong foothold in both China and overseas markets are valuable assets, enabling brands to run cross-border campaigns that reach multiple demographics.
Ready to Take the Next Step?
At InfluenConnect, we are paving the way for the next generation of influencers by breaking down language barriers, making it easier for you to collaborate with global brands. InfluenConnect focuses on diversity, global reach, data-driven insights, and sustainability. Contact us today to explore how we can help you expand your global presence!
Comments